CalAmp Corp. EBITDA surged on 31.0% and Revenue increased on 4.2%
04/26/2018 • About CalAmp Corp. (
$CAMP) • By InTwits
CalAmp Corp. reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CalAmp Corp. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: $8m in FY2018, $8m in FY2017, $4m in FY2016, $7m in FY2015, $2m in FY2014
- It operates with medium-size leverage: Net Debt/EBITDA is 0.7x while industry average is -0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 4.2%. Revenue growth showed acceleration in FY18Q4 - it increased 9.6% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.63 pp from 3.1% to 3.7% in 2018.
Gross Margin showed almost no change in FY2018. Gross Margin followed a growing trend at 2.1 pp per annum in FY2014-FY2018. SG&A as a % of Revenue decreased on 2.3 pp from 30.2% to 27.9% in FY2018. SG&A as a % of Revenue followed a growing trend at 4.3 pp per annum in the last 5 years.
Net Income margin increased on 6.8 pp from -2.3% to 4.5% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.3% in FY2018. CalAmp Corp. showed small CAPEX/Revenue decline of 0.69 pp from 3.0% in FY2015 to 2.3% in FY2018. Average CAPEX/Revenue for the last three years was 2.0%.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 5.0x Debt / EBITDA. Net Debt / EBITDA dropped on 1.5x from 2.3x to 0.7x in FY2018. Debt increased on 5.1% while cash jumped on 41.5%.
The company has no short term refinancing risk: short term debt is zero.
Valuation and dividends
CalAmp Corp.'s trades at EV/EBITDA 23.1x and P/E 41.6x.
Management team
The company's CEO is Michael J Burdiek. Michael J Burdiek is a founder and has 8 years tenure with the company. The company's CFO is Kurtis J Binder. Kurtis J Binder has 2 years tenure at the company.
Financial and operational results
FY ended 02/28/2018
CalAmp Corp. ($CAMP) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 235.9 | 250.6 | 280.7 | 351.1 | 365.9 | 4.2% |
| Gross Profit | 79.9 | 87.4 | 103.0 | 143.4 | 150.9 | 5.3% |
| SG&A | 34.3 | 36.0 | 48.4 | 106.2 | 102.2 | -3.7% |
| EBITDA | 26.4 | 34.3 | 38.3 | 23.6 | 30.9 | 31.0% |
| Net Income | 11.8 | 16.5 | 16.9 | -7.9 | 16.6 | |
Balance Sheet
|
|---|
| Cash | 19.2 | 34.2 | 139.4 | 93.7 | 132.6 | 41.5% |
| Short Term Debt | 1.2 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.7 | 0.0 | 139.8 | 146.8 | 154.3 | 5.1% |
Cash flow
|
|---|
| Capex | 2.1 | 7.4 | 4.3 | 8.0 | 8.3 | 4.7% |
Ratios
|
|---|
| Revenue growth | 30.6% | 6.2% | 12.0% | 25.1% | 4.2% | |
| EBITDA growth | 41.1% | 29.8% | 11.6% | -38.4% | 31.0% | |
|
|---|
| Gross Margin | 33.9% | 34.9% | 36.7% | 40.8% | 41.2% | 0.4% |
| EBITDA Margin | 11.2% | 13.7% | 13.6% | 6.7% | 8.4% | 1.7% |
| SG&A, % of revenue | 14.5% | 14.4% | 17.3% | 30.2% | 27.9% | -2.3% |
| Net Income Margin | 5.0% | 6.6% | 6.0% | -2.3% | 4.5% | 6.8% |
| CAPEX, % of revenue | 0.9% | 3.0% | 1.5% | 2.3% | 2.3% | 0.0% |
|
|---|
| ROE | 9.4% | 11.6% | 9.9% | -4.5% | 9.2% | 13.7% |
| Net Debt/EBITDA | -0.7x | -1.0x | 0.0x | 2.3x | 0.7x | -1.5x |
CalAmp Corp. ($CAMP) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 88 | 90 | 94 | 94 | | -3.4% | -0.8% | 12.4% | 9.6% |
| EBITDA | 5 | 9 | 10 | 8 | | 39.2% | -11.8% | 29.2% | 184.7% |
| Net Income | -3 | 12 | 12 | -5 | | | 2,247.8% | | |
Balance Sheet
|
|---|
| Cash | 109 | 127 | 138 | 133 | | 61.0% | 33.7% | 83.8% | 41.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 149 | 151 | 152 | 154 | | 5.0% | 5.1% | 5.1% | 5.1% |
Ratios
|
|---|
| Gross Margin | 42.5% | 41.0% | 40.8% | 40.7% | | 4.3% | -0.5% | -1.4% | -0.8% |
| EBITDA Margin | 5.2% | 9.8% | 10.6% | 8.1% | | 1.6% | -1.2% | 1.4% | 5.0% |
| Net Income Margin | -3.0% | 13.6% | 12.6% | -5.1% | | -0.1% | 13.1% | 14.4% | -0.1% |
Peers in Communications Equipment
Below we provide CalAmp Corp. benchmarking against other companies in Communications 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ribbon Communications Inc. ($RBBN) | | | | 30.6% | 75.2% |
| Extreme Networks, Inc. ($EXTR) | | 6.4% | -4.4% | 13.2% | 64.4% |
| Optical Cable Corporation ($OCC) | | -11.3% | -12.2% | -0.8% | 37.0% |
| ParkerVision Inc ($PRKR) | | | 37,601.2% | -97.5% | 35.0% |
| Network-1 Technologies, Inc. ($NTIP) | | 34.6% | 292.9% | -74.7% | 34.4% |
| |
|---|
| Median (66 companies) | | -0.4% | 7.3% | 5.1% | 2.8% |
|---|
| CalAmp Corp. ($CAMP) | | 6.2% | 12.0% | 25.1% | 4.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| F5 Networks, Inc. ($FFIV) | 82.1% | 82.7% | 83.1% | 83.1% | 83.3% |
| Radware Ltd. ($RDWR) | 82.1% | 82.4% | 81.8% | 81.3% | 82.2% |
| Radcom Ltd. ($RDCM) | 63.2% | 76.8% | 69.6% | 71.8% | 74.0% |
| Casa Systems, Inc. ($CASA) | | 70.8% | 69.1% | 73.4% | 73.4% |
| NetScout Systems, Inc. ($NTCT) | 78.7% | 79.2% | 65.6% | 70.2% | 72.4% |
| |
|---|
| Median (67 companies) | 42.4% | 44.0% | 43.9% | 41.7% | 40.5% |
|---|
| CalAmp Corp. ($CAMP) | 33.9% | 34.9% | 36.7% | 40.8% | 41.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Network-1 Technologies, Inc. ($NTIP) | 35.5% | 33.7% | 50.6% | 37.8% | 42.8% |
| InterDigital, Inc. ($IDCC) | 50.8% | 58.1% | 73.6% | 67.3% | 41.9% |
| EchoStar Corporation ($SATS) | 25.7% | 39.7% | 40.3% | 38.1% | 37.4% |
| Ubiquiti Networks, Inc. ($UBNT) | 34.7% | 25.5% | 37.3% | 34.3% | 32.8% |
| Ituran Location and Control Ltd. ($ITRN) | 32.4% | 30.5% | 29.9% | 29.9% | 30.4% |
| |
|---|
| Median (65 companies) | 5.3% | 4.7% | 5.5% | 6.0% | 4.6% |
|---|
| CalAmp Corp. ($CAMP) | 11.2% | 13.7% | 13.6% | 6.7% | 8.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Resonant Inc. ($RESN) | | | 132.5% | 124.8% | 245.2% |
| ViaSat, Inc. ($VSAT) | 22.8% | 26.5% | 26.7% | 33.0% | 32.1% |
| Applied Optoelectronics, Inc. ($AAOI) | 31.5% | 30.1% | 19.0% | 17.5% | 26.9% |
| EchoStar Corporation ($SATS) | 19.7% | 43.8% | 39.9% | 30.9% | 26.5% |
| Finisar Corporation ($FNSR) | 11.3% | 11.9% | 9.4% | 9.7% | 16.8% |
| |
|---|
| Median (65 companies) | 2.3% | 2.2% | 2.0% | 1.8% | 1.6% |
|---|
| CalAmp Corp. ($CAMP) | 0.9% | 3.0% | 1.5% | 2.3% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| F5 Networks, Inc. ($FFIV) | 33.9% | 40.8% | 43.1% | 46.9% | 47.9% |
| Ubiquiti Networks, Inc. ($UBNT) | 61.4% | 31.5% | 41.5% | 38.5% | 39.1% |
| Motorola Solutions, Inc. ($MSI) | -16.1% | 18.9% | 26.4% | 39.5% | 35.3% |
| Ituran Location and Control Ltd. ($ITRN) | 50.9% | 46.8% | 50.1% | 48.5% | 35.1% |
| Casa Systems, Inc. ($CASA) | | | 43.2% | 39.7% | 21.9% |
| |
|---|
| Median (70 companies) | 1.6% | 2.1% | 2.3% | 2.1% | 0.5% |
|---|
| CalAmp Corp. ($CAMP) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Extreme Networks, Inc. ($EXTR) | | | -2.2x | -1.5x | 7.1x |
| ViaSat, Inc. ($VSAT) | 3.4x | 2.5x | 3.2x | 2.5x | 5.8x |
| CommScope Holding Company, Inc. ($COMM) | 2.3x | 9.6x | 4.3x | 4.6x | 4.4x |
| Inseego Corp. ($INSG) | | | | | 3.9x |
| Finisar Corporation ($FNSR) | -0.3x | 0.2x | -0.5x | 1.6x | 3.8x |
| |
|---|
| Median (45 companies) | -0.8x | -0.6x | -0.9x | -0.8x | -0.3x |
|---|
| CalAmp Corp. ($CAMP) | -0.7x | -1.0x | 0.0x | 2.3x | 0.7x |
