Concierge Technologies Inc reports 577% Net Income growth in 2020 and 0.74% Revenue decline
09/28/2020 • About Concierge Technologies Inc (
$CNCG) • By InTwits
Concierge Technologies Inc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 9.4% in FY2020, 5.4% in FY2019, 11.8% in FY2018, 22.3% in FY2017, 32.7% in FY2016
- Concierge Technologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has business model with low profitability: ROIC is 10.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Concierge Technologies Inc's Revenue decreased slightly on 0.74%. Annual revenue decline showed slowdown in FY20Q4 - revenue surged on 32.2%. During FY2016-FY2020 Revenue growth bottomed in FY2018 at -10.3% and was accelerating since that time. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.0 pp from 5.4% to 9.4% in FY2020. EBITDA Margin declined at -6.4 pp per annum in the last 5 years.
Gross Margin increased slightly on 1.5 pp from 74.3% to 75.8% in FY2020. Gross Margin followed a declining trend at -3.9 pp per annum in the last 5 years. SG&A as a % of Revenue showed almost no change in FY2020. During the last 5 years SG&A as a % of Revenue topped in FY2018 at 29.2% and was declining since that time.
Net Income margin increased on 5.7 pp from 0.97% to 6.6% in FY2020. During the last 5 years Net Income margin bottomed in FY2019 at 0.97%.
Investments (CAPEX, working capital and M&A)
In FY2020 Concierge Technologies Inc had CAPEX/Revenue of 2.1%. CAPEX/Revenue increased slightly on 1.3 pp from 0.81% in FY2017 to 2.1% in FY2020. It's average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at low ROIC (10.0%) and ROE (9.8%). ROIC increased on 5.7 pp from 4.3% to 10.0% in FY2020. ROE increased on 8.2 pp from 1.5% to 9.8% in FY2020. During the last 5 years ROIC bottomed in FY2019 at 4.3%. ROE followed a declining trend at -24.2 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.4x and Debt / EBITDA is 0.5x. Debt surged on 128% while cash jumped on 51.4%.
Concierge Technologies Inc has no short term refinancing risk: cash is higher than short term debt (3,001.9%).
Valuation and dividends
The company's trades at EV/EBITDA 9.4x and P/E 18.1x.
Financial and operational results
FY ended 06/30/2020
Concierge Technologies Inc ($CNCG) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 27.777 | 32.011 | 28.711 | 26.949 | 26.749 | -0.7% |
| Gross Profit | 25.031 | 27.163 | 22.796 | 20.012 | 20.266 | 1.3% |
| SG&A | 7.017 | 9.061 | 8.383 | 7.116 | 7.049 | -0.9% |
| EBITDA | 9.091 | 7.149 | 3.383 | 1.458 | 2.518 | 72.7% |
| Net Income | 5.275 | 5.186 | 1.735 | 0.262 | 1.773 | 577.3% |
Balance Sheet
|
|---|
| Cash | 5.454 | 6.730 | 7.524 | 6.482 | 9.813 | 51.4% |
| Short Term Debt | 0.609 | 0.004 | 0.004 | 0.004 | 0.327 | 9,239.9% |
| Long Term Debt | 0.000 | 0.600 | 0.600 | 0.600 | 1.047 | 74.5% |
Cash flow
|
|---|
| Capex | 0.104 | 0.259 | 0.318 | 0.050 | 0.559 | 1,014.9% |
Ratios
|
|---|
| Revenue growth | 12,324.5% | 15.2% | -10.3% | -6.1% | -0.7% | |
| EBITDA growth | -7,003.4% | -21.4% | -52.7% | -56.9% | 72.7% | |
|
|---|
| Gross Margin | 90.1% | 84.9% | 79.4% | 74.3% | 75.8% | 1.5% |
| EBITDA Margin | 32.7% | 22.3% | 11.8% | 5.4% | 9.4% | 4.0% |
| SG&A, % of revenue | 25.3% | 28.3% | 29.2% | 26.4% | 26.4% | -0.1% |
| Net Income Margin | 19.0% | 16.2% | 6.0% | 1.0% | 6.6% | 5.7% |
| CAPEX, % of revenue | 0.4% | 0.8% | 1.1% | 0.2% | 2.1% | 1.9% |
|
|---|
| ROIC | 141.2% | 51.2% | 16.8% | 4.3% | 10.0% | 5.7% |
| ROE | 106.8% | 49.2% | 11.5% | 1.5% | 9.8% | 8.2% |
| Net Debt/EBITDA | -0.5x | -0.9x | -2.0x | -4.0x | -3.4x | 0.7x |
Concierge Technologies Inc ($CNCG) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 6 | 6 | 6 | 9 | | -16.0% | -13.4% | -5.6% | 32.2% |
| EBITDA | 0 | 0 | -0 | 2 | | -71.7% | -79.1% | -110.0% | 1,545.4% |
| Net Income | 0 | -0 | -0 | 2 | | -80.8% | -218.6% | -122.7% | - |
Balance Sheet
|
|---|
| Cash | 7 | 7 | 6 | 10 | | -9.6% | -16.1% | -30.9% | 51.4% |
| Short Term Debt | 1 | 1 | 0 | 0 | | 20,685.5% | 20,949.5% | 9,796.3% | 9,239.9% |
| Long Term Debt | 1 | 1 | 1 | 1 | | 113.4% | 100.0% | 84.1% | 74.5% |
Ratios
|
|---|
| Gross Margin | 70.6% | 70.2% | 70.3% | 86.3% | | -3.7% | -3.6% | -3.5% | 11.3% |
| EBITDA Margin | 3.5% | 0.9% | -0.6% | 25.4% | | -6.9% | -2.7% | -6.0% | 23.4% |
| Net Income Margin | 0.9% | -1.3% | -0.3% | 20.1% | | -3.1% | -2.2% | -1.5% | 22.5% |
Peers in Asset Management & Custody Banks
Below you can find Concierge Technologies Inc benchmarking vs. other companies in Asset Management & Custody Banks 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Great Elm Capital Group, Inc. ($GEC) | - | - | 20.5% | 762.3% | 25.2% |
| |
|---|
| Median (1 company) | - | - | 20.5% | 762.3% | 25.2% |
|---|
| Concierge Technologies Inc ($CNCG) | - | 15.2% | -10.3% | -6.1% | -0.7% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Great Elm Capital Group, Inc. ($GEC) | - | - | - | 17.4% | 17.7% |
| |
|---|
| Median (1 company) | - | - | - | 17.4% | 17.7% |
|---|
| Concierge Technologies Inc ($CNCG) | 90.1% | 84.9% | 79.4% | 74.3% | 75.8% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Great Elm Capital Group, Inc. ($GEC) | - | -86.6% | -157.5% | 13.2% | 23.9% |
| |
|---|
| Median (1 company) | - | -86.6% | -157.5% | 13.2% | 23.9% |
|---|
| Concierge Technologies Inc ($CNCG) | 32.7% | 22.3% | 11.8% | 5.4% | 9.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Great Elm Capital Group, Inc. ($GEC) | - | 0.7% | 39.9% | 15.0% | 13.8% |
| |
|---|
| Median (1 company) | - | 0.7% | 39.9% | 15.0% | 13.8% |
|---|
| Concierge Technologies Inc ($CNCG) | 0.4% | 0.8% | 1.1% | 0.2% | 2.1% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Great Elm Capital Group, Inc. ($GEC) | -15.9% | -6.5% | -10.4% | -2.3% | 0.4% |
| |
|---|
| Median (1 company) | -15.9% | -6.5% | -10.4% | -2.3% | 0.4% |
|---|
| Concierge Technologies Inc ($CNCG) | 141.2% | 51.2% | 16.8% | 4.3% | 10.0% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Great Elm Capital Group, Inc. ($GEC) | - | - | - | 13.3x | 4.7x |
| |
|---|
| Median (1 company) | - | - | - | 13.3x | 4.7x |
|---|
| Concierge Technologies Inc ($CNCG) | -0.5x | -0.9x | -2.0x | -4.0x | -3.4x |
