Trending stocks
$RFX  

Oxford Metrics Net Income dropped on 61.6% and Revenue dropped on 14.3%

03 Dec 2020 • About Oxford Metrics ($OMG) • By InTwits

Oxford Metrics reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
  • Oxford Metrics has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 2.1%.
  • CAPEX is quite volatile: £0m in FY2020, £0m in FY2019, £1m in FY2018, £2m in FY2017, £1m in FY2016
  • The company has potentially unprofitable business model: ROIC is 5.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability


Oxford Metrics's Revenue dropped on 14.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.3 pp from 21.3% to 17.0% in FY2020.

Gross Margin decreased on 2.3 pp from 71.2% to 69.0% in FY2020. During the last 5 years Gross Margin topped in FY2018 at 72.4% and was declining since that time. SG&A as a % of Revenue increased on 3.2 pp from 46.8% to 50.0% in FY2020.

Net Income margin decreased on 6.5 pp from 11.8% to 5.3% in FY2020.

Investments (CAPEX, working capital and M&A)


Oxford Metrics's CAPEX/Revenue was 1.0% in FY2020. CAPEX/Revenue decreased on 4.7 pp from 5.8% in FY2017 to 1.0% in FY2020. It's average CAPEX/Revenue for the last three years was 2.1%. During FY2016-FY2020 CAPEX as a % of Revenue topped in FY2017 at 5.8% and was declining since that time.

Return on investment


The company operates at low ROIC (5.0%) and ROE (5.2%). ROIC decreased on 9.7 pp from 14.7% to 5.0% in FY2020. ROE decreased on 8.5 pp from 13.7% to 5.2% in FY2020.

Leverage (Debt)


Debt level is -2.5x Net Debt / EBITDA and 0.5x Debt / EBITDA. Debt surged while cash increased on 8.0%.

Oxford Metrics has no short term refinancing risk: cash is higher than short term debt (3,507.0%).

Valuation and dividends


Oxford Metrics's trades at EV/EBITDA 20.8x and P/E 74.4x.

Financial and operational results


FY ended 30 Sep 2020

Oxford Metrics ($OMG) key annual financial indicators

mln. £201620172018201920202020/2019
P&L
Revenue29.49229.15531.65635.35030.298-14.3%
Gross Profit19.42720.55622.91325.18420.898-17.0%
SG&A11.16313.98414.99316.53815.154-8.4%
EBITDA6.8085.7967.4497.5235.142-31.6%
EBIT4.9704.762
Tax0.5560.504
Net Income2.2711.0073.5434.1781.604-61.6%
Stock Based Compensation0.3230.264
Balance Sheet
Cash8.2739.18512.22913.83714.9408.0%
Inventory2.4033.236
Short Term Debt0.0000.0000.0000.0000.426
Long Term Debt0.0000.0000.0000.0001.909
Cash flow
Capex0.5261.6801.2430.4670.310-33.6%
Dividends1.0003.000
Acquisitions-1.295
Ratios
Revenue growth14.6%-1.1%8.6%11.7%-14.3%
EBITDA growth-7.0%-14.9%28.5%1.0%-31.6%

Gross Margin65.9%70.5%72.4%71.2%69.0%-2.3%
EBITDA Margin23.1%19.9%23.5%21.3%17.0%-4.3%
EBIT Margin15.7%13.5%
SG&A, % of revenue37.9%48.0%47.4%46.8%50.0%3.2%
SBC, % of revenue1.0%0.7%
Net Income Margin7.7%3.5%11.2%11.8%5.3%-6.5%
CAPEX, % of revenue1.8%5.8%3.9%1.3%1.0%-0.3%

ROIC16.3%12.7%16.4%14.7%5.0%-9.7%
ROE8.1%3.7%12.4%13.7%5.2%-8.5%
Net Debt/EBITDA-1.2x-1.6x-1.6x-1.8x-2.5x-0.6x
People
Insider ownership9.3%9.3%
Employees234210
Revenue/Employee, th. £135168

Peers in Software & Computer Services


Below we provide Oxford Metrics benchmarking against other companies in Software & Computer 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 5 FY2016 FY2017 FY2018 FY2019 FY2020
Actual Experience ($ACT)2.3%-49.1%195.1%79.7%-
Ideagen ($IDEA)-23.6%33.2%29.2%21.2%
Eagle Eye Solutions Ltd ($EYE)-71.2%24.6%22.8%20.6%
Arcontech Group ($ARC)-7.8%9.2%12.8%4.0%
Rosslyn Data Technologies ($RDT)--9.4%83.5%8.3%2.1%
 
Median (15 companies)11.7%15.9%21.8%4.7%4.0%
Oxford Metrics ($OMG)--1.1%8.6%11.7%-14.3%


Top companies by Gross margin, %

Top 5 FY2016 FY2017 FY2018 FY2019 FY2020
Craneware ($CRW)94.0%93.8%94.9%93.8%93.7%
Eagle Eye Solutions Ltd ($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%88.3%
Dotdigital Group ($DOTD)87.4%86.1%78.9%89.7%86.6%
 
Median (14 companies)61.1%58.2%46.4%78.0%86.6%
Oxford Metrics ($OMG)65.9%70.5%72.4%71.2%69.0%


Top companies by EBITDA margin, %

Top 5 FY2016 FY2017 FY2018 FY2019 FY2020
Dotdigital Group ($DOTD)30.4%31.7%26.9%34.9%37.6%
Arcontech Group ($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%33.4%
Ideagen ($IDEA)23.9%21.8%23.8%23.5%-
 
Median (15 companies)10.5%10.9%12.2%15.4%15.8%
Oxford Metrics ($OMG)23.1%19.9%23.5%21.3%17.0%


Top companies by CAPEX/Revenue, %

Top 5 FY2016 FY2017 FY2018 FY2019 FY2020
Netcall ($NET)2.7%0.7%0.8%4.7%0.6%
International Bus Mach Corp ($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%1.1%0.8%1.1%0.6%
Oxford Metrics ($OMG)1.8%5.8%3.9%1.3%1.0%


Top companies by ROIC, %

Top 5 FY2016 FY2017 FY2018 FY2019 FY2020
Craneware ($CRW)27.9%30.0%34.9%33.4%29.8%
Rm ($RM.)254.7%73.8%39.0%31.6%-
Dotdigital Group ($DOTD)28.9%29.3%26.6%25.9%22.8%
Arcontech Group ($ARC)14.5%14.5%17.8%22.9%20.4%
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%6.1%
Oxford Metrics ($OMG)16.3%12.7%16.4%14.7%5.0%


Top companies by Net Debt / EBITDA

Top 5 FY2016 FY2017 FY2018 FY2019 FY2020
International Bus Mach Corp ($IBM)1.7x1.8x1.7x3.8x4.1x
Ncc Group ($NCC)0.5x-0.8x0.5x1.0x
Eagle Eye Solutions Ltd ($EYE)-----0.5x
Unisys Corp ($USY)-0.3x-0.6x0.1x0.4x-0.6x
Dotdigital Group ($DOTD)-2.1x-2.0x-1.3x-1.3x-1.2x
 
Median (8 companies)-0.9x-0.5x-0.1x0.3x-0.9x
Oxford Metrics ($OMG)-1.2x-1.6x-1.6x-1.8x-2.5x