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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 indicators

mln. £201620172018201920202020/2019
P&L
Revenue9.624.555.2101.0141.440.0%
Gross Profit9.692.5122.832.8%
SG&A159.7147.7-7.5%
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
Cash11.816.350.545.5137.6202.4%
Short Term Debt0.00.00.00.00.0
Long Term Debt0.00.00.00.00.0
Cash flow
Capex0.20.40.81.30.3-76.9%
Ratios
Revenue growth59.1%154.0%125.3%83.0%40.0%
EBITDA growth653.0%80.0%156.0%209.0%-11.6%

Gross Margin99.3%91.6%86.8%-4.7%
EBITDA Margin-57.6%-40.8%-46.4%-78.3%-49.4%28.9%
SG&A, % of revenue158.1%104.5%-53.7%
Net Income Margin-55.1%-42.4%-47.5%-77.4%-57.9%19.6%
CAPEX, % of revenue1.6%1.6%1.4%1.3%0.2%-1.1%

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.