DynTek Inc EBITDA increased on 7.9% and EBITDA Margin showed almost no change
09/10/2018 • About DynTek Inc (
$DYNE) • By InTwits
DynTek Inc reported FY2018 financial results today. Here are the key drivers of the company's long term financial model: EBITDA Margin is relatively stable: 3.8% in FY2018 vs. 3.7% in FY2017 vs. 3.2% in FY2014.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 4.8%. Revenue growth showed slowdown in FY18Q4 - it was -10.1% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.0 pp from -28.9% to -42.9% in 2018. During the last 5 years EBITDA Margin bottomed in FY2015 at 2.8% and was growing since that time.
Gross Margin increased slightly on 1.9 pp from 16.7% to 18.6% in FY2018. During the last 5 years Gross Margin bottomed in FY2015 at 15.5% and was growing since that time. SG&A as a % of Revenue increased slightly on 1.8 pp from 13.0% to 14.8% in FY2018. SG&A as a % of Revenue grew at 0.88 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2018. During FY2014-FY2018 Net Income margin topped in FY2015 at 4.1% and was declining since that time.
Financial and operational results
FY ended 11/30/-0001
DynTek Inc ($DYNE) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 146.0 | 159.3 | 176.9 | 162.1 | 169.8 | 4.8% |
| Gross Profit | 25.0 | 24.7 | 28.7 | 27.1 | 31.5 | 16.5% |
| SG&A | 15.5 | 20.2 | 22.9 | 21.1 | 25.2 | 19.0% |
| EBITDA | 4.7 | 4.5 | 5.8 | 5.9 | 6.4 | 7.9% |
| Net Income | 1.8 | 6.5 | 2.9 | 2.5 | 2.2 | -12.1% |
Balance Sheet
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Cash flow
|
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Ratios
|
|---|
| Revenue growth | 12.0% | 9.1% | 11.1% | -8.4% | 4.8% | |
| EBITDA growth | 16.3% | -4.5% | 29.1% | 1.6% | 7.9% | |
|
|---|
| Gross Margin | 17.1% | 15.5% | 16.2% | 16.7% | 18.6% | 1.9% |
| EBITDA Margin | 3.2% | 2.8% | 3.3% | 3.7% | 3.8% | 0.1% |
| SG&A, % of revenue | 10.6% | 12.7% | 12.9% | 13.0% | 14.8% | 1.8% |
| Net Income Margin | 1.2% | 4.1% | 1.6% | 1.5% | 1.3% | -0.2% |
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Peers in IT Consulting & Other Services
Below you can find DynTek 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 ($CTG) | | -6.0% | -12.1% | -7.3% | 19.1% |
| |
|---|
| Median (35 companies) | | 3.3% | 7.7% | 4.0% | 3.4% |
|---|
| DynTek Inc ($DYNE) | | 9.1% | 11.1% | -8.4% | 4.8% |
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 ($BAH) | 50.4% | 50.8% | 52.3% | 53.6% | 53.5% |
| |
|---|
| Median (37 companies) | 27.1% | 32.4% | 29.5% | 30.0% | 29.9% |
|---|
| DynTek Inc ($DYNE) | 17.1% | 15.5% | 16.2% | 16.7% | 18.6% |
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 ($DXC) | | | | 8.0% | 16.3% |
| |
|---|
| Median (36 companies) | 5.1% | 3.5% | 6.7% | 7.0% | 7.6% |
|---|
| DynTek Inc ($DYNE) | 3.2% | 2.8% | 3.3% | 3.7% | 3.8% |
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. ($SREV) | 3.4% | 4.7% | 10.4% | 7.2% | 6.5% |
| |
|---|
| Median (36 companies) | 1.0% | 0.9% | 1.1% | 1.4% | 1.5% |
|---|
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Accenture plc ($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) | 6.9% | 5.8% | 7.4% | 4.7% | 6.9% |
|---|
| DynTek Inc ($DYNE) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Infinite Group Inc ($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 | 0.4x | 0.8x | 1.0x |
|---|
| DynTek Inc ($DYNE) | 0.0x | 0.0x | 0.0x | 0.0x | 0.0x |
