/
Services-computer programming, data processing, etc. company · E9 · FY ends Dec · Revenue $1.76B · 26.45% margin · $477M FCF
26.45% operating margin is above average. ROIC at 5.44%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.
Revenue growth slowed to 0.1%, essentially flat. Margins also contracted 1.7pp. This is a business that needs a catalyst.
Free cash flow declined 18% versus the prior year, cash generation momentum has weakened. ROIC dropped from 8.09% to 5.44%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$1.76B
▲ +0.1% YoY
Net Income (TTM)
$449M
▲ +49.3% YoY
Op. Margin
26.45%
▼ -1.7pp YoY
ROIC
5.44%
▼ -2.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$477M
▼ -17.5% YoY
Op. Cash Flow (TTM)
$519M
▼ -18.8% YoY
Net Debt
-$267M
Net Cash Position
Cash & Equiv.
$2.41B
5Y CAGR: +0.8%
5Y CAGR: -7.6%
Continue Research