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 indicatorsmln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
---|
P&L
|
---|
Revenue | 29.492 | 29.155 | 31.656 | 35.350 | 30.298 | -14.3% |
Gross Profit | 19.427 | 20.556 | 22.913 | 25.184 | 20.898 | -17.0% |
SG&A | 11.163 | 13.984 | 14.993 | 16.538 | 15.154 | -8.4% |
EBITDA | 6.808 | 5.796 | 7.449 | 7.523 | 5.142 | -31.6% |
EBIT | | | 4.970 | 4.762 | | |
Tax | | | 0.556 | 0.504 | | |
Net Income | 2.271 | 1.007 | 3.543 | 4.178 | 1.604 | -61.6% |
Stock Based Compensation | | | 0.323 | 0.264 | | |
Balance Sheet
|
---|
Cash | 8.273 | 9.185 | 12.229 | 13.837 | 14.940 | 8.0% |
Inventory | | | 2.403 | 3.236 | | |
Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.426 | |
Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 1.909 | |
Cash flow
|
---|
Capex | 0.526 | 1.680 | 1.243 | 0.467 | 0.310 | -33.6% |
Dividends | | | 1.000 | 3.000 | | |
Acquisitions | | | -1.295 | | | |
Ratios
|
---|
Revenue growth | 14.6% | -1.1% | 8.6% | 11.7% | -14.3% | |
EBITDA growth | -7.0% | -14.9% | 28.5% | 1.0% | -31.6% | |
|
---|
Gross Margin | 65.9% | 70.5% | 72.4% | 71.2% | 69.0% | -2.3% |
EBITDA Margin | 23.1% | 19.9% | 23.5% | 21.3% | 17.0% | -4.3% |
EBIT Margin | | | 15.7% | 13.5% | |
SG&A, % of revenue | 37.9% | 48.0% | 47.4% | 46.8% | 50.0% | 3.2% |
SBC, % of revenue | | | 1.0% | 0.7% | |
Net Income Margin | 7.7% | 3.5% | 11.2% | 11.8% | 5.3% | -6.5% |
CAPEX, % of revenue | 1.8% | 5.8% | 3.9% | 1.3% | 1.0% | -0.3% |
|
---|
ROIC | 16.3% | 12.7% | 16.4% | 14.7% | 5.0% | -9.7% |
ROE | 8.1% | 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 ownership | | | 9.3% | 9.3% | | |
Employees | | | 234 | 210 | | |
Revenue/Employee, th. £ | | | 135 | 168 | | |
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 ($IBM) | 1.7x | 1.8x | 1.7x | 3.8x | 4.1x |
Ncc Group ($NCC) | 0.5x | - | 0.8x | 0.5x | 1.0x |
Eagle Eye Solutions Ltd ($EYE) | - | - | - | - | -0.5x |
Unisys Corp ($USY) | -0.3x | -0.6x | 0.1x | 0.4x | -0.6x |
Dotdigital Group ($DOTD) | -2.1x | -2.0x | -1.3x | -1.3x | -1.2x |
|
---|
Median (8 companies) | -0.9x | -0.5x | -0.1x | 0.3x | -0.9x |
---|
Oxford Metrics ($OMG) | -1.2x | -1.6x | -1.6x | -1.8x | -2.5x |