Applied DNA Sciences Inc CAPEX surged on 82.9% while Revenue dropped on 17.8%
12/13/2018 • About Applied DNA Sciences Inc (
$APDN) • By InTwits
Applied DNA Sciences 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: -284.3%
- Applied DNA Sciences Inc 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 -219.7%
- Applied DNA Sciences Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.7%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: $0m in FY2018, $0m in FY2017, $1m in FY2016, $0m in FY2015, $0m in FY2014
- The company has unprofitable business model: ROIC is -252.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.1x while industry average is -0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Applied DNA Sciences Inc's Revenue dropped on 17.8%. Annual revenue decline showed slowdown in FY18Q4 - revenue increased on 4.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.4 pp from -2.3% to 9.1% in 2018.
Gross Margin decreased on 8.2 pp from 77.3% to 69.1% in FY2018. SG&A as a % of Revenue increased on 2.5 pp from 280% to 283% in FY2018. During FY2014-FY2018 SG&A as a % of Revenue bottomed in FY2015 at 164% and was growing since that time.
Net Income margin dropped on 29.0 pp from -271% to -300% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 6.8% in FY2018. CAPEX/Revenue increased on 2.9 pp from 3.9% in FY2015 to 6.8% in FY2018. Average CAPEX/Revenue for the last three years was 8.6%.
Return on investment
The company operates at negative ROIC (-252.6%) and ROE (-307.2%). ROIC dropped on 104 pp from -148% to -253% in FY2018. ROE dropped on 158 pp from -149% to -307% in FY2018. During FY2014-FY2018 ROIC topped in FY2016 at -106% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is . Debt surged while cash dropped on 43.9%.
The company has no short term refinancing risk: short term debt is zero.
Management team
Applied DNA Sciences Inc's CEO is James A Hayward. James A Hayward is a founder and has 12 years tenure with the company. Beth M Jantzen is a Applied DNA Sciences Inc's CFO. Beth M Jantzen has spent 4 years at the company.
Financial and operational results
FY ended 09/30/2018
Applied DNA Sciences Inc ($APDN) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 2.721 | 9.008 | 4.186 | 4.751 | 3.903 | -17.8% |
| Gross Profit | | | 3.440 | 3.674 | 2.697 | -26.6% |
| SG&A | 13.250 | 14.736 | 11.239 | 13.325 | 11.043 | -17.1% |
| EBITDA | -11.829 | -7.363 | -11.493 | -12.187 | -11.099 | |
| Net Income | -13.067 | -11.881 | -12.176 | -12.856 | -11.693 | |
Balance Sheet
|
|---|
| Cash | 1.393 | 7.312 | 4.479 | 2.960 | 1.660 | -43.9% |
| Short Term Debt | 1.800 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 1.587 | |
Cash flow
|
|---|
| Capex | 0.230 | 0.352 | 0.673 | 0.145 | 0.266 | 82.9% |
Ratios
|
|---|
| Revenue growth | 33.6% | 231.0% | -53.5% | 13.5% | -17.8% | |
| EBITDA growth | 18.7% | -37.8% | 56.1% | 6.0% | -8.9% | |
|
|---|
| Gross Margin | | | 82.2% | 77.3% | 69.1% | -8.2% |
| EBITDA Margin | -434.7% | -81.7% | -274.5% | -256.5% | -284.3% | -27.8% |
| SG&A, % of revenue | 486.9% | 163.6% | 268.5% | 280.4% | 282.9% | 2.5% |
| Net Income Margin | -480.2% | -131.9% | -290.8% | -270.6% | -299.6% | -29.0% |
| CAPEX, % of revenue | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% | 3.8% |
|
|---|
| ROIC | -488.9% | -121.6% | -106.2% | -148.5% | -252.6% | -104.1% |
| ROE | | | -106.2% | -149.3% | -307.2% | -157.9% |
Applied DNA Sciences Inc ($APDN) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1 | 1 | 1 | 1 | | -28.3% | 15.3% | -43.5% | 4.4% |
| EBITDA | -3 | -2 | -3 | -3 | | | | | |
| Net Income | -3 | -2 | -3 | -3 | | | | | |
Balance Sheet
|
|---|
| Cash | 5 | 4 | 3 | 2 | | -28.9% | -7.7% | 4.7% | -43.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 2 | | | | | |
Ratios
|
|---|
| Gross Margin | 48.8% | 64.4% | 75.2% | 79.0% | | -20.7% | -2.8% | -11.9% | 2.8% |
| EBITDA Margin | -465.8% | -191.1% | -269.9% | -279.7% | | -46.0% | 168.8% | -134.1% | -44.3% |
| Net Income Margin | -491.6% | -205.6% | -284.1% | -290.7% | | -52.9% | 173.1% | -138.9% | -41.5% |
Peers in Electronic Equipment & Instrum
Below we provide Applied DNA Sciences 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. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 3.5% | 1.2% | 3.6% | 10.4% |
|---|
| Applied DNA Sciences Inc ($APDN) | | 231.0% | -53.5% | 13.5% | -17.8% |
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% |
| Ipsidy Inc ($IDTY) | | | | 74.4% | 67.2% |
| |
|---|
| Median (60 companies) | 42.2% | 42.0% | 40.1% | 41.5% | 40.9% |
|---|
| Applied DNA Sciences Inc ($APDN) | | | 82.2% | 77.3% | 69.1% |
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. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.5% | 5.2% | 3.4% | 5.1% | 4.2% |
|---|
| Applied DNA Sciences Inc ($APDN) | -434.7% | -81.7% | -274.5% | -256.5% | -284.3% |
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% |
| Microvision, Inc. ($MVIS) | 5.9% | 12.4% | 6.1% | 32.2% | 6.3% |
| |
|---|
| Median (60 companies) | 1.8% | 1.9% | 2.1% | 1.6% | 2.2% |
|---|
| Applied DNA Sciences Inc ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
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 ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 2.3% | 2.2% | 3.3% | 1.3% |
|---|
| Applied DNA Sciences Inc ($APDN) | -488.9% | -121.6% | -106.2% | -148.5% | -252.6% |
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 (36 companies) | -0.8x | -0.9x | -0.8x | -0.7x | -0.9x |
|---|
