Beeks Financial Cloud Group Plc reports 131% CAPEX growth in 2020 and 27.3% Revenue growth
15 Sep 2020 • About Beeks Financial Cloud Group Plc (
$BKS) • By InTwits
Beeks Financial Cloud Group Plc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Beeks Financial Cloud Group Plc is a fast growth stock: FY2020 revenue growth was 27.3%, 5 year revenue CAGR was 47.5% at FY2020 ROIC 11.5%
- EBITDA Margin is quite volatile: 30.1% in FY2020, 30.8% in FY2019, 28.3% in FY2018, -4.9% in FY2017, 19.8% in FY2016
- Beeks Financial Cloud Group Plc has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.6%. At the same time it's in pair with industry average of 2.3%
- CAPEX is quite volatile: £3m in FY2020, £1m in FY2019, £1m in FY2018, £1m in FY2017, £0m in FY2016
- The company has business model with average profitability: ROIC is 11.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.7x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Beeks Financial Cloud Group Plc's Revenue surged on 27.3%. Revenue decline was accelerating on average at -16.1 pp per annum in FY2016-FY2020. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from 4.7% to 7.1% in FY2020.
Gross Margin decreased slightly on 1.3 pp from 49.6% to 48.2% in FY2020. SG&A as a % of Revenue increased on 5.2 pp from 33.4% to 38.7% in FY2020.
Net Income margin decreased on 8.3 pp from 14.5% to 6.1% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 30.1% in FY2020. The company's CAPEX/Revenue increased on 9.5 pp from 20.6% in FY2017 to 30.1% in FY2020. For the last three years the average CAPEX/Revenue was 22.0%. The company has spent a lot to CAPEX (100% of EBITDA) to secure its growth.
Return on investment
The company operates at low ROIC (11.5%) and ROE (9.3%). ROIC decreased on 9.6 pp from 21.1% to 11.5% in FY2020. ROE dropped on 11.0 pp from 20.3% to 9.3% in FY2020.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA jumped on 1.4x from -0.7x to 0.7x in FY2020. Debt jumped on 394% while cash dropped on 38.7%.
The company has no short term refinancing risk: short term debt is zero.
Financial and operational results
Beeks Financial Cloud Group Plc ($BKS) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 2.679 | 3.970 | 5.583 | 7.352 | 9.360 | 27.3% |
| Gross Profit | 1.147 | 1.569 | 2.981 | 3.645 | 4.515 | 23.9% |
| SG&A | 0.921 | 2.242 | 2.081 | 2.457 | 3.619 | 47.3% |
| EBITDA | 0.530 | -0.193 | 1.578 | 2.268 | 2.816 | 24.2% |
| Net Income | 0.144 | -0.761 | 0.757 | 1.063 | 0.575 | -45.9% |
Balance Sheet
|
|---|
| Cash | 0.031 | 0.023 | 2.887 | 2.338 | 1.433 | -38.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.332 | 0.699 | 3.452 | 393.8% |
Cash flow
|
|---|
| Capex | 0.444 | 0.818 | 1.071 | 1.222 | 2.819 | 130.7% |
Ratios
|
|---|
| Revenue growth | 99.8% | 48.2% | 40.6% | 31.7% | 27.3% | |
| EBITDA growth | -19.8% | -136.4% | -917.6% | 43.7% | 24.2% | |
|
|---|
| Gross Margin | 42.8% | 39.5% | 53.4% | 49.6% | 48.2% | -1.3% |
| EBITDA Margin | 19.8% | -4.9% | 28.3% | 30.8% | 30.1% | -0.8% |
| SG&A, % of revenue | 34.4% | 56.5% | 37.3% | 33.4% | 38.7% | 5.2% |
| Net Income Margin | 5.4% | -19.2% | 13.6% | 14.5% | 6.1% | -8.3% |
| CAPEX, % of revenue | 16.6% | 20.6% | 19.2% | 16.6% | 30.1% | 13.5% |
|
|---|
| ROIC | 57.1% | -1,346.0% | 38.4% | 21.1% | 11.5% | -9.6% |
| ROE | 44.2% | | | 20.3% | 9.3% | -11.0% |
| Net Debt/EBITDA | -0.1x | | -1.6x | -0.7x | 0.7x | 1.4x |
Peers in Internet Services & Infrastruc
Below you can find Beeks Financial Cloud Group Plc benchmarking vs. other companies in Internet Services & Infrastruc 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.
