Park City Group, Inc. CAPEX surged on 610% while Revenue decreased on 3.9%
09/12/2019 • About Park City Group, Inc. (
$PCYG) • By InTwits
Park City Group, Inc. reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 21.7% in FY2019, 18.8% in FY2018, 23.2% in FY2017, 8.5% in FY2016, -24.4% in FY2015
- Park City Group, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's in pair with industry average of 6.0%
- CAPEX is quite volatile: $1m in FY2019, $0m in FY2018, $2m in FY2017, $0m in FY2016, $0m in FY2015
- The company has business model with low profitability: ROIC is 8.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 3.9%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.8 pp from 18.8% to 21.7% in FY2019.
Gross Margin increased on 2.4 pp from 70.1% to 72.5% in FY2019. SG&A as a % of Revenue showed almost no change in FY2019.
Net Income margin increased on 3.0 pp from 15.5% to 18.4% in FY2019.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 6.8% in FY2019. CAPEX/Revenue increased on 6.3 pp from 0.58% in FY2016 to 6.8% in FY2019. Average CAPEX/Revenue for the last three years was 6.0%.
Return on investment
The company operates at low ROIC (8.5%) and ROE (8.0%). ROIC showed almost no change in FY2019. ROE showed almost no change in FY2019.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.8x and Debt / EBITDA is 1.3x. Debt surged on 17.3% while cash jumped on 25.0%.
Park City Group, Inc. has no short term refinancing risk: cash is higher than short term debt (375.6%).
Valuation and dividends
The company's trades at EV/EBITDA 23.1x and P/E 30.4x.
Management team
Park City Group, Inc.'s CEO is Randall K Fields "Randy". Randall K Fields "Randy" is a founder and has 18 years tenure with the company. Park City Group, Inc.'s CFO is John R Merrill. John R Merrill has 5 years tenure at the company.
Financial and operational results
FY ended 06/30/2019
Park City Group, Inc. ($PCYG) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 13.649 | 14.011 | 18.939 | 22.036 | 21.170 | -3.9% |
| Gross Profit | 8.392 | 9.731 | 13.621 | 15.449 | 15.340 | -0.7% |
| SG&A | 10.221 | 8.536 | 9.234 | 11.298 | 10.749 | -4.9% |
| EBITDA | -3.324 | 1.195 | 4.387 | 4.151 | 4.591 | 10.6% |
| Net Income | -3.850 | 0.667 | 3.778 | 3.409 | 3.902 | 14.5% |
Balance Sheet
|
|---|
| Cash | 11.326 | 11.443 | 14.054 | 14.892 | 18.609 | 25.0% |
| Short Term Debt | 2.727 | 2.739 | 3.169 | 3.418 | 4.955 | 45.0% |
| Long Term Debt | 0.349 | 0.491 | 1.997 | 1.592 | 0.921 | -42.2% |
Cash flow
|
|---|
| Capex | 0.370 | 0.081 | 1.957 | 0.204 | 1.448 | 609.7% |
Ratios
|
|---|
| Revenue growth | 14.4% | 2.7% | 35.2% | 16.4% | -3.9% | |
| EBITDA growth | 94.0% | -135.9% | 267.2% | -5.4% | 10.6% | |
|
|---|
| Gross Margin | 61.5% | 69.5% | 71.9% | 70.1% | 72.5% | 2.4% |
| EBITDA Margin | -24.4% | 8.5% | 23.2% | 18.8% | 21.7% | 2.8% |
| SG&A, % of revenue | 74.9% | 60.9% | 48.8% | 51.3% | 50.8% | -0.5% |
| Net Income Margin | -28.2% | 4.8% | 19.9% | 15.5% | 18.4% | 3.0% |
| CAPEX, % of revenue | 2.7% | 0.6% | 10.3% | 0.9% | 6.8% | 5.9% |
|
|---|
| ROIC | -18.9% | 2.1% | 10.4% | 8.2% | 8.5% | 0.3% |
| ROE | -34.4% | -0.2% | 9.0% | 7.5% | 8.0% | 0.5% |
| Net Debt/EBITDA | | -6.9x | -2.0x | -2.4x | -2.8x | -0.4x |
Peers in Application Software
Below we provide Park City Group, Inc. benchmarking against other companies in Application Software 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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| nFusz Inc ($FUSZ) | | | | 433.3% | |
| CloudCommerce Inc ($CLWD) | -38.1% | 247.6% | 40.9% | 301.1% | |
| Seven Stars Cloud Group, Inc. ($SSC) | 134.7% | 663.8% | 310.3% | 161.7% | |
| Aurora Mobile Limited ($JG) | | | 304.9% | 150.8% | |
| Intelligent Systems Corporation ($INS) | 14.2% | 71.0% | 12.2% | 119.0% | |
| |
|---|
| Median (152 companies) | 13.9% | 14.4% | 14.8% | 15.1% | 10.5% |
|---|
| Park City Group, Inc. ($PCYG) | | | 35.2% | 16.4% | -3.9% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 97.4% | 98.0% | 97.6% | 96.5% | |
| hopTo Inc ($HPTO) | 87.8% | 95.9% | 98.2% | 95.4% | |
| Aware, Inc. ($AWRE) | 87.2% | 90.3% | 94.6% | 92.3% | |
| Alteryx, Inc. ($AYX) | 80.5% | 81.3% | 83.4% | 91.0% | |
| Aspen Technology, Inc. ($AZPN) | 88.7% | 89.7% | 90.2% | 89.9% | |
| |
|---|
| Median (151 companies) | 63.0% | 63.8% | 64.4% | 65.3% | 47.7% |
|---|
| Park City Group, Inc. ($PCYG) | | 69.5% | 71.9% | 70.1% | 72.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Aspen Technology, Inc. ($AZPN) | 42.2% | 46.0% | 45.2% | 43.3% | |
| ANSYS, Inc. ($ANSS) | 45.8% | 45.1% | 41.9% | 41.4% | |
| Paycom Software, Inc. ($PAYC) | 19.5% | 35.1% | 34.4% | 35.9% | |
| j2 Global, Inc. ($JCOM) | 40.6% | 41.7% | 36.5% | 35.7% | |
| Adobe Inc. ($ADBE) | 25.9% | 31.2% | 34.2% | 35.3% | |
| |
|---|
| Median (153 companies) | -10.7% | -5.3% | -4.2% | -3.3% | 12.0% |
|---|
| Park City Group, Inc. ($PCYG) | | 8.5% | 23.2% | 18.8% | 21.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| TimefireVR Inc ($TFVR) | 350.5% | 4.3% | | 1,021.9% | |
| MGT Capital Investments Inc ($MGTI) | 36.5% | 221.4% | 129.8% | 344.5% | |
| Integrated Ventures Inc ($INTV) | | | | 199.9% | 15.2% |
| ShotSpotter, Inc. ($SSTI) | 18.3% | 28.9% | 27.1% | 24.3% | |
| Ellie Mae, Inc. ($ELLI) | 20.6% | 16.7% | 21.1% | 19.4% | |
| |
|---|
| Median (154 companies) | 2.8% | 3.0% | 2.3% | 2.4% | 3.0% |
|---|
| Park City Group, Inc. ($PCYG) | | 0.6% | 10.3% | 0.9% | 6.8% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| InsPro Technologies Corp ($ITCC) | | | | 127.4% | |
| Manhattan Associates, Inc. ($MANH) | 78.7% | 99.3% | 102.5% | 80.9% | |
| Intuit Inc. ($INTU) | 23.7% | 52.1% | 72.6% | 66.8% | |
| Aspen Technology, Inc. ($AZPN) | | | | 58.1% | |
| Paycom Software, Inc. ($PAYC) | 30.5% | 75.4% | 51.1% | 47.5% | |
| |
|---|
| Median (180 companies) | -12.2% | -9.8% | -11.8% | -10.6% | 10.4% |
|---|
| Park City Group, Inc. ($PCYG) | | 2.1% | 10.4% | 8.2% | 8.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Upland Software, Inc. ($UPLD) | | 16.4x | 115.6x | 16.7x | |
| Nuance Communications, Inc. ($NUAN) | 5.7x | 5.3x | 7.1x | 15.2x | |
| Asure Software Inc ($ASUR) | 4.5x | 3.6x | 9.5x | 14.5x | |
| SS&C Technologies Holdings, Inc. ($SSNC) | 7.3x | 4.6x | 3.1x | 8.5x | |
| Avaya Holdings Corp. ($AVYA) | | | | 7.4x | |
| |
|---|
| Median (69 companies) | -0.8x | -0.9x | -0.8x | -0.6x | 0.7x |
|---|
| Park City Group, Inc. ($PCYG) | | -6.9x | -2.0x | -2.4x | -2.8x |
