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Services-computer programming, data processing, etc. company · DE · FY ends Apr · Revenue $16M · 7.89% margin · $3M FCF
Margins and capital returns are both well above average: 51.33% operating margin, ROIC at 19.44%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 146.7%, still solid. Margins contracted 22.9pp, which offsets some of the top-line progress.
Free cash flow declined 1064% versus the prior year, cash generation momentum has weakened. ROIC dropped from 167.99% to 19.44%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$16M
▲ +146.7% YoY
Net Income (FY)
$3M
▲ +33.0% YoY
Op. Margin
7.89%
▼ -22.9pp YoY
ROIC
0.99%
▼ -148.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$3M
▼ -1064.1% YoY
Op. Cash Flow (TTM)
$3M
▼ -1064.1% YoY
Net Debt
-$37M
Net Cash Position
Cash & Equiv.
$37M
5Y CAGR: +79.6%
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