Electronics for Imaging, Inc. EBITDA decreased on 8.5% while Revenue increased on 2.2%
01/30/2019 • About Electronics for Imaging, Inc. (
$EFII) • By InTwits
Electronics for Imaging, Inc. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Electronics for Imaging, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 3.1%
- CAPEX is quite volatile: $1m in 2018, $1m in 2017, $7m in 2016, $7m in 2015, $7m in 2014
- The company has potentially unprofitable business model: ROIC is 1.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.7x while industry average is -2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 2.2%. Revenue growth showed slowdown in 18Q4 - it was -4.5% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.98 pp from 9.4% to 8.4% in 2018. During 2014-2018 EBITDA Margin topped in 2016 at 11.2% and was declining since that time.
Gross Margin decreased slightly on 1.9 pp from 51.0% to 49.1% in 2018. Gross Margin stuck to a declining trend at -1.1 pp per annum in the last 5 years. SG&A as a % of Revenue decreased slightly on 1.2 pp from 26.8% to 25.6% in 2018.
Net Income margin increased slightly on 1.4 pp from -1.5% to -0.096% in 2018.
Investments (CAPEX, working capital and M&A)
Electronics for Imaging, Inc.'s CAPEX/Revenue was 1.2% in 2018. Electronics for Imaging, Inc.'s CAPEX/Revenue decreased slightly on 0.88 pp from 2.1% in 2015 to 1.2% in 2018. It's average CAPEX/Revenue for the last three years was 1.6%. During 2014-2018 CAPEX as a % of Revenue topped in 2016 at 2.3% and was declining since that time.
Return on investment
The company operates at low but positive ROIC (1.7%) and negative ROE (-0.1%). ROIC decreased slightly on 0.75 pp from 2.5% to 1.7% in 2018. ROE increased slightly on 1.8 pp from -1.9% to -0.13% in 2018. ROIC declined at -1.1 pp per annum in 2014-2018.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.7x and Debt / EBITDA is 5.3x. Net Debt / EBITDA increased on 0.1x from 1.6x to 1.7x in 2018. Debt jumped on 42.0% while cash jumped on 81.4%.
Electronics for Imaging, Inc. has short term refinancing risk: cash is only 92.5% of short term debt.
Financial and operational results
FY ended 12/31/2018
Electronics for Imaging, Inc. ($EFII) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 790 | 883 | 992 | 993 | 1,015 | 2.2% |
| Gross Profit | 430 | 457 | 508 | 506 | 499 | -1.6% |
| SG&A | 214 | 229 | 255 | 267 | 260 | -2.5% |
| EBITDA | 85 | 95 | 111 | 93 | 85 | -8.5% |
| Net Income | 34 | 32 | 45 | -15 | -1 | |
Balance Sheet
|
|---|
| Cash | 298 | 164 | 164 | 170 | 309 | 81.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | 334 | |
| Long Term Debt | 285 | 296 | 304 | 319 | 119 | -62.8% |
Cash flow
|
|---|
| Capex | 16 | 18 | 22 | 14 | 12 | -10.6% |
Ratios
|
|---|
| Revenue growth | 8.6% | 11.7% | 12.4% | 0.1% | 2.2% | |
| EBITDA growth | -58.5% | 12.2% | 17.0% | -16.0% | -8.5% | |
|
|---|
| Gross Margin | 54.4% | 51.8% | 51.2% | 51.0% | 49.1% | -1.9% |
| EBITDA Margin | 10.7% | 10.7% | 11.2% | 9.4% | 8.4% | -1.0% |
| SG&A, % of revenue | 27.1% | 26.0% | 25.7% | 26.8% | 25.6% | -1.2% |
| Net Income Margin | 4.3% | 3.6% | 4.5% | -1.5% | -0.1% | 1.4% |
| CAPEX, % of revenue | 2.0% | 2.1% | 2.3% | 1.4% | 1.2% | -0.2% |
|
|---|
| ROIC | 5.9% | 5.0% | 5.0% | 2.5% | 1.7% | -0.8% |
| ROE | 4.3% | 4.0% | 5.4% | -1.9% | -0.1% | 1.8% |
| Net Debt/EBITDA | -0.2x | 1.4x | 1.3x | 1.6x | 1.7x | 0.1x |
Electronics for Imaging, Inc. ($EFII) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 240 | 261 | 257 | 257 | | 4.9% | 5.7% | 3.5% | -4.5% |
| EBITDA | 15 | 30 | 18 | 21 | | -34.8% | 26.7% | -25.0% | -0.8% |
| Net Income | -4 | 4 | 2 | -3 | | -175.1% | 36.6% | -44.4% | |
Balance Sheet
|
|---|
| Cash | 163 | 180 | 181 | 309 | | 7.9% | 13.2% | 2.9% | 81.4% |
| Short Term Debt | 0 | 0 | 330 | 334 | | | | | |
| Long Term Debt | 323 | 327 | 0 | 119 | | 4.8% | 4.8% | -100.0% | -62.8% |
Ratios
|
|---|
| Gross Margin | 49.7% | 49.3% | 48.8% | 48.8% | | -4.4% | -2.3% | -2.5% | 1.2% |
| EBITDA Margin | 6.3% | 11.6% | 7.1% | 8.3% | | -3.8% | 1.9% | -2.7% | 0.3% |
| Net Income Margin | -1.5% | 1.4% | 0.7% | -1.2% | | -3.6% | 0.3% | -0.6% | 8.6% |
Peers in Technology Hardware, Storage &
Below you can find Electronics for Imaging, Inc. benchmarking vs. other companies in Technology Hardware, Storage & 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 |
|---|
| Crossroads Systems Inc ($CRSS) | | -90.6% | -35.5% | -89.5% | 39,959.5% |
| Immersion Corporation ($IMMR) | | 19.8% | -9.9% | -38.7% | 217.0% |
| Veritec Inc ($VRTC) | | -42.2% | -28.0% | -52.2% | 53.1% |
| Boxlight Corporation ($BOXL) | | -88.5% | 503.2% | 26.4% | 47.0% |
| Pure Storage, Inc. ($PSTG) | | 308.2% | 152.4% | 67.9% | 38.6% |
| |
|---|
| Median (30 companies) | -16.9% | -3.3% | -5.0% | 2.1% | 5.6% |
|---|
| Electronics for Imaging, Inc. ($EFII) | | 11.7% | 12.4% | 0.1% | 2.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Immersion Corporation ($IMMR) | 99.1% | 99.3% | 99.7% | 99.4% | 99.8% |
| Pure Storage, Inc. ($PSTG) | 43.5% | 55.5% | 61.9% | 65.9% | 65.5% |
| NetApp, Inc. ($NTAP) | 62.0% | 62.6% | 60.8% | 61.3% | 62.7% |
| Avid Technology, Inc. ($AVID) | 61.4% | 60.9% | 65.0% | 57.8% | 57.9% |
| Datasea Inc ($DTSS) | | | | 39.3% | 54.4% |
| |
|---|
| Median (29 companies) | 35.6% | 35.0% | 38.5% | 38.9% | 38.3% |
|---|
| Electronics for Imaging, Inc. ($EFII) | 54.4% | 51.8% | 51.2% | 51.0% | 49.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Immersion Corporation ($IMMR) | 12.3% | 9.0% | -25.1% | -127.0% | 48.6% |
| Apple Inc. ($AAPL) | 33.1% | 35.3% | 32.7% | 31.2% | 30.8% |
| Western Digital Corporation ($WDC) | 20.1% | 18.7% | 12.5% | 21.4% | 27.5% |
| NetApp, Inc. ($NTAP) | 16.9% | 16.7% | 11.3% | 15.4% | 22.9% |
| Seagate Technology PLC ($STX) | 19.3% | 21.1% | 11.3% | 16.7% | 20.0% |
| |
|---|
| Median (29 companies) | 7.1% | 6.2% | 3.8% | 3.5% | 7.9% |
|---|
| Electronics for Imaging, Inc. ($EFII) | 10.7% | 10.7% | 11.2% | 9.4% | 8.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Hewlett Packard Enterprise Company ($HPE) | 6.6% | 6.4% | 10.8% | 10.9% | 9.6% |
| Pure Storage, Inc. ($PSTG) | 28.7% | 24.2% | 8.9% | 10.4% | 6.3% |
| 3D Systems Corporation ($DDD) | 3.5% | 3.4% | 2.6% | 4.8% | 5.9% |
| Apple Inc. ($AAPL) | 5.2% | 4.8% | 5.9% | 5.4% | 5.0% |
| Western Digital Corporation ($WDC) | 4.2% | 4.2% | 4.5% | 3.0% | 4.0% |
| |
|---|
| Median (29 companies) | 2.7% | 3.0% | 1.7% | 1.9% | 2.4% |
|---|
| Electronics for Imaging, Inc. ($EFII) | 2.0% | 2.1% | 2.3% | 1.4% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Avid Technology, Inc. ($AVID) | | | | | 252.4% |
| Ionix Technology Inc ($IINX) | | | | 23.9% | 204.5% |
| Immersion Corporation ($IMMR) | 7.6% | 5.8% | -21.5% | -138.9% | 96.8% |
| HP Inc. ($HPQ) | 8.0% | 8.7% | 15.8% | 60.8% | 72.9% |
| NetApp, Inc. ($NTAP) | 12.5% | 14.8% | 7.3% | 14.0% | 28.1% |
| |
|---|
| Median (37 companies) | 6.0% | 5.7% | -2.6% | 0.2% | 3.6% |
|---|
| Electronics for Imaging, Inc. ($EFII) | 5.9% | 5.0% | 5.0% | 2.5% | 1.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| CPI Card Group Inc. ($PMTS) | 3.4x | 3.5x | 5.8x | | 12.4x |
| NCR Corporation ($NCR) | 4.9x | 6.6x | 2.7x | 2.3x | 5.2x |
| Avid Technology, Inc. ($AVID) | -0.7x | 3.1x | 1.7x | 5.6x | 4.8x |
| Xerox Corporation ($XRX) | 3.5x | 3.5x | 3.1x | 3.0x | 3.0x |
| Hewlett Packard Enterprise Company ($HPE) | -0.1x | 1.1x | 0.4x | 1.2x | 1.6x |
| |
|---|
| Median (19 companies) | -0.4x | 0.3x | 0.1x | 0.2x | 0.2x |
|---|
| Electronics for Imaging, Inc. ($EFII) | -0.2x | 1.4x | 1.3x | 1.6x | 1.7x |
