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Services-computer programming, data processing, etc. company · L3 · FY ends Dec · Revenue $1.99B · 0.09% margin
Operating margin is thin at 0.09%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 13.2%, still solid. Margins contracted 5.6pp, which offsets some of the top-line progress.
ROIC dropped from 13.73% to 0.18%, capital efficiency is deteriorating. Operating margin contracted 5.6pp YoY, cost discipline may be slipping.
Profitability & Returns
Revenue (TTM)
$1.99B
▲ +13.2% YoY
Net Income (TTM)
$51M
▼ -63.4% YoY
Op. Margin
0.09%
▼ -5.6pp YoY
ROIC
0.18%
▼ -13.6pp YoY
Cash Flow & Balance Sheet
FCF
N/A
Op. Cash Flow (TTM)
$583M
▲ +17.2% YoY
Net Debt
$791M
Cash & Equiv.
$795M
5Y CAGR: +15.2%
3Y CAGR: +22.0%
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