Blue Prism Group plc revenue surged on 40% and EBITDA Margin surged on 28.9 pp from -78.3% to -49.4%
14 Jan 2021 • About Blue Prism Group plc (
$PRSM) • By InTwits
Blue Prism Group plc reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Blue Prism Group plc is a fast growth stock: FY2020 revenue growth was 40%, 5 year revenue CAGR was 87.7% at FY2020 ROIC -75.4%
- The company operates at negative EBITDA Margin: -49.4%
- Blue Prism Group plc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -57.3%
- Blue Prism Group plc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 0.2%.
- CAPEX is quite volatile: £0m in FY2020, £1m in FY2019, £1m in FY2018, £0m in FY2017, £0m in FY2016
- The company has unprofitable business model: ROIC is -75.4%
- It operates with high leverage: Net Debt/EBITDA is 4.1x while industry average is
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 surged on 40%. During the last 5 years Revenue growth topped in FY2017 at 154% and was decelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 28.9 pp from -78.3% to -49.4% in FY2020.
Gross Margin decreased on 4.7 pp from 91.6% to 86.8% in FY2020. SG&A as a % of Revenue dropped on 53.7 pp from 158% to 104% in FY2020.
Net Income margin surged on 19.6 pp from -77.4% to -57.9% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 Blue Prism Group plc had CAPEX/Revenue of 0.21%. Blue Prism Group plc's CAPEX/Revenue decreased slightly on 1.4 pp from 1.6% in FY2017 to 0.21% in FY2020. It's average level of CAPEX/Revenue for the last three years was 0.98%. During FY2016-FY2020 CAPEX as a % of Revenue topped in FY2017 at 1.6% and was declining since that time.
Return on investment
The company operates at negative ROIC (-75.4%) and ROE (-77.3%). ROIC surged on 76.2 pp from -152% to -75.4% in FY2020. ROE jumped on 68.4 pp from -146% to -77.3% in FY2020.
Leverage (Debt)
The company has no debt. Cash jumped on 202%.
Financial and operational results
Blue Prism Group plc ($PRSM) key annual financial indicatorsmln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
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P&L
|
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Revenue | 9.6 | 24.5 | 55.2 | 101.0 | 141.4 | 40.0% |
Gross Profit | 9.6 | | | 92.5 | 122.8 | 32.8% |
SG&A | | | | 159.7 | 147.7 | -7.5% |
EBITDA | -5.6 | -10.0 | -25.6 | -79.1 | -69.9 | |
Net Income | -5.3 | -10.4 | -26.2 | -78.2 | -81.8 | |
Balance Sheet
|
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Cash | 11.8 | 16.3 | 50.5 | 45.5 | 137.6 | 202.4% |
Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
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Capex | 0.2 | 0.4 | 0.8 | 1.3 | 0.3 | -76.9% |
Ratios
|
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Revenue growth | 59.1% | 154.0% | 125.3% | 83.0% | 40.0% | |
EBITDA growth | 653.0% | 80.0% | 156.0% | 209.0% | -11.6% | |
|
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Gross Margin | 99.3% | | | 91.6% | 86.8% | -4.7% |
EBITDA Margin | -57.6% | -40.8% | -46.4% | -78.3% | -49.4% | 28.9% |
SG&A, % of revenue | | | | 158.1% | 104.5% | -53.7% |
Net Income Margin | -55.1% | -42.4% | -47.5% | -77.4% | -57.9% | 19.6% |
CAPEX, % of revenue | 1.6% | 1.6% | 1.4% | 1.3% | 0.2% | -1.1% |
|
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ROIC | -322.4% | | -732.4% | -151.6% | -75.4% | 76.2% |
ROE | | | | -145.8% | -77.3% | 68.4% |
Peers in Systems Software
Below we provide Blue Prism Group plc benchmarking against other companies in Systems Software 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.