Seeing Machines revenue jumped on 76.8% in 2016 and EBITDA Margin jumped on 61.6 pp from -67.2% to -5.6%
03 Oct 2016 • About Seeing Machines (
$SEE) • By InTwits
Seeing Machines reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Seeing Machines doesn't have a profitable business model yet: FY2016 ROIC is -7.9%
- The company operates at negative EBITDA Margin: -5.6%
- Seeing Machines motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -20.5% for the sames years0
- Seeing Machines has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 3.0%.
- CAPEX is quite volatile: 0.53 in FY2016, 0.75 in FY2015, 0.17 in FY2014, 0.26 in FY2013, 0.023 in FY2012
- The company has unprofitable business model: ROIC is at -7.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Seeing Machines ($SEE) key annual financial indicators
| mln. AUD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7.031 | 11.692 | 16.756 | 18.984 | 33.562 | 76.8% |
| Gross Profit | 4.316 | 7.493 | 10.013 | 8.523 | 27.302 | 220.3% |
| SG&A | | | | 15.507 | 15.336 | -1.1% |
| EBITDA | -1.597 | 0.739 | -2.490 | -12.766 | -1.895 | -85.2% |
| Net Income | -1.735 | 0.554 | -2.703 | -11.282 | -1.739 | -84.6% |
Balance Sheet
|
|---|
| Cash | 0.578 | 0.835 | 22.765 | 14.222 | 16.948 | 19.2% |
| Short Term Debt | 0.000 | 0.000 | 0.007 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.043 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.023 | 0.256 | 0.172 | 0.749 | 0.527 | -29.6% |
Ratios
|
|---|
| Revenue growth | 0.1% | 66.3% | 43.3% | 13.3% | 76.8% | |
| EBITDA growth | 0.5% | -146.3% | -437.0% | 412.6% | -85.2% | |
| Gross Margin | 61.4% | 64.1% | 59.8% | 44.9% | 81.3% | 36.5% |
| EBITDA Margin | -22.7% | 6.3% | -14.9% | -67.2% | -5.6% | 61.6% |
| Net Income Margin | -24.7% | 4.7% | -16.1% | -59.4% | -5.2% | 54.2% |
| SG&A, % of revenue | | | | 81.7% | 45.7% | -36.0% |
| CAPEX, % of revenue | 0.3% | 2.2% | 1.0% | 3.9% | 1.6% | -2.4% |
| ROIC | -88.2% | 21.3% | -16.7% | -44.5% | -7.9% | 36.6% |
| ROE | -90.7% | 22.7% | -16.3% | -38.7% | -5.0% | 33.6% |
| Net Debt/EBITDA | | -1.1x | | | | 0.0x |
Revenue and profitability
Seeing Machines's Revenue jumped on 76.8% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 3.7% to 2.3% in FY2016.
Gross Margin surged on 36.5 pp from 44.9% to 81.3% in FY2016. SG&A as a % of Revenue dropped on 36.0 pp from 81.7% to 45.7% in FY2016.
Net Income marign jumped on 54.2 pp from -59.4% to -5.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Seeing Machines's CAPEX/Revenue was 1.6% in FY2016. CAPEX/Revenue decreased slightly on 0.62 pp from 2.2% in FY2013 to 1.6% in FY2016. For the last three years the average CAPEX/Revenue was 2.2%.
Return on investment
The company operates at negative ROIC (-7.86%) and ROE (-5.01%). ROIC surged on 36.6 pp from -44.5% to -7.9% in FY2016. ROE jumped on 33.6 pp from -38.7% to -5.0% in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 19.2% in FY2016.
Appendix 1: Peers in Technology Hardware & Equipment
Below we provide Seeing Machines benchmarking against other companies in Technology Hardware & Equipment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Trakm8 Holdings ($TRAK) | | -8.9% | 93.5% | 94.2% | 43.7% |
| Mti Wireless Edge ($MWE) | -13.5% | 5.6% | 6.8% | 36.5% | |
| Concurrent Technologies ($CNC) | -7.3% | -7.3% | 8.0% | 33.3% | |
| Toumaz Ld ($TMZ) | 279.7% | 150.3% | 19.5% | 22.1% | |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 0.4% | -0.2% | 0.3% | 8.3% | |
| |
|---|
| Median (19 companies) | -0.5% | 1.3% | 0.3% | 0.2% | 4.7% |
|---|
| Seeing Machines ($SEE) | | 66.3% | 43.3% | 13.3% | 76.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cml Microsystems ($CML) | 69.3% | 70.3% | 73.3% | 70.9% | 71.2% |
| Concurrent Technologies ($CNC) | 51.7% | 50.6% | 51.2% | 50.6% | |
| Trakm8 Holdings ($TRAK) | 63.8% | 71.9% | 57.2% | 45.2% | 48.3% |
| Vislink ($VLK) | 39.4% | 40.7% | 45.9% | 45.0% | |
| Toumaz Ld ($TMZ) | 45.6% | 44.4% | 43.6% | 42.4% | |
| |
|---|
| Median (18 companies) | 33.2% | 34.1% | 36.0% | 36.6% | 59.8% |
|---|
| Seeing Machines ($SEE) | 61.4% | 64.1% | 59.8% | 44.9% | 81.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cml Microsystems ($CML) | 28.7% | 33.1% | 35.1% | 29.9% | 30.0% |
| Concurrent Technologies ($CNC) | 29.3% | 23.3% | 27.1% | 28.6% | |
| Pure Wafer ($PUR) | 16.3% | 17.0% | 31.5% | 27.4% | |
| Samsung Electronics Co ($SMSN) | 22.2% | 23.3% | 20.9% | 23.6% | |
| Trakm8 Holdings ($TRAK) | 7.1% | 6.8% | 12.9% | 14.0% | 15.8% |
| |
|---|
| Median (19 companies) | 4.5% | 8.0% | 6.4% | 5.6% | 15.8% |
|---|
| Seeing Machines ($SEE) | -22.7% | 6.3% | -14.9% | -67.2% | -5.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Samsung Electronics Co ($SMSN) | 11.4% | 10.1% | 10.7% | 12.9% | |
| Pure Wafer ($PUR) | 0.5% | 3.5% | 23.3% | 8.5% | |
| Tatung Co ($TAT) | 6.1% | 4.3% | 4.3% | 6.7% | |
| Sunplus Technology Co Ltd ($SUPD) | 4.8% | 6.3% | 15.0% | 4.5% | |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 2.4% | 2.0% | 2.3% | 3.4% | |
| |
|---|
| Median (19 companies) | 2.2% | 2.0% | 2.3% | 1.8% | 1.8% |
|---|
| Seeing Machines ($SEE) | 0.3% | 2.2% | 1.0% | 3.9% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Trakm8 Holdings ($TRAK) | 3.8% | 1.9% | 18.7% | 22.5% | 20.8% |
| Concurrent Technologies ($CNC) | 14.6% | 8.2% | 14.1% | 20.9% | |
| Samsung Electronics Co ($SMSN) | 22.4% | 24.0% | 14.4% | 14.0% | |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 13.7% | 11.1% | 10.3% | 13.5% | |
| Hon Hai Precision Industry ($HHPD) | 9.9% | 8.7% | 10.3% | 11.7% | |
| |
|---|
| Median (19 companies) | 0.7% | 5.8% | 6.7% | 4.3% | 10.1% |
|---|
| Seeing Machines ($SEE) | -88.2% | 21.3% | -16.7% | -44.5% | -7.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tatung Co ($TAT) | 41.1x | 6.1x | 6.7x | 40.1x | |
| Vislink ($VLK) | -1.2x | -0.5x | -0.0x | 1.8x | |
| Mti Wireless Edge ($MWE) | -21.9x | 1.9x | -1.6x | 0.2x | |
| Telefonaktiebolaget Lm Ericsson ($0O87) | -0.1x | 0.0x | -0.2x | 0.1x | |
| Samsung Electronics Co ($SMSN) | -0.1x | -0.1x | -0.1x | -0.2x | |
| |
|---|
| Median (16 companies) | -0.9x | -0.5x | -1.3x | -1.2x | -0.9x |
|---|
