K3 Capital Group Plc EBITDA jumped on 36.5% and Revenue jumped on 10.5%
22 Sep 2020 • About K3 Capital Group Plc (
$K3C) • By InTwits
K3 Capital Group Plc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- K3 Capital Group Plc is a fast growth stock: FY2020 revenue growth was 10.5%, 5 year revenue CAGR was 24.9% at FY2020 ROIC 71.9%
- K3 Capital Group Plc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has highly profitable business model: ROIC is 71.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 10.5%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 9.1 pp from 32.3% to 41.4% in FY2020.
SG&A as a % of Revenue increased slightly on 0.70 pp from 56.2% to 56.9% in FY2020.
Net Income margin increased on 5.5 pp from 29.3% to 34.8% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 0.17%. CAPEX/Revenue decreased slightly on 1.3 pp from 1.5% in FY2017 to 0.17% in FY2020. For the last three years the average CAPEX/Revenue was 0.29%.
Return on investment
The company operates at high and attractive ROIC (71.9%) and ROE (63.4%). ROIC increased on 9.3 pp from 62.6% to 71.9% in FY2020. ROE jumped on 12.1 pp from 51.3% to 63.4% in FY2020.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and 0.1x Debt / EBITDA. Debt surged while cash surged on 43.8%.
K3 Capital Group Plc has no short term refinancing risk: cash is higher than short term debt (4,135.5%).
Financial and operational results
FY ended 31 May 2020
K3 Capital Group Plc ($K3C) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 8.551 | 10.816 | 16.485 | 13.564 | 14.994 | 10.5% |
| SG&A | | 6.200 | 8.195 | 7.626 | 8.535 | 11.9% |
| EBITDA | 3.215 | 3.759 | 7.386 | 4.976 | 6.790 | 36.5% |
| Net Income | 2.469 | 2.782 | 5.949 | 3.978 | 5.222 | 31.3% |
Balance Sheet
|
|---|
| Cash | 1.531 | 3.801 | 7.522 | 5.753 | 8.271 | 43.8% |
| Short Term Debt | 0.237 | 0.220 | 0.000 | 0.000 | 0.200 | |
| Long Term Debt | 0.431 | 0.211 | 0.000 | 0.000 | 0.671 | |
Cash flow
|
|---|
| Capex | 0.027 | 0.164 | 0.025 | 0.072 | 0.026 | -63.9% |
Ratios
|
|---|
| Revenue growth | 73.1% | 26.5% | 52.4% | -17.7% | 10.5% | |
| EBITDA growth | 210.0% | 16.9% | 96.5% | -32.6% | 36.5% | |
|
|---|
| EBITDA Margin | 37.6% | 34.8% | 44.8% | 36.7% | 45.3% | 8.6% |
| SG&A, % of revenue | | 57.3% | 49.7% | 56.2% | 56.9% | 0.7% |
| Net Income Margin | 28.9% | 25.7% | 36.1% | 29.3% | 34.8% | 5.5% |
| CAPEX, % of revenue | 0.3% | 1.5% | 0.2% | 0.5% | 0.2% | -0.4% |
|
|---|
| ROIC | 160.8% | 94.6% | 103.6% | 62.6% | 71.9% | 9.3% |
| ROE | 194.1% | 83.1% | 87.3% | 51.3% | 63.4% | 12.1% |
| Net Debt/EBITDA | -0.3x | -0.9x | -1.0x | -1.2x | -1.1x | 0.1x |
Peers in Research & Consulting Services
Below we provide K3 Capital Group Plc benchmarking against other companies in Research & Consulting 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Gateley Holdings Plc ($GTLY) | 10.2% | 15.7% | 11.0% | 20.2% | - |
| |
|---|
| Median (1 company) | 10.2% | 15.7% | 11.0% | 20.2% | - |
|---|
| K3 Capital Group Plc ($K3C) | - | 26.5% | 52.4% | -17.7% | 10.5% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Gateley Holdings Plc ($GTLY) | 17.8% | 18.8% | 19.1% | 17.8% | - |
| |
|---|
| Median (1 company) | 17.8% | 18.8% | 19.1% | 17.8% | - |
|---|
| K3 Capital Group Plc ($K3C) | 37.6% | 34.8% | 44.8% | 36.7% | 45.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Gateley Holdings Plc ($GTLY) | 1.0% | 1.9% | 0.9% | 1.0% | - |
| |
|---|
| Median (1 company) | 1.0% | 1.9% | 0.9% | 1.0% | - |
|---|
| K3 Capital Group Plc ($K3C) | 0.3% | 1.5% | 0.2% | 0.5% | 0.2% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Gateley Holdings Plc ($GTLY) | 55.2% | 50.9% | 55.9% | 43.7% | - |
| |
|---|
| Median (1 company) | 55.2% | 50.9% | 55.9% | 43.7% | - |
|---|
| K3 Capital Group Plc ($K3C) | 160.8% | 94.6% | 103.6% | 62.6% | 71.9% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Gateley Holdings Plc ($GTLY) | 0.4x | 0.3x | 0.0x | 0.2x | - |
| |
|---|
| Median (1 company) | 0.4x | 0.3x | 0.0x | 0.2x | - |
|---|
| K3 Capital Group Plc ($K3C) | -0.3x | -0.9x | -1.0x | -1.2x | -1.1x |
