Eagle Eye Solutions Ltd revenue jumped on 20.6% and EBITDA Margin jumped on 14.4 pp from -0.64% to 13.8%
16 Sep 2020 • About Eagle Eye Solutions Ltd (
$EYE) • By InTwits
Eagle Eye Solutions Ltd reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Eagle Eye Solutions Ltd is a fast growth stock: FY2020 revenue growth was 20.6%, 5 year revenue CAGR was 33.3% at FY2020 ROIC -0.94%
- Eagle Eye Solutions Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -7.5% for the sames years
- Eagle Eye Solutions Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 2.3%
- CAPEX is quite volatile: £0m in FY2020, £0m in FY2019, £0m in FY2018, £0m in FY2017, £0m in FY2016
- The company has unprofitable business model: ROIC is -0.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Eagle Eye Solutions Ltd's Revenue surged on 20.6%. During FY2016-FY2020 Revenue growth topped in FY2017 at 71.2% and was decelerating since that time. 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. EBITDA Margin stuck to a growing trend at 12.3 pp per annum in the last 5 years.
Gross Margin showed almost no change in FY2020. Gross Margin grew at 3.4 pp per annum in the last 5 years.
Net Income margin jumped on 11.7 pp from -13.9% to -2.2% in FY2020. Net Income margin followed a growing trend at 12.6 pp per annum in FY2016-FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 Eagle Eye Solutions Ltd had CAPEX/Revenue of 0.33%. CAPEX/Revenue decreased slightly on 0.63 pp from 0.97% in FY2017 to 0.33% in FY2020. It's average CAPEX/Revenue for the last three years was 0.60%. CAPEX as a % of Revenue pursued a declining trend in FY2016-FY2020.
Return on investment
The company operates at negative ROIC (-0.9%) and ROE (-10.4%). ROIC jumped on 46.2 pp from -47.1% to -0.94% in FY2020. ROE surged on 36.3 pp from -46.7% to -10.4% in FY2020.
Leverage (Debt)
The company paid down all the debt in FY2020. Cash surged on 11.4%.
Financial and operational results
Eagle Eye Solutions Ltd ($EYE) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 6.458 | 11.058 | 13.781 | 16.929 | 20.421 | 20.6% |
| Gross Profit | 5.089 | 9.761 | 12.306 | 15.758 | 19.103 | 21.2% |
| EBITDA | -2.455 | -2.200 | -3.210 | -0.108 | 2.815 | |
| Net Income | -3.625 | -3.519 | -4.337 | -2.360 | -0.454 | |
Balance Sheet
|
|---|
| Cash | 1.322 | 3.724 | 1.472 | 1.363 | 1.519 | 11.4% |
| Short Term Debt | 0.000 | 0.000 | 0.256 | 0.224 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.270 | 0.107 | 0.110 | 0.111 | 0.068 | -38.7% |
Ratios
|
|---|
| Revenue growth | 33.0% | 71.2% | 24.6% | 22.8% | 20.6% | |
| EBITDA growth | 16.1% | -10.4% | 45.9% | -96.6% | -2,706.5% | |
|
|---|
| Gross Margin | 78.8% | 88.3% | 89.3% | 93.1% | 93.5% | 0.5% |
| EBITDA Margin | -38.0% | -19.9% | -23.3% | -0.6% | 13.8% | 14.4% |
| Net Income Margin | -56.1% | -31.8% | -31.5% | -13.9% | -2.2% | 11.7% |
| CAPEX, % of revenue | 4.2% | 1.0% | 0.8% | 0.7% | 0.3% | -0.3% |
|
|---|
| ROIC | -53.7% | -50.7% | -67.9% | -47.1% | -0.9% | 46.2% |
| ROE | -49.3% | -47.8% | -59.2% | -46.7% | -10.4% | 36.3% |
| Net Debt/EBITDA | | | | | -0.5x |
Peers in Software & Computer Services
Below you can find Eagle Eye Solutions Ltd 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Actual Experience ($ACT) | 2.3% | -49.1% | 195.1% | 79.7% | - |
| Ideagen ($IDEA) | 52.4% | 23.6% | 33.2% | 29.2% | - |
| Arcontech Group ($ARC) | - | 7.8% | 9.2% | 12.8% | 4.0% |
| Oxford Metrics ($OMG) | 14.6% | -1.1% | 8.6% | 11.7% | - |
| Rosslyn Data Technologies ($RDT) | 36.9% | -9.4% | 83.5% | 8.3% | - |
| |
|---|
| Median (15 companies) | 12.5% | 14.1% | 17.5% | 4.7% | -0.3% |
|---|
| Eagle Eye Solutions Ltd ($EYE) | - | 71.2% | 24.6% | 22.8% | 20.6% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Craneware ($CRW) | 94.0% | 93.8% | 94.9% | 93.8% | - |
| Ideagen ($IDEA) | 88.0% | 89.5% | 91.2% | 91.6% | - |
| Netcall ($NET) | 91.2% | 91.7% | 90.2% | 89.8% | - |
| Dotdigital Group ($DOTD) | 87.4% | 86.1% | 78.9% | 89.7% | - |
| Proactis Holdings ($PHD) | 82.4% | 86.0% | 88.6% | 87.7% | - |
| |
|---|
| Median (14 companies) | 61.1% | 58.2% | 46.4% | 73.8% | 39.6% |
|---|
| Eagle Eye Solutions Ltd ($EYE) | 78.8% | 88.3% | 89.3% | 93.1% | 93.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dotdigital Group ($DOTD) | 30.4% | 31.7% | 26.9% | 34.9% | - |
| Arcontech Group ($ARC) | 14.5% | 16.7% | 23.0% | 32.4% | 40.4% |
| Micro Focus International ($MCRO) | 40.9% | 38.9% | 27.5% | 30.3% | - |
| Craneware ($CRW) | 32.3% | 30.4% | 31.1% | 30.3% | - |
| Ideagen ($IDEA) | 23.9% | 21.8% | 23.8% | 23.5% | - |
| |
|---|
| Median (15 companies) | 10.9% | 11.3% | 13.7% | 15.4% | 17.1% |
|---|
| Eagle Eye Solutions Ltd ($EYE) | -38.0% | -19.9% | -23.3% | -0.6% | 13.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Netcall ($NET) | 2.7% | 0.7% | 0.8% | 4.7% | - |
| International Bus Mach Corp ($IBM) | 4.5% | 4.1% | 4.3% | 3.1% | 4.1% |
| Unisys Corp ($USY) | 3.0% | 4.1% | 3.8% | 2.9% | 2.9% |
| Micro Focus International ($MCRO) | 0.8% | 0.9% | 0.8% | 1.7% | - |
| Ideagen ($IDEA) | 1.6% | 1.1% | 1.4% | 1.5% | - |
| |
|---|
| Median (15 companies) | 1.1% | 1.2% | 0.9% | 1.2% | 2.0% |
|---|
| Eagle Eye Solutions Ltd ($EYE) | 4.2% | 1.0% | 0.8% | 0.7% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Craneware ($CRW) | 27.9% | 30.0% | 34.9% | 33.4% | - |
| Rm ($RM.) | 254.7% | 73.8% | 39.0% | 31.6% | - |
| Dotdigital Group ($DOTD) | 28.9% | 29.3% | 26.6% | 25.9% | - |
| Arcontech Group ($ARC) | 14.5% | 14.5% | 17.8% | 22.9% | 20.4% |
| Oxford Metrics ($OMG) | 16.3% | 12.7% | 16.4% | 14.7% | - |
| |
|---|
| Median (16 companies) | 7.1% | 5.6% | 5.6% | 5.1% | 6.7% |
|---|
| Eagle Eye Solutions Ltd ($EYE) | -53.7% | -50.7% | -67.9% | -47.1% | -0.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Micro Focus International ($MCRO) | 2.1x | 6.6x | 4.2x | 4.3x | - |
| International Bus Mach Corp ($IBM) | 1.7x | 1.8x | 1.7x | 3.8x | 4.1x |
| Rm ($RM.) | -2.2x | 0.7x | 0.2x | 0.5x | - |
| Ncc Group ($NCC) | 0.5x | - | 0.8x | 0.5x | 1.0x |
| Unisys Corp ($USY) | -0.3x | -0.6x | 0.1x | 0.4x | -0.6x |
| |
|---|
| Median (11 companies) | -0.9x | -0.5x | -0.2x | 0.1x | 0.2x |
|---|
