Oxford Metrics CAPEX jumped on 219% in 2017 while Revenue decreased slightly on 1.1%
06 Dec 2017 • About Oxford Metrics (
$OMG) • By InTwits
Oxford Metrics reported FY2017 financial results today. Overall looking at the company's long term financial model we can say that:
- EBITDA Margin is quite volatile: 19.9% in FY2017, 23.1% in FY2016, 28.4% in FY2015, 14.7% in FY2014, 6.0% in FY2013
- Oxford Metrics has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's a lot of higher than industry average of 2.2%.
- CAPEX is quite volatile: 1.7 in FY2017, 0.53 in FY2016, 0.63 in FY2015, 0.71 in FY2014, 0.66 in FY2013
- The company has highly profitable business model: ROIC is at 12.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Oxford Metrics ($OMG) key annual financial indicators
| mln. £ | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 29.456 | 25.631 | 25.733 | 29.492 | 29.155 | -1.1% |
| Gross Profit | 17.184 | 15.927 | 16.288 | 19.427 | 20.556 | 5.8% |
| SG&A | | 11.996 | 9.316 | 11.163 | 13.984 | 25.3% |
| EBITDA | 1.757 | 3.774 | 7.319 | 6.808 | 5.796 | -14.9% |
| Net Income | -0.152 | -0.570 | 8.042 | 2.271 | 1.007 | -55.7% |
Balance Sheet
|
|---|
| Cash | 7.803 | 7.579 | 11.738 | 8.273 | 9.185 | 11.0% |
| Short Term Debt | 0.111 | 0.051 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.051 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.655 | 0.712 | 0.626 | 0.526 | 1.680 | 219.4% |
Ratios
|
|---|
| Revenue growth | -0.2% | -13.0% | 0.4% | 14.6% | -1.1% | |
| EBITDA growth | -62.2% | 114.8% | 93.9% | -7.0% | -14.9% | |
| Gross Margin | 58.3% | 62.1% | 63.3% | 65.9% | 70.5% | 4.6% |
| EBITDA Margin | 6.0% | 14.7% | 28.4% | 23.1% | 19.9% | -3.2% |
| Net Income Margin | -0.5% | -2.2% | 31.3% | 7.7% | 3.5% | -4.2% |
| SG&A, % of revenue | | 46.8% | 36.2% | 37.9% | 48.0% | 10.1% |
| CAPEX, % of revenue | 2.2% | 2.8% | 2.4% | 1.8% | 5.8% | 4.0% |
| ROIC | -0.1% | 0.8% | 14.6% | 16.3% | 12.7% | -3.6% |
| ROE | -0.6% | -1.9% | 26.9% | 8.1% | 3.7% | -4.4% |
| Net Debt/EBITDA | -4.3x | -2.0x | -1.6x | -1.2x | -1.6x | -0.4x |
Revenue and profitability
The company's Revenue decreased slightly on 1.1% in FY2017. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.2 pp from 23.1% to 19.9% in FY2017.
Gross Margin increased on 4.6 pp from 65.9% to 70.5% in FY2017. SG&A as a % of Revenue surged on 10.1 pp from 37.9% to 48.0% in FY2017.
Net Income marign decreased on 4.2 pp from 7.7% to 3.5% in FY2017.
Capital expenditures (CAPEX) and working capital investments
In FY2017 Oxford Metrics had CAPEX/Revenue of 5.8%. CAPEX/Revenue increased on 3.0 pp from 2.8% in FY2014 to 5.8% in FY2017. For the last three years the average CAPEX/Revenue was 3.3%.
Return on investment
The company operates at good ROIC (12.75%) while ROE is low (3.72%). ROIC decreased on 3.6 pp from 16.3% to 12.7% in FY2017. ROE decreased on 4.4 pp from 8.1% to 3.7% in FY2017.
Leverage (Debt)
The company has no debt. Cash jumped on 11.0% in FY2017.
Valuation
The company's trades at EV/EBITDA 11.6x and P/E 75.7x.
Appendix 1: Peers in Software & Computer Services
Below you can find Oxford Metrics 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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Pennant International Group ($PEN) | 29.1% | -4.7% | -44.4% | 74.0% | |
| Sopheon ($SPE) | 5.3% | -16.6% | 23.0% | 69.7% | |
| Coms ($COMS) | 46.8% | 763.3% | 110.4% | 36.1% | |
| Microgen ($MCGN) | -7.7% | -0.0% | 7.2% | 34.5% | |
| IMImobile ($IMO) | | 12.7% | 12.6% | 26.1% | 23.5% |
| |
|---|
| Median (34 companies) | 5.7% | 4.7% | 4.1% | 10.5% | 21.1% |
|---|
| Oxford Metrics ($OMG) | | -13.0% | 0.4% | 14.6% | -1.1% |
Top companies by Gross margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Lombard Risk Management ($LRM) | 98.8% | 99.2% | 98.6% | 99.3% | |
| Netcall ($NET) | 89.7% | 91.0% | 90.9% | 91.2% | 91.7% |
| Wandisco ($WAND) | 80.3% | 80.7% | 93.2% | 88.1% | |
| Dotdigital Group ($DOTD) | 92.7% | 90.5% | 89.3% | 87.4% | 86.1% |
| Idox ($IDOX) | 90.8% | 89.4% | 89.3% | 86.8% | |
| |
|---|
| Median (24 companies) | 62.1% | 57.8% | 58.8% | 56.6% | 86.0% |
|---|
| Oxford Metrics ($OMG) | 58.3% | 62.1% | 63.3% | 65.9% | 70.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Mail.Ru Group Ltd ($61HE) | 47.4% | 50.5% | 34.6% | 35.2% | |
| Dotdigital Group ($DOTD) | 39.4% | 29.2% | 32.0% | 30.4% | 31.7% |
| Idox ($IDOX) | 26.1% | 26.0% | 28.6% | 27.3% | |
| Proactis Holdings ($PHD) | 18.3% | 22.8% | 26.4% | 23.7% | 3.7% |
| Escher Group Hldgs ($ESCH) | 16.2% | 9.8% | 17.6% | 22.7% | |
| |
|---|
| Median (27 companies) | 13.4% | 11.1% | 12.3% | 11.0% | 14.8% |
|---|
| Oxford Metrics ($OMG) | 6.0% | 14.7% | 28.4% | 23.1% | 19.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Mail.Ru Group Ltd ($61HE) | 5.8% | 3.0% | 3.6% | 5.2% | |
| Csf Group ($CSFG) | 4.0% | 2.4% | 7.1% | 4.9% | |
| International Bus Mach Corp ($IBM) | 3.7% | 4.0% | 4.4% | 4.5% | |
| IMImobile ($IMO) | 3.3% | 3.9% | 2.0% | 3.3% | 2.8% |
| Unisys Corp ($USY) | 2.5% | 4.1% | 5.0% | 3.0% | |
| |
|---|
| Median (27 companies) | 1.5% | 1.9% | 1.0% | 1.2% | 1.0% |
|---|
| Oxford Metrics ($OMG) | 2.2% | 2.8% | 2.4% | 1.8% | 5.8% |
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Rm ($RM.) | 48.6% | 130.8% | 289.2% | 263.8% | |
| Triad Group ($TRD) | -3.8% | 24.5% | 61.5% | 74.4% | |
| Dotdigital Group ($DOTD) | 38.0% | 28.5% | 31.4% | 28.9% | 29.3% |
| International Bus Mach Corp ($IBM) | 31.0% | 28.1% | 25.7% | 18.7% | |
| Idox ($IDOX) | 12.6% | 12.5% | 14.8% | 15.8% | |
| |
|---|
| Median (34 companies) | 11.6% | 9.8% | 5.3% | 8.4% | 9.0% |
|---|
| Oxford Metrics ($OMG) | -0.1% | 0.8% | 14.6% | 16.3% | 12.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Zoo Digital Group ($ZOO) | 3.2x | | | 38.3x | |
| Progility ($PGY) | | 1.8x | 12.8x | 6.8x | |
| International Bus Mach Corp ($IBM) | 1.2x | 1.4x | 1.7x | 2.2x | |
| Idox ($IDOX) | 1.3x | 1.0x | 1.3x | 1.2x | |
| Datatec ($DTC) | -0.3x | 0.3x | 0.4x | 1.1x | |
| |
|---|
| Median (24 companies) | -0.4x | -0.3x | -0.5x | -0.8x | -1.8x |
|---|
| Oxford Metrics ($OMG) | -4.3x | -2.0x | -1.6x | -1.2x | -1.6x |
