SemiLEDS Corporation revenue dropped on 18.7% and EBITDA Margin decreased slightly on 0.63 pp from -35.1% to -35.7%
11/14/2018 • About SemiLEDS Corporation (
$LEDS) • By InTwits
SemiLEDS Corporation reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SemiLEDS Corporation is a company in decline: FY2018 revenue growth was -18.7%, 5 years revenue CAGR was -16.0%
- The company operates at negative EBITDA Margin: -35.7%
- SemiLEDS Corporation spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -85.6%
- SemiLEDS Corporation has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.8%. At the same time it's in pair with industry average of 7.6%
- CAPEX is quite volatile: $0m in FY2018, $0m in FY2017, $1m in FY2016, $2m in FY2015, $3m in FY2014
- The company has unprofitable business model: ROIC is -38.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
SemiLEDS Corporation's Revenue dropped on 18.7%. Revenue decline showed acceleration in FY18Q4 - it was 24.2% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.63 pp from -35.1% to -35.7% in FY2018.
Gross Margin decreased on 6.7 pp from 0.89% to -5.8% in FY2018. SG&A as a % of Revenue increased on 2.2 pp from 40.2% to 42.5% in FY2018. SG&A as a % of Revenue stuck to a declining trend at -5.2 pp per annum in the last 5 years.
Net Income margin increased on 4.6 pp from -44.4% to -39.8% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.5% in FY2018. The company's CAPEX/Revenue decreased on 6.6 pp from 11.1% in FY2015 to 4.5% in FY2018. For the last three years the average CAPEX/Revenue was 4.8%. CAPEX as a % of Revenue declined at -3.7 pp per annum in FY2014-FY2018.
Return on investment
The company operates at negative ROIC (-38.3%) and ROE (-46.5%). ROIC decreased on 5.8 pp from -32.5% to -38.3% in FY2018. ROE decreased on 4.4 pp from -42.1% to -46.5% in FY2018.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and Debt / EBITDA. Debt dropped on 13.9% while cash decreased on 4.5%.
SemiLEDS Corporation has no short term refinancing risk: cash is higher than short term debt (1,021.2%).
Financial and operational results
FY ended 08/31/2018
SemiLEDS Corporation ($LEDS) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 14.481 | 14.124 | 10.140 | 9.214 | 7.495 | -18.7% |
| Gross Profit | -11.311 | -4.090 | -4.938 | 0.082 | -0.435 | -630.5% |
| SG&A | 9.279 | 6.986 | 4.767 | 3.708 | 3.184 | -14.1% |
| EBITDA | -18.175 | -8.329 | -15.079 | -3.232 | -2.676 | |
| Net Income | -24.475 | -13.274 | -21.275 | -4.091 | -2.981 | |
Balance Sheet
|
|---|
| Cash | 12.649 | 4.808 | 6.030 | 3.582 | 3.421 | -4.5% |
| Short Term Debt | 1.934 | 1.068 | 0.314 | 0.335 | 0.335 | 0.0% |
| Long Term Debt | 4.256 | 2.839 | 2.595 | 2.391 | 2.013 | -15.8% |
Cash flow
|
|---|
| Capex | 2.682 | 1.574 | 0.821 | 0.150 | 0.341 | 127.3% |
Ratios
|
|---|
| Revenue growth | -19.4% | -2.5% | -28.2% | -9.1% | -18.7% | |
| EBITDA growth | -18.7% | -54.2% | 81.0% | -78.6% | -17.2% | |
|
|---|
| Gross Margin | -78.1% | -29.0% | -48.7% | 0.9% | -5.8% | -6.7% |
| EBITDA Margin | -125.5% | -59.0% | -148.7% | -35.1% | -35.7% | -0.6% |
| SG&A, % of revenue | 64.1% | 49.5% | 47.0% | 40.2% | 42.5% | 2.2% |
| Net Income Margin | -169.0% | -94.0% | -209.8% | -44.4% | -39.8% | 4.6% |
| CAPEX, % of revenue | 18.5% | 11.1% | 8.1% | 1.6% | 4.5% | 2.9% |
|
|---|
| ROIC | -38.7% | -31.2% | -83.8% | -32.5% | -38.3% | -5.8% |
| ROE | -44.3% | -36.3% | -104.0% | -42.1% | -46.5% | -4.4% |
SemiLEDS Corporation ($LEDS) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 2 | 2 | | -25.9% | -15.7% | -5.3% | -24.2% |
| EBITDA | -1 | -1 | -0 | -1 | | | | | |
| Net Income | -0 | -1 | -0 | -1 | | | | | |
Balance Sheet
|
|---|
| Cash | 3 | 4 | 4 | 3 | | -29.6% | -5.2% | 19.2% | -4.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | | 8.3% | 6.7% | 2.1% | 0.0% |
| Long Term Debt | 2 | 2 | 2 | 2 | | -7.3% | -8.9% | -13.4% | -15.8% |
Ratios
|
|---|
| Gross Margin | 2.6% | -28.8% | 8.1% | -10.5% | | -1.7% | -29.2% | 16.9% | -16.2% |
| EBITDA Margin | -31.3% | -62.0% | -5.3% | -50.6% | | -2.9% | -14.1% | 43.3% | -28.8% |
| Net Income Margin | -19.6% | -73.4% | -16.3% | -58.0% | | 6.0% | -11.0% | 58.8% | -31.8% |
Peers in Semiconductors
Below we provide SemiLEDS Corporation benchmarking against other companies in Semiconductors 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 |
|---|
| NanoFlex Power Corp ($OPVS) | | | | 72.5% | 354.8% |
| MoSys, Inc. ($MOSY) | | -18.4% | 37.2% | 46.8% | 87.7% |
| SMART Global Holdings, Inc. ($SGH) | | | -16.9% | 42.5% | 69.3% |
| Micron Technology, Inc. ($MU) | | -1.0% | -23.4% | 63.9% | 49.5% |
| Adesto Technologies Corporation ($IOTS) | | 4.3% | 1.6% | 27.6% | 48.8% |
| |
|---|
| Median (67 companies) | 54.6% | 9.7% | 5.2% | 11.0% | 5.0% |
|---|
| SemiLEDS Corporation ($LEDS) | | -2.5% | -28.2% | -9.1% | -18.7% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| CEVA, Inc. ($CEVA) | 90.2% | 90.9% | 91.6% | 92.1% | 89.8% |
| NVE Corporation ($NVEC) | 77.9% | 80.3% | 76.1% | 78.5% | 79.0% |
| Rambus, Inc. ($RMBS) | 85.9% | 84.7% | 80.1% | 79.9% | 76.8% |
| Universal Display Corporation ($OLED) | 76.0% | 64.2% | 83.9% | 80.8% | 75.5% |
| Intermolecular, Inc. ($IMI) | 48.3% | 57.4% | 66.5% | 67.5% | 70.3% |
| |
|---|
| Median (65 companies) | 46.4% | 47.7% | 48.0% | 49.1% | 51.0% |
|---|
| SemiLEDS Corporation ($LEDS) | -78.1% | -29.0% | -48.7% | 0.9% | -5.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NVE Corporation ($NVEC) | 58.8% | 66.0% | 61.8% | 65.6% | 65.1% |
| Micron Technology, Inc. ($MU) | 31.7% | 35.0% | 25.4% | 47.9% | 65.0% |
| NXP Semiconductors N.V. ($NXPI) | 25.7% | 41.5% | 21.6% | 46.2% | 49.9% |
| Texas Instruments Incorporated ($TXN) | 39.7% | 42.0% | 43.5% | 46.7% | 48.6% |
| Intel Corp ($INTC) | 42.8% | 41.0% | 35.2% | 41.7% | 45.7% |
| |
|---|
| Median (66 companies) | 9.9% | 11.5% | 9.2% | 10.7% | 10.0% |
|---|
| SemiLEDS Corporation ($LEDS) | -125.5% | -59.0% | -148.7% | -35.1% | -35.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Alpha and Omega Semiconductor Limited ($AOSL) | 3.0% | 6.6% | 6.5% | 12.2% | 42.2% |
| Renesola Ltd. ($SOL) | 3.5% | 0.0% | 0.0% | 78.0% | 41.7% |
| First Solar, Inc. ($FSLR) | 7.6% | 4.0% | 7.9% | 17.5% | 33.0% |
| Sigma Designs Inc ($SIGM) | 11.0% | 6.5% | 6.2% | 14.1% | 29.3% |
| Micron Technology, Inc. ($MU) | 19.0% | 24.8% | 46.9% | 23.3% | 29.2% |
| |
|---|
| Median (66 companies) | 3.6% | 4.0% | 3.6% | 4.7% | 4.4% |
|---|
| SemiLEDS Corporation ($LEDS) | 18.5% | 11.1% | 8.1% | 1.6% | 4.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| SMART Global Holdings, Inc. ($SGH) | | | 2.5% | 21.5% | 51.7% |
| Texas Instruments Incorporated ($TXN) | 25.1% | 29.8% | 34.9% | 43.1% | 47.5% |
| Micron Technology, Inc. ($MU) | 18.8% | 15.8% | 0.8% | 21.5% | 42.9% |
| Applied Materials Inc ($AMAT) | 15.8% | 15.2% | 19.0% | 31.2% | 36.4% |
| NVIDIA Corporation ($NVDA) | 9.2% | 13.3% | 13.1% | 27.3% | 35.3% |
| |
|---|
| Median (73 companies) | 5.7% | 3.8% | 1.7% | 3.2% | 5.2% |
|---|
| SemiLEDS Corporation ($LEDS) | -38.7% | -31.2% | -83.8% | -32.5% | -38.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 25.4x | 3.3x | 3.0x | 7.2x | 98.6x |
| Inphi Corporation ($IPHI) | | -6.4x | 4.5x | 33.7x | 32.2x |
| JinkoSolar Holding Company Limited ($JKS) | 4.2x | 3.3x | 4.1x | 11.0x | 8.2x |
| Lattice Semiconductor Corporation ($LSCC) | -1.8x | | 6.5x | 19.0x | 3.9x |
| Renesola Ltd. ($SOL) | 7.0x | 35.0x | 123.6x | 2.3x | 3.3x |
| |
|---|
| Median (46 companies) | -0.5x | -0.2x | 0.2x | 0.4x | 0.3x |
|---|
