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Services-prepackaged software company · DE · FY ends Dec · Revenue $2.09B · 28.30% margin · $446M FCF
$144.23
$4.35 (-2.93%)
Last close via Marketstack
Margins and capital returns are both well above average: 27.65% operating margin, ROIC at 23.05%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 8.9%, steady but not accelerating. Margins contracted 6.0pp, which offsets some of the top-line progress.
ROIC dropped from 32.08% to 23.05%, capital efficiency is deteriorating. Operating margin contracted 6.0pp YoY, cost discipline may be slipping.
16.7x earnings, 16.6x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$2.09B
▲ +8.9% YoY
Net Income (TTM)
$470M
▼ -9.7% YoY
Op. Margin
28.30%
▼ -6.0pp YoY
ROIC
23.62%
▼ -9.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$446M
▲ +19.6% YoY
Op. Cash Flow (TTM)
$710M
▲ +27.2% YoY
Net Debt
$610M
Cash & Equiv.
$154M
5Y CAGR: +19.5%
5Y CAGR: +25.1%
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