Dods(Group Debt surged
03 Sep 2020 • About Dods(Group (
$DODS) • By InTwits
Dods(Group reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 6.3% in FY2020, -15.3% in FY2019, 12.3% in FY2018, 15.9% in FY2017, 12.3% in FY2016
- Dods(Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's in pair with industry average of 3.2%
- CAPEX is quite volatile: £0m in FY2020, £0m in FY2019, £0m in FY2018, £3m in FY2017, £0m in FY2016
- The company has unprofitable business model: ROIC is -2.3%
- It operates with high leverage: Net Debt/EBITDA is 4.5x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Dods(Group's Revenue jumped on 30.5%. During FY2016-FY2020 Revenue growth bottomed in FY2017 at 1.8% and was accelerating since that time. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.5 pp from 9.1% to 13.6% in FY2020.
Gross Margin decreased on 4.8 pp from 37.0% to 32.2% in FY2020. During the last 5 years Gross Margin topped in FY2017 at 41.3% and was declining since that time. SG&A as a % of Revenue decreased on 7.8 pp from 30.0% to 22.1% in FY2020.
Net Income margin surged on 21.7 pp from -26.0% to -4.3% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.67% in FY2020. CAPEX/Revenue dropped on 12.0 pp from 12.7% in FY2017 to 0.67% in FY2020. Average CAPEX/Revenue for the last three years was 0.83%.
Return on investment
The company operates at negative ROIC (-2.3%) and ROE (-4.0%). ROIC jumped on 19.0 pp from -21.2% to -2.3% in FY2020. ROE jumped on 17.4 pp from -21.4% to -4.0% in FY2020.
Leverage (Debt)
Debt level is 4.5x Net Debt / EBITDA and 7.0x Debt / EBITDA. Net Debt / EBITDA jumped4.5x from to 4.5x in FY2020. Debt jumped while cash dropped on 39.0%.
Dods(Group has short term refinancing risk: cash is only 96.7% of short term debt.
Financial and operational results
FY ended 31 Mar 2020
Dods(Group ($DODS) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 19.620 | 19.965 | 20.586 | 21.301 | 27.796 | 30.5% |
| Gross Profit | 7.448 | 8.236 | 8.347 | 7.882 | 8.944 | 13.5% |
| SG&A | 5.034 | 4.835 | 5.286 | 6.381 | 6.154 | -3.6% |
| EBITDA | 2.414 | 3.180 | 2.530 | -3.257 | 1.754 | |
| Net Income | 1.086 | 1.563 | 1.129 | -5.529 | -1.183 | |
Balance Sheet
|
|---|
| Cash | 9.083 | 7.767 | 7.491 | 7.160 | 4.368 | -39.0% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 4.515 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 7.701 | |
Cash flow
|
|---|
| Capex | 0.108 | 2.530 | 0.261 | 0.115 | 0.187 | 62.6% |
Ratios
|
|---|
| Revenue growth | 7.2% | 1.8% | 3.1% | 3.5% | 30.5% | |
| EBITDA growth | 2,114.7% | 31.7% | -20.4% | -228.7% | -153.9% | |
|
|---|
| Gross Margin | 38.0% | 41.3% | 40.5% | 37.0% | 32.2% | -4.8% |
| EBITDA Margin | 12.3% | 15.9% | 12.3% | -15.3% | 6.3% | 21.6% |
| SG&A, % of revenue | 25.7% | 24.2% | 25.7% | 30.0% | 22.1% | -7.8% |
| Net Income Margin | 5.5% | 7.8% | 5.5% | -26.0% | -4.3% | 21.7% |
| CAPEX, % of revenue | 0.6% | 12.7% | 1.3% | 0.5% | 0.7% | 0.1% |
|
|---|
| ROIC | 4.4% | 7.1% | 4.5% | -21.2% | -2.3% | 19.0% |
| ROE | 4.3% | 5.9% | 4.0% | -21.4% | -4.0% | 17.4% |
| Net Debt/EBITDA | -3.8x | -2.4x | -3.0x | | 4.5x |
Peers in Media
Below you can find Dods(Group benchmarking vs. other companies in Media 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Ite Group ($ITE) | -1.0% | 13.5% | 15.1% | 25.6% | - |
| Yougov ($YOU) | 15.9% | 21.4% | 8.9% | 17.1% | - |
| Reed Elsevier ($REL) | 15.4% | 6.6% | 2.1% | 5.1% | - |
| Wilmington Group ($WIL) | 11.2% | 13.8% | 0.8% | 1.0% | - |
| Catalyst Media Group ($CMX) | 0.0% | 0.0% | 0.0% | 0.0% | - |
| |
|---|
| Median (6 companies) | 4.0% | 5.0% | 9.1% | 3.0% | - |
|---|
| Dods(Group ($DODS) | - | 1.8% | 3.1% | 3.5% | 30.5% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Yougov ($YOU) | 77.9% | 80.1% | 81.6% | 82.3% | - |
| Reed Elsevier ($REL) | 63.9% | 64.2% | 64.7% | 65.0% | - |
| Ite Group ($ITE) | 43.6% | 38.9% | 38.7% | 39.6% | - |
| Wilmington Group ($WIL) | 71.2% | 17.0% | 18.0% | 17.2% | - |
| |
|---|
| Median (4 companies) | 42.8% | 39.5% | 44.4% | 52.3% | - |
|---|
| Dods(Group ($DODS) | 38.0% | 41.3% | 40.5% | 37.0% | 32.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Reed Elsevier ($REL) | 33.9% | 34.4% | 34.5% | 34.8% | - |
| Yougov ($YOU) | 12.2% | 14.2% | 17.2% | 22.1% | - |
| Wilmington Group ($WIL) | 5.9% | 21.7% | 10.6% | 20.2% | - |
| Ite Group ($ITE) | 7.0% | 4.5% | 3.7% | 16.3% | - |
| Daily Mail & General Trust ($DMGT) | 9.8% | -3.7% | 8.2% | 10.1% | - |
| |
|---|
| Median (6 companies) | 7.0% | 6.8% | 8.8% | 18.2% | - |
|---|
| Dods(Group ($DODS) | 12.3% | 15.9% | 12.3% | -15.3% | 6.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Yougov ($YOU) | 1.1% | 0.8% | 0.8% | 2.0% | - |
| Ite Group ($ITE) | 1.8% | 2.1% | 2.4% | 1.7% | - |
| Daily Mail & General Trust ($DMGT) | 1.4% | 1.3% | 20.0% | 1.2% | - |
| Wilmington Group ($WIL) | 0.6% | 1.1% | 2.5% | 1.1% | - |
| Reed Elsevier ($REL) | 0.7% | 0.7% | 0.7% | 0.6% | - |
| |
|---|
| Median (6 companies) | 0.7% | 0.8% | 1.0% | 1.1% | - |
|---|
| Dods(Group ($DODS) | 0.6% | 12.7% | 1.3% | 0.5% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Reed Elsevier ($REL) | 21.4% | 21.4% | 21.0% | 21.6% | - |
| Yougov ($YOU) | 6.7% | 10.2% | 14.4% | 21.1% | - |
| Wilmington Group ($WIL) | -1.4% | 17.9% | 4.3% | 18.8% | - |
| Daily Mail & General Trust ($DMGT) | 11.4% | -11.1% | 2.9% | 6.2% | - |
| Ite Group ($ITE) | -4.4% | -5.3% | -2.9% | 1.8% | - |
| |
|---|
| Median (6 companies) | 1.4% | 0.8% | 3.3% | 12.5% | - |
|---|
| Dods(Group ($DODS) | 4.4% | 7.1% | 4.5% | -21.2% | -2.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Ite Group ($ITE) | 6.3x | 7.3x | 12.7x | 3.1x | - |
| Reed Elsevier ($REL) | 2.2x | 2.0x | 2.4x | 2.3x | - |
| Wilmington Group ($WIL) | 5.5x | 1.5x | 3.1x | 1.4x | - |
| Daily Mail & General Trust ($DMGT) | 3.7x | - | -0.1x | -0.6x | - |
| Yougov ($YOU) | -1.5x | -1.5x | -1.5x | -1.3x | - |
| |
|---|
| Median (5 companies) | 0.4x | 0.7x | 0.3x | 1.4x | - |
|---|
