Cavitation Technologies Inc revenue returned to growth in FY2018: increased 22.6% vs. 40.9% decline a year earliner
10/15/2018 • About Cavitation Technologies Inc (
$CVAT) • By InTwits
Cavitation Technologies Inc reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -23.0%
- Cavitation Technologies Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -42.4% for the sames years
- Cavitation Technologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's a lot of higher than industry average of 30.9%.
- CAPEX is quite volatile: $0m in FY2018, $0m in FY2017, $0m in FY2016, $0m in FY2015, $0m in FY2014
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 22.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 43.8 pp from -5.2% to -49.0% in FY2018.
Gross Margin decreased on 2.8 pp from 93.5% to 90.6% in FY2018. SG&A as a % of Revenue dropped on 73.9 pp from 191% to 117% in FY2018.
Net Income margin surged on 81.2 pp from -100% to -19.2% in FY2018.
Leverage (Debt)
The company has no debt. Cash surged on 72.3%.
Financial and operational results
FY ended 06/30/2018
Cavitation Technologies Inc ($CVAT) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 1.856 | 0.489 | 1.798 | 1.063 | 1.303 | 22.6% |
| Gross Profit | 1.736 | 0.416 | 1.677 | 0.994 | 1.181 | 18.9% |
| SG&A | | 1.796 | 1.215 | 2.033 | 1.530 | -24.8% |
| EBITDA | -0.649 | -1.289 | 0.493 | -1.016 | -0.300 | |
| Net Income | -2.184 | -1.379 | 0.433 | -1.067 | -0.250 | |
Balance Sheet
|
|---|
| Cash | 1.227 | 1.479 | 0.657 | 0.549 | 0.945 | 72.3% |
| 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 | 0.043 | 0.023 | 0.062 | 0.056 | 0.000 | -100.0% |
Ratios
|
|---|
| Revenue growth | 47.3% | -73.6% | 267.5% | -40.9% | 22.6% | |
| EBITDA growth | -6.9% | 98.7% | -138.2% | -306.1% | -70.5% | |
|
|---|
| Gross Margin | 93.5% | 85.0% | 93.2% | 93.5% | 90.6% | -2.8% |
| EBITDA Margin | -35.0% | -263.5% | 27.4% | -95.6% | -23.0% | 72.5% |
| SG&A, % of revenue | | 367.1% | 67.5% | 191.3% | 117.4% | -73.9% |
| Net Income Margin | -117.7% | -281.8% | 24.1% | -100.4% | -19.2% | 81.2% |
| CAPEX, % of revenue | 2.3% | 4.6% | 3.4% | 5.2% | 0.0% | |
|
|---|
| Net Debt/EBITDA | | | -1.3x | | |
Cavitation Technologies Inc ($CVAT) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 0 | 0 | 0 | 0 | | 300.0% | 865.3% | -78.3% | |
| EBITDA | -0 | -0 | -0 | -0 | | | | -108.5% | |
| Net Income | -0 | 0 | -0 | -0 | | | | -111.4% | |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 1 | | 28.3% | 115.4% | 55.3% | |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 94.5% | 95.7% | 98.3% | 74.2% | | 3.8% | 18.3% | 1.2% | |
| EBITDA Margin | -38.4% | -4.8% | -16.4% | -32.0% | | 238.0% | 715.3% | -58.2% | |
| Net Income Margin | -41.8% | 22.6% | -21.7% | -36.6% | | 248.5% | 770.4% | -62.9% | |
Peers in Electronic Components
Below you can find Cavitation Technologies Inc 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% |
| Airgain, Inc. ($AIRG) | | 9.0% | 56.3% | 14.0% | 22.4% |
| |
|---|
| Median (22 companies) | | 0.0% | 1.1% | 8.3% | 14.1% |
|---|
| Cavitation Technologies Inc ($CVAT) | | -73.6% | 267.5% | -40.9% | 22.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| 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% |
| Corning Incorporated ($GLW) | 41.7% | 40.1% | 40.1% | 39.7% | 39.5% |
| |
|---|
| Median (22 companies) | 31.7% | 36.6% | 33.7% | 34.9% | 36.3% |
|---|
| Cavitation Technologies Inc ($CVAT) | 93.5% | 85.0% | 93.2% | 93.5% | 90.6% |
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% |
| IEH Corp ($IEHC) | 18.4% | 21.2% | 18.0% | 16.3% | 20.2% |
| |
|---|
| Median (22 companies) | 9.4% | 12.2% | 13.6% | 11.4% | 12.7% |
|---|
| Cavitation Technologies Inc ($CVAT) | -35.0% | -263.5% | 27.4% | -95.6% | -23.0% |
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. ($SCON) | 586.1% | 57.8% | 0.0% | 34.1% | 12.1% |
| |
|---|
| Median (22 companies) | 4.2% | 2.7% | 3.0% | 4.2% | 4.1% |
|---|
| Cavitation Technologies Inc ($CVAT) | 2.3% | 4.6% | 3.4% | 5.2% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vishay Intertechnology, Inc. ($VSH) | 8.3% | 4.5% | 9.8% | 18.4% | 27.8% |
| IEH Corp ($IEHC) | 27.7% | 28.2% | 24.2% | 19.2% | 26.1% |
| 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. ($LFUS) | 14.3% | 11.1% | 11.7% | 15.8% | 12.1% |
| |
|---|
| Median (22 companies) | 6.8% | 5.9% | 6.0% | 6.5% | 8.1% |
|---|
| Cavitation Technologies Inc ($CVAT) | | | | | |
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 (15 companies) | -0.6x | -0.2x | -0.4x | -0.3x | 0.6x |
|---|
