Croma Security Solutions Group EBITDA jumped on 213% and Revenue surged on 59.2%
22 Oct 2018 • About Croma Security Solutions Group (
$CSSG) • By InTwits
Croma Security Solutions Group reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Croma Security Solutions Group is a fast growth stock: FY2018 revenue growth was 59.2%, 5 year revenue CAGR was 21.5% at FY2018 ROIC 18.2%
- EBITDA Margin is expanding: 7.1% in FY2018 vs. 3.6% in FY2017 vs. 4.2% in FY2014
- EBITDA Margin is quite volatile: 7.1% in FY2018, 3.6% in FY2017, 3.1% in FY2016, 3.1% in FY2015, 4.2% in FY2014
- Croma Security Solutions Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has highly profitable business model: ROIC is 18.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Croma Security Solutions Group's Revenue jumped on 59.2%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.5 pp from 3.6% to 7.1% in FY2018. During FY2014-FY2018 EBITDA Margin bottomed in FY2015 at 3.1% and was growing since that time.
Gross Margin increased on 2.1 pp from 18.2% to 20.4% in FY2018. During the last 5 years Gross Margin bottomed in FY2017 at 18.2%. SG&A as a % of Revenue decreased on 2.6 pp from 17.2% to 14.6% in FY2018. SG&A as a % of Revenue declined at -1.8 pp per annum in the last 5 years.
Net Income margin increased on 3.0 pp from 1.6% to 4.6% in FY2018. During FY2014-FY2018 Net Income margin bottomed in FY2016 at 0.80% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 0.75%. Croma Security Solutions Group showed almost no change in CAPEX/Revenue from FY2015 to FY2018. Average CAPEX/Revenue for the last three years was 0.55%.
Return on investment
The company operates at good ROIC (18.2%) and ROE (15.1%). ROIC jumped on 14.2 pp from 4.0% to 18.2% in FY2018. ROE surged on 11.6 pp from 3.5% to 15.1% in FY2018. During the last 5 years ROIC bottomed in FY2016 at 2.4% and was growing since that time. During the last 5 years ROE bottomed in FY2016 at 1.6% and was growing since that time.
Leverage (Debt)
Debt level is -0.8x Net Debt / EBITDA and 0.0x Debt / EBITDA. Debt dropped on 66.2% while cash jumped on 180%.
Croma Security Solutions Group has no short term refinancing risk: cash is higher than short term debt (3,263.6%).
Financial and operational results
FY ended 30 Jun 2018
Croma Security Solutions Group ($CSSG) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 14.813 | 15.829 | 19.031 | 22.058 | 35.119 | 59.2% |
| Gross Profit | 3.663 | 3.276 | 3.890 | 4.025 | 7.149 | 77.6% |
| SG&A | 3.348 | 3.081 | 3.675 | 3.802 | 5.136 | 35.1% |
| EBITDA | 0.629 | 0.486 | 0.588 | 0.799 | 2.500 | 212.9% |
| Net Income | 0.321 | 0.223 | 0.153 | 0.360 | 1.616 | 348.9% |
Balance Sheet
|
|---|
| Cash | 0.900 | 0.839 | 0.392 | 0.770 | 2.154 | 179.7% |
| Short Term Debt | 0.194 | 0.027 | 0.640 | 0.195 | 0.066 | -66.2% |
| Long Term Debt | 0.005 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.050 | 0.133 | 0.073 | 0.114 | 0.264 | 131.6% |
Ratios
|
|---|
| Revenue growth | 11.8% | 6.9% | 20.2% | 15.9% | 59.2% | |
| EBITDA growth | 48.9% | -22.8% | 21.0% | 35.9% | 212.9% | |
|
|---|
| Gross Margin | 24.7% | 20.7% | 20.4% | 18.2% | 20.4% | 2.1% |
| EBITDA Margin | 4.2% | 3.1% | 3.1% | 3.6% | 7.1% | 3.5% |
| SG&A, % of revenue | 22.6% | 19.5% | 19.3% | 17.2% | 14.6% | -2.6% |
| Net Income Margin | 2.2% | 1.4% | 0.8% | 1.6% | 4.6% | 3.0% |
| CAPEX, % of revenue | 0.3% | 0.8% | 0.4% | 0.5% | 0.8% | 0.2% |
|
|---|
| ROIC | 3.6% | 2.4% | 2.4% | 4.0% | 18.2% | 14.2% |
| ROE | 3.7% | 2.5% | 1.6% | 3.5% | 15.1% | 11.6% |
| Net Debt/EBITDA | -1.1x | -1.7x | 0.4x | -0.7x | -0.8x | -0.1x |
Peers in Support Services
Below you can find Croma Security Solutions Group benchmarking vs. other companies in Support 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Mobilityone Ltd ($MBO) | 3.7% | 23.0% | -5.3% | 37.9% | |
| Mortice Ltd ($MORT) | | 18.9% | 51.1% | 36.1% | 21.1% |
| Rws Hldgs ($RWS) | 20.9% | 1.8% | 28.1% | 34.5% | |
| Empresaria Group ($EMR) | -3.3% | -0.3% | 44.4% | 32.1% | |
| Norish ($NSH) | 3.7% | 16.4% | 16.7% | 31.4% | |
| |
|---|
| Median (49 companies) | 3.7% | 7.2% | 2.2% | 6.9% | 8.2% |
|---|
| Croma Security Solutions Group ($CSSG) | | 6.9% | 20.2% | 15.9% | 59.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inspired Energy ($INSE) | 78.7% | 76.2% | 80.5% | 83.1% | |
| Ienergizer Ltd ($IBPO) | 76.8% | 72.7% | 71.3% | 71.2% | 69.7% |
| Spectra Systems Corp ($SPSY) | 51.4% | 47.6% | 68.3% | 71.1% | |
| Vianet Group ($VNET) | 58.8% | 69.2% | 70.1% | 69.7% | 69.9% |
| Grafenia ($GRA) | 56.1% | 70.8% | 66.3% | 63.0% | 57.0% |
| |
|---|
| Median (43 companies) | 29.2% | 28.4% | 27.3% | 28.1% | 31.6% |
|---|
| Croma Security Solutions Group ($CSSG) | 24.7% | 20.7% | 20.4% | 18.2% | 20.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Northgate ($67GX) | 40.6% | 39.4% | 38.3% | 35.9% | 35.4% |
| Spectra Systems Corp ($SPSY) | 12.3% | 6.0% | 19.7% | 34.0% | |
| Inspired Energy ($INSE) | 1.5% | 35.4% | 34.4% | 32.4% | |
| Vp ($VP.) | 24.2% | 26.2% | 28.4% | 28.6% | 27.2% |
| Rws Hldgs ($RWS) | 22.8% | 23.1% | 26.4% | 25.5% | |
| |
|---|
| Median (49 companies) | 6.8% | 7.6% | 5.7% | 5.7% | 6.5% |
|---|
| Croma Security Solutions Group ($CSSG) | 4.2% | 3.1% | 3.1% | 3.6% | 7.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vp ($VP.) | 21.6% | 25.7% | 24.1% | 26.0% | 23.6% |
| Augean ($AUG) | 12.3% | 12.3% | 11.0% | 10.0% | |
| Petards Group ($PEG) | 0.5% | 0.9% | 1.7% | 10.0% | |
| Capital Drilling Ltd ($CAPD) | 13.9% | 10.1% | 13.7% | 9.0% | |
| Billing Services Group ($BILL) | 2.1% | 4.1% | 3.0% | 4.5% | |
| |
|---|
| Median (49 companies) | 1.0% | 1.0% | 1.1% | 0.9% | 1.3% |
|---|
| Croma Security Solutions Group ($CSSG) | 0.3% | 0.8% | 0.4% | 0.5% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Sthree ($STHR) | 38.1% | 50.2% | 46.2% | 43.4% | |
| Mortice Ltd ($MORT) | 19.6% | 21.9% | 14.5% | 23.2% | 18.4% |
| Petards Group ($PEG) | 24.7% | 23.9% | 22.7% | 20.3% | |
| Rws Hldgs ($RWS) | 24.5% | 23.3% | 23.5% | 20.2% | |
| Latham(James) ($LTHM) | 17.5% | 16.8% | 19.2% | 19.3% | 17.4% |
| |
|---|
| Median (50 companies) | 11.1% | 10.7% | 7.9% | 7.6% | 6.9% |
|---|
| Croma Security Solutions Group ($CSSG) | 3.6% | 2.4% | 2.4% | 4.0% | 18.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Nakama Group ($NAK) | 5.2x | 1.4x | 3.1x | 48.5x | |
| 21St Century Technology ($C21) | -0.8x | -0.2x | | 11.2x | |
| Ceps ($CEPS) | 6.6x | 3.8x | 13.9x | 5.8x | |
| Ibex Global Solutions ($IBEX) | 2.7x | 1.0x | 1.7x | 4.5x | |
| Menzies(John) ($68HN) | 2.0x | 2.4x | 1.2x | 3.0x | |
| |
|---|
| Median (42 companies) | 0.3x | 0.2x | 0.1x | 0.5x | 0.8x |
|---|
| Croma Security Solutions Group ($CSSG) | -1.1x | -1.7x | 0.4x | -0.7x | -0.8x |
