Cardtronics plc CAPEX dropped on 27.0% and Revenue dropped on 18.9%
02/23/2021 • About Cardtronics plc (
$CATM) • By InTwits
Cardtronics plc reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 22.3% in 2020, 22.2% in 2019, 18.5% in 2018, 5.1% in 2017, 21.7% in 2016
- Cardtronics plc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.0%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: $80m in 2020, $136m in 2019, $63m in 2018, $25m in 2017, $115m in 2016
- The company has potentially unprofitable business model: ROIC is 4.4%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Cardtronics plc's Revenue dropped on 18.9%. Annual revenue decline showed slowdown in 20Q4 - revenue dropped on 18.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from 11.0% to 15.0% in 2020. During the last 5 years EBITDA Margin bottomed in 2017 at 5.1% and was growing since that time.
Gross Margin increased on 2.3 pp from 34.4% to 36.7% in 2020. During the last 5 years Gross Margin bottomed in 2018 at 33.3% and was growing since that time. SG&A as a % of Revenue increased slightly on 1.5 pp from 13.2% to 14.6% in 2020. SG&A as a % of Revenue followed a growing trend at 0.65 pp per annum in 2016-2020.
Net Income margin decreased slightly on 1.8 pp from 3.6% to 1.7% in 2020.
Investments (CAPEX, working capital and M&A)
Cardtronics plc's CAPEX/Revenue was 8.3% in 2020. The company showed small CAPEX/Revenue decline of 1.2 pp from 9.6% in 2017 to 8.3% in 2020. Average CAPEX/Revenue for the last three years was 8.5%.
Return on investment
The company operates at low ROIC (4.4%) and ROE (5.0%). ROIC decreased on 2.6 pp from 7.0% to 4.4% in 2020. ROE decreased on 7.7 pp from 12.7% to 5.0% in 2020.
Leverage (Debt)
Debt level is 2.8x Net Debt / EBITDA and 3.5x Debt / EBITDA. Net Debt / EBITDA surged on 0.1x from 2.7x to 2.8x in 2020. Debt increased on 2.9% while cash surged on 479%.
Cardtronics plc has no short term refinancing risk: cash is higher than short term debt (735.7%).
Valuation and dividends
The company's trades at EV/EBITDA 9.9x and P/E 90.7x.
Management team
Cardtronics plc's CEO is Edward H West "Ed". Edward H West "Ed" has 3 years tenure with the company. Cardtronics plc's CFO Gary W Ferrera has spent 3 years with the company.
Financial and operational results
FY ended 12/31/2020
Cardtronics plc ($CATM) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 1,265 | 1,508 | 1,345 | 1,349 | 1,094 | -18.9% |
| Gross Profit | 451 | 508 | 447 | 464 | 401 | -13.6% |
| SG&A | 154 | 174 | 170 | 177 | 160 | -9.8% |
| EBITDA | 274 | 76 | 249 | 299 | 244 | -18.6% |
| Net Income | 88 | -145 | 4 | 48 | 19 | -60.3% |
Balance Sheet
|
|---|
| Cash | 74 | 51 | 40 | 30 | 174 | 478.6% |
| Short Term Debt | 0 | 0 | 0 | 20 | 24 | 16.4% |
| Long Term Debt | 503 | 918 | 818 | 809 | 830 | 2.6% |
Cash flow
|
|---|
| Capex | 126 | 144 | 107 | 125 | 91 | -27.0% |
Ratios
|
|---|
| Revenue growth | 5.4% | 19.1% | -10.8% | 0.3% | -18.9% | |
| EBITDA growth | 3.9% | -72.1% | 226.4% | 20.0% | -18.6% | |
|
|---|
| Gross Margin | 35.7% | 33.7% | 33.3% | 34.4% | 36.7% | 2.3% |
| EBITDA Margin | 21.7% | 5.1% | 18.5% | 22.2% | 22.3% | 0.1% |
| SG&A, % of revenue | 12.2% | 11.6% | 12.7% | 13.2% | 14.6% | 1.5% |
| Net Income Margin | 7.0% | -9.6% | 0.3% | 3.6% | 1.7% | -1.8% |
| CAPEX, % of revenue | 9.9% | 9.6% | 8.0% | 9.3% | 8.3% | -0.9% |
|
|---|
| ROIC | 14.7% | -8.7% | 5.3% | 7.0% | 4.4% | -2.6% |
| ROE | 21.3% | -34.3% | 1.0% | 12.7% | 5.0% | -7.7% |
| Net Debt/EBITDA | 1.6x | 11.3x | 3.1x | 2.7x | 2.8x | 0.1x |
Cardtronics plc ($CATM) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 307 | 233 | 279 | 275 | | -3.7% | -31.6% | -20.5% | -18.9% |
| EBITDA | 64 | 85 | 71 | 65 | | 8.6% | 6.7% | -17.8% | -6.2% |
| Net Income | 6 | -2 | 6 | 10 | | 33.2% | -118.4% | -72.5% | -24.1% |
Balance Sheet
|
|---|
| Cash | 614 | 211 | 263 | 174 | | 1,631.5% | 530.8% | 893.0% | 478.6% |
| Short Term Debt | 298 | 136 | 138 | 24 | | 1,362.5% | 599.0% | 565.6% | 16.4% |
| Long Term Debt | 1,107 | 833 | 833 | 830 | | 26.5% | -2.2% | 0.7% | 2.6% |
Ratios
|
|---|
| Gross Margin | 32.9% | 31.9% | 38.0% | 43.6% | | 1.4% | -2.8% | 1.7% | 8.7% |
| EBITDA Margin | 20.8% | 36.7% | 25.3% | 23.6% | | 2.3% | 13.2% | 0.8% | 3.2% |
| Net Income Margin | 1.9% | -0.8% | 2.1% | 3.5% | | 0.5% | -3.9% | -3.9% | -0.2% |
Peers in Data Processing & Outsourced Services
Below you can find Cardtronics plc benchmarking vs. other companies in Data Processing & Outsourced 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Square, Inc. ($SQ) | - | 29.6% | 49.0% | 42.9% | 101.5% |
| Global Payments Inc. ($GPN) | - | 37.2% | -15.3% | 45.9% | 51.1% |
| Fiserv, Inc. ($FISV) | - | 3.5% | 2.2% | 74.9% | 45.8% |
| NIC Inc. ($EGOV) | - | 5.8% | 2.5% | 2.7% | 30.0% |
| StoneCo Ltd ($STNE) | - | 74.3% | 106.0% | 63.1% | 28.9% |
| |
|---|
| Median (39 companies) | 6.7% | 10.1% | 7.5% | 11.5% | -2.7% |
|---|
| Cardtronics plc ($CATM) | - | 19.1% | -10.8% | 0.3% | -18.9% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Verra Mobility Corp ($VRRM) | - | 97.4% | 97.5% | 95.7% | 91.5% |
| EVO Payments, Inc. ($EVOP) | - | - | - | 80.2% | 80.8% |
| StoneCo Ltd ($STNE) | 69.7% | 70.8% | 79.5% | 83.4% | 76.8% |
| WEX Inc. ($WEX) | 54.7% | 58.8% | 63.3% | 61.7% | 56.8% |
| Sabre Corporation ($SABR) | 32.2% | 30.1% | 27.8% | 56.6% | 56.6% |
| |
|---|
| Median (31 companies) | 39.5% | 39.5% | 41.0% | 41.7% | 36.5% |
|---|
| Cardtronics plc ($CATM) | 35.7% | 33.7% | 33.3% | 34.4% | 36.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Visa Inc. ($V) | 55.6% | 69.2% | 65.8% | 68.1% | 68.5% |
| Mastercard Incorporated ($MA) | 56.9% | 56.5% | 51.8% | 60.9% | 56.6% |
| FleetCor Technologies, Inc. ($FLT) | 52.0% | 50.8% | 55.9% | 57.6% | 52.2% |
| StoneCo Ltd ($STNE) | 31.4% | 26.0% | 53.0% | 62.4% | 52.1% |
| Black Knight, Inc. ($BKI) | 43.0% | 44.6% | 43.3% | 46.0% | 44.9% |
| |
|---|
| Median (38 companies) | 21.2% | 21.1% | 19.4% | 21.7% | 18.2% |
|---|
| Cardtronics plc ($CATM) | 21.7% | 5.1% | 18.5% | 22.2% | 22.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| PagSeguro Digital Ltd. ($PAGS) | 6.4% | 4.3% | 1.4% | 5.8% | 22.3% |
| StoneCo Ltd ($STNE) | 7.2% | 18.4% | 8.9% | 12.9% | 11.2% |
| Verra Mobility Corp ($VRRM) | - | 11.5% | 7.2% | 6.6% | 6.2% |
| Fiserv, Inc. ($FISV) | 5.3% | 5.0% | 6.2% | 7.1% | 6.1% |
| Global Payments Inc. ($GPN) | 3.2% | 4.6% | 6.3% | 6.3% | 5.9% |
| |
|---|
| Median (38 companies) | 3.2% | 2.9% | 3.0% | 3.0% | 3.0% |
|---|
| Cardtronics plc ($CATM) | 9.9% | 9.6% | 8.0% | 9.3% | 8.3% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mastercard Incorporated ($MA) | 57.5% | 60.6% | 64.7% | 72.7% | 47.6% |
| International Money Express, Inc. ($IMXI) | -1.3% | -1.4% | 12.1% | 36.0% | 31.4% |
| NIC Inc. ($EGOV) | 63.1% | 52.1% | 39.3% | 26.5% | 30.8% |
| Visa Inc. ($V) | 18.1% | 21.9% | 23.0% | 27.2% | 23.2% |
| Western Union Company (The) ($WU) | 10.7% | 11.9% | 27.8% | 21.5% | 22.1% |
| |
|---|
| Median (39 companies) | 11.1% | 10.7% | 12.1% | 8.3% | 6.4% |
|---|
| Cardtronics plc ($CATM) | 14.7% | -8.7% | 5.3% | 7.0% | 4.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| WEX Inc. ($WEX) | 6.7x | 4.4x | 3.1x | 3.4x | 12.1x |
| Exela Technologies Inc ($XELAU) | 8.1x | - | 9.7x | - | 10.7x |
| Alliance Data Systems Corporation ($ADS) | 10.7x | 10.1x | 9.0x | 11.7x | 9.2x |
| Verra Mobility Corp ($VRRM) | - | 10.7x | 6.9x | 3.5x | 4.7x |
| GreenSky, Inc. ($GSKY) | -1.5x | -1.5x | 0.5x | 1.5x | 4.6x |
| |
|---|
| Median (35 companies) | 1.3x | 2.3x | 2.0x | 2.1x | 1.9x |
|---|
| Cardtronics plc ($CATM) | 1.6x | 11.3x | 3.1x | 2.7x | 2.8x |
