Perceptron, Inc. EBITDA jumped on 80.0% and Revenue increased on 8.7%
08/29/2018 • About Perceptron, Inc. (
$PRCP) • By InTwits
Perceptron, Inc. reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 8.5% in FY2018, 5.1% in FY2017, -10.5% in FY2016, 1.4% in FY2015, 6.2% in FY2014
- Perceptron, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 7.6%
- CAPEX is quite volatile: $1m in FY2018, $1m in FY2017, $2m in FY2016, $2m in FY2015, $1m in FY2014
- The company has business model with average profitability: ROIC is 10.9%
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 8.7%. Revenue growth showed slowdown in FY18Q4 - it was 5.6% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.7 pp from 5.6% to -2.1% in 2018. During FY2014-FY2018 EBITDA Margin bottomed in FY2016 at -10.5% and was growing since that time.
Gross Margin increased on 2.2 pp from 35.6% to 37.8% in FY2018. During FY2014-FY2018 Gross Margin bottomed in FY2016 at 30.6% and was growing since that time. SG&A as a % of Revenue showed almost no change in FY2018. During the last 5 years SG&A as a % of Revenue topped in FY2016 at 29.4% and was declining since that time.
Net Income margin increased on 4.6 pp from -0.22% to 4.4% in FY2018. During FY2014-FY2018 Net Income margin bottomed in FY2016 at -32.0% and was growing since that time.
Investments (CAPEX, working capital and M&A)
Perceptron, Inc.'s CAPEX/Revenue was 1.4% in FY2018. CAPEX/Revenue decreased slightly on 1.0 pp from 2.4% in FY2015 to 1.4% in FY2018. It's average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at low ROIC (10.9%) and ROE (8.7%). ROIC increased on 6.6 pp from 4.3% to 10.9% in FY2018. ROE increased on 9.1 pp from -0.43% to 8.7% in FY2018. During the last 5 years ROIC bottomed in FY2016 at -19.6% and was growing since that time. During FY2014-FY2018 ROE bottomed in FY2016 at -44.5% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.8x and Debt / EBITDA is 0.0x. Debt surged while cash jumped on 57.4%.
Perceptron, Inc. has no short term refinancing risk: cash is higher than short term debt (3,331.4%).
Valuation and dividends
The company's trades at EV/EBITDA 12.7x and P/E 26.2x.
Management team
The company's CEO is David L Watza "Dave". David L Watza "Dave" is a founder and has 2 years tenure with the company. The company's CFO is David L Watza "Dave". David L Watza "Dave" has 2 years tenure at the company.
Financial and operational results
FY ended 06/30/2018
Perceptron, Inc. ($PRCP) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 59.612 | 74.405 | 69.135 | 77.947 | 84.693 | 8.7% |
| Gross Profit | 24.849 | 28.271 | 21.139 | 27.769 | 32.000 | 15.2% |
| SG&A | 15.216 | 20.397 | 20.316 | 17.347 | 18.469 | 6.5% |
| EBITDA | 3.668 | 1.061 | -7.247 | 4.013 | 7.224 | 80.0% |
| Net Income | 2.427 | -0.461 | -22.113 | -0.168 | 3.716 | |
Balance Sheet
|
|---|
| Cash | 23.070 | 11.502 | 6.787 | 3.704 | 5.830 | 57.4% |
| Short Term Debt | 0.000 | 0.000 | 0.200 | 0.000 | 0.175 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.678 | 1.789 | 1.641 | 0.682 | 1.153 | 69.1% |
Ratios
|
|---|
| Revenue growth | -2.1% | 24.8% | -7.1% | 12.7% | 8.7% | |
| EBITDA growth | -51.3% | -71.1% | -783.0% | -155.4% | 80.0% | |
|
|---|
| Gross Margin | 41.7% | 38.0% | 30.6% | 35.6% | 37.8% | 2.2% |
| EBITDA Margin | 6.2% | 1.4% | -10.5% | 5.1% | 8.5% | 3.4% |
| SG&A, % of revenue | 25.5% | 27.4% | 29.4% | 22.3% | 21.8% | -0.4% |
| Net Income Margin | 4.1% | -0.6% | -32.0% | -0.2% | 4.4% | 4.6% |
| CAPEX, % of revenue | 1.1% | 2.4% | 2.4% | 0.9% | 1.4% | 0.5% |
|
|---|
| ROIC | 4.8% | -0.1% | -19.6% | 4.3% | 10.9% | 6.6% |
| ROE | 4.1% | -0.7% | -44.5% | -0.4% | 8.7% | 9.1% |
| Net Debt/EBITDA | -6.3x | -10.8x | | -0.9x | -0.8x | 0.1x |
Perceptron, Inc. ($PRCP) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 19 | 20 | 21 | 24 | | 10.0% | -6.1% | 31.1% | 5.6% |
| EBITDA | 2 | 1 | 2 | 2 | | | -72.8% | 10,243.8% | 54.1% |
| Net Income | 2 | 0 | 1 | 1 | | | -85.5% | | 195.8% |
Balance Sheet
|
|---|
| Cash | 5 | 6 | 5 | 6 | | -21.3% | 12.2% | 9.6% | 57.4% |
| Short Term Debt | 1 | 2 | 2 | 0 | | -44.5% | 11.2% | 73.5% | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 39.7% | 36.3% | 37.0% | 38.2% | | 13.6% | -7.2% | 5.2% | -0.1% |
| EBITDA Margin | 10.9% | 5.1% | 7.7% | 10.3% | | 19.0% | -12.5% | 7.6% | 3.2% |
| Net Income Margin | 8.1% | 1.8% | 4.8% | 3.3% | | 21.5% | -9.8% | 8.4% | 2.1% |
Peers in Electronic Equipment & Instrum
Below we provide Perceptron, Inc. benchmarking against other companies in Electronic Equipment & Instrum 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 |
|---|
| Hickok Inc ($HICKA) | | -7.2% | 13.5% | 258.4% | 178.7% |
| Electro Scientific Industries, Inc. ($ESIO) | | -12.2% | 15.9% | -12.7% | 128.5% |
| Microvision, Inc. ($MVIS) | | 163.6% | 60.7% | -34.7% | 82.8% |
| Ipsidy Inc ($IDTY) | | | | | 66.2% |
| Magal Security Systems Ltd. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 3.5% | 1.2% | 3.6% | 10.4% |
|---|
| Perceptron, Inc. ($PRCP) | | 24.8% | -7.1% | 12.7% | 8.7% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intellicheck, Inc. ($IDN) | 58.2% | 57.1% | 80.0% | 85.5% | 91.3% |
| Image Sensing Systems, Inc. ($ISNS) | 74.7% | 77.1% | 71.0% | 79.9% | 80.9% |
| National Instruments Corporation ($NATI) | 74.4% | 74.1% | 74.5% | 74.5% | 75.4% |
| Cognex Corporation ($CGNX) | 77.9% | 77.2% | 75.2% | 75.6% | 74.4% |
| Applied DNA Sciences Inc ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (60 companies) | 42.7% | 42.3% | 41.2% | 41.8% | 42.0% |
|---|
| Perceptron, Inc. ($PRCP) | 41.7% | 38.0% | 30.6% | 35.6% | 37.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cognex Corporation ($CGNX) | 32.9% | 30.1% | 31.9% | 36.0% | 30.1% |
| Coherent, Inc. ($COHR) | 14.2% | 16.7% | 18.9% | 24.9% | 26.6% |
| Hollysys Automation Technologies, Ltd. ($HOLI) | 21.3% | 26.9% | 23.5% | 16.1% | 23.9% |
| Electro Scientific Industries, Inc. ($ESIO) | -10.1% | -19.1% | -2.0% | -17.8% | 23.1% |
| FLIR Systems, Inc. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.3% | 5.2% | 3.4% | 3.0% | 3.3% |
|---|
| Perceptron, Inc. ($PRCP) | 6.2% | 1.4% | -10.5% | 5.1% | 8.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Wrap Technologies Inc ($WRTC) | | | | | 61.4% |
| ClearSign Combustion Corporation ($CLIR) | | 80.3% | 22.1% | 17.4% | 17.7% |
| LightPath Technologies, Inc. ($LPTH) | 16.8% | 5.0% | 6.5% | 7.8% | 7.7% |
| Giga-tronics Inc ($GIGA) | 1.7% | 0.1% | 1.3% | 0.3% | 7.0% |
| Applied DNA Sciences Inc ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.9% | 1.9% | 2.1% | 1.7% | 2.3% |
|---|
| Perceptron, Inc. ($PRCP) | 1.1% | 2.4% | 2.4% | 0.9% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | | | 83.3% | 39.6% | 55.3% |
| Electro Scientific Industries, Inc. ($ESIO) | -11.7% | -19.7% | -7.1% | -22.9% | 31.5% |
| Coherent, Inc. ($COHR) | 9.9% | 13.1% | 15.6% | 24.0% | 21.5% |
| Zebra Technologies Corporation ($ZBRA) | 3.3% | 0.9% | 2.2% | 10.2% | 20.8% |
| Cognex Corporation ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 2.3% | 2.2% | 1.8% | 0.9% |
|---|
| Perceptron, Inc. ($PRCP) | 4.8% | -0.1% | -19.6% | 4.3% | 10.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Itron, Inc. ($ITRI) | 2.1x | 1.9x | 1.0x | 2.0x | 12.3x |
| Track Group Inc ($TRCK) | | | | | 12.2x |
| Mesa Laboratories, Inc. ($MLAB) | 0.7x | 1.1x | 1.7x | 2.0x | 3.5x |
| Trimble Inc. ($TRMB) | 1.3x | 1.7x | 1.1x | 1.3x | 3.4x |
| MTS Systems Corporation ($MTSC) | -0.0x | -0.4x | 5.8x | 3.9x | 3.2x |
| |
|---|
| Median (35 companies) | -0.7x | -0.7x | -0.8x | -0.6x | -0.9x |
|---|
| Perceptron, Inc. ($PRCP) | -6.3x | -10.8x | | -0.9x | -0.8x |
