FactSet Research Systems Inc. CAPEX jumped on 30.8% and Revenue increased on 4.1%
09/24/2020 • About FactSet Research Systems Inc. (
$FDS) • By InTwits
FactSet Research Systems Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- FactSet Research Systems Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 5.2%
- CAPEX is quite volatile: $78m in FY2020, $59m in FY2019, $34m in FY2018, $37m in FY2017, $48m in FY2016
- The company has highly profitable business model: ROIC is 28.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.6x while industry average is 0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
FactSet Research Systems Inc.'s Revenue increased on 4.1%. Revenue growth showed acceleration in FY20Q4 - it increased 5.3% YoY. Revenue decline was accelerating on average at -1.8 pp per annum in the last 5 years. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.57 pp from 16.0% to 16.6% in FY2020.
Gross Margin showed almost no change in FY2020. SG&A as a % of Revenue increased slightly on 0.77 pp from 23.3% to 24.0% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue bottomed in FY2019 at 23.3%.
Net Income margin showed almost no change in FY2020. During the last 5 years Net Income margin bottomed in FY2018 at 19.8% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2020 FactSet Research Systems Inc. had CAPEX/Revenue of 5.2%. The company's CAPEX/Revenue increased on 2.2 pp from 3.0% in FY2017 to 5.2% in FY2020. For the last three years the average CAPEX/Revenue was 3.9%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2018 at 2.5% and was growing since that time.
Return on investment
The company operates at high and attractive ROIC (28.8%) and ROE (47.5%). ROIC decreased on 7.9 pp from 36.7% to 28.8% in FY2020. ROE dropped on 11.4 pp from 58.9% to 47.5% in FY2020.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from 0.4x to 0.6x in FY2020. Debt jumped on 52.5% while cash jumped on 62.8%.
FactSet Research Systems Inc. has no short term refinancing risk: cash is higher than short term debt (2,015.4%).
Valuation and dividends
FactSet Research Systems Inc.'s trades at EV/EBITDA 25.0x and P/E 32.5x.
Management team
The company's CEO is F Philip Snow. F Philip Snow has 5 years tenure with the company. FactSet Research Systems Inc.'s CFO is Helen Linn Shan. Helen Linn Shan has 2 years tenure at the company.
Financial and operational results
FactSet Research Systems Inc. ($FDS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 1,127 | 1,221 | 1,350 | 1,435 | 1,494 | 4.1% |
| Gross Profit | 640 | 655 | 691 | 772 | 799 | 3.5% |
| SG&A | 290 | 302 | 325 | 334 | 359 | 7.5% |
| EBITDA | 388 | 400 | 423 | 498 | 497 | -0.2% |
| Net Income | 339 | 258 | 267 | 353 | 373 | 5.7% |
Balance Sheet
|
|---|
| Cash | 228 | 195 | 209 | 360 | 586 | 62.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | 29 | |
| Long Term Debt | 300 | 575 | 575 | 574 | 847 | 47.5% |
Cash flow
|
|---|
| Capex | 48 | 37 | 34 | 59 | 78 | 30.8% |
Ratios
|
|---|
| Revenue growth | 12.0% | 8.3% | 10.6% | 6.3% | 4.1% | |
| EBITDA growth | 6.7% | 3.3% | 5.8% | 17.7% | -0.2% | |
|
|---|
| Gross Margin | 56.8% | 53.6% | 51.2% | 53.8% | 53.5% | -0.3% |
| EBITDA Margin | 34.4% | 32.8% | 31.4% | 34.7% | 33.3% | -1.4% |
| SG&A, % of revenue | 25.7% | 24.8% | 24.0% | 23.3% | 24.0% | 0.8% |
| Net Income Margin | 30.1% | 21.1% | 19.8% | 24.6% | 25.0% | 0.4% |
| CAPEX, % of revenue | 4.2% | 3.0% | 2.5% | 4.1% | 5.2% | 1.1% |
|
|---|
| ROIC | 51.1% | 35.5% | 32.0% | 36.7% | 28.8% | -7.9% |
| ROE | 64.6% | 48.0% | 49.2% | 58.9% | 47.5% | -11.4% |
| Net Debt/EBITDA | 0.2x | 0.9x | 0.9x | 0.4x | 0.6x | 0.2x |
FactSet Research Systems Inc. ($FDS) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 367 | 370 | 374 | 384 | | 4.3% | 4.2% | 2.6% | 5.3% |
| EBITDA | 133 | 126 | 135 | 115 | | 16.0% | 1.7% | 1.9% | -10.3% |
| Net Income | 94 | 89 | 101 | 89 | | 11.5% | 4.7% | 9.7% | -2.7% |
Balance Sheet
|
|---|
| Cash | 336 | 343 | 458 | 586 | | 97.3% | 57.3% | 41.3% | 62.8% |
| Short Term Debt | 29 | 28 | 29 | 29 | | - | - | - | - |
| Long Term Debt | 811 | 831 | 850 | 847 | | 41.1% | 44.6% | 48.1% | 47.5% |
Ratios
|
|---|
| Gross Margin | 55.0% | 52.3% | 54.4% | 52.1% | | 2.4% | -1.1% | -0.7% | -1.8% |
| EBITDA Margin | 36.3% | 34.0% | 36.0% | 29.9% | | 3.7% | -0.8% | -0.2% | -5.2% |
| Net Income Margin | 25.6% | 24.0% | 27.1% | 23.2% | | 1.7% | 0.1% | 1.7% | -1.9% |
Peers in Financial Exchanges & Data
Below you can find FactSet Research Systems Inc. benchmarking vs. other companies in Financial Exchanges & Data 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.
