Rudolph Technologies, Inc. Net Income jumped on 37.0% and Revenue increased on 7.3%
02/04/2019 • About Rudolph Technologies, Inc. (
$RTEC) • By InTwits
Rudolph Technologies, Inc. reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 21.0% in 2018, 25.6% in 2017, 25.1% in 2016, 17.5% in 2015, 3.2% in 2014
- Rudolph Technologies, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: $8m in 2018, $10m in 2017, $3m in 2016, $3m in 2015, $2m in 2014
- The company has highly profitable business model: ROIC is 15.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 7.3%. Revenue growth showed slowdown in 18Q4 - it was 4.5% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.63 pp from 3.1% to 3.7% in 2018. During the last 5 years EBITDA Margin topped in 2017 at 25.6%.
Gross Margin increased slightly on 1.4 pp from 52.8% to 54.2% in 2018. SG&A as a % of Revenue increased slightly on 1.6 pp from 15.4% to 17.0% in 2018. During 2014-2018 SG&A as a % of Revenue bottomed in 2017 at 15.4%.
Net Income margin increased on 3.6 pp from 12.9% to 16.5% in 2018.
Investments (CAPEX, working capital and M&A)
Rudolph Technologies, Inc.'s CAPEX/Revenue was 2.8% in 2018. CAPEX/Revenue increased slightly on 1.2 pp from 1.5% in 2015 to 2.8% in 2018. Average CAPEX/Revenue for the last three years was 2.7%.
Return on investment
The company operates at good ROIC (15.3%) and ROE (13.0%). ROIC decreased on 5.1 pp from 20.4% to 15.3% in 2018. ROE increased on 2.5 pp from 10.5% to 13.0% in 2018. During 2014-2018 ROIC topped in 2017 at 20.4%.
Leverage (Debt)
The company has no debt. Cash jumped on 65.8%.
Valuation and dividends
Rudolph Technologies, Inc.'s trades at EV/EBITDA 10.0x and P/E 15.2x.
Management team
Rudolph Technologies, Inc.'s CEO is Michael P Plisinski "Mike". Michael P Plisinski "Mike" is a founder and has 3 years tenure with the company. Rudolph Technologies, Inc.'s CFO Steven R Roth has spent 16 years with the company.
Financial and operational results
FY ended 12/31/2018
Rudolph Technologies, Inc. ($RTEC) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 181.2 | 221.7 | 232.8 | 255.1 | 273.8 | 7.3% |
| Gross Profit | 95.5 | 119.4 | 123.6 | 134.6 | 148.3 | 10.2% |
| SG&A | 53.8 | 43.2 | 38.6 | 39.4 | 46.6 | 18.4% |
| EBITDA | 5.8 | 38.9 | 58.3 | 65.2 | 57.5 | -11.9% |
| Net Income | -4.6 | 18.0 | 37.0 | 32.9 | 45.1 | 37.0% |
Balance Sheet
|
|---|
| Cash | 43.1 | 44.6 | 37.9 | 67.8 | 112.4 | 65.8% |
| Short Term Debt | 0.0 | 57.8 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 54.8 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.1 | 3.4 | 3.3 | 10.2 | 7.5 | -26.1% |
Ratios
|
|---|
| Revenue growth | 2.8% | 22.3% | 5.0% | 9.6% | 7.3% | |
| EBITDA growth | -57.1% | 570.0% | 50.0% | 11.8% | -11.9% | |
|
|---|
| Gross Margin | 52.7% | 53.9% | 53.1% | 52.8% | 54.2% | 1.4% |
| EBITDA Margin | 3.2% | 17.5% | 25.1% | 25.6% | 21.0% | -4.6% |
| SG&A, % of revenue | 29.7% | 19.5% | 16.6% | 15.4% | 17.0% | 1.6% |
| Net Income Margin | -2.6% | 8.1% | 15.9% | 12.9% | 16.5% | 3.6% |
| CAPEX, % of revenue | 1.1% | 1.5% | 1.4% | 4.0% | 2.8% | -1.2% |
|
|---|
| ROIC | -0.4% | 10.6% | 18.7% | 20.4% | 15.3% | -5.1% |
| ROE | -1.7% | 6.7% | 13.1% | 10.5% | 13.0% | 2.5% |
| Net Debt/EBITDA | 2.0x | 0.3x | -0.6x | -1.0x | -2.0x | -0.9x |
Rudolph Technologies, Inc. ($RTEC) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 73 | 77 | 60 | 63 | | 20.5% | 14.9% | -9.7% | 4.5% |
| EBITDA | 19 | 18 | 9 | 11 | | 72.4% | 28.4% | -65.9% | -15.2% |
| Net Income | 15 | 15 | 7 | 8 | | 111.6% | 59.9% | -58.6% | |
Balance Sheet
|
|---|
| Cash | 68 | 56 | 124 | 112 | | 30.3% | -2.1% | 82.8% | 65.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | -100.0% | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 58.0% | 53.9% | 52.0% | 52.0% | | 5.5% | 1.3% | -0.5% | -1.4% |
| EBITDA Margin | 26.2% | 23.5% | 15.3% | 17.4% | | 7.9% | 2.5% | -25.2% | -4.0% |
| Net Income Margin | 20.7% | 19.0% | 11.9% | 12.9% | | 8.9% | 5.3% | -14.1% | 14.2% |
Peers in Semiconductor Equipment
Below we provide Rudolph Technologies, Inc. benchmarking against other companies in Semiconductor Equipment 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 |
|---|
| Atomera Incorporated ($ATOM) | | | | | 123.6% |
| ACM Research, Inc. ($ACMR) | | | -12.3% | 33.4% | 104.5% |
| SCI Engineered Materials Inc ($SCIA) | | -13.0% | -32.1% | 24.4% | 67.0% |
| Aehr Test Systems ($AEHR) | | -49.1% | 44.7% | 30.3% | 56.4% |
| SolarEdge Technologies, Inc. ($SEDG) | | 144.0% | 50.7% | 23.9% | 54.4% |
| |
|---|
| Median (37 companies) | | -2.0% | 7.8% | 24.7% | 15.5% |
|---|
| Rudolph Technologies, Inc. ($RTEC) | | 22.3% | 5.0% | 9.6% | 7.3% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Xperi Corporation ($XPER) | 99.5% | 99.8% | 99.8% | 98.3% | 96.7% |
| KLA-Tencor Corporation ($KLAC) | 57.9% | 56.8% | 61.0% | 63.0% | 64.1% |
| Teradyne, Inc. ($TER) | 53.3% | 55.8% | 54.7% | 57.2% | 58.1% |
| Nova Measuring Instruments Ltd. ($NVMI) | 52.7% | 51.9% | 45.9% | 59.1% | 57.8% |
| Nanometrics Incorporated ($NANO) | 47.2% | 47.9% | 51.6% | 52.9% | 56.7% |
| |
|---|
| Median (38 companies) | 34.4% | 38.3% | 37.3% | 43.2% | 40.2% |
|---|
| Rudolph Technologies, Inc. ($RTEC) | 52.7% | 53.9% | 53.1% | 52.8% | 54.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| KLA-Tencor Corporation ($KLAC) | 29.2% | 26.4% | 34.4% | 38.3% | 39.6% |
| DAQO New Energy Corp. ($DQ) | 32.9% | 31.6% | 43.3% | 49.1% | 36.1% |
| Xperi Corporation ($XPER) | 66.7% | 67.5% | 47.6% | 23.4% | 34.3% |
| Lam Research Corporation ($LRCX) | 21.1% | 20.3% | 23.2% | 27.6% | 32.0% |
| Cabot Microelectronics Corporation ($CCMP) | 21.6% | 22.6% | 23.4% | 27.2% | 31.5% |
| |
|---|
| Median (37 companies) | 7.0% | 9.8% | 11.4% | 16.0% | 16.2% |
|---|
| Rudolph Technologies, Inc. ($RTEC) | 3.2% | 17.5% | 25.1% | 25.6% | 21.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Rubicon Technology, Inc. ($RBCN) | 15.0% | 4.0% | 3.6% | 0.0% | 58.8% |
| DAQO New Energy Corp. ($DQ) | 42.2% | 44.7% | 29.5% | 19.8% | 47.4% |
| AXT Inc ($AXTI) | 2.4% | 5.4% | 3.4% | 21.6% | 39.6% |
| STR Holdings Inc ($STRI) | 7.9% | 8.1% | 1.6% | 9.0% | 36.6% |
| Photronics, Inc. ($PLAB) | 20.0% | 19.8% | 10.4% | 20.4% | 17.3% |
| |
|---|
| Median (37 companies) | 2.3% | 2.9% | 2.6% | 2.8% | 3.0% |
|---|
| Rudolph Technologies, Inc. ($RTEC) | 1.1% | 1.5% | 1.4% | 4.0% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| KLA-Tencor Corporation ($KLAC) | 17.9% | 16.5% | 27.2% | 34.0% | 39.9% |
| Lam Research Corporation ($LRCX) | 10.7% | 10.9% | 11.8% | 18.7% | 33.9% |
| Versum Materials, Inc. ($VSM) | | 26.2% | 32.4% | 30.0% | 32.1% |
| Advanced Energy Industries, Inc. ($AEIS) | 8.8% | 30.2% | 41.2% | 45.7% | 31.3% |
| SolarEdge Technologies, Inc. ($SEDG) | -815.6% | 33.6% | 31.2% | 26.5% | 28.6% |
| |
|---|
| Median (39 companies) | 3.5% | 5.2% | 6.9% | 12.2% | 11.2% |
|---|
| Rudolph Technologies, Inc. ($RTEC) | -0.4% | 10.6% | 18.7% | 20.4% | 15.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Xperi Corporation ($XPER) | -0.3x | -0.1x | 4.2x | 5.0x | 2.6x |
| Ultra Clean Holdings, Inc. ($UCTT) | -1.2x | 1.5x | 0.4x | -0.2x | 2.4x |
| Ichor Holdings ($ICHR) | 3.1x | 1.7x | -0.4x | 2.0x | 1.8x |
| Versum Materials, Inc. ($VSM) | -0.2x | -0.1x | 2.7x | 2.1x | 1.4x |
| DAQO New Energy Corp. ($DQ) | 4.6x | 4.3x | 2.3x | 0.9x | 1.2x |
| |
|---|
| Median (31 companies) | -1.2x | -1.3x | -1.3x | -0.7x | -1.0x |
|---|
| Rudolph Technologies, Inc. ($RTEC) | 2.0x | 0.3x | -0.6x | -1.0x | -2.0x |
