Vicon Industries Inc revenue returned to growth in FY2018: increased 4.1% vs. 25.5% decline a year earliner
01/11/2019 • About Vicon Industries Inc (
$VCON) • By InTwits
Vicon Industries Inc reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -16.3%
- Vicon Industries Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -19.6% for the sames years
- Vicon Industries Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has unprofitable business model: ROIC is -64.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Vicon Industries Inc's Revenue increased on 4.1%. Revenue growth showed slowdown in FY18Q4 - it was -2.5% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 42.7 pp from -126% to -83.8% in 2018.
Gross Margin increased on 2.3 pp from 38.1% to 40.4% in FY2018. SG&A as a % of Revenue increased slightly on 0.71 pp from 41.8% to 42.5% in FY2018. During FY2014-FY2018 SG&A as a % of Revenue bottomed in FY2015 at 38.1% and was growing since that time.
Net Income margin increased on 6.8 pp from -26.3% to -19.5% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Vicon Industries Inc had CAPEX/Revenue of 0.19%. Vicon Industries Inc's CAPEX/Revenue showed almost no change from FY2015 to FY2018. It's average level of CAPEX/Revenue for the last three years was 0.42%.
Leverage (Debt)
Debt level is -1.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2018. Debt jumped on 13.1% while cash dropped on 13.1%.
Vicon Industries Inc has no short term refinancing risk: cash is higher than short term debt (1,305.2%).
Financial and operational results
FY ended 09/30/2018
Vicon Industries Inc ($VCON) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 34.878 | 44.884 | 35.760 | 26.652 | 27.733 | 4.1% |
| Gross Profit | 12.154 | 17.646 | 13.358 | 10.152 | 11.204 | 10.4% |
| SG&A | 13.849 | 17.089 | 13.657 | 11.136 | 11.783 | 5.8% |
| EBITDA | -5.851 | -4.354 | -12.637 | -6.007 | -4.527 | |
| Net Income | -7.925 | -5.218 | -12.774 | -7.012 | -5.409 | |
Balance Sheet
|
|---|
| Cash | 4.751 | 2.390 | 1.954 | 2.254 | 1.958 | -13.1% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.150 | |
| Long Term Debt | 0.000 | 0.000 | 1.750 | 4.950 | 5.450 | 10.1% |
Cash flow
|
|---|
| Capex | 0.140 | 0.125 | 0.200 | 0.138 | 0.052 | -62.8% |
Ratios
|
|---|
| Revenue growth | -12.5% | 28.7% | -20.3% | -25.5% | 4.1% | |
| EBITDA growth | 63.2% | -25.6% | 190.3% | -52.5% | -24.6% | |
|
|---|
| Gross Margin | 34.8% | 39.3% | 37.4% | 38.1% | 40.4% | 2.3% |
| EBITDA Margin | -16.8% | -9.7% | -35.3% | -22.5% | -16.3% | 6.2% |
| SG&A, % of revenue | 39.7% | 38.1% | 38.2% | 41.8% | 42.5% | 0.7% |
| Net Income Margin | -22.7% | -11.6% | -35.7% | -26.3% | -19.5% | 6.8% |
| CAPEX, % of revenue | 0.4% | 0.3% | 0.6% | 0.5% | 0.2% | -0.3% |
|
|---|
| ROIC | -28.8% | -20.5% | -79.8% | -67.6% | -64.9% | 2.8% |
| ROE | -33.2% | -21.9% | -85.2% | -128.7% | | |
Vicon Industries Inc ($VCON) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 7 | 6 | 6 | | 17.3% | 22.0% | -16.4% | -2.5% |
| EBITDA | -1 | -1 | -1 | -1 | | | | | |
| Net Income | -1 | -1 | -2 | -1 | | | | | |
Balance Sheet
|
|---|
| Cash | 2 | 2 | 2 | 2 | | -17.2% | -25.9% | 18.8% | -13.1% |
| Short Term Debt | 0 | 0 | 6 | 0 | | | | | |
| Long Term Debt | 4 | 5 | 0 | 5 | | 100.0% | 92.7% | -100.0% | 10.1% |
Ratios
|
|---|
| Gross Margin | 38.2% | 41.0% | 42.2% | 40.7% | | -0.7% | 3.5% | 3.6% | 3.3% |
| EBITDA Margin | -14.4% | -17.1% | -23.1% | -11.3% | | 2.6% | 11.4% | -8.2% | 19.8% |
| Net Income Margin | -17.0% | -19.8% | -26.9% | -15.1% | | 2.7% | 11.9% | -7.9% | 21.0% |
Peers in Electronic Equipment & Instrum
Below we provide Vicon Industries 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. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 3.5% | 1.2% | 4.6% | 10.4% |
|---|
| Vicon Industries Inc ($VCON) | | 28.7% | -20.3% | -25.5% | 4.1% |
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 ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (60 companies) | 42.7% | 42.3% | 41.2% | 41.8% | 42.0% |
|---|
| Vicon Industries Inc ($VCON) | 34.8% | 39.3% | 37.4% | 38.1% | 40.4% |
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. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.5% | 5.2% | 3.4% | 5.1% | 4.2% |
|---|
| Vicon Industries Inc ($VCON) | -16.8% | -9.7% | -35.3% | -22.5% | -16.3% |
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% |
| Applied DNA Sciences Inc ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.9% | 2.0% | 2.1% | 1.7% | 2.3% |
|---|
| Vicon Industries Inc ($VCON) | 0.4% | 0.3% | 0.6% | 0.5% | 0.2% |
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 ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 2.3% | 2.2% | 3.3% | 1.3% |
|---|
| Vicon Industries Inc ($VCON) | -28.8% | -20.5% | -79.8% | -67.6% | -64.9% |
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 (36 companies) | -0.8x | -0.9x | -0.8x | -0.7x | -0.9x |
|---|
