Kalibrate Technologies EBITDA dropped on 19.7% in 2016 and EBITDA Margin decreased on 3.2 pp from 12.9% to 9.6%
20 Sep 2016 • About Kalibrate Technologies (
$KLBT) • By InTwits
Kalibrate Technologies reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kalibrate Technologies is a growth stock: FY2016 revenue growth was 7.2%, 5 year revenue CAGR was 23.4% at FY2016 ROIC 10.2%
- Kalibrate Technologies has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's a lot of higher than industry average of 1.8%.
- CAPEX is quite volatile: 0.056 in FY2016, 0.032 in FY2015, 1.4 in FY2014, 1.9 in FY2013, 2.2 in FY2012
- The company has business model with average profitability: ROIC is at 10.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kalibrate Technologies ($KLBT) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 20.972 | 24.262 | 28.802 | 32.549 | 34.895 | 7.2% |
| EBITDA | 2.075 | 3.462 | 3.867 | 4.185 | 3.362 | -19.7% |
| Net Income | -1.494 | 3.247 | 0.187 | 1.989 | 2.037 | 2.4% |
Balance Sheet
|
|---|
| Cash | 2.867 | 2.326 | 9.733 | 4.612 | 2.416 | -47.6% |
| Short Term Debt | 0.000 | 0.052 | 0.066 | 0.039 | 0.026 | -33.3% |
| Long Term Debt | 3.303 | 2.814 | 0.042 | 0.000 | 0.052 | |
Cash flow
|
|---|
| Capex | 0.282 | 0.242 | 0.233 | 0.228 | 0.429 | 88.2% |
Ratios
|
|---|
| Revenue growth | 71.8% | 15.7% | 18.7% | 13.0% | 7.2% | |
| EBITDA growth | 84.5% | 66.9% | 11.7% | 8.2% | -19.7% | |
| EBITDA Margin | 9.9% | 14.3% | 13.4% | 12.9% | 9.6% | -3.2% |
| Net Income Margin | -7.1% | 13.4% | 0.6% | 6.1% | 5.8% | -0.3% |
| CAPEX, % of revenue | 1.3% | 1.0% | 0.8% | 0.7% | 1.2% | 0.5% |
| ROIC | 12.5% | 40.2% | 29.2% | 18.8% | 10.2% | -8.6% |
| ROE | -42.5% | 74.1% | 1.8% | 12.0% | 11.4% | -0.6% |
| Net Debt/EBITDA | 0.2x | 0.2x | -2.5x | -1.1x | -0.7x | 0.4x |
Revenue and profitability
The company's Revenue increased on 7.2% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.88 pp from 7.2% to 8.1% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.2% in FY2016. Kalibrate Technologies's CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 0.91%.
Return on investment
The company operates at low ROIC (10.23%) and ROE (11.35%). ROIC decreased on 8.6 pp from 18.8% to 10.2% in FY2016. ROE decreased slightly on 0.63 pp from 12.0% to 11.4% in FY2016.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA surged on 0.4x from -1.1x to -0.7x in FY2016. Debt surged on 100% in FY2016 while cash dropped on 47.6% in FY2016.
Valuation
Kalibrate Technologies's trades at EV/EBITDA 7.5x and P/E 13.5x while industy averages are 15.6x and 19.1x. The company's EV/(EBITDA-CAPEX) is 8.6x with the industry average at 19.0x.
Appendix 1: Peers in Software & Computer Services
Below we provide Kalibrate Technologies benchmarking against other companies in Software & Computer Services industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coms ($COMS) | | 46.8% | 763.3% | 110.4% | 36.1% |
| Centralnic Group ($CNIC) | 15.9% | 4.0% | 98.9% | 71.3% | |
| Proactis Holdings ($PHD) | 20.4% | 7.0% | 26.2% | 69.6% | |
| Progility ($PGY) | 4.6% | | | 51.0% | |
| Galasys ($GLS) | 14.3% | 20.9% | 311.1% | 33.0% | |
| |
|---|
| Median (44 companies) | 7.2% | 6.1% | 4.5% | 3.6% | 10.3% |
|---|
| Kalibrate Technologies ($KLBT) | | 15.7% | 18.7% | 13.0% | 7.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lombard Risk Management ($LRM) | 99.0% | 98.8% | 99.2% | 98.6% | 99.3% |
| Phoenix It Group ($PNX) | 97.0% | 97.2% | 97.6% | 97.9% | |
| Wandisco ($WAND) | 91.8% | 80.3% | 80.7% | 93.2% | |
| Netcall ($NET) | 88.2% | 89.7% | 91.0% | 90.9% | |
| Idox ($IDOX) | 90.4% | 90.8% | 89.4% | 89.3% | |
| |
|---|
| Median (38 companies) | 63.0% | 62.1% | 58.4% | 60.2% | 17.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mail.Ru Group Ltd ($61HE) | 43.1% | 47.4% | 50.5% | 34.6% | |
| Dotdigital Group ($DOTD) | 31.4% | 39.4% | 29.2% | 32.0% | |
| Idox ($IDOX) | 30.9% | 26.1% | 26.0% | 28.6% | |
| Galasys ($GLS) | 44.0% | 83.6% | 32.6% | 28.5% | |
| Oxford Metrics ($OMG) | 15.7% | 6.0% | 14.7% | 28.4% | |
| |
|---|
| Median (44 companies) | 14.3% | 13.0% | 12.0% | 12.3% | 3.0% |
|---|
| Kalibrate Technologies ($KLBT) | 9.9% | 14.3% | 13.4% | 12.9% | 9.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rapidcloud Intl ($RCI) | 1.0% | 23.1% | 11.6% | 19.6% | |
| Coms ($COMS) | 0.5% | 0.9% | 3.4% | 7.5% | 0.1% |
| Csf Group ($CSFG) | 1.5% | 4.0% | 2.4% | 7.1% | 4.9% |
| Nasstar ($NASA) | 17.9% | | 2.1% | 5.2% | |
| Unisys Corp ($USY) | 2.1% | 2.5% | 4.1% | 5.0% | |
| |
|---|
| Median (44 companies) | 1.5% | 1.6% | 1.9% | 1.4% | 0.5% |
|---|
| Kalibrate Technologies ($KLBT) | 1.3% | 1.0% | 0.8% | 0.7% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Triad Group ($TRD) | 4.1% | -3.8% | 24.5% | 61.5% | 74.4% |
| Dotdigital Group ($DOTD) | 26.4% | 38.0% | 28.5% | 31.4% | |
| International Bus Mach Corp ($IBM) | 36.1% | 31.0% | 28.1% | 25.7% | |
| Galasys ($GLS) | 58.7% | 60.9% | 40.8% | 22.2% | |
| Instem ($INS) | 20.6% | 14.7% | 10.9% | 20.4% | |
| |
|---|
| Median (44 companies) | 13.5% | 11.5% | 9.4% | 4.3% | -6.5% |
|---|
| Kalibrate Technologies ($KLBT) | 12.5% | 40.2% | 29.2% | 18.8% | 10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progility ($PGY) | 2.0x | | 1.8x | 12.8x | |
| Parity Group ($PTY) | 4.7x | | 4.9x | 5.1x | |
| Nasstar ($NASA) | -5.3x | | 0.0x | 1.9x | |
| Phoenix It Group ($PNX) | 4.3x | | | 1.9x | |
| International Bus Mach Corp ($IBM) | 0.9x | 1.2x | 1.4x | 1.7x | |
| |
|---|
| Median (34 companies) | -0.5x | -0.5x | -0.3x | -0.5x | -1.4x |
|---|
| Kalibrate Technologies ($KLBT) | 0.2x | 0.2x | -2.5x | -1.1x | -0.7x |
