Mail.Ru Group Ltd Net Income jumped on 302% in 2016 and EBITDA Margin increased slightly on 0.62 pp from 34.6% to 35.2%
22 Feb 2017 • About Mail.Ru Group Ltd (
$61HE) • By InTwits
Mail.Ru Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mail.Ru Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's a lot of higher than industry average of 2.0%.
- CAPEX is quite volatile: 16,643 in 2016, 11,423 in 2015, 5,206 in 2014, 4,233 in 2013, 7,433 in 2012
- The company has potentially unprofitable business model: ROIC is at 3.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mail.Ru Group Ltd ($61HE) key annual financial indicators
| mln. RUB | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 20,905 | 27,070 | 32,327 | 37,986 | 40,001 | 5.3% |
| SG&A | 751 | 894 | 1,188 | 1,338 | | -100.0% |
| EBITDA | 9,005 | 12,825 | 16,333 | 13,144 | 14,091 | 7.2% |
| Net Income | 38,257 | 26,564 | 62,353 | 2,937 | 11,813 | 302.2% |
Balance Sheet
|
|---|
| Cash | 27,690 | 30,987 | 4,585 | 8,676 | 5,513 | -36.5% |
| Short Term Debt | 0 | 0 | 5,857 | 4,875 | 122 | -97.5% |
| Long Term Debt | 0 | 0 | 16,205 | 10,331 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 994 | 1,582 | 978 | 1,378 | 2,064 | 49.8% |
Ratios
|
|---|
| Revenue growth | 40.0% | 29.5% | 19.4% | 17.5% | 5.3% | |
| EBITDA growth | 51.1% | 42.4% | 27.4% | -19.5% | 7.2% | |
| EBITDA Margin | 43.1% | 47.4% | 50.5% | 34.6% | 35.2% | 0.6% |
| Net Income Margin | 183.0% | 98.1% | 192.9% | 7.7% | 29.5% | 21.8% |
| SG&A, % of revenue | 3.6% | 3.3% | 3.7% | 3.5% | | -3.5% |
| CAPEX, % of revenue | 4.8% | 5.8% | 3.0% | 3.6% | 5.2% | 1.5% |
| ROIC | 5.7% | 11.4% | 9.8% | 3.5% | 3.8% | 0.3% |
| ROE | 35.4% | 31.0% | 55.7% | 2.0% | 7.6% | 5.6% |
| Net Debt/EBITDA | -3.1x | -2.4x | 1.1x | 0.5x | -0.4x | -0.9x |
Revenue and profitability
Mail.Ru Group Ltd's Revenue increased on 5.3% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.90 pp from 8.4% to 9.3% in FY2016.
Net Income marign jumped on 21.8 pp from 7.7% to 29.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Mail.Ru Group Ltd's CAPEX/Revenue was 5.2% in FY2016. Mail.Ru Group Ltd showed small CAPEX/Revenue decline of 0.68 pp from 5.8% in FY2013 to 5.2% in FY2016. It's average CAPEX/Revenue for the last three years was 3.9%.
Return on investment
The company operates at low ROIC (3.82%) and ROE (7.58%). ROIC showed almost no change in FY2016. ROE increased on 5.6 pp from 2.0% to 7.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.4x and Debt / EBITDA is 0.0x. Net Debt / EBITDA dropped on 0.9x from 0.5x to -0.4x in FY2016. Debt dropped on 99.2% in FY2016 while cash dropped on 36.5% in FY2016.
Appendix 1: Peers in Software & Computer Services
Below we provide Mail.Ru Group Ltd 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 (45 companies) | 10.5% | 5.7% | 4.4% | 3.1% | 7.2% |
|---|
| Mail.Ru Group Ltd ($61HE) | | 29.5% | 19.4% | 17.5% | 5.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lombard Risk Management ($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 (39 companies) | 62.7% | 62.0% | 58.0% | 60.2% | 53.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% |
| Centralnic Group ($CNIC) | 38.7% | 31.1% | 24.8% | 28.3% | |
| |
|---|
| Median (45 companies) | 13.3% | 12.8% | 11.1% | 12.3% | 9.6% |
|---|
| Mail.Ru Group Ltd ($61HE) | 43.1% | 47.4% | 50.5% | 34.6% | 35.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rapidcloud Intl ($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 ($NASA) | 17.9% | | 2.1% | 5.2% | |
| Unisys Corp ($USY) | 2.1% | 2.5% | 4.1% | 5.0% | 3.0% |
| |
|---|
| Median (45 companies) | 1.5% | 1.5% | 1.9% | 1.0% | 1.2% |
|---|
| Mail.Ru Group Ltd ($61HE) | 4.8% | 5.8% | 3.0% | 3.6% | 5.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rm ($RM.) | | 48.6% | 130.8% | 289.2% | 263.8% |
| 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% | |
| |
|---|
| Median (45 companies) | 13.5% | 11.6% | 9.8% | 7.7% | 10.0% |
|---|
| Mail.Ru Group Ltd ($61HE) | 5.7% | 11.4% | 9.8% | 3.5% | 3.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progility ($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 (35 companies) | -0.4x | -0.4x | -0.4x | -0.6x | -0.8x |
|---|
| Mail.Ru Group Ltd ($61HE) | -3.1x | -2.4x | 1.1x | 0.5x | -0.4x |
