Lite-On Technology Corp EBITDA surged on 22.5% in 2016 and EBITDA Margin increased slightly on 1.2 pp from 7.3% to 8.5%
24 Feb 2017 • About Lite-On Technology Corp (
$LTTD) • By InTwits
Lite-On Technology Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lite-On Technology Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's in pair with industry average of 3.0%.
- CAPEX is quite volatile: 19,079 in FY2016, 25,769 in FY2015, 47,237 in FY2014, 9,927 in FY2013, 9,260 in FY2012
- The company has business model with average profitability: ROIC is at 10.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lite-On Technology Corp ($LTTD) key annual financial indicators
| mln. TWD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 216,047 | 213,214 | 230,632 | 216,929 | 229,572 | 5.8% |
| Gross Profit | 30,558 | 30,501 | 28,248 | 28,141 | 31,258 | 11.1% |
| SG&A | 19,680 | 20,458 | 14,750 | 13,502 | 12,445 | -7.8% |
| EBITDA | 17,935 | 17,035 | 14,803 | 15,933 | 19,517 | 22.5% |
| Net Income | 7,402 | 8,755 | 6,461 | 7,223 | 9,416 | 30.4% |
Balance Sheet
|
|---|
| Cash | 51,225 | 65,931 | 66,483 | 65,502 | 65,208 | -0.4% |
| Short Term Debt | 11,724 | 24,709 | 31,478 | 22,741 | 22,297 | -2.0% |
| Long Term Debt | 20,189 | 18,681 | 13,666 | 16,361 | 12,043 | -26.4% |
Cash flow
|
|---|
| Capex | 7,964 | 6,198 | 8,645 | 5,151 | 3,765 | -26.9% |
Ratios
|
|---|
| Revenue growth | -6.3% | -1.3% | 8.2% | -5.9% | 5.8% | |
| EBITDA growth | -6.6% | -5.0% | -13.1% | 7.6% | 22.5% | |
| Gross Margin | 14.1% | 14.3% | 12.2% | 13.0% | 13.6% | 0.6% |
| EBITDA Margin | 8.3% | 8.0% | 6.4% | 7.3% | 8.5% | 1.2% |
| Net Income Margin | 3.4% | 4.1% | 2.8% | 3.3% | 4.1% | 0.8% |
| SG&A, % of revenue | 9.1% | 9.6% | 6.4% | 6.2% | 5.4% | -0.8% |
| CAPEX, % of revenue | 3.7% | 2.9% | 3.7% | 2.4% | 1.6% | -0.7% |
| ROIC | 8.9% | 8.2% | 5.7% | 7.0% | 10.6% | 3.7% |
| ROE | 10.7% | 12.3% | 8.7% | 9.6% | 12.4% | 2.8% |
| Net Debt/EBITDA | -1.1x | -1.3x | -1.4x | -1.7x | -1.6x | 0.1x |
Revenue and profitability
The company's Revenue increased on 5.8% in 2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.0 pp from 3.0% to 7.0% in FY2016.
Gross Margin increased slightly on 0.64 pp from 13.0% to 13.6% in 2016. SG&A as a % of Revenue decreased slightly on 0.80 pp from 6.2% to 5.4% in 2016.
Net Income marign increased slightly on 0.77 pp from 3.3% to 4.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
Lite-On Technology Corp's CAPEX/Revenue was 1.6% in 2016. Lite-On Technology Corp showed small CAPEX/Revenue decline of 1.3 pp from 2.9% in 2013 to 1.6% in 2016. It's average level of CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at good ROE (12.40%) while ROIC is low (10.64%). ROIC increased on 3.7 pp from 7.0% to 10.6% in 2016. ROE increased on 2.8 pp from 9.6% to 12.4% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.6x and Debt / EBITDA is 1.8x. Net Debt / EBITDA increased on 0.1x from -1.7x to -1.6x in 2016. Debt dropped on 12.2% in 2016 while cash showed almost no change in 2016.
Appendix 1: Peers in Technology Hardware & Equipment
Below we provide Lite-On Technology Corp 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) | | 5.6% | 6.8% | 36.5% | 18.9% |
| Concurrent Technologies ($CNC) | -7.3% | -7.3% | 8.0% | 33.3% | |
| Toumaz Ld ($TMZ) | 279.7% | 150.3% | 19.5% | 22.1% | |
| Seeing Machines ($SEE) | | 66.3% | 43.3% | 13.3% | 76.8% |
| |
|---|
| Median (19 companies) | 0.6% | 3.4% | 0.3% | 1.1% | 0.6% |
|---|
| Lite-On Technology Corp ($LTTD) | | -1.3% | 8.2% | -5.9% | 5.8% |
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% | |
| Seeing Machines ($SEE) | 61.4% | 64.1% | 59.8% | 44.9% | 81.3% |
| |
|---|
| Median (18 companies) | 34.5% | 35.2% | 37.0% | 38.9% | 38.6% |
|---|
| Lite-On Technology Corp ($LTTD) | 14.1% | 14.3% | 12.2% | 13.0% | 13.6% |
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% | 24.7% |
| Trakm8 Holdings ($TRAK) | 7.1% | 6.8% | 12.9% | 14.0% | 15.8% |
| |
|---|
| Median (19 companies) | 3.8% | 6.8% | 5.6% | 5.3% | 6.8% |
|---|
| Lite-On Technology Corp ($LTTD) | 8.3% | 8.0% | 6.4% | 7.3% | 8.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Samsung Electronics Co ($SMSN) | 11.4% | 10.1% | 10.7% | 12.9% | 12.0% |
| Pure Wafer ($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% | |
| Seeing Machines ($SEE) | 0.3% | 2.2% | 1.0% | 3.9% | 1.6% |
| |
|---|
| Median (19 companies) | 2.1% | 2.0% | 1.9% | 1.8% | 1.6% |
|---|
| Lite-On Technology Corp ($LTTD) | 3.7% | 2.9% | 3.7% | 2.4% | 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% | 14.3% |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 13.7% | 11.1% | 10.3% | 13.5% | 3.9% |
| Hon Hai Precision Industry ($HHPD) | 9.9% | 8.7% | 10.3% | 11.7% | |
| |
|---|
| Median (19 companies) | 0.6% | 5.8% | 6.7% | 3.4% | 3.9% |
|---|
| Lite-On Technology Corp ($LTTD) | 8.9% | 8.2% | 5.7% | 7.0% | 10.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tatung Co ($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 | -0.9x |
| Telefonaktiebolaget Lm Ericsson ($0O87) | -0.1x | 0.0x | -0.2x | 0.1x | 0.1x |
| Samsung Electronics Co ($SMSN) | -0.1x | -0.1x | -0.1x | -0.2x | -0.3x |
| |
|---|
| Median (15 companies) | -0.8x | -0.5x | -1.3x | -1.0x | -0.6x |
|---|
| Lite-On Technology Corp ($LTTD) | -1.1x | -1.3x | -1.4x | -1.7x | -1.6x |
