Oxford Metrics Net Income jumped on 252% and Revenue increased on 8.6%
04 Dec 2018 • About Oxford Metrics (
$OMG) • By InTwits
Oxford Metrics reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Oxford Metrics has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 3.4%
- CAPEX is quite volatile: £1m in FY2018, £2m in FY2017, £1m in FY2016, £1m in FY2015, £1m in FY2014
- The company has highly profitable business model: ROIC is 16.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 8.6%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.7 pp from 19.9% to 23.5% in FY2018.
Gross Margin increased slightly on 1.9 pp from 70.5% to 72.4% in FY2018. Gross Margin grew at 2.8 pp per annum in FY2014-FY2018. SG&A as a % of Revenue decreased slightly on 0.60 pp from 48.0% to 47.4% in FY2018.
Net Income margin increased on 7.7 pp from 3.5% to 11.2% in FY2018. The efficient tax rate was 13.6% in FY2018.
Investments (CAPEX, working capital and M&A)
Oxford Metrics's CAPEX/Revenue was 3.9% in FY2018. Oxford Metrics showed small growth in CAPEX/Revenue of 1.5 pp from 2.4% in FY2015 to 3.9% in FY2018. Average CAPEX/Revenue for the last three years was 3.8%.
Oxford Metrics has spent £-1m on M&A in FY2018 which accounts for -4.1% of revenue.
Return on investment
The company operates at good ROIC (16.4%) and ROE (12.4%). ROIC increased on 3.7 pp from 12.7% to 16.4% in FY2018. ROE increased on 8.7 pp from 3.7% to 12.4% in FY2018.
Leverage (Debt)
The company has no debt. Cash jumped on 33.1%.
Valuation and dividends
Oxford Metrics's trades at EV/EBITDA 9.8x and P/E 24.1x.
The company paid 28.2% of Net Income as dividends in FY2018.
Management team
At the end of financial year the company had 9.3% shares owned by insiders.
At the end of financial year the company had 234 employees. Average revenue per employee in FY2018 was £135,282.
Financial and operational results
FY ended 30 Sep 2018
Oxford Metrics ($OMG) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 25.631 | 25.733 | 29.492 | 29.155 | 31.656 | 8.6% |
| Gross Profit | 15.927 | 16.288 | 19.427 | 20.556 | 22.913 | 11.5% |
| SG&A | 11.996 | 9.316 | 11.163 | 13.984 | 14.993 | 7.2% |
| EBITDA | 3.774 | 7.319 | 6.808 | 5.796 | 7.449 | 28.5% |
| EBIT | | | | | 4.970 | |
| Tax | | | | | 0.556 | |
| Net Income | -0.570 | 8.042 | 2.271 | 1.007 | 3.543 | 251.8% |
| Stock Based Compensation | | | | | 0.323 | |
Balance Sheet
|
|---|
| Cash | 7.579 | 11.738 | 8.273 | 9.185 | 12.229 | 33.1% |
| Inventory | | | | | 2.403 | |
| Short Term Debt | 0.051 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.712 | 0.626 | 0.526 | 1.680 | 1.243 | -26.0% |
| Dividends | | | | | 1.000 | |
| Acquisitions | | | | | -1.295 | |
Ratios
|
|---|
| Revenue growth | -13.0% | 0.4% | 14.6% | -1.1% | 8.6% | |
| EBITDA growth | 114.8% | 93.9% | -7.0% | -14.9% | 28.5% | |
|
|---|
| Gross Margin | 62.1% | 63.3% | 65.9% | 70.5% | 72.4% | 1.9% |
| EBITDA Margin | 14.7% | 28.4% | 23.1% | 19.9% | 23.5% | 3.7% |
| EBIT Margin | | | | | 15.7% |
| SG&A, % of revenue | 46.8% | 36.2% | 37.9% | 48.0% | 47.4% | -0.6% |
| SBC, % of revenue | | | | | 1.0% |
| Net Income Margin | -2.2% | 31.3% | 7.7% | 3.5% | 11.2% | 7.7% |
| CAPEX, % of revenue | 2.8% | 2.4% | 1.8% | 5.8% | 3.9% | -1.8% |
|
|---|
| ROIC | 0.8% | 14.6% | 16.3% | 12.7% | 16.4% | 3.7% |
| ROE | -1.9% | 26.9% | 8.1% | 3.7% | 12.4% | 8.7% |
| Net Debt/EBITDA | -2.0x | -1.6x | -1.2x | -1.6x | -1.6x | -0.1x |
People
|
|---|
| Insider ownership | | | | | 9.3% | |
| Employees | | | | | 234 | |
| Revenue/Employee, th. £ | | | | | 135 | |
Peers in Software & Computer Services
Below we provide Oxford Metrics 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Pinnacle Technology Group ($PINN) | -17.1% | | | 108.6% | |
| Wandisco ($WAND) | 40.0% | -2.0% | 3.5% | 72.6% | |
| Microgen ($MCGN) | -0.0% | 7.2% | 34.5% | 45.7% | |
| Lombard Risk Management ($LRM) | 21.6% | 5.4% | 10.3% | 44.8% | |
| Zoo Digital Group ($ZOO) | | 19.9% | 1.5% | 41.7% | 73.2% |
| |
|---|
| Median (39 companies) | 0.6% | 6.3% | 10.9% | 12.4% | 24.7% |
|---|
| Oxford Metrics ($OMG) | | 0.4% | 14.6% | -1.1% | 8.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lombard Risk Management ($LRM) | 99.2% | 98.6% | 99.3% | 99.6% | |
| Netcall ($NET) | 91.0% | 90.9% | 91.2% | 91.7% | 90.2% |
| Wandisco ($WAND) | 80.7% | 93.2% | 88.1% | 90.0% | |
| Eleco ($ELCO) | 87.8% | 88.9% | 86.7% | 87.9% | |
| Dotdigital Group ($DOTD) | 90.5% | 89.3% | 87.4% | 86.1% | 78.9% |
| |
|---|
| Median (33 companies) | 57.5% | 55.0% | 56.6% | 55.1% | 43.0% |
|---|
| Oxford Metrics ($OMG) | 62.1% | 63.3% | 65.9% | 70.5% | 72.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Rightster Group ($RSTR) | -146.3% | -64.1% | -19.9% | 114.2% | |
| Dotdigital Group ($DOTD) | 29.2% | 32.0% | 30.4% | 31.7% | 26.9% |
| Sopheon ($SPE) | 6.8% | 19.8% | 22.6% | 27.9% | |
| Mail.Ru Group Ltd ($61HE) | 50.5% | 34.6% | 35.2% | 25.1% | |
| Gresham Computing ($GHT) | 8.8% | 18.1% | 20.6% | 22.6% | |
| |
|---|
| Median (39 companies) | 10.3% | 12.3% | 10.2% | 10.7% | 9.9% |
|---|
| Oxford Metrics ($OMG) | 14.7% | 28.4% | 23.1% | 19.9% | 23.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Actual Experience ($ACT) | 2.6% | 6.0% | 39.9% | 48.7% | |
| Csf Group ($CSFG) | 2.4% | 7.1% | 4.9% | 8.5% | 16.5% |
| Pennant International Group ($PEN) | 1.4% | 0.2% | 6.3% | 7.1% | |
| Nasstar ($NASA) | 2.1% | 5.2% | 8.9% | 6.5% | |
| Mail.Ru Group Ltd ($61HE) | 3.0% | 3.6% | 5.2% | 5.1% | |
| |
|---|
| Median (39 companies) | 1.7% | 1.1% | 1.2% | 1.3% | 0.9% |
|---|
| Oxford Metrics ($OMG) | 2.8% | 2.4% | 1.8% | 5.8% | 3.9% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Rm ($RM.) | 130.8% | 289.2% | 254.7% | 73.8% | |
| Triad Group ($TRD) | 24.5% | 61.5% | 74.4% | 61.1% | 41.0% |
| Sopheon ($SPE) | -10.5% | 14.7% | 22.7% | 32.3% | |
| Dotdigital Group ($DOTD) | 28.5% | 31.4% | 28.9% | 29.3% | 26.6% |
| International Bus Mach Corp ($IBM) | 31.6% | 29.7% | 21.5% | 19.5% | 19.8% |
| |
|---|
| Median (41 companies) | 9.8% | 4.0% | 7.1% | 6.3% | 6.4% |
|---|
| Oxford Metrics ($OMG) | 0.8% | 14.6% | 16.3% | 12.7% | 16.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Datatec ($DTC) | 0.3x | 0.4x | 1.1x | 10.2x | |
| Progility ($PGY) | 1.8x | 12.8x | 6.8x | 3.9x | |
| Zoo Digital Group ($ZOO) | | | 38.3x | 3.2x | 0.9x |
| Statpro Group ($SOG) | -0.3x | -0.2x | | 3.0x | |
| Idox ($IDOX) | 1.0x | 1.3x | 1.2x | 2.2x | |
| |
|---|
| Median (31 companies) | -0.3x | -0.5x | -0.8x | -0.5x | -0.4x |
|---|
| Oxford Metrics ($OMG) | -2.0x | -1.6x | -1.2x | -1.6x | -1.6x |
