Ubisense Group reports 20.7% revenue growth in FY2016 and 14.9 pp EBITDA Margin growth from -5.3% to 9.6%
21 Mar 2017 • About Ubisense Group (
$UBI) • By InTwits
Ubisense Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ubisense Group doesn't have a profitable business model yet: FY2016 ROIC is -34.0%
- EBITDA Margin is quite volatile: 9.6% in FY2016, -5.3% in FY2015, 5.1% in FY2014, 3.9% in FY2013, 5.2% in FY2012
- Ubisense Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 2.0%.
- CAPEX is quite volatile: 0.026 in FY2016, 0.20 in FY2015, 0.89 in FY2014, 0.14 in FY2013, 0.49 in FY2012
- The company has unprofitable business model: ROIC is at -34.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ubisense Group ($UBI) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 24.292 | 27.002 | 35.051 | 21.982 | 26.523 | 20.7% |
| Gross Profit | 9.602 | 9.241 | 13.998 | 7.692 | 10.243 | 33.2% |
| EBITDA | 1.252 | 1.049 | 1.771 | -1.161 | 2.546 | -319.3% |
| Net Income | -0.638 | -1.968 | -4.085 | -16.569 | -5.196 | -68.6% |
Balance Sheet
|
|---|
| Cash | 2.716 | 3.964 | 3.697 | 5.392 | 3.498 | -35.1% |
| Short Term Debt | 0.000 | 0.000 | 0.927 | 1.123 | 0.750 | -33.2% |
| Long Term Debt | 0.000 | 3.500 | 6.000 | 4.500 | 2.500 | -44.4% |
Cash flow
|
|---|
| Capex | 0.492 | 0.140 | 0.885 | 0.196 | 0.026 | -86.7% |
Ratios
|
|---|
| Revenue growth | 2.1% | 11.2% | 29.8% | -37.3% | 20.7% | |
| EBITDA growth | -12.1% | -16.2% | 68.8% | -165.6% | -319.3% | |
| Gross Margin | 39.5% | 34.2% | 39.9% | 35.0% | 38.6% | 3.6% |
| EBITDA Margin | 5.2% | 3.9% | 5.1% | -5.3% | 9.6% | 14.9% |
| Net Income Margin | -2.6% | -7.3% | -11.7% | -75.4% | -19.6% | 55.8% |
| CAPEX, % of revenue | 2.0% | 0.5% | 2.5% | 0.9% | 0.1% | -0.8% |
| ROIC | -0.9% | -3.9% | -8.5% | -37.2% | -34.0% | 3.2% |
| ROE | -3.3% | -10.5% | -22.1% | -111.4% | -50.0% | 61.3% |
| Net Debt/EBITDA | -2.2x | -0.4x | 1.8x | | -0.1x | -0.1x |
Revenue and profitability
The company's Revenue surged on 20.7% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 7.4% to 10.7% in FY2016.
Gross Margin increased on 3.6 pp from 35.0% to 38.6% in FY2016.
Net Income marign surged on 55.8 pp from -75.4% to -19.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Ubisense Group had CAPEX/Revenue of 0.098%. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at negative ROIC (-34.01%) and ROE (-50.03%). ROIC increased on 3.2 pp from -37.2% to -34.0% in FY2016. ROE surged on 61.3 pp from -111% to -50.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.1x and Debt / EBITDA is 1.3x. Net Debt / EBITDA decreased0.1x from to -0.1x in FY2016. Debt dropped on 42.2% in FY2016 while cash dropped on 35.1% in FY2016.
Appendix 1: Peers in Software & Computer Services
Below you can find Ubisense Group 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 ($GLS) | 14.3% | 20.9% | 311.1% | 33.0% | |
| |
|---|
| Median (45 companies) | 10.5% | 5.7% | 4.4% | 4.1% | 10.3% |
|---|
| Ubisense Group ($UBI) | | 11.2% | 29.8% | -37.3% | 20.7% |
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 ($WAND) | 91.8% | 80.3% | 80.7% | 93.2% | 88.1% |
| Netcall ($NET) | 88.2% | 89.7% | 91.0% | 90.9% | 91.2% |
| Idox ($IDOX) | 90.4% | 90.8% | 89.4% | 89.3% | 86.8% |
| |
|---|
| Median (38 companies) | 63.0% | 62.1% | 58.4% | 60.2% | 60.0% |
|---|
| Ubisense Group ($UBI) | 39.5% | 34.2% | 39.9% | 35.0% | 38.6% |
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 ($OMG) | 15.7% | 6.0% | 14.7% | 28.4% | 23.1% |
| |
|---|
| Median (45 companies) | 14.3% | 13.4% | 13.0% | 12.5% | 11.1% |
|---|
| Ubisense Group ($UBI) | 5.2% | 3.9% | 5.1% | -5.3% | 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 ($USY) | 2.1% | 2.5% | 4.1% | 5.0% | 3.0% |
| |
|---|
| Median (45 companies) | 1.5% | 1.6% | 1.9% | 1.3% | 1.4% |
|---|
| Ubisense Group ($UBI) | 2.0% | 0.5% | 2.5% | 0.9% | 0.1% |
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 ($GLS) | 58.7% | 60.9% | 40.8% | 22.2% | |
| |
|---|
| Median (45 companies) | 13.5% | 11.6% | 9.8% | 7.7% | 9.8% |
|---|
| Ubisense Group ($UBI) | -0.9% | -3.9% | -8.5% | -37.2% | -34.0% |
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) | -0.4x | -0.5x | -0.4x | -0.6x | -0.9x |
|---|
