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The Company is a value added information technology ( IT ) distribution and solutions company. The Company primarily operates through its Distribution segment, which distributes emerging and disruptive technologies to corporate resellers, value added resellers ( VARs ), consultants and systems integrators worldwide under the name Climb Channel Solutions .
Operating margin is thin at 4.47%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 40.1%, still solid. Free cash flow declined 48% despite revenue growth, conversion is weakening.
Free cash flow declined 48% versus the prior year, cash generation momentum has weakened. ROIC dropped from 25.23% to 21.27%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$697M
▲ +40.1% YoY
Net Income (TTM)
$21M
▲ +14.6% YoY
Op. Margin
4.06%
▼ -1.5pp YoY
ROIC
18.71%
▼ -4.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$23M
▼ -48.3% YoY
Op. Cash Flow (TTM)
$25M
▼ -50.8% YoY
Net Debt
-$40M
Net Cash Position
Cash & Equiv.
$42M
5Y CAGR: +21.0%
5Y CAGR: -17.4%
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