Unisys Corp reports 62.6% EBITDA growth and 3.1 pp EBITDA Margin growth from 4.1% to 7.2%
26 Jan 2017 • About Unisys Corp (
$USY) • By InTwits
Unisys Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Unisys Corp is a company in decline: 2016 revenue growth was -6.4%, 5 years revenue CAGR was -6.1%
- EBITDA Margin is quite volatile: 7.2% in 2016, 4.1% in 2015, 9.6% in 2014, 11.0% in 2013, 13.3% in 2012
- Unisys Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 2.0%.
- CAPEX is quite volatile: 187 in 2016, 208 in 2015, 293 in 2014, 397 in 2013, 445 in 2012
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Unisys Corp ($USY) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,706 | 3,457 | 3,356 | 3,015 | 2,821 | -6.4% |
| Gross Profit | 973 | 848 | 778 | 541 | 559 | 3.3% |
| SG&A | 573 | 559 | 554 | 520 | 456 | -12.3% |
| EBITDA | 494 | 379 | 324 | 125 | 203 | 62.6% |
| Net Income | 146 | 109 | 47 | -110 | -48 | -56.6% |
Balance Sheet
|
|---|
| Cash | 656 | 640 | 494 | 365 | 371 | 1.5% |
| Short Term Debt | 0 | 0 | 2 | 77 | 106 | 38.0% |
| Long Term Debt | 210 | 210 | 222 | 236 | 194 | -17.6% |
Cash flow
|
|---|
| Capex | 76 | 87 | 139 | 152 | 84 | -44.7% |
Ratios
|
|---|
| Revenue growth | -3.8% | -6.7% | -2.9% | -10.2% | -6.4% | |
| EBITDA growth | -4.9% | -23.2% | -14.7% | -61.4% | 62.6% | |
| Gross Margin | 26.3% | 24.5% | 23.2% | 17.9% | 19.8% | 1.9% |
| EBITDA Margin | 13.3% | 11.0% | 9.6% | 4.1% | 7.2% | 3.1% |
| Net Income Margin | 3.9% | 3.1% | 1.4% | -3.6% | -1.7% | 2.0% |
| SG&A, % of revenue | 15.5% | 16.2% | 16.5% | 17.2% | 16.2% | -1.1% |
| CAPEX, % of revenue | 2.1% | 2.5% | 4.1% | 5.0% | 3.0% | -2.1% |
| Net Debt/EBITDA | -0.9x | -1.1x | -0.8x | -0.4x | -0.3x | 0.1x |
Revenue and profitability
Unisys Corp's Revenue decreased on 6.4% in 2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.1 pp from 4.1% to 7.2% in 2016.
Gross Margin increased slightly on 1.9 pp from 17.9% to 19.8% in 2016. SG&A as a % of Revenue decreased slightly on 1.1 pp from 17.2% to 16.2% in 2016.
Net Income marign increased slightly on 2.0 pp from -3.6% to -1.7% in 2016.
Capital expenditures (CAPEX) and working capital investments
Unisys Corp's CAPEX/Revenue was 3.0% in 2016. Unisys Corp showed almost no change in CAPEX/Revenue from 2013 to 2016. Average CAPEX/Revenue for the last three years was 4.0%.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from -0.4x to -0.3x in 2016. Debt decreased on 3.9% in 2016 while cash increased slightly on 1.5% in 2016.
Appendix 1: Peers in Software & Computer Services
Below we provide Unisys Corp 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 ($PHD) | | 7.0% | 26.2% | 69.6% | 12.5% |
| Progility ($PGY) | | | | 51.0% | 3.2% |
| Galasys ($GLS) | 14.3% | 20.9% | 311.1% | 33.0% | |
| |
|---|
| Median (44 companies) | 12.5% | 6.8% | 5.2% | 4.7% | 10.3% |
|---|
| Unisys Corp ($USY) | | -6.7% | -2.9% | -10.2% | -6.4% |
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% | 91.2% |
| Idox ($IDOX) | 90.4% | 90.8% | 89.4% | 89.3% | 86.8% |
| |
|---|
| Median (37 companies) | 63.2% | 63.0% | 58.9% | 60.3% | 62.6% |
|---|
| Unisys Corp ($USY) | 26.3% | 24.5% | 23.2% | 17.9% | 19.8% |
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% | 30.4% |
| Idox ($IDOX) | 30.9% | 26.1% | 26.0% | 28.6% | 27.3% |
| Galasys ($GLS) | 44.0% | 83.6% | 32.6% | 28.5% | |
| Oxford Metrics ($OMG) | 15.7% | 6.0% | 14.7% | 28.4% | 23.1% |
| |
|---|
| Median (44 companies) | 14.3% | 13.8% | 13.2% | 12.6% | 9.6% |
|---|
| Unisys Corp ($USY) | 13.3% | 11.0% | 9.6% | 4.1% | 7.2% |
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% | |
| International Bus Mach Corp ($IBM) | 3.9% | 3.7% | 4.0% | 4.4% | 4.5% |
| |
|---|
| Median (44 companies) | 1.5% | 1.5% | 1.9% | 1.1% | 1.2% |
|---|
| Unisys Corp ($USY) | 2.1% | 2.5% | 4.1% | 5.0% | 3.0% |
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% | 28.9% |
| International Bus Mach Corp ($IBM) | 36.1% | 31.0% | 28.1% | 25.7% | 18.7% |
| Galasys ($GLS) | 58.7% | 60.9% | 40.8% | 22.2% | |
| Instem ($INS) | 20.6% | 14.7% | 10.9% | 20.4% | |
| |
|---|
| Median (44 companies) | 13.0% | 11.6% | 9.8% | 5.3% | 9.8% |
|---|
| Unisys Corp ($USY) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progility ($PGY) | 2.0x | | 1.8x | 12.8x | 6.8x |
| Parity Group ($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 ($IBM) | 0.9x | 1.2x | 1.4x | 1.7x | 2.2x |
| |
|---|
| Median (34 companies) | -0.4x | -0.4x | -0.3x | -0.6x | -0.8x |
|---|
| Unisys Corp ($USY) | -0.9x | -1.1x | -0.8x | -0.4x | -0.3x |
