CoreLogic, Inc. Net Income dropped on 19.9% and Revenue decreased on 3.4%
02/26/2019 • About CoreLogic, Inc. (
$CLGX) • By InTwits
CoreLogic, Inc. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 23.6% in 2018 vs. 22.5% in 2017 vs. 21.9% in 2014
- CoreLogic, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: $13m in FY2018, $62m in FY2017, $62m in FY2016, $76m in FY2015, $39m in FY2014
- In the last 5 years the company invested considerably less than D&A: $244m vs. $835m. In 2018 this situation was still the same: CAPEX was 62 while D&A was 200
- The company has business model with low profitability: ROIC is 8.0%
- It operates with high leverage: Net Debt/EBITDA is 4.0x while industry average is 2.6x
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 decreased on 3.4%. Revenue decline showed acceleration in 18Q4 - it was 11.2% YoY. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.1 pp from 22.5% to 23.6% in 2018.
Gross Margin increased slightly on 1.1 pp from 47.3% to 48.5% in 2018. SG&A as a % of Revenue showed almost no change in 2018. Stock Based Compensation (SBC) as a % of Revenue showed almost no change in 2018. SBC as a % of Revenue followed a growing trend in the last 5 years.
Net Income margin decreased slightly on 1.4 pp from 8.2% to 6.8% in 2018. The efficient tax rate was 27.3% in 2018 while the average for the last five years was 26.1%.
Investments (CAPEX, working capital and M&A)
CoreLogic, Inc.'s CAPEX/Revenue was 3.5% in 2018. CAPEX/Revenue increased slightly on 0.59 pp from 2.9% in 2015 to 3.5% in 2018. It's average level of CAPEX/Revenue for the last three years was 2.7%. During the last 5 years CAPEX as a % of Revenue bottomed in 2017 at 2.2%.
Accounts receivable as a % of Revenue showed almost no change in 2018.
CoreLogic, Inc. has spent
$220m on M&A in 2018 which accounts for 12.3% of revenue.
Return on investment
The company operates at good ROE (12.1%) while ROIC is low (8.0%). ROIC decreased slightly on 0.53 pp from 8.5% to 8.0% in 2018. ROE decreased on 3.0 pp from 15.1% to 12.1% in 2018. During 2014-2018 ROIC topped in 2016 at 10.5% and was declining since that time.
Leverage (Debt)
Debt level is 4.0x Net Debt / EBITDA and 4.2x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 3.9x to 4.0x in 2018. Debt increased slightly on 1.5% while cash dropped on 28.2%. During 2014-2018 Net Debt/EBITDA bottomed in 2016 at 3.4x and was growing since that time.
CoreLogic, Inc. has no short term refinancing risk: cash is higher than short term debt (316.6%).
Valuation and dividends
CoreLogic, Inc.'s trades at EV/EBITDA 11.0x and P/E 24.1x.
Management team
CoreLogic, Inc.'s CEO is Frank D Martell. Frank D Martell is a founder and has 2 years tenure with the company. CEO total compensation was
$5,641,654 in 2018 which included
$778,942 salary. The company's CFO James L Balas "Jim" has spent 3 years with the company.
1.9% of the company is owned by insiders. Insider ownership didn't change in 2018.
At the end of financial year the company had 5,800 employees. The number of employees decreased slightly on 1.7%. Average revenue per employee in 2018 was
$308,341 and it decreased slightly on 1.7%.
Financial and operational results
FY ended 12/31/2018
CoreLogic, Inc. ($CLGX) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 1,405 | 1,528 | 1,953 | 1,851 | 1,788 | -3.4% |
| Gross Profit | 665 | 752 | 909 | 876 | 867 | -1.1% |
| SG&A | 352 | 398 | 461 | 460 | 445 | -3.3% |
| EBITDA | 308 | 350 | 447 | 416 | 422 | 1.4% |
| EBIT | 170 | 203 | 275 | 239 | 223 | -6.7% |
| Tax | 30 | 57 | 55 | 18 | 46 | 151.4% |
| Net Income | 73 | 128 | 107 | 152 | 122 | -19.9% |
| Stock Based Compensation | 19 | 29 | 38 | 36 | 37 | 3.7% |
Balance Sheet
|
|---|
| Cash | 105 | 99 | 72 | 119 | 85 | -28.2% |
| Accounts Receivable | 214 | 241 | 269 | 257 | 243 | -5.4% |
| Short Term Debt | 11 | 48 | 105 | 70 | 27 | -61.5% |
| Long Term Debt | 1,319 | 1,288 | 1,497 | 1,684 | 1,752 | 4.1% |
Cash flow
|
|---|
| Capex | 52 | 44 | 45 | 41 | 62 | 53.8% |
| Acquisitions | 695 | 194 | 397 | 189 | 220 | 16.3% |
Ratios
|
|---|
| Revenue growth | 0.0% | 8.8% | 27.8% | -5.2% | -3.4% | |
| EBITDA growth | 14.8% | 13.4% | 27.9% | -6.9% | 1.4% | |
|
|---|
| Gross Margin | 47.3% | 49.2% | 46.5% | 47.3% | 48.5% | 1.1% |
| EBITDA Margin | 21.9% | 22.9% | 22.9% | 22.5% | 23.6% | 1.1% |
| EBIT Margin | 12.1% | 13.3% | 14.1% | 12.9% | 12.4% | -0.4% |
| SG&A, % of revenue | 25.0% | 26.1% | 23.6% | 24.8% | 24.9% | 0.0% |
| SBC, % of revenue | 1.3% | 1.9% | 1.9% | 1.9% | 2.1% | 0.1% |
| Net Income Margin | 5.2% | 8.4% | 5.5% | 8.2% | 6.8% | -1.4% |
| CAPEX, % of revenue | 3.7% | 2.9% | 2.3% | 2.2% | 3.5% | 1.3% |
|
|---|
| ROIC | 8.3% | 8.4% | 10.5% | 8.5% | 8.0% | -0.5% |
| ROE | 7.1% | 12.4% | 10.4% | 15.1% | 12.1% | -3.0% |
| Net Debt/EBITDA | 4.0x | 3.5x | 3.4x | 3.9x | 4.0x | 0.1x |
People
|
|---|
| Insider ownership | 1.9% | 1.9% | 1.9% | 1.9% | 1.9% | 0.0% |
| Employees | 4,820 | 6,500 | 6,300 | 5,900 | 5,800 | -1.7% |
| Revenue/Employee, th. $ | 292 | 235 | 310 | 314 | 308 | -1.7% |
CoreLogic, Inc. ($CLGX) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 445 | 488 | 452 | 403 | | 1.1% | 3.0% | -6.5% | -11.2% |
| EBITDA | 91 | 137 | 108 | 86 | | 19.1% | 13.0% | 0.6% | -22.5% |
| Net Income | 28 | 59 | 22 | 13 | | 83.2% | 41.8% | -27.0% | -80.5% |
Balance Sheet
|
|---|
| Cash | 124 | 85 | 98 | 85 | | 20.2% | -4.9% | -34.5% | -28.2% |
| Short Term Debt | 50 | 50 | 27 | 27 | | -59.5% | -64.5% | -70.7% | -61.5% |
| Long Term Debt | 1,660 | 1,759 | 1,738 | 1,752 | | 13.4% | 17.2% | 1.9% | 4.1% |
Ratios
|
|---|
| Gross Margin | 46.2% | 51.0% | 49.0% | 47.4% | | 3.5% | 3.6% | -0.5% | -2.1% |
| EBITDA Margin | 20.4% | 28.1% | 24.0% | 21.4% | | 3.1% | 2.5% | 1.7% | -3.1% |
| Net Income Margin | 6.4% | 12.0% | 5.0% | 3.1% | | 2.8% | 3.3% | -1.4% | -11.1% |
Peers in Data Processing & Outsourced S
Below we provide CoreLogic, Inc. benchmarking against other companies in Data Processing & Outsourced S 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Verra Mobility Corp ($VRRM) | | | | | 167.8% |
| StoneCo Ltd ($STNE) | | | | 74.3% | 106.0% |
| PagSeguro Digital Ltd. ($PAGS) | | 107.1% | 68.7% | 121.7% | 71.8% |
| Payment Data Systems, Inc. ($PYDS) | | 7.4% | -16.0% | 20.7% | 71.7% |
| StarTek, Inc. ($SRT) | | 12.8% | 8.9% | -4.8% | 66.4% |
| |
|---|
| Median (55 companies) | | 7.0% | 7.6% | 11.8% | 7.5% |
|---|
| CoreLogic, Inc. ($CLGX) | | 8.8% | 27.8% | -5.2% | -3.4% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Verra Mobility Corp ($VRRM) | | | | 97.4% | 97.5% |
| Everi Holdings Inc. ($EVRI) | 25.8% | 38.3% | 36.1% | 34.5% | 79.9% |
| StoneCo Ltd ($STNE) | | | 69.7% | 70.8% | 79.5% |
| Paychex, Inc. ($PAYX) | 70.9% | 70.5% | 71.0% | 70.8% | 69.9% |
| Global Payments Inc. ($GPN) | 62.7% | 63.2% | 60.4% | 51.5% | 67.5% |
| |
|---|
| Median (44 companies) | 38.4% | 39.5% | 39.2% | 38.9% | 40.9% |
|---|
| CoreLogic, Inc. ($CLGX) | 47.3% | 49.2% | 46.5% | 47.3% | 48.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Visa Inc. ($V) | 64.0% | 68.9% | 55.6% | 69.2% | 65.8% |
| FleetCor Technologies, Inc. ($FLT) | 56.1% | 50.4% | 52.0% | 50.8% | 55.9% |
| StoneCo Ltd ($STNE) | | | 31.4% | 26.0% | 53.0% |
| Mastercard Incorporated ($MA) | 57.5% | 56.3% | 56.9% | 56.5% | 51.8% |
| Everi Holdings Inc. ($EVRI) | 9.6% | 14.7% | 3.0% | 20.4% | 45.2% |
| |
|---|
| Median (56 companies) | 20.4% | 21.0% | 21.2% | 20.6% | 19.2% |
|---|
| CoreLogic, Inc. ($CLGX) | 21.9% | 22.9% | 22.9% | 22.5% | 23.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Crypto Co/The ($CRCW) | 0.0% | 0.0% | | 1,216.6% | 853.5% |
| Steel Connect, Inc. ($STCN) | 0.6% | 1.5% | 1.7% | 1.1% | 75.6% |
| Everi Holdings Inc. ($EVRI) | 3.0% | 9.3% | 9.4% | 9.9% | 21.9% |
| StoneCo Ltd ($STNE) | | | 7.2% | 18.4% | 8.9% |
| Cardtronics plc ($CATM) | 10.2% | 11.9% | 9.9% | 9.6% | 8.0% |
| |
|---|
| Median (56 companies) | 3.1% | 3.0% | 3.2% | 2.9% | 3.0% |
|---|
| CoreLogic, Inc. ($CLGX) | 3.7% | 2.9% | 2.3% | 2.2% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| GreenSky, Inc. ($GSKY) | | | | 156.4% | 93.7% |
| Mastercard Incorporated ($MA) | 63.5% | 57.5% | 57.5% | 60.6% | 64.7% |
| Paychex, Inc. ($PAYX) | 54.5% | 58.7% | 61.9% | 63.9% | 64.5% |
| NIC Inc. ($EGOV) | 64.6% | 61.2% | 63.1% | 52.1% | 39.3% |
| Automatic Data Processing, Inc. ($ADP) | 23.9% | 28.9% | 37.9% | 36.6% | 37.5% |
| |
|---|
| Median (62 companies) | 14.1% | 13.1% | 11.7% | 10.7% | 12.1% |
|---|
| CoreLogic, Inc. ($CLGX) | 8.3% | 8.4% | 10.5% | 8.5% | 8.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| StarTek, Inc. ($SRT) | -0.1x | | 2.2x | 2.3x | 18.4x |
| Square, Inc. ($SQ) | | | | | 13.3x |
| Steel Connect, Inc. ($STCN) | -12.5x | | | | 12.6x |
| Exela Technologies Inc ($XELAU) | | | 8.1x | | 9.7x |
| Alliance Data Systems Corporation ($ADS) | 9.3x | 9.1x | 10.7x | 10.1x | 9.0x |
| |
|---|
| Median (54 companies) | 0.4x | 0.5x | 1.3x | 2.3x | 2.0x |
|---|
| CoreLogic, Inc. ($CLGX) | 4.0x | 3.5x | 3.4x | 3.9x | 4.0x |
