SunPower Corporation revenue decreased on 3.8% while EBITDA Margin increased on 5.0 pp from -46.8% to -41.8%
02/13/2019 • About SunPower Corporation (
$SPWR) • By InTwits
SunPower Corporation reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- SunPower Corporation is a company in decline: FY2018 revenue growth was -3.8%, 5 years revenue CAGR was -7.2%
- The company operates at negative EBITDA Margin: -41.8%
- SunPower Corporation spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -14.6%
- SunPower Corporation has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's in pair with industry average of 7.6%
- CAPEX is quite volatile: $45m in FY2018, $70m in FY2017, $187m in FY2016, $230m in FY2015, $103m in FY2014
- The company has unprofitable business model: ROIC is -54.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
SunPower Corporation's Revenue decreased on 3.8%. Revenue decline showed acceleration in FY18Q4 - it was 30.6% YoY. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.0 pp from -46.8% to -41.8% in FY2018. EBITDA Margin declined at -15.0 pp per annum in FY2014-FY2018.
Gross Margin dropped on 16.2 pp from -1.0% to -17.2% in FY2018. Gross Margin followed a declining trend at -9.2 pp per annum in the last 5 years. SG&A as a % of Revenue showed almost no change in FY2018.
Net Income margin increased on 4.8 pp from -51.8% to -47.0% in FY2018. Net Income margin declined at -15.0 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2018 SunPower Corporation had CAPEX/Revenue of 2.6%. The company's CAPEX/Revenue dropped on 12.0 pp from 14.6% in FY2015 to 2.6% in FY2018. Average CAPEX/Revenue for the last three years was 4.6%. During FY2014-FY2018 CAPEX as a % of Revenue topped in FY2015 at 14.6% and was declining since that time.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2018. Debt dropped on 44.0% while cash dropped on 28.9%.
SunPower Corporation has no short term refinancing risk: cash is higher than short term debt (772.1%).
Management team
Thomas H Werner "Tom" is a the company's CEO. Thomas H Werner "Tom" is a founder and has spent 16 years with the company. SunPower Corporation's CFO is Manavendra S Sial. Manavendra S Sial has 1 year tenure at the company.
Financial and operational results
FY ended 12/30/2018
SunPower Corporation ($SPWR) key annual financial indicatorsmln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
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P&L
|
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Revenue | 3,027 | 1,576 | 2,560 | 1,794 | 1,726 | -3.8% |
Gross Profit | 625 | 245 | 190 | -19 | -297 | |
SG&A | 288 | 345 | 329 | 279 | 260 | -6.7% |
EBITDA | 360 | -68 | -288 | -840 | -722 | |
Net Income | 246 | -187 | -471 | -929 | -811 | |
Balance Sheet
|
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Cash | 956 | 955 | 425 | 435 | 309 | -28.9% |
Short Term Debt | 263 | 21 | 71 | 358 | 40 | -88.8% |
Long Term Debt | 919 | 1,590 | 1,565 | 1,247 | 859 | -31.1% |
Cash flow
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Capex | 103 | 230 | 187 | 70 | 45 | -35.7% |
Ratios
|
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Revenue growth | 20.7% | -47.9% | 62.4% | -29.9% | -3.8% | |
EBITDA growth | 40.0% | -119.0% | 322.0% | 191.3% | -14.0% | |
|
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Gross Margin | 20.6% | 15.5% | 7.4% | -1.0% | -17.2% | -16.2% |
EBITDA Margin | 11.9% | -4.3% | -11.3% | -46.8% | -41.8% | 5.0% |
SG&A, % of revenue | 9.5% | 21.9% | 12.9% | 15.5% | 15.1% | -0.5% |
Net Income Margin | 8.1% | -11.9% | -18.4% | -51.8% | -47.0% | 4.8% |
CAPEX, % of revenue | 3.4% | 14.6% | 7.3% | 3.9% | 2.6% | -1.3% |
|
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ROIC | 10.3% | -6.9% | -15.2% | -39.3% | -54.2% | -14.9% |
ROE | 18.6% | -12.5% | -38.3% | -116.4% | | |
Net Debt/EBITDA | 0.6x | | | | |
SunPower Corporation ($SPWR) key quoterly financial indicators
mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
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P&L
|
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Revenue | 392 | 449 | 428 | 457 | | 19.1% | 36.9% | -11.9% | -30.6% |
EBITDA | -94 | -439 | -55 | -133 | | | | | |
Net Income | -116 | -447 | -90 | -158 | | | | | |
Balance Sheet
|
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Cash | 261 | 257 | 221 | 309 | | -32.7% | -21.6% | -19.7% | -28.9% |
Short Term Debt | 359 | 58 | 66 | 40 | | 351.5% | -86.4% | -81.5% | -88.8% |
Long Term Debt | 1,249 | 1,281 | 1,409 | 859 | | -22.7% | -6.2% | -0.5% | -31.1% |
Ratios
|
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Gross Margin | 2.7% | -69.0% | 2.3% | -1.7% | | 16.5% | -73.9% | -2.1% | 0.7% |
EBITDA Margin | -24.0% | -97.8% | -12.9% | -29.1% | | 7.0% | -87.8% | -7.6% | 74.2% |
Net Income Margin | -29.6% | -99.6% | -21.0% | -34.6% | | 37.2% | -72.0% | -11.5% | 51.8% |
Peers in Semiconductors
Below you can find SunPower Corporation benchmarking vs. other companies in Semiconductors 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 |
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NanoFlex Power Corp ($OPVS) | | | | 72.5% | 354.8% |
MoSys, Inc. ($MOSY) | | -18.4% | 37.2% | 46.8% | 87.7% |
SMART Global Holdings, Inc. ($SGH) | | | -16.9% | 42.5% | 69.3% |
Micron Technology, Inc. ($MU) | | -1.0% | -23.4% | 63.9% | 49.5% |
Adesto Technologies Corporation ($IOTS) | | 4.3% | 1.6% | 27.6% | 48.8% |
|
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Median (67 companies) | 54.6% | 9.7% | 4.4% | 11.0% | 5.0% |
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SunPower Corporation ($SPWR) | | -47.9% | 62.4% | -29.9% | -3.8% |
Top companies by Gross margin, %
Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
---|
CEVA, Inc. ($CEVA) | 90.2% | 90.9% | 91.6% | 92.1% | 89.8% |
NVE Corporation ($NVEC) | 77.9% | 80.3% | 76.1% | 78.5% | 79.0% |
Rambus, Inc. ($RMBS) | 85.9% | 84.7% | 80.1% | 79.9% | 76.8% |
Universal Display Corporation ($OLED) | 76.0% | 64.2% | 83.9% | 80.8% | 75.5% |
Intermolecular, Inc. ($IMI) | 48.3% | 57.4% | 66.5% | 67.5% | 70.3% |
|
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Median (65 companies) | 46.4% | 47.7% | 48.0% | 49.1% | 51.0% |
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SunPower Corporation ($SPWR) | 20.6% | 15.5% | 7.4% | -1.0% | -17.2% |
Top companies by EBITDA margin, %
Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
---|
NVE Corporation ($NVEC) | 58.8% | 66.0% | 61.8% | 65.6% | 65.1% |
Micron Technology, Inc. ($MU) | 31.7% | 35.0% | 25.4% | 47.9% | 65.0% |
NXP Semiconductors N.V. ($NXPI) | 25.7% | 41.5% | 21.6% | 46.2% | 49.9% |
Texas Instruments Incorporated ($TXN) | 39.7% | 42.0% | 43.5% | 46.7% | 48.6% |
Intel Corp ($INTC) | 42.8% | 41.0% | 35.2% | 41.7% | 45.7% |
|
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Median (66 companies) | 9.6% | 11.5% | 9.2% | 10.7% | 10.0% |
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SunPower Corporation ($SPWR) | 11.9% | -4.3% | -11.3% | -46.8% | -41.8% |
Top companies by CAPEX/Revenue, %
Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
---|
Alpha and Omega Semiconductor Limited ($AOSL) | 3.0% | 6.6% | 6.5% | 12.2% | 42.2% |
Renesola Ltd. ($SOL) | 3.5% | 0.0% | 0.0% | 78.0% | 41.7% |
First Solar, Inc. ($FSLR) | 7.6% | 4.0% | 7.9% | 17.5% | 33.0% |
Sigma Designs Inc ($SIGM) | 11.0% | 6.5% | 6.2% | 14.1% | 29.3% |
Micron Technology, Inc. ($MU) | 19.0% | 24.8% | 46.9% | 23.3% | 29.2% |
|
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Median (66 companies) | 3.6% | 4.0% | 3.6% | 4.7% | 4.6% |
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SunPower Corporation ($SPWR) | 3.4% | 14.6% | 7.3% | 3.9% | 2.6% |
Top companies by ROIC, %
Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
---|
SMART Global Holdings, Inc. ($SGH) | | | 2.5% | 21.5% | 51.7% |
Texas Instruments Incorporated ($TXN) | 25.1% | 29.8% | 34.9% | 43.1% | 47.5% |
Micron Technology, Inc. ($MU) | 18.8% | 15.8% | 0.8% | 21.5% | 42.9% |
Applied Materials Inc ($AMAT) | 15.8% | 15.2% | 19.0% | 31.2% | 36.4% |
NVIDIA Corporation ($NVDA) | 9.2% | 13.3% | 13.1% | 27.3% | 35.3% |
|
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Median (73 companies) | 5.0% | 3.8% | 1.7% | 3.2% | 5.2% |
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SunPower Corporation ($SPWR) | 10.3% | -6.9% | -15.2% | -39.3% | -54.2% |
Top companies by Net Debt / EBITDA
Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
---|
MACOM Technology Solutions Holdings, Inc. ($MTSI) | 25.4x | 3.3x | 3.0x | 7.2x | 98.6x |
Inphi Corporation ($IPHI) | | -6.4x | 4.5x | 33.7x | 32.2x |
JinkoSolar Holding Company Limited ($JKS) | 4.2x | 3.3x | 4.1x | 11.0x | 8.2x |
Lattice Semiconductor Corporation ($LSCC) | -1.8x | | 6.5x | 19.0x | 3.9x |
Renesola Ltd. ($SOL) | 7.0x | 35.0x | 123.6x | 2.3x | 3.3x |
|
---|
Median (46 companies) | -0.6x | -0.2x | 0.2x | 0.4x | 0.3x |
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