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Services-management consulting services company · DE · FY ends Jan · Revenue $603M · 19.36% margin · $113M FCF
Margins and capital returns are both well above average: 20.58% operating margin, ROIC at 16.09%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 4.2%, steady but not accelerating. Free cash flow declined 11% despite revenue growth, conversion is weakening.
Free cash flow declined 11% versus the prior year, cash generation momentum has weakened. ROIC dropped from 18.31% to 16.09%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$603M
▲ +4.2% YoY
Net Income (TTM)
$109M
▼ -2.7% YoY
Op. Margin
19.36%
▼ -0.8pp YoY
ROIC
15.65%
▼ -2.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$113M
▼ -11.1% YoY
Op. Cash Flow (TTM)
$123M
▼ -8.9% YoY
Net Debt
-$38M
Net Cash Position
Cash & Equiv.
$119M
5Y CAGR: +7.8%
5Y CAGR: +4.5%
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