Seeing Machines reports 390% CAPEX growth in 2018 and 117% Revenue growth
19 Sep 2018 • About Seeing Machines (
$SEE) • By InTwits
Seeing Machines reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Seeing Machines is a fast growth stock: FY2018 revenue growth was 117%, 5 year revenue CAGR was 21.3% at FY2018 ROIC -76.1%
- The company operates at negative EBITDA Margin: -116.1%
- Seeing Machines motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -69.5% for the sames years
- Seeing Machines has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 6.6%
- CAPEX is quite volatile: 4 AUDm in FY2018, 1 AUDm in FY2017, 1 AUDm in FY2016, 1 AUDm in FY2015, 0 AUDm in FY2014
- The company has unprofitable business model: ROIC is -76.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Seeing Machines's Revenue surged on 117%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 28.2 pp from 18.6% to 46.8% in FY2018.
Gross Margin jumped on 19.9 pp from 4.9% to 24.8% in FY2018. SG&A as a % of Revenue dropped on 62.3 pp from 127% to 64.7% in FY2018.
Net Income margin jumped on 92.1 pp from -209% to -117% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 12.6% in FY2018. Seeing Machines's CAPEX/Revenue increased on 8.6 pp from 3.9% in FY2015 to 12.6% in FY2018. Average CAPEX/Revenue for the last three years was 6.6%.
Return on investment
The company operates at negative ROIC (-76.1%) and ROE (-71.4%). ROIC decreased on 4.7 pp from -71.4% to -76.1% in FY2018. ROE increased on 4.7 pp from -76.1% to -71.4% in FY2018.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and Debt / EBITDA. Debt surged while cash surged on 99.6%.
Seeing Machines has no short term refinancing risk: cash is higher than short term debt (11,039.1%).
Financial and operational results
FY ended 30 Jun 2018
Seeing Machines ($SEE) key annual financial indicators| mln. AUD | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 16.756 | 18.984 | 33.562 | 14.179 | 30.716 | 116.6% |
| Gross Profit | 10.013 | 8.523 | 27.302 | 0.701 | 7.627 | 987.4% |
| SG&A | | 15.507 | 15.336 | 18.002 | 19.876 | 10.4% |
| EBITDA | -2.490 | -12.766 | -1.895 | -26.611 | -35.657 | |
| Net Income | -2.703 | -11.282 | -1.739 | -29.689 | -36.014 | |
Balance Sheet
|
|---|
| Cash | 22.765 | 14.222 | 16.948 | 21.438 | 42.786 | 99.6% |
| Short Term Debt | 0.007 | 0.000 | 0.000 | 0.000 | 0.388 | |
| Long Term Debt | 0.043 | 0.000 | 0.000 | 0.000 | 0.576 | |
Cash flow
|
|---|
| Capex | 0.172 | 0.749 | 0.527 | 0.789 | 3.864 | 389.8% |
Ratios
|
|---|
| Revenue growth | 43.3% | 13.3% | 76.8% | -57.8% | 116.6% | |
| EBITDA growth | -437.0% | 412.6% | -85.2% | 1,304.1% | 34.0% | |
|
|---|
| Gross Margin | 59.8% | 44.9% | 81.3% | 4.9% | 24.8% | 19.9% |
| EBITDA Margin | -14.9% | -67.2% | -5.6% | -187.7% | -116.1% | 71.6% |
| SG&A, % of revenue | | 81.7% | 45.7% | 127.0% | 64.7% | -62.3% |
| Net Income Margin | -16.1% | -59.4% | -5.2% | -209.4% | -117.2% | 92.1% |
| CAPEX, % of revenue | 1.0% | 3.9% | 1.6% | 5.6% | 12.6% | 7.0% |
|
|---|
| ROIC | -16.7% | -44.5% | -7.9% | -71.4% | -76.1% | -4.7% |
| ROE | -16.3% | -38.7% | -5.0% | -76.1% | -71.4% | 4.7% |
Peers in Technology Hardware & Equipment
Below you can find Seeing Machines benchmarking vs. other companies in Technology Hardware & Equipment industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Filtronic ($FTC) | | -46.7% | -22.5% | 160.5% | -32.2% |
| Toumaz Ld ($TMZ) | 19.5% | 22.1% | 0.3% | 27.7% | |
| Cml Microsystems ($CML) | | -10.6% | 4.7% | 21.5% | 14.2% |
| Samsung Electronics Co ($SMSN) | -9.8% | -2.7% | 0.6% | 18.7% | |
| Batm Advanced Communications ($BVC) | -4.3% | -11.1% | -6.9% | 18.5% | |
| |
|---|
| Median (18 companies) | 3.4% | 0.2% | -4.7% | 3.1% | 12.4% |
|---|
| Seeing Machines ($SEE) | | 13.3% | 76.8% | -57.8% | 116.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cml Microsystems ($CML) | 73.3% | 70.9% | 71.2% | 71.4% | 70.2% |
| Vislink ($VLK) | 45.9% | 45.0% | 73.1% | 62.9% | |
| Concurrent Technologies ($CNC) | 51.2% | 50.6% | 54.2% | 55.4% | |
| Trakm8 Holdings ($TRAK) | 57.2% | 45.2% | 48.3% | 49.4% | 49.4% |
| Samsung Electronics Co ($SMSN) | 37.8% | 38.5% | 40.4% | 46.0% | |
| |
|---|
| Median (17 companies) | 36.0% | 36.6% | 31.4% | 30.6% | 59.8% |
|---|
| Seeing Machines ($SEE) | 59.8% | 44.9% | 81.3% | 4.9% | 24.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Samsung Electronics Co ($SMSN) | 20.9% | 23.6% | 24.7% | 31.6% | |
| Cml Microsystems ($CML) | 35.1% | 29.9% | 30.0% | 31.4% | 30.7% |
| Concurrent Technologies ($CNC) | 27.1% | 28.6% | 24.8% | 28.4% | |
| Tatung Co ($TAT) | 9.2% | 2.1% | 9.1% | 12.5% | |
| Trakm8 Holdings ($TRAK) | 12.9% | 14.0% | 15.8% | 8.7% | 10.2% |
| |
|---|
| Median (18 companies) | 6.4% | 5.6% | 7.5% | 6.3% | 10.2% |
|---|
| Seeing Machines ($SEE) | -14.9% | -67.2% | -5.6% | -187.7% | -116.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tatung Co ($TAT) | 4.3% | 6.7% | 16.1% | 45.1% | |
| Samsung Electronics Co ($SMSN) | 10.7% | 12.9% | 12.0% | 17.9% | |
| Batm Advanced Communications ($BVC) | 1.6% | 2.5% | 4.1% | 3.0% | |
| Filtronic ($FTC) | 3.2% | 1.1% | 1.3% | 2.3% | 2.5% |
| Lite-On Technology Corp ($LTTD) | 3.7% | 2.4% | 1.6% | 2.0% | |
| |
|---|
| Median (18 companies) | 2.3% | 1.8% | 1.6% | 1.6% | 1.5% |
|---|
| Seeing Machines ($SEE) | 1.0% | 3.9% | 1.6% | 5.6% | 12.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Samsung Electronics Co ($SMSN) | 14.4% | 14.0% | 14.3% | 23.2% | |
| Filtronic ($FTC) | -14.9% | -80.4% | -79.3% | 18.6% | 16.5% |
| Concurrent Technologies ($CNC) | 14.1% | 20.9% | 14.7% | 16.1% | |
| Cml Microsystems ($CML) | 23.0% | 10.3% | 10.1% | 11.2% | 10.4% |
| Lite-On Technology Corp ($LTTD) | 5.7% | 7.0% | 10.6% | 7.5% | |
| |
|---|
| Median (18 companies) | 6.7% | 4.3% | 2.9% | 5.1% | 10.4% |
|---|
| Seeing Machines ($SEE) | -16.7% | -44.5% | -7.9% | -71.4% | -76.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vislink ($VLK) | -0.0x | 1.8x | 0.4x | 54.5x | |
| Tatung Co ($TAT) | 6.7x | 40.1x | 9.2x | 7.7x | |
| Trakm8 Holdings ($TRAK) | -0.5x | -0.2x | 0.3x | 1.7x | 1.1x |
| Compal Electronics Inc ($CEIR) | -0.2x | -0.3x | 0.1x | 1.0x | |
| Global Invacom Group Ltd ($GINV) | -2.8x | -1.4x | -0.9x | 0.1x | |
| |
|---|
| Median (16 companies) | -1.3x | -1.2x | -0.9x | -0.7x | -1.3x |
|---|
