CACI International, Inc. Net Income surged on 84.0% and EBITDA Margin increased slightly on 0.77 pp from 8.5% to 9.2%
08/15/2018 • About CACI International, Inc. (
$CACI) • By InTwits
CACI International, Inc. reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: 9.2% in FY2018 vs. 8.5% in FY2017 vs. 9.0% in FY2014
- CACI International, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- In the last 5 years the company invested considerably less than D&A: $138m vs. $340m. In FY2018 this situation was still the same: CAPEX was 42 while D&A was 72
- The company has business model with average profitability: ROIC is 10.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.4x while industry average is -0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
CACI International, Inc.'s Revenue increased on 2.6%. Revenue growth showed acceleration in FY18Q4 - it increased 2.9% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 20.0% to 21.7% in 2018.
Gross Margin increased slightly on 0.73 pp from 32.6% to 33.3% in FY2018. SG&A as a % of Revenue showed almost no change in FY2018. During FY2014-FY2018 SG&A as a % of Revenue topped in FY2016 at 24.8% and was declining since that time. Stock Based Compensation (SBC) as a % of Revenue showed almost no change in FY2018. SBC as a % of Revenue was relatively stable in the last 5 years.
Net Income margin increased on 3.0 pp from 3.8% to 6.7% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 CACI International, Inc. had CAPEX/Revenue of 0.93%. CACI International, Inc.'s CAPEX/Revenue showed almost no change from FY2015 to FY2018. Average CAPEX/Revenue for the last three years was 0.83%. CAPEX as a % of Revenue grew at 0.15 pp per annum in FY2014-FY2018.
Accounts receivable as a % of Revenue increased slightly on 0.67 pp from 17.4% to 18.1% in FY2018. Accounts payable as a % of Revenue increased slightly on 0.61 pp from 2.1% to 2.8% in FY2018.
CACI International, Inc. has spent
$77m on M&A in FY2018 which accounts for 1.7% of revenue.
Return on investment
The company operates at good ROE (15.4%) while ROIC is low (10.2%). ROIC increased slightly on 1.2 pp from 9.0% to 10.2% in FY2018. ROE increased on 5.8 pp from 9.6% to 15.4% in FY2018. During the last 5 years ROIC bottomed in FY2015 at 8.6% and was growing since that time. During the last 5 years ROE bottomed in FY2015 at 8.9% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.4x and Debt / EBITDA is 2.6x. Net Debt / EBITDA dropped on 0.7x from 3.2x to 2.4x in FY2018. Debt dropped on 13.7% while cash increased slightly on 1.00%.
CACI International, Inc. has no short term refinancing risk: cash is higher than short term debt (141.1%).
Valuation and dividends
CACI International, Inc.'s trades at EV/EBITDA 13.7x and P/E 15.4x.
Management team
CEO total compensation was
$7,121,764 in FY2018 which included
$921,883 salary. CACI International, Inc.'s CFO is Thomas A Mutryn. Thomas A Mutryn has 12 years tenure at the company.
At the end of financial year the company had 1.4% shares owned by insiders. Insider ownership didn't change in 2018.
At the end of financial year the company had 18,800 employees. The number of employees increased slightly on 1.1%. Average revenue per employee in FY2018 was
$237,652 and it increased slightly on 1.5%.
Financial and operational results
FY ended 06/30/2018
CACI International, Inc. ($CACI) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 3,565 | 3,313 | 3,744 | 4,355 | 4,468 | 2.6% |
| Gross Profit | 1,138 | 1,120 | 1,256 | 1,420 | 1,489 | 4.9% |
| SG&A | 815 | 817 | 927 | 1,051 | 1,076 | 2.4% |
| EBITDA | 323 | 302 | 330 | 369 | 413 | 11.9% |
| EBIT | 257 | 236 | 265 | 297 | 341 | 14.6% |
| Tax | 83 | 75 | 81 | 85 | -3 | -103.0% |
| Net Income | 135 | 126 | 143 | 164 | 301 | 84.0% |
| Stock Based Compensation | 12 | 14 | 18 | 22 | 24 | 7.7% |
Balance Sheet
|
|---|
| Cash | 64 | 35 | 49 | 66 | 66 | 1.0% |
| Accounts Receivable | 616 | 596 | 804 | 757 | 807 | 6.5% |
| Accounts Payable | 56 | 57 | 95 | 63 | 82 | 30.4% |
| Short Term Debt | 42 | 39 | 54 | 54 | 47 | -13.1% |
| Long Term Debt | 1,239 | 1,025 | 1,402 | 1,178 | 1,015 | -13.8% |
Cash flow
|
|---|
| Capex | 15 | 17 | 21 | 43 | 42 | -3.9% |
| Acquisitions | 839 | 15 | 588 | 7 | 77 | 957.0% |
Ratios
|
|---|
| Revenue growth | -3.2% | -7.0% | 13.0% | 16.3% | 2.6% | |
| EBITDA growth | -0.7% | -6.2% | 8.9% | 12.0% | 11.9% | |
|
|---|
| Gross Margin | 31.9% | 33.8% | 33.6% | 32.6% | 33.3% | 0.7% |
| EBITDA Margin | 9.0% | 9.1% | 8.8% | 8.5% | 9.2% | 0.8% |
| EBIT Margin | 7.2% | 7.1% | 7.1% | 6.8% | 7.6% | 0.8% |
| SG&A, % of revenue | 22.9% | 24.7% | 24.8% | 24.1% | 24.1% | -0.0% |
| SBC, % of revenue | 0.3% | 0.4% | 0.5% | 0.5% | 0.5% | 0.0% |
| Net Income Margin | 3.8% | 3.8% | 3.8% | 3.8% | 6.7% | 3.0% |
| CAPEX, % of revenue | 0.4% | 0.5% | 0.6% | 1.0% | 0.9% | -0.1% |
|
|---|
| ROIC | 11.1% | 8.6% | 8.7% | 9.0% | 10.2% | 1.2% |
| ROE | 10.6% | 8.9% | 9.3% | 9.6% | 15.4% | 5.8% |
| Net Debt/EBITDA | 3.8x | 3.4x | 4.3x | 3.2x | 2.4x | -0.7x |
People
|
|---|
| Insider ownership | 1.4% | 1.4% | 1.4% | 1.4% | 1.4% | 0.0% |
| Employees | 15,300 | 16,600 | 19,900 | 18,600 | 18,800 | 1.1% |
| Revenue/Employee, th. $ | 233 | 200 | 188 | 234 | 238 | 1.5% |
CACI International, Inc. ($CACI) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1,086 | 1,088 | 1,124 | 1,170 | | 1.2% | 2.9% | 3.5% | 2.9% |
| EBITDA | 85 | 107 | 123 | 99 | | -3.2% | 8.3% | 44.2% | 1.0% |
| Net Income | 42 | 143 | 64 | 52 | | 14.7% | 236.6% | 59.8% | 17.2% |
Balance Sheet
|
|---|
| Cash | 67 | 56 | 56 | 66 | | 35.0% | -22.5% | 2.9% | 1.0% |
| Short Term Debt | 67 | 81 | 94 | 47 | | 25.0% | 20.0% | 75.0% | -13.1% |
| Long Term Debt | 1,102 | 1,071 | 989 | 1,015 | | -18.1% | -17.1% | -19.4% | -13.8% |
Ratios
|
|---|
| Gross Margin | 31.9% | 33.2% | 35.2% | 33.1% | | -0.3% | -0.1% | 2.6% | 0.7% |
| EBITDA Margin | 7.8% | 9.8% | 10.9% | 8.5% | | -0.4% | 0.5% | 3.1% | -0.2% |
| Net Income Margin | 3.9% | 13.1% | 5.7% | 4.4% | | 0.5% | 9.1% | 2.0% | 0.5% |
Peers in IT Consulting & Other Services
Below you can find CACI International, Inc. benchmarking vs. other companies in IT Consulting & Other Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Gopher Protocol Inc ($GOPH) | | -25.0% | 83.3% | 5,471.1% | 461.0% |
| CLPS Incorporation ($CLPS) | | | | 8.1% | 56.0% |
| EPAM Systems, Inc. ($EPAM) | | 25.2% | 26.9% | 25.0% | 27.1% |
| Gartner, Inc. ($IT) | | 7.0% | 13.0% | 35.5% | 20.1% |
| Computer Task Group, Incorporated ($CTG) | | -6.0% | -12.1% | -7.3% | 19.1% |
| |
|---|
| Median (35 companies) | | 3.5% | 7.7% | 3.8% | 3.9% |
|---|
| CACI International, Inc. ($CACI) | | -7.0% | 13.0% | 16.3% | 2.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inpixon ($INPX) | 29.8% | 28.9% | 28.1% | 68.7% | 71.4% |
| Gartner, Inc. ($IT) | 60.5% | 61.2% | 61.3% | 60.1% | 63.1% |
| InterXion Holding N.V. ($INXN) | 59.2% | 60.8% | 61.5% | 61.1% | 60.9% |
| LiveRamp Holdings, Inc. ($RAMP) | 25.1% | 38.6% | 42.5% | 45.7% | 56.2% |
| Booz Allen Hamilton Holding Corporation ($BAH) | 50.4% | 50.8% | 52.3% | 53.6% | 53.5% |
| |
|---|
| Median (37 companies) | 25.8% | 30.9% | 28.1% | 27.7% | 28.9% |
|---|
| CACI International, Inc. ($CACI) | 31.9% | 33.8% | 33.6% | 32.6% | 33.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| InterXion Holding N.V. ($INXN) | 41.3% | 44.9% | 43.3% | 42.2% | 42.8% |
| Switch, Inc. ($SWCH) | | 50.7% | 37.0% | 28.5% | 39.8% |
| Cognizant Technology Solutions Corporation ($CTSH) | 20.4% | 19.9% | 19.8% | 19.7% | 20.5% |
| Taoping Inc. ($TAOP) | -54.0% | -237.5% | -117.7% | 13.2% | 18.7% |
| DXC Technology Company ($DXC) | | | | 8.0% | 16.3% |
| |
|---|
| Median (36 companies) | 4.8% | 3.3% | 6.7% | 6.3% | 7.2% |
|---|
| CACI International, Inc. ($CACI) | 9.0% | 9.1% | 8.8% | 8.5% | 9.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| InterXion Holding N.V. ($INXN) | 62.5% | 48.1% | 57.4% | 50.5% | 78.3% |
| Switch, Inc. ($SWCH) | | 71.5% | 90.2% | 106.4% | 67.9% |
| Taoping Inc. ($TAOP) | 1.4% | 29.2% | 34.0% | 20.8% | 8.7% |
| Teradata Corporation ($TDC) | 2.0% | 2.1% | 2.3% | 3.6% | 7.1% |
| ServiceSource International, Inc. ($SREV) | 3.4% | 4.7% | 10.4% | 7.2% | 6.5% |
| |
|---|
| Median (35 companies) | 1.0% | 0.9% | 1.2% | 1.4% | 1.5% |
|---|
| CACI International, Inc. ($CACI) | 0.4% | 0.5% | 0.6% | 1.0% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Accenture plc ($ACN) | 80.5% | 81.0% | 81.3% | 61.7% | 66.1% |
| The Hackett Group, Inc. ($HCKT) | 11.2% | 19.5% | 31.7% | 23.8% | 24.6% |
| Cognizant Technology Solutions Corporation ($CTSH) | 24.7% | 22.0% | 21.3% | 21.9% | 23.8% |
| Booz Allen Hamilton Holding Corporation ($BAH) | 25.3% | 26.5% | 23.1% | 22.6% | 22.5% |
| EPAM Systems, Inc. ($EPAM) | 19.7% | 18.4% | 18.2% | 18.9% | 21.2% |
| |
|---|
| Median (44 companies) | 6.2% | 4.7% | 7.3% | 4.7% | 6.9% |
|---|
| CACI International, Inc. ($CACI) | 11.1% | 8.6% | 8.7% | 9.0% | 10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Infinite Group Inc ($IMCI) | | | 169.6x | | 10.5x |
| InterXion Holding N.V. ($INXN) | 3.3x | 2.9x | 3.4x | 3.8x | 4.6x |
| Gartner, Inc. ($IT) | 0.1x | 1.3x | 0.6x | 11.7x | 4.1x |
| Switch, Inc. ($SWCH) | | 2.2x | 4.0x | 3.2x | 3.3x |
| Presidio, Inc. ($PSDO) | 0.0x | | 5.6x | 3.6x | 3.1x |
| |
|---|
| Median (28 companies) | -0.2x | -0.3x | 0.0x | 0.4x | 0.4x |
|---|
| CACI International, Inc. ($CACI) | 3.8x | 3.4x | 4.3x | 3.2x | 2.4x |
