Diebold Nixdorf Incorporated reports 166% EBITDA decline in 2018 and 0.67% Revenue decline
02/13/2019 • About Diebold Nixdorf Incorporated (
$DBD) • By InTwits
Diebold Nixdorf Incorporated reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -2.3%
- EBITDA Margin is quite volatile: -2.3% in 2018, 3.4% in 2017, -0.8% in 2016, 5.1% in 2015, 8.7% in 2014
- Diebold Nixdorf Incorporated has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: $143m in 2018, $64m in 2017, $67m in 2016, $81m in 2015, $77m in 2014
- The company has unprofitable business model: ROIC is -16.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.2x while industry average is -2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased slightly on 0.67%. Annual revenue decline showed slowdown in 18Q4 - revenue increased on 3.2%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.7 pp from 3.4% to -2.3% in 2018.
Gross Margin decreased on 2.2 pp from 21.7% to 19.5% in 2018. Gross Margin stuck to a declining trend at -1.9 pp per annum in 2014-2018. SG&A as a % of Revenue decreased slightly on 0.91 pp from 20.3% to 19.3% in 2018. During 2014-2018 SG&A as a % of Revenue topped in 2016 at 23.0% and was declining since that time.
Net Income margin decreased on 7.2 pp from -5.2% to -12.4% in 2018. Net Income margin declined at -4.1 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In 2018 Diebold Nixdorf Incorporated had CAPEX/Revenue of 1.3%. The company showed small CAPEX/Revenue decline of 0.88 pp from 2.2% in 2015 to 1.3% in 2018. It's average level of CAPEX/Revenue for the last three years was 1.3%.
Leverage (Debt)
Debt level is 1.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 8.3x from 8.3x to in 2018. Debt jumped on 20.8% while cash dropped on 15.6%.
Diebold Nixdorf Incorporated has no short term refinancing risk: cash is higher than short term debt (926.1%).
Management team
Diebold Nixdorf Incorporated's CEO is Gerrard B Schmid. Gerrard B Schmid is a founder and has 1 year tenure with the company. Jeffrey L Rutherford is a the company's CFO. Jeffrey L Rutherford has spent 0 years at the company.
Financial and operational results
FY ended 12/31/2018
Diebold Nixdorf Incorporated ($DBD) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 2,735 | 2,419 | 3,316 | 4,609 | 4,579 | -0.7% |
| Gross Profit | 726 | 652 | 722 | 1,000 | 891 | -10.9% |
| SG&A | 478 | 488 | 761 | 934 | 886 | -5.2% |
| EBITDA | 238 | 123 | -25 | 159 | -104 | -165.7% |
| Net Income | 114 | 74 | -33 | -242 | -569 | |
Balance Sheet
|
|---|
| Cash | 326 | 314 | 653 | 543 | 458 | -15.6% |
| Short Term Debt | 26 | 32 | 107 | 67 | 50 | -25.8% |
| Long Term Debt | 480 | 606 | 1,691 | 1,787 | 2,190 | 22.5% |
Cash flow
|
|---|
| Capex | 60 | 52 | 40 | 69 | 59 | -15.7% |
Ratios
|
|---|
| Revenue growth | -4.3% | -11.5% | 37.1% | 39.0% | -0.7% | |
| EBITDA growth | -768.4% | -48.6% | -120.4% | -734.8% | -165.7% | |
|
|---|
| Gross Margin | 26.6% | 26.9% | 21.8% | 21.7% | 19.5% | -2.2% |
| EBITDA Margin | 8.7% | 5.1% | -0.8% | 3.4% | -2.3% | -5.7% |
| SG&A, % of revenue | 17.5% | 20.2% | 23.0% | 20.3% | 19.3% | -0.9% |
| Net Income Margin | 4.2% | 3.0% | -1.0% | -5.2% | -12.4% | -7.2% |
| CAPEX, % of revenue | 2.2% | 2.2% | 1.2% | 1.5% | 1.3% | -0.2% |
|
|---|
| ROIC | 15.4% | 5.7% | -8.2% | -3.6% | -16.1% | -12.5% |
| ROE | 20.3% | 15.6% | -6.6% | -46.6% | | |
| Net Debt/EBITDA | 0.8x | 2.6x | | 8.3x | |
Diebold Nixdorf Incorporated ($DBD) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1,064 | 1,106 | 1,119 | 1,290 | | -3.5% | -2.5% | -0.3% | 3.2% |
| EBITDA | 41 | -66 | -70 | 12 | | 309.0% | -176.0% | -216.1% | -82.8% |
| Net Income | -73 | -133 | -213 | -124 | | | | | |
Balance Sheet
|
|---|
| Cash | 362 | 299 | 304 | 458 | | -26.1% | -33.7% | -20.0% | -15.6% |
| Short Term Debt | 77 | 69 | 53 | 50 | | -1.4% | -39.1% | -26.7% | -25.8% |
| Long Term Debt | 1,713 | 1,817 | 2,337 | 2,190 | | 1.3% | 1.6% | 27.4% | 22.5% |
Ratios
|
|---|
| Gross Margin | 22.4% | 19.7% | 20.4% | 16.1% | | 0.4% | -1.3% | -1.0% | -6.8% |
| EBITDA Margin | 3.8% | -5.9% | -6.2% | 0.9% | | 2.9% | -13.6% | -11.6% | -4.5% |
| Net Income Margin | -6.9% | -12.1% | -19.0% | -9.6% | | -1.5% | -9.4% | -15.8% | -0.8% |
Peers in Technology Hardware, Storage &
Below you can find Diebold Nixdorf Incorporated 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. ($PSTG) | | 308.2% | 152.4% | 67.9% | 38.6% |
| |
|---|
| Median (30 companies) | -16.9% | -3.2% | -5.0% | 1.5% | 5.6% |
|---|
| Diebold Nixdorf Incorporated ($DBD) | | -11.5% | 37.1% | 39.0% | -0.7% |
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 ($DTSS) | | | | 39.3% | 54.4% |
| |
|---|
| Median (29 companies) | 38.6% | 36.3% | 39.3% | 39.6% | 38.8% |
|---|
| Diebold Nixdorf Incorporated ($DBD) | 26.6% | 26.9% | 21.8% | 21.7% | 19.5% |
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 ($STX) | 19.3% | 21.1% | 11.3% | 16.7% | 20.0% |
| |
|---|
| Median (29 companies) | 7.1% | 7.4% | 4.9% | 4.5% | 7.9% |
|---|
| Diebold Nixdorf Incorporated ($DBD) | 8.7% | 5.1% | -0.8% | 3.4% | -2.3% |
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 ($WDC) | 4.2% | 4.2% | 4.5% | 3.0% | 4.0% |
| |
|---|
| Median (29 companies) | 2.7% | 3.0% | 2.0% | 1.9% | 2.4% |
|---|
| Diebold Nixdorf Incorporated ($DBD) | 2.2% | 2.2% | 1.2% | 1.5% | 1.3% |
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. ($NTAP) | 12.5% | 14.8% | 7.3% | 14.0% | 28.1% |
| |
|---|
| Median (37 companies) | 5.9% | 5.0% | 1.8% | 1.6% | 3.6% |
|---|
| Diebold Nixdorf Incorporated ($DBD) | 15.4% | 5.7% | -8.2% | -3.6% | -16.1% |
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 |
| Electronics for Imaging, Inc. ($EFII) | -0.2x | 1.4x | 1.3x | 1.6x | 1.7x |
| |
|---|
| Median (20 companies) | -0.4x | 0.3x | 0.2x | 0.2x | 0.6x |
|---|
