TSR, Inc. reports 58.6% EBITDA growth in 2018 and 3.9% Revenue growth
08/21/2018 • About TSR, Inc. (
$TSRI) • By InTwits
TSR, Inc. reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: 1.4% in FY2018 vs. 0.9% in FY2017 vs. 0.1% in FY2014
- EBITDA Margin is quite volatile: 1.4% in FY2018, 0.9% in FY2017, 1.4% in FY2016, 0.8% in FY2015, 0.1% in FY2014
- TSR, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.0%.
- The company has business model with average profitability: ROIC is 11.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
TSR, Inc.'s Revenue increased on 3.9%. Revenue growth showed slowdown in FY18Q4 - it was -3.1% YoY. EBITDA Margin showed almost no change in FY2018.
Gross Margin showed almost no change in FY2018. SG&A as a % of Revenue decreased slightly on 0.90 pp from 15.5% to 14.6% in FY2018.
Net Income margin showed almost no change in FY2018.
Investments (CAPEX, working capital and M&A)
TSR, Inc.'s CAPEX/Revenue was 0.033% in FY2018. TSR, Inc.'s CAPEX/Revenue showed almost no change from FY2015 to FY2018. It's average CAPEX/Revenue for the last three years was 0.024%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2016 at 0.019% and was growing since that time.
Return on investment
The company operates at low ROIC (11.1%) and ROE (6.1%). ROIC increased on 4.7 pp from 6.4% to 11.1% in FY2018. ROE increased on 3.0 pp from 3.1% to 6.1% in FY2018. ROIC grew at 2.3 pp per annum in FY2014-FY2018. ROE grew at 1.5 pp per annum in FY2014-FY2018.
Leverage (Debt)
The company has no debt. Cash decreased on 7.0%.
Valuation and dividends
TSR, Inc.'s trades at EV/EBITDA 3.2x and P/E 17.1x.
Financial and operational results
FY ended 05/31/2018
TSR, Inc. ($TSRI) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 49.530 | 57.403 | 60.998 | 62.573 | 64.990 | 3.9% |
| Gross Profit | 8.278 | 9.315 | 9.959 | 10.246 | 10.381 | 1.3% |
| SG&A | 8.253 | 8.883 | 9.121 | 9.684 | 9.472 | -2.2% |
| EBITDA | 0.041 | 0.453 | 0.862 | 0.582 | 0.924 | 58.6% |
| Net Income | -0.086 | 0.193 | 0.399 | 0.268 | 0.486 | 81.3% |
Balance Sheet
|
|---|
| Cash | 2.842 | 3.670 | 4.514 | 5.724 | 5.323 | -7.0% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.033 | 0.025 | 0.012 | 0.013 | 0.021 | 69.6% |
Ratios
|
|---|
| Revenue growth | 10.3% | 15.9% | 6.3% | 2.6% | 3.9% | |
| EBITDA growth | -105.8% | 1,007.6% | 90.3% | -32.4% | 58.6% | |
|
|---|
| Gross Margin | 16.7% | 16.2% | 16.3% | 16.4% | 16.0% | -0.4% |
| EBITDA Margin | 0.1% | 0.8% | 1.4% | 0.9% | 1.4% | 0.5% |
| SG&A, % of revenue | 16.7% | 15.5% | 15.0% | 15.5% | 14.6% | -0.9% |
| Net Income Margin | -0.2% | 0.3% | 0.7% | 0.4% | 0.7% | 0.3% |
| CAPEX, % of revenue | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|
|---|
| ROIC | 0.3% | 4.7% | 8.8% | 6.4% | 11.1% | 4.7% |
| ROE | -1.0% | 2.2% | 4.3% | 3.1% | 6.1% | 3.0% |
| Net Debt/EBITDA | -69.5x | -8.1x | -5.2x | -9.8x | -5.8x | 4.1x |
TSR, Inc. ($TSRI) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 17 | 17 | 15 | 16 | | 11.8% | 9.8% | -2.2% | -3.1% |
| EBITDA | 0 | 0 | -0 | 0 | | -3.6% | 74.0% | | 53.6% |
| Net Income | 0 | 0 | -0 | 0 | | -4.5% | 79.8% | | 121.0% |
Balance Sheet
|
|---|
| Cash | 5 | 4 | 4 | 5 | | 0.5% | -8.9% | -11.6% | -7.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 16.7% | 16.5% | 15.2% | 15.5% | | -0.4% | -0.7% | -0.4% | -0.2% |
| EBITDA Margin | 1.6% | 2.6% | -0.2% | 1.5% | | -0.3% | 1.0% | 0.5% | 0.5% |
| Net Income Margin | 0.8% | 1.4% | -0.1% | 0.8% | | -0.1% | 0.5% | 0.3% | 0.5% |
Peers in IT Consulting & Other Services
Below you can find TSR, 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 ($CTG) | | -6.0% | -12.1% | -7.3% | 19.1% |
| |
|---|
| Median (35 companies) | | 3.3% | 8.3% | 4.0% | 3.4% |
|---|
| TSR, Inc. ($TSRI) | | 15.9% | 6.3% | 2.6% | 3.9% |
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 ($BAH) | 50.4% | 50.8% | 52.3% | 53.6% | 53.5% |
| |
|---|
| Median (37 companies) | 27.1% | 32.4% | 29.5% | 30.0% | 29.9% |
|---|
| TSR, Inc. ($TSRI) | 16.7% | 16.2% | 16.3% | 16.4% | 16.0% |
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 ($DXC) | | | | 8.0% | 16.3% |
| |
|---|
| Median (36 companies) | 5.1% | 3.5% | 6.7% | 7.0% | 7.6% |
|---|
| TSR, Inc. ($TSRI) | 0.1% | 0.8% | 1.4% | 0.9% | 1.4% |
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. ($SREV) | 3.4% | 4.7% | 10.4% | 7.2% | 6.5% |
| |
|---|
| Median (35 companies) | 1.0% | 0.9% | 1.2% | 1.4% | 1.5% |
|---|
| TSR, Inc. ($TSRI) | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% |
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. ($EPAM) | 19.7% | 18.4% | 18.2% | 18.9% | 21.2% |
| |
|---|
| Median (44 companies) | 7.5% | 6.9% | 7.3% | 4.7% | 6.9% |
|---|
| TSR, Inc. ($TSRI) | 0.3% | 4.7% | 8.8% | 6.4% | 11.1% |
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. ($PSDO) | 0.0x | | 5.6x | 3.6x | 3.1x |
| |
|---|
| Median (28 companies) | -0.2x | -0.2x | 0.4x | 0.8x | 1.0x |
|---|
| TSR, Inc. ($TSRI) | -69.5x | -8.1x | -5.2x | -9.8x | -5.8x |
