Craneware reports 12.4% Net Income growth in 2020 and 3.1 pp EBITDA Margin growth from 30.3% to 33.4%
21 Sep 2020 • About Craneware (
$CRW) • By InTwits
Craneware reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Craneware has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has highly profitable business model: ROIC is 29.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue showed almost no change in FY2020. During the last 5 years Revenue growth topped in FY2018 at 16.0% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 12.1% to 15.5% in FY2020.
Gross Margin showed almost no change in FY2020. SG&A as a % of Revenue decreased slightly on 1.8 pp from 25.8% to 24.0% in FY2020. SG&A as a % of Revenue followed a declining trend at -1.1 pp per annum in FY2016-FY2020.
Net Income margin increased on 2.6 pp from 21.0% to 23.5% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.26% in FY2020. CAPEX/Revenue decreased slightly on 0.87 pp from 1.1% in FY2017 to 0.26% in FY2020. For the last three years the average CAPEX/Revenue was 0.61%.
Return on investment
The company operates at high and attractive ROIC (29.8%) and ROE (26.3%). ROIC decreased on 3.6 pp from 33.4% to 29.8% in FY2020. ROE decreased slightly on 0.62 pp from 26.9% to 26.3% in FY2020. During FY2016-FY2020 ROIC topped in FY2018 at 34.9% and was declining since that time. During FY2016-FY2020 ROE topped in FY2018 at 28.5% and was declining since that time.
Leverage (Debt)
The company has no debt. Cash increased slightly on 0.50%.
Financial and operational results
FY ended 30 Jun 2020
Craneware ($CRW) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 49.846 | 57.796 | 67.067 | 71.401 | 71.492 | 0.1% |
| Gross Profit | 46.835 | 54.214 | 63.660 | 67.007 | 66.974 | -0.0% |
| SG&A | 13.974 | 16.542 | 16.993 | 18.449 | 17.187 | -6.8% |
| EBITDA | 16.106 | 17.593 | 20.849 | 21.603 | 23.882 | 10.5% |
| Net Income | 10.575 | 13.525 | 15.797 | 14.985 | 16.836 | 12.4% |
Balance Sheet
|
|---|
| Cash | 48.812 | 53.170 | 52.833 | 47.611 | 47.851 | 0.5% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.418 | 0.654 | 0.434 | 0.654 | 0.187 | -71.4% |
Ratios
|
|---|
| Revenue growth | 11.2% | 15.9% | 16.0% | 6.5% | 0.1% | |
| EBITDA growth | 14.7% | 9.2% | 18.5% | 3.6% | 10.5% | |
|
|---|
| Gross Margin | 94.0% | 93.8% | 94.9% | 93.8% | 93.7% | -0.2% |
| EBITDA Margin | 32.3% | 30.4% | 31.1% | 30.3% | 33.4% | 3.1% |
| SG&A, % of revenue | 28.0% | 28.6% | 25.3% | 25.8% | 24.0% | -1.8% |
| Net Income Margin | 21.2% | 23.4% | 23.6% | 21.0% | 23.5% | 2.6% |
| CAPEX, % of revenue | 0.8% | 1.1% | 0.6% | 0.9% | 0.3% | -0.7% |
|
|---|
| ROIC | 27.9% | 30.0% | 34.9% | 33.4% | 29.8% | -3.6% |
| ROE | 21.1% | 24.1% | 28.5% | 26.9% | 26.3% | -0.6% |
| Net Debt/EBITDA | -3.0x | -3.0x | -2.5x | -2.2x | -2.0x | 0.2x |
Peers in Software & Computer Services
Below you can find Craneware 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% | - |
| Eagle Eye Solutions Ltd ($EYE) | - | 71.2% | 24.6% | 22.8% | 20.6% |
| Arcontech Group ($ARC) | - | 7.8% | 9.2% | 12.8% | 4.0% |
| Oxford Metrics ($OMG) | 14.6% | -1.1% | 8.6% | 11.7% | - |
| |
|---|
| Median (15 companies) | 13.6% | 14.1% | 21.8% | 4.7% | 4.0% |
|---|
| Craneware ($CRW) | - | 15.9% | 16.0% | 6.5% | 0.1% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Eagle Eye Solutions Ltd ($EYE) | 78.8% | 88.3% | 89.3% | 93.1% | 93.5% |
| Ideagen ($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 ($PHD) | 82.4% | 86.0% | 88.6% | 87.7% | - |
| |
|---|
| Median (14 companies) | 61.1% | 58.2% | 46.4% | 73.8% | 44.0% |
|---|
| Craneware ($CRW) | 94.0% | 93.8% | 94.9% | 93.8% | 93.7% |
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 ($MCRO) | 40.9% | 38.9% | 27.5% | 30.3% | - |
| Ideagen ($IDEA) | 23.9% | 21.8% | 23.8% | 23.5% | - |
| Oxford Metrics ($OMG) | 23.1% | 19.9% | 23.5% | 21.3% | - |
| |
|---|
| Median (15 companies) | 10.5% | 10.9% | 12.2% | 15.4% | 16.7% |
|---|
| Craneware ($CRW) | 32.3% | 30.4% | 31.1% | 30.3% | 33.4% |
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 ($IDEA) | 1.6% | 1.1% | 1.4% | 1.5% | - |
| |
|---|
| Median (15 companies) | 1.2% | 1.1% | 0.9% | 1.2% | 1.1% |
|---|
| Craneware ($CRW) | 0.8% | 1.1% | 0.6% | 0.9% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| 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% | - |
| International Bus Mach Corp ($IBM) | 21.5% | 19.5% | 19.8% | 13.0% | 6.7% |
| |
|---|
| Median (16 companies) | 7.0% | 4.7% | 5.0% | 2.0% | 6.4% |
|---|
| Craneware ($CRW) | 27.9% | 30.0% | 34.9% | 33.4% | 29.8% |
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 ($USY) | -0.3x | -0.6x | 0.1x | 0.4x | -0.6x |
| |
|---|
| Median (10 companies) | -0.9x | -0.5x | -0.1x | 0.3x | -0.5x |
|---|
| Craneware ($CRW) | -3.0x | -3.0x | -2.5x | -2.2x | -2.0x |
