IEH Corp reports 74.1% Net Income growth in 2018 and 16.6% Revenue growth
07/12/2018 • About IEH Corp (
$IEHC) • By InTwits
IEH Corp reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- IEH Corp is a growth stock: FY2018 revenue growth was 16.6%, 5 year revenue CAGR was 12.0% at FY2018 ROIC 26.1%
- IEH Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 5.2%
- CAPEX is quite volatile: $0m in 2018, $0m in 2017, $0m in 2016, $0m in 2015, $1m in 2014
- The company has highly profitable business model: ROIC is 26.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
IEH Corp's Revenue jumped on 16.6%. Revenue growth showed acceleration in FY18Q4 - it increased 28.2% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.0 pp from -28.9% to -42.9% in 2018.
Gross Margin increased on 2.3 pp from 34.9% to 37.2% in FY2018. SG&A as a % of Revenue decreased slightly on 1.6 pp from 18.7% to 17.1% in FY2018.
Net Income margin increased on 3.6 pp from 7.3% to 10.9% in FY2018.
Investments (CAPEX, working capital and M&A)
IEH Corp's CAPEX/Revenue was 1.6% in FY2018. CAPEX/Revenue decreased slightly on 1.1 pp from 2.7% in FY2015 to 1.6% in FY2018. It's average CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at high and attractive ROIC (26.1%) while ROE is a bit lower (16.0%). ROIC increased on 7.0 pp from 19.2% to 26.1% in FY2018. ROE increased on 5.7 pp from 10.3% to 16.0% in FY2018.
Leverage (Debt)
The company has no debt. Cash jumped on 16.2%.
Valuation and dividends
The company's trades at EV/EBITDA 4.7x and P/E 9.3x.
Financial and operational results
FY ended 03/30/2018
IEH Corp ($IEHC) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 15.432 | 16.392 | 19.358 | 20.128 | 23.473 | 16.6% |
| Gross Profit | 5.545 | 6.090 | 6.526 | 7.031 | 8.738 | 24.3% |
| SG&A | 2.703 | 2.617 | 3.048 | 3.755 | 4.007 | 6.7% |
| EBITDA | 2.842 | 3.472 | 3.479 | 3.276 | 4.731 | 44.4% |
| Net Income | 1.454 | 1.810 | 1.690 | 1.474 | 2.566 | 74.1% |
Balance Sheet
|
|---|
| Cash | 1.733 | 1.721 | 1.754 | 1.211 | 1.407 | 16.2% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.353 | 0.448 | 0.507 | 0.595 | 0.377 | -36.7% |
Ratios
|
|---|
| Revenue growth | 15.8% | 6.2% | 18.1% | 4.0% | 16.6% | |
| EBITDA growth | 39.0% | 22.2% | 0.2% | -5.8% | 44.4% | |
|
|---|
| Gross Margin | 35.9% | 37.1% | 33.7% | 34.9% | 37.2% | 2.3% |
| EBITDA Margin | 18.4% | 21.2% | 18.0% | 16.3% | 20.2% | 3.9% |
| SG&A, % of revenue | 17.5% | 16.0% | 15.7% | 18.7% | 17.1% | -1.6% |
| Net Income Margin | 9.4% | 11.0% | 8.7% | 7.3% | 10.9% | 3.6% |
| CAPEX, % of revenue | 2.3% | 2.7% | 2.6% | 3.0% | 1.6% | -1.4% |
|
|---|
| ROIC | 27.7% | 28.2% | 24.2% | 19.2% | 26.1% | 7.0% |
| ROE | 15.5% | 16.5% | 13.3% | 10.3% | 16.0% | 5.7% |
| Net Debt/EBITDA | -0.6x | -0.5x | -0.5x | -0.4x | -0.3x | 0.1x |
IEH Corp ($IEHC) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 5 | 6 | 5 | 7 | | 12.0% | 15.2% | 8.9% | 28.2% |
| EBITDA | 1 | 1 | 1 | 2 | | -2.8% | 21.6% | 15.6% | 145.1% |
| Net Income | 0 | 1 | 0 | 1 | | -9.5% | 5.2% | 47.1% | 331.6% |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 2 | 1 | | -23.4% | -13.7% | 34.1% | 16.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 32.8% | 40.2% | 33.0% | 40.8% | | -3.6% | 2.1% | -0.7% | 9.1% |
| EBITDA Margin | 14.0% | 21.8% | 15.7% | 25.9% | | -2.1% | 1.2% | 0.9% | 12.4% |
| Net Income Margin | 6.1% | 9.3% | 9.1% | 16.6% | | -1.4% | -0.9% | 2.4% | 11.7% |
Peers in Electronic Components
Below you can find IEH Corp benchmarking vs. other companies in Electronic Components 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 |
|---|
| Superconductor Technologies Inc. ($SCON) | | -61.4% | -46.3% | 240.5% | 248.9% |
| Akoustis Technologies, Inc. ($AKTS) | | | | | 148.3% |
| CPS Technologies Corp. ($CPSH) | | -5.9% | -29.5% | -5.0% | 48.0% |
| Littelfuse, Inc. ($LFUS) | | 1.9% | 21.7% | 15.7% | 40.7% |
| Cavitation Technologies Inc ($CVAT) | | -73.6% | 267.5% | -40.9% | 22.6% |
| |
|---|
| Median (22 companies) | | -5.9% | 1.1% | 8.3% | 14.1% |
|---|
| IEH Corp ($IEHC) | | 6.2% | 18.1% | 4.0% | 16.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cavitation Technologies Inc ($CVAT) | 93.5% | 85.0% | 93.2% | 93.5% | 90.6% |
| Dolby Laboratories ($DLB) | 92.7% | 90.2% | 89.4% | 89.1% | 87.9% |
| Flexpoint Sensor Systems Inc ($FLXT) | 96.7% | 95.2% | 92.7% | 87.9% | 86.1% |
| Airgain, Inc. ($AIRG) | 44.6% | 41.9% | 44.4% | 47.1% | 43.7% |
| II-VI Incorporated ($IIVI) | 33.2% | 36.6% | 37.8% | 40.0% | 39.8% |
| |
|---|
| Median (22 companies) | 31.7% | 36.6% | 33.7% | 38.3% | 36.7% |
|---|
| IEH Corp ($IEHC) | 35.9% | 37.1% | 33.7% | 34.9% | 37.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Corning Incorporated ($GLW) | 32.2% | 27.5% | 27.9% | 27.3% | 25.4% |
| Dolby Laboratories ($DLB) | 34.1% | 29.1% | 30.9% | 30.8% | 25.1% |
| Amphenol Corporation ($APH) | 22.5% | 22.9% | 22.6% | 23.6% | 24.2% |
| Vishay Intertechnology, Inc. ($VSH) | 14.8% | 11.9% | 15.4% | 18.7% | 21.3% |
| Littelfuse, Inc. ($LFUS) | 20.6% | 16.8% | 17.4% | 23.0% | 19.1% |
| |
|---|
| Median (22 companies) | 8.6% | 11.9% | 13.6% | 8.7% | 9.3% |
|---|
| IEH Corp ($IEHC) | 18.4% | 21.2% | 18.0% | 16.3% | 20.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Akoustis Technologies, Inc. ($AKTS) | | | | 334.0% | 574.7% |
| CBAK Energy Technology, Inc. ($CBAK) | 8.0% | 92.4% | 57.2% | 20.6% | 30.1% |
| Corning Incorporated ($GLW) | 11.1% | 13.7% | 12.0% | 17.8% | 19.9% |
| II-VI Incorporated ($IIVI) | 4.3% | 7.1% | 7.0% | 14.3% | 13.2% |
| Superconductor Technologies Inc. ($SCON) | 586.1% | 57.8% | 0.0% | 34.1% | 12.1% |
| |
|---|
| Median (22 companies) | 4.2% | 3.1% | 3.4% | 5.1% | 4.1% |
|---|
| IEH Corp ($IEHC) | 2.3% | 2.7% | 2.6% | 3.0% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vishay Intertechnology, Inc. ($VSH) | 8.3% | 4.5% | 9.8% | 18.4% | 27.8% |
| Amphenol Corporation ($APH) | 19.1% | 18.5% | 18.3% | 19.2% | 21.1% |
| Inrad Optics Inc ($INRD) | -26.7% | -5.2% | -9.2% | -10.4% | 17.7% |
| Littelfuse, Inc. ($LFUS) | 14.3% | 11.1% | 11.7% | 15.8% | 12.1% |
| Rogers Corporation ($ROG) | 13.1% | 11.0% | 10.1% | 14.5% | 11.3% |
| |
|---|
| Median (22 companies) | 6.8% | 5.8% | 4.7% | 6.0% | 7.8% |
|---|
| IEH Corp ($IEHC) | 27.7% | 28.2% | 24.2% | 19.2% | 26.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Belden Inc ($BDC) | 3.9x | 5.2x | 2.1x | 2.6x | 2.3x |
| Inrad Optics Inc ($INRD) | | 9.9x | | | 1.4x |
| Corning Incorporated ($GLW) | -0.7x | -0.0x | -0.5x | 0.3x | 1.3x |
| Bel Fuse Inc. ($BELFA) | 4.6x | 2.0x | | 1.4x | 1.3x |
| Amphenol Corporation ($APH) | 1.4x | 0.8x | 1.4x | 1.1x | 1.2x |
| |
|---|
| Median (14 companies) | -0.6x | -0.1x | -0.4x | -0.0x | 0.7x |
|---|
| IEH Corp ($IEHC) | -0.6x | -0.5x | -0.5x | -0.4x | -0.3x |
