Control4 Corporation Net Income jumped on 184% and Revenue surged on 11.6%
02/04/2019 • About Control4 Corporation (
$CTRL) • By InTwits
Control4 Corporation reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Control4 Corporation is a fast growth stock: 2018 revenue growth was 11.6%, 5 year revenue CAGR was 16.2% at 2018 ROIC 11.2%
- EBITDA Margin is expanding: 11.2% in 2018 vs. 9.2% in 2017 vs. 8.0% in 2014
- EBITDA Margin is quite volatile: 11.2% in 2018, 9.2% in 2017, 5.7% in 2016, 2.2% in 2015, 8.0% in 2014
- Control4 Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: $6m in 2018, $4m in 2017, $3m in 2016, $4m in 2015, $3m in 2014
- The company has business model with average profitability: ROIC is 11.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 11.6%. Revenue growth showed slowdown in 18Q4 - it was 6.4% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.63 pp from 3.1% to 3.7% in 2018. During the last 5 years EBITDA Margin bottomed in 2015 at 2.2% and was growing since that time.
Gross Margin increased slightly on 1.4 pp from 50.8% to 52.1% in 2018. During the last 5 years Gross Margin bottomed in 2016 at 49.5% and was growing since that time. SG&A as a % of Revenue showed almost no change in 2018. During the last 5 years SG&A as a % of Revenue topped in 2015 at 30.6% and was declining since that time.
Net Income margin increased on 9.8 pp from 6.3% to 16.1% in 2018. During 2014-2018 Net Income margin bottomed in 2015 at -1.0% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 2.3%. Control4 Corporation's CAPEX/Revenue showed almost no change from 2015 to 2018. For the last three years the average CAPEX/Revenue was 1.7%.
Return on investment
The company operates at good ROE (23.3%) while ROIC is low (11.2%). ROIC increased on 2.4 pp from 8.8% to 11.2% in 2018. ROE jumped on 13.2 pp from 10.1% to 23.3% in 2018. During the last 5 years ROIC bottomed in 2015 at -0.69% and was growing since that time. During the last 5 years ROE bottomed in 2015 at -1.4% and was growing since that time.
Leverage (Debt)
The company has no debt. Cash jumped on 35.7%.
Valuation and dividends
The company's trades at EV/EBITDA 13.7x and P/E 10.5x.
Financial and operational results
FY ended 12/31/2018
Control4 Corporation ($CTRL) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 148.8 | 163.2 | 208.1 | 244.2 | 272.5 | 11.6% |
| Gross Profit | 76.4 | 81.5 | 103.0 | 123.9 | 142.0 | 14.6% |
| SG&A | 40.1 | 49.9 | 62.5 | 69.8 | 77.2 | 10.7% |
| EBITDA | 11.9 | 3.6 | 12.0 | 22.5 | 30.6 | 36.2% |
| Net Income | 8.2 | -1.7 | 12.3 | 15.5 | 43.8 | 183.7% |
Balance Sheet
|
|---|
| Cash | 29.2 | 29.5 | 34.8 | 29.8 | 40.4 | 35.7% |
| Short Term Debt | 0.9 | 0.7 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.9 | 0.2 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.7 | 3.8 | 2.7 | 4.0 | 6.3 | 59.1% |
Ratios
|
|---|
| Revenue growth | 15.8% | 9.7% | 27.5% | 17.3% | 11.6% | |
| EBITDA growth | 59.7% | -69.9% | 234.1% | 87.8% | 36.2% | |
|
|---|
| Gross Margin | 51.3% | 50.0% | 49.5% | 50.8% | 52.1% | 1.4% |
| EBITDA Margin | 8.0% | 2.2% | 5.7% | 9.2% | 11.2% | 2.0% |
| SG&A, % of revenue | 26.9% | 30.6% | 30.0% | 28.6% | 28.3% | -0.2% |
| Net Income Margin | 5.5% | -1.0% | 5.9% | 6.3% | 16.1% | 9.8% |
| CAPEX, % of revenue | 1.8% | 2.3% | 1.3% | 1.6% | 2.3% | 0.7% |
|
|---|
| ROIC | 8.0% | -0.7% | 3.2% | 8.8% | 11.2% | 2.4% |
| ROE | 7.5% | -1.4% | 9.7% | 10.1% | 23.3% | 13.2% |
| Net Debt/EBITDA | -2.3x | -8.0x | -2.9x | -1.3x | -1.3x | 0.0x |
Control4 Corporation ($CTRL) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 59 | 69 | 72 | 72 | | 17.8% | 13.0% | 10.9% | 6.4% |
| EBITDA | 3 | 9 | 8 | 10 | | 1,028.7% | 59.5% | 10.3% | 9.1% |
| Net Income | 1 | 7 | 6 | 31 | | 17.7% | 77.5% | 13.4% | 421.0% |
Balance Sheet
|
|---|
| Cash | 20 | 27 | 35 | 40 | | -29.2% | -9.4% | 23.6% | 35.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 52.0% | 52.5% | 51.8% | 52.1% | | 1.9% | 1.5% | 0.6% | 1.5% |
| EBITDA Margin | 5.7% | 13.4% | 11.1% | 13.7% | | 5.1% | 3.9% | -0.1% | 0.3% |
| Net Income Margin | 1.6% | 9.6% | 8.0% | 42.1% | | -0.0% | 3.5% | 0.2% | 33.5% |
Peers in Electronic Equipment & Instrum
Below you can find Control4 Corporation benchmarking vs. other companies in Electronic Equipment & Instrum 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 |
|---|
| 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. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 3.5% | 0.3% | 3.6% | 9.1% |
|---|
| Control4 Corporation ($CTRL) | | 9.7% | 27.5% | 17.3% | 11.6% |
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 ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (60 companies) | 41.7% | 41.8% | 40.1% | 41.5% | 40.9% |
|---|
| Control4 Corporation ($CTRL) | 51.3% | 50.0% | 49.5% | 50.8% | 52.1% |
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. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.3% | 5.2% | 3.0% | 3.0% | 3.3% |
|---|
| Control4 Corporation ($CTRL) | 8.0% | 2.2% | 5.7% | 9.2% | 11.2% |
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 ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.8% | 1.9% | 2.1% | 1.7% | 2.2% |
|---|
| Control4 Corporation ($CTRL) | 1.8% | 2.3% | 1.3% | 1.6% | 2.3% |
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 ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 2.3% | 1.8% | 1.8% | 0.9% |
|---|
| Control4 Corporation ($CTRL) | 8.0% | -0.7% | 3.2% | 8.8% | 11.2% |
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 ($MTSC) | -0.0x | -0.4x | 5.8x | 3.9x | 3.2x |
| |
|---|
| Median (35 companies) | -0.7x | -0.7x | -0.8x | -0.6x | -0.8x |
|---|
| Control4 Corporation ($CTRL) | -2.3x | -8.0x | -2.9x | -1.3x | -1.3x |
