Unisys Corp reports 4,465% Net Income growth in 2020 while 31.3% Revenue decline
22 Feb 2021 • About Unisys Corp (
$USY) • By InTwits
Unisys Corp reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Unisys Corp is a company in decline: 2020 revenue growth was -31.3%, 5 years revenue CAGR was -7.6%
- EBITDA Margin is quite volatile: 13.7% in 2020, 15.4% in 2019, 15.9% in 2018, 5.9% in 2017, 7.2% in 2016
- Unisys Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 2.1%.
- CAPEX is quite volatile: £0m in FY2020, £1m in FY2019, £0m in FY2018, £0m in FY2017, £0m in FY2016
- The company has highly profitable business model: ROIC is 1,463.1%
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 dropped on 31.3%. Annual revenue decline showed slowdown in 20Q4 - revenue dropped on 22.2%. During the last 5 years Revenue growth topped in 2019 at 4.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from 15.4% to 13.7% in 2020.
Gross Margin increased slightly on 1.2 pp from 22.6% to 23.8% in 2020. SG&A as a % of Revenue increased on 4.8 pp from 13.5% to 18.2% in 2020. During 2016-2020 SG&A as a % of Revenue bottomed in 2018 at 13.1% and was growing since that time.
Net Income margin jumped on 37.6 pp from -0.58% to 37.0% in 2020.
Investments (CAPEX, working capital and M&A)
In 2020 the company had CAPEX/Revenue of 2.9%. The company's CAPEX/Revenue decreased slightly on 1.2 pp from 4.1% in 2017 to 2.9% in 2020. For the last three years the average CAPEX/Revenue was 3.2%. During the last 5 years CAPEX as a % of Revenue topped in 2017 at 4.1% and was declining since that time.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 2.6x Debt / EBITDA. Debt decreased slightly on 0.52% while cash surged on 66.8%.
Unisys Corp has no short term refinancing risk: cash is higher than short term debt (642.2%).
Management team
Unisys Corp's CEO is Peter A Altabef. Peter A Altabef has 6 years tenure with the company. Michael M Thomson "Mike" is a the company's CFO. Michael M Thomson "Mike" has spent 1 year at the company.
Financial and operational results
FY ended 31 Dec 2020
Unisys Corp ($USY) key annual financial indicatorsmln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
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P&L
|
---|
Revenue | 2,821 | 2,742 | 2,825 | 2,949 | 2,026 | -31.3% |
Gross Profit | 559 | 478 | 686 | 666 | 483 | -27.5% |
SG&A | 456 | 427 | 370 | 397 | 369 | -6.9% |
EBITDA | 203 | 161 | 448 | 455 | 278 | -38.8% |
EBIT | 48 | 5 | 284 | | | |
Interest expence | 27 | 53 | 64 | | | |
Tax | 57 | -6 | 64 | | | |
Net Income | -48 | -65 | 76 | -17 | 751 | |
Stock Based Compensation | 10 | 11 | 13 | | | |
Balance Sheet
|
---|
Cash | 371 | 734 | 605 | 539 | 899 | 66.8% |
Accounts Receivable | 506 | 503 | 509 | | | |
Accounts Payable | 189 | 242 | 269 | | | |
Short Term Debt | 106 | 11 | 10 | 84 | 140 | 67.5% |
Long Term Debt | 194 | 634 | 643 | 650 | 590 | -9.3% |
Cash flow
|
---|
Capex | 84 | 112 | 109 | 87 | 58 | -33.4% |
Ratios
|
---|
Revenue growth | -6.4% | -2.8% | 3.0% | 4.4% | -31.3% | |
EBITDA growth | 62.6% | -20.7% | 178.2% | 1.5% | -38.8% | |
|
---|
Gross Margin | 19.8% | 17.4% | 24.3% | 22.6% | 23.8% | 1.2% |
EBITDA Margin | 7.2% | 5.9% | 15.9% | 15.4% | 13.7% | -1.7% |
EBIT Margin | 1.7% | 0.2% | 10.1% | | |
SG&A, % of revenue | 16.2% | 15.6% | 13.1% | 13.5% | 18.2% | 4.8% |
SBC, % of revenue | 0.3% | 0.4% | 0.5% | | |
Net Income Margin | -1.7% | -2.4% | 2.7% | -0.6% | 37.0% | 37.6% |
CAPEX, % of revenue | 3.0% | 4.1% | 3.8% | 2.9% | 2.9% | -0.1% |
|
---|
ROIC | | | | | 1,463.1% | |
Net Debt/EBITDA | -0.3x | -0.6x | 0.1x | 0.4x | -0.6x | -1.0x |
Interest coverage ratio (ICR) | 1.7x | 0.1x | 4.4x | | |
Interest expence / Average debt | 9.1% | 11.2% | 9.9% | | | |
People
|
---|
Insider ownership | 2.4% | 2.4% | 2.4% | | | |
Employees | 21,000 | 20,000 | 22,000 | | | |
Revenue/Employee, th. $ | 134 | 137 | 128 | | | |
Unisys Corp ($USY) key quoterly financial indicators
mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
---|
P&L
|
---|
Revenue | 515 | 439 | 495 | 577 | | -7.1% | -22.9% | -10.3% | -22.2% |
EBITDA | 58 | 38 | 65 | 88 | | -3.0% | -64.8% | -39.3% | -6.2% |
Net Income | 1,015 | -79 | -13 | -173 | | - | -400.0% | - | - |
Balance Sheet
|
---|
Cash | 790 | 782 | 774 | 899 | | 56.5% | 54.2% | 81.9% | 66.8% |
Short Term Debt | 590 | 158 | 100 | 140 | | 1,008.3% | 112.4% | 21.1% | 67.5% |
Long Term Debt | 101 | 95 | 98 | 590 | | -86.8% | -87.6% | -84.9% | -9.3% |
Ratios
|
---|
Gross Margin | 21.9% | 17.1% | 24.2% | 30.4% | | -0.6% | -9.7% | -1.1% | 10.1% |
EBITDA Margin | 11.2% | 8.7% | 13.0% | 15.2% | | 0.5% | -10.3% | -6.2% | 2.6% |
Net Income Margin | 197.0% | -17.9% | -2.6% | -30.0% | | 200.5% | -22.5% | -0.2% | -28.5% |
Peers in Software & Computer Services
Below we provide Unisys Corp 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% |
Oxford Metrics ($OMG) | - | -1.1% | 8.6% | 11.7% | -14.3% |
|
---|
Median (15 companies) | 11.7% | 15.9% | 21.8% | 6.5% | 4.0% |
---|
Unisys Corp ($USY) | - | -2.8% | 3.0% | 4.4% | -31.3% |
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 ($DOTD) | 87.4% | 86.1% | 78.9% | 89.7% | 86.6% |
|
---|
Median (14 companies) | 61.5% | 59.8% | 56.0% | 78.0% | 86.6% |
---|
Unisys Corp ($USY) | 19.8% | 17.4% | 24.3% | 22.6% | 23.8% |
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 ($IDEA) | 23.9% | 21.8% | 23.8% | 23.5% | - |
|
---|
Median (15 companies) | 10.9% | 11.3% | 12.2% | 15.4% | 16.8% |
---|
Unisys Corp ($USY) | 7.2% | 5.9% | 15.9% | 15.4% | 13.7% |
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% |
Micro Focus International ($MCRO) | 0.8% | 0.9% | 0.8% | 1.7% | - |
Ideagen ($IDEA) | 1.6% | 1.1% | 1.4% | 1.5% | - |
Oxford Metrics ($OMG) | 1.8% | 5.8% | 3.9% | 1.3% | 1.0% |
|
---|
Median (15 companies) | 1.1% | 1.1% | 0.8% | 1.1% | 0.6% |
---|
Unisys Corp ($USY) | 3.0% | 4.1% | 3.8% | 2.9% | 2.9% |
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% |
Oxford Metrics ($OMG) | 16.3% | 12.7% | 16.4% | 14.7% | 5.0% |
|
---|
Median (16 companies) | 7.1% | 4.9% | 5.3% | 3.5% | 5.6% |
---|
Unisys Corp ($USY) | - | - | - | - | - |
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 ($EYE) | - | - | - | - | -0.5x |
Dotdigital Group ($DOTD) | -2.1x | -2.0x | -1.3x | -1.3x | -1.2x |
Netcall ($NET) | -4.3x | -4.3x | 0.3x | -0.3x | -1.3x |
|
---|
Median (8 companies) | -1.0x | -0.5x | -0.4x | -0.1x | -1.2x |
---|
Unisys Corp ($USY) | -0.3x | -0.6x | 0.1x | 0.4x | -0.6x |