Wandisco reports 3.5% revenue growth in FY2016 and 101 pp EBITDA Margin growth from -182% to -81.6%
08 Mar 2017 • About Wandisco (
$WAND) • By InTwits
Wandisco reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wandisco doesn't have a profitable business model yet: FY2016 ROIC is -367.0%
- The company operates at negative EBITDA Margin: -81.6%
- Wandisco motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -157.1% for the sames years0
- Wandisco has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 2.0%.
- CAPEX is quite volatile: 0.064 in FY2016, 0.095 in FY2015, 0.48 in FY2014, 0.32 in FY2013, 0.14 in FY2012
- The company has unprofitable business model: ROIC is at -367.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wandisco ($WAND) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6.031 | 8.012 | 11.218 | 10.994 | 11.379 | 3.5% |
| Gross Profit | 5.534 | 6.433 | 9.053 | 10.245 | 10.030 | -2.1% |
| EBITDA | -3.816 | -11.936 | -29.765 | -20.029 | -9.283 | -53.7% |
| Net Income | -7.981 | -19.731 | -38.307 | -29.906 | -9.275 | -69.0% |
Balance Sheet
|
|---|
| Cash | 14.545 | 25.673 | 2.481 | 2.555 | 7.558 | 195.8% |
| Short Term Debt | 0.000 | 0.035 | 0.008 | 0.000 | 0.089 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.294 | |
Cash flow
|
|---|
| Capex | 0.138 | 0.320 | 0.475 | 0.095 | 0.064 | -32.6% |
Ratios
|
|---|
| Revenue growth | 55.5% | 32.8% | 40.0% | -2.0% | 3.5% | |
| EBITDA growth | -4,992.3% | 212.8% | 149.4% | -32.7% | -53.7% | |
| Gross Margin | 91.8% | 80.3% | 80.7% | 93.2% | 88.1% | -5.0% |
| EBITDA Margin | -63.3% | -149.0% | -265.3% | -182.2% | -81.6% | 100.6% |
| Net Income Margin | -132.3% | -246.3% | -341.5% | -272.0% | -81.5% | 190.5% |
| CAPEX, % of revenue | 2.3% | 4.0% | 4.2% | 0.9% | 0.6% | -0.3% |
| ROIC | -158.2% | -83.0% | -230.0% | -585.9% | -367.0% | 218.8% |
| ROE | | -96.5% | -230.3% | -587.0% | -197.9% | 389.2% |
Revenue and profitability
The company's Revenue increased on 3.5% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.5 pp from 19.8% to 11.3% in FY2016.
Gross Margin decreased on 5.0 pp from 93.2% to 88.1% in FY2016.
Net Income marign jumped on 191 pp from -272% to -81.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.56%. CAPEX/Revenue decreased on 3.4 pp from 4.0% in FY2013 to 0.56% in FY2016. Average CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at negative ROIC (-367.05%) and ROE (-197.87%). ROIC surged on 219 pp from -586% to -367% in FY2016. ROE jumped on 389 pp from -587% to -198% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt jumped while cash surged on 196% in FY2016.
Appendix 1: Peers in Software & Computer Services
Below you can find Wandisco benchmarking vs. other companies in Software & Computer Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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 ($GLS) | 14.3% | 20.9% | 311.1% | 33.0% | |
| |
|---|
| Median (45 companies) | 10.5% | 5.7% | 4.4% | 4.1% | 7.2% |
|---|
| Wandisco ($WAND) | | 32.8% | 40.0% | -2.0% | 3.5% |
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% | |
| Netcall ($NET) | 88.2% | 89.7% | 91.0% | 90.9% | 91.2% |
| Idox ($IDOX) | 90.4% | 90.8% | 89.4% | 89.3% | 86.8% |
| Dotdigital Group ($DOTD) | 94.0% | 92.7% | 90.5% | 89.3% | 87.4% |
| |
|---|
| Median (38 companies) | 61.4% | 62.0% | 57.8% | 58.8% | 55.1% |
|---|
| Wandisco ($WAND) | 91.8% | 80.3% | 80.7% | 93.2% | 88.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mail.Ru Group Ltd ($61HE) | 43.1% | 47.4% | 50.5% | 34.6% | 35.2% |
| Dotdigital Group ($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 ($OMG) | 15.7% | 6.0% | 14.7% | 28.4% | 23.1% |
| |
|---|
| Median (45 companies) | 14.3% | 13.4% | 13.0% | 12.5% | 11.0% |
|---|
| Wandisco ($WAND) | -63.3% | -149.0% | -265.3% | -182.2% | -81.6% |
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 ($USY) | 2.1% | 2.5% | 4.1% | 5.0% | 3.0% |
| |
|---|
| Median (45 companies) | 1.5% | 1.5% | 1.9% | 1.3% | 1.2% |
|---|
| Wandisco ($WAND) | 2.3% | 4.0% | 4.2% | 0.9% | 0.6% |
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 ($GLS) | 58.7% | 60.9% | 40.8% | 22.2% | |
| |
|---|
| Median (45 companies) | 13.5% | 11.6% | 9.8% | 7.7% | 9.8% |
|---|
| Wandisco ($WAND) | -158.2% | -83.0% | -230.0% | -585.9% | -367.0% |
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 (36 companies) | -0.5x | -0.5x | -0.3x | -0.6x | -0.8x |
|---|
