Seeing Machines revenue growth accelerated from 3.8% in FY2019 to 25.5% in FY2020
02 Nov 2020 • About Seeing Machines (
$SEE) • By InTwits
Seeing Machines reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Seeing Machines is a fast growth stock: FY2020 revenue growth was 25.5%, 5 year revenue CAGR was 16.1% at FY2020 ROIC -59.6%
- The company operates at negative EBITDA Margin: -106.9%
- Seeing Machines spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -97.6%
- Seeing Machines has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's in pair with industry average of 4.8%
- CAPEX is quite volatile: 1 AUDm in FY2020, 0 AUDm in FY2019, 4 AUDm in FY2018, 1 AUDm in FY2017, 1 AUDm in FY2016
- The company has unprofitable business model: ROIC is -59.6%
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 jumped on 25.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 13.0 pp from -25.2% to -12.2% in FY2020.
Gross Margin dropped on 22.0 pp from 58.1% to 36.1% in FY2020. SG&A as a % of Revenue decreased on 5.2 pp from 70.3% to 65.1% in FY2020.
Net Income margin surged on 15.0 pp from -132% to -117% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 Seeing Machines had CAPEX/Revenue of 2.0%. CAPEX/Revenue decreased on 3.5 pp from 5.6% in FY2017 to 2.0% in FY2020. For the last three years the average CAPEX/Revenue was 5.3%.
Return on investment
The company operates at negative ROIC (-59.6%) and ROE (-69.9%). ROIC decreased on 7.5 pp from -52.1% to -59.6% in FY2020. ROE dropped on 14.2 pp from -55.7% to -69.9% in FY2020.
Leverage (Debt)
Debt level is -1.7x Net Debt / EBITDA and Debt / EBITDA. Debt dropped on 16.5% while cash dropped on 30.4%.
Seeing Machines has no short term refinancing risk: cash is higher than short term debt (2,368.8%).
Financial and operational results
FY ended 30 Jun 2020
Seeing Machines ($SEE) key annual financial indicators| mln. AUD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 33.562 | 14.179 | 30.716 | 31.889 | 40.012 | 25.5% |
| Gross Profit | 27.302 | 0.701 | 7.627 | 18.525 | 14.433 | -22.1% |
| SG&A | 15.336 | 18.002 | 19.876 | 22.404 | 26.039 | 16.2% |
| EBITDA | -1.895 | -26.611 | -35.657 | -39.778 | -42.764 | |
| Net Income | -1.739 | -29.689 | -36.014 | -42.006 | -46.710 | |
Balance Sheet
|
|---|
| Cash | 16.948 | 21.438 | 42.786 | 54.809 | 38.138 | -30.4% |
| Short Term Debt | 0.000 | 0.000 | 0.388 | 2.018 | 1.610 | -20.2% |
| Long Term Debt | 0.000 | 0.000 | 0.576 | 6.811 | 5.766 | -15.3% |
Cash flow
|
|---|
| Capex | 0.527 | 0.789 | 3.864 | 0.390 | 0.815 | 109.0% |
Ratios
|
|---|
| Revenue growth | 76.8% | -57.8% | 116.6% | 3.8% | 25.5% | |
| EBITDA growth | -85.2% | 1,304.1% | 34.0% | 11.6% | 7.5% | |
|
|---|
| Gross Margin | 81.3% | 4.9% | 24.8% | 58.1% | 36.1% | -22.0% |
| EBITDA Margin | -5.6% | -187.7% | -116.1% | -124.7% | -106.9% | 17.9% |
| SG&A, % of revenue | 45.7% | 127.0% | 64.7% | 70.3% | 65.1% | -5.2% |
| Net Income Margin | -5.2% | -209.4% | -117.2% | -131.7% | -116.7% | 15.0% |
| CAPEX, % of revenue | 1.6% | 5.6% | 12.6% | 1.2% | 2.0% | 0.8% |
|
|---|
| ROIC | -7.9% | -71.4% | -76.1% | -52.1% | -59.6% | -7.5% |
| ROE | -5.0% | -76.1% | -71.4% | -55.7% | -69.9% | -14.2% |
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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Software Radio Technology ($SRT) | - | 3.2% | -51.6% | 285.6% | -8.0% |
| Samsung Electronics Co ($SMSN) | 0.6% | 18.7% | 1.8% | -5.8% | - |
| Northamber ($NAR) | -5.5% | -7.4% | 1.5% | -13.4% | - |
| |
|---|
| Median (3 companies) | -4.7% | 3.2% | 1.6% | -5.8% | -8.0% |
|---|
| Seeing Machines ($SEE) | - | -57.8% | 116.6% | 3.8% | 25.5% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Software Radio Technology ($SRT) | 48.4% | 65.7% | 43.2% | 45.4% | 23.1% |
| Northamber ($NAR) | 7.8% | 7.7% | 7.8% | 8.6% | - |
| |
|---|
| Median (2 companies) | 34.0% | 33.4% | 45.7% | 27.0% | 23.1% |
|---|
| Seeing Machines ($SEE) | 81.3% | 4.9% | 24.8% | 58.1% | 36.1% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Software Radio Technology ($SRT) | 16.0% | 24.2% | -67.8% | 22.3% | -26.8% |
| Northamber ($NAR) | -1.8% | -1.7% | -0.7% | -1.4% | - |
| |
|---|
| Median (2 companies) | 8.2% | 6.7% | 10.2% | 10.4% | -26.8% |
|---|
| Seeing Machines ($SEE) | -5.6% | -187.7% | -116.1% | -124.7% | -106.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Software Radio Technology ($SRT) | 1.0% | 1.1% | 1.6% | 1.2% | 2.8% |
| Northamber ($NAR) | 0.1% | 0.3% | 0.1% | 0.1% | - |
| |
|---|
| Median (2 companies) | 1.5% | 1.6% | 1.6% | 0.7% | 2.8% |
|---|
| Seeing Machines ($SEE) | 1.6% | 5.6% | 12.6% | 1.2% | 2.0% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Software Radio Technology ($SRT) | 1.5% | 6.2% | -35.6% | 16.7% | -32.7% |
| Northamber ($NAR) | -6.5% | -5.6% | -3.2% | -5.0% | - |
| Samsung Electronics Co ($SMSN) | 14.3% | 23.2% | 22.2% | - | - |
| |
|---|
| Median (3 companies) | 1.8% | 5.4% | 7.5% | 5.9% | -32.7% |
|---|
| Seeing Machines ($SEE) | -7.9% | -71.4% | -76.1% | -52.1% | -59.6% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Software Radio Technology ($SRT) | -0.5x | -0.3x | - | 0.2x | - |
| |
|---|
| Median (1 company) | -0.9x | -0.4x | -0.8x | 0.2x | - |
|---|
