Maxwell Technologies, Inc. reports 76.5% CAPEX growth in 2018 and 3.1% Revenue growth
02/14/2019 • About Maxwell Technologies, Inc. (
$MXWL) • By InTwits
Maxwell Technologies, Inc. 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: -36.1%
- Maxwell Technologies, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 is 0.0%. Average EBITDA Margin for the same period was -13.1%
- Maxwell Technologies, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: $10m in 2018, $6m in 2017, $6m in 2016, $4m in 2015, $7m in 2014
- The company has unprofitable business model: ROIC is -30.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Maxwell Technologies, Inc.'s Revenue increased on 3.1%. During 2014-2018 Revenue growth bottomed in 2017 at -27.7%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 11.9 pp from -48.0% to -36.1% in 2018. EBITDA Margin stuck to a declining trend at -12.8 pp per annum in 2014-2018.
Gross Margin increased on 5.0 pp from 6.0% to 11.1% in 2018. Gross Margin followed a declining trend at -7.6 pp per annum in the last 5 years. SG&A as a % of Revenue decreased on 9.8 pp from 43.5% to 33.8% in 2018. During the last 5 years SG&A as a % of Revenue topped in 2017 at 43.5%.
Net Income margin increased on 8.8 pp from -49.2% to -40.4% in 2018. Net Income margin stuck to a declining trend at -11.0 pp per annum in 2014-2018.
Investments (CAPEX, working capital and M&A)
Maxwell Technologies, Inc.'s CAPEX/Revenue was 11.3% in 2018. CAPEX/Revenue increased on 8.9 pp from 2.5% in 2015 to 11.3% in 2018. Average CAPEX/Revenue for the last three years was 7.6%. CAPEX as a % of Revenue grew at 1.9 pp per annum in the last 5 years.
Return on investment
The company operates at negative ROIC (-30.1%) and ROE (-37.2%). ROIC surged on 12.6 pp from -42.7% to -30.1% in 2018. ROE increased on 4.5 pp from -41.7% to -37.2% in 2018. ROIC stuck to a declining trend at -8.9 pp per annum in 2014-2018. ROE followed a declining trend at -8.8 pp per annum in 2014-2018.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.6x and Debt / EBITDA is . Debt increased on 9.2% while cash surged on 15.8%.
Maxwell Technologies, Inc. has no short term refinancing risk: cash is higher than short term debt (13,248.4%).
Financial and operational results
FY ended 12/31/2018
Maxwell Technologies, Inc. ($MXWL) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 186.6 | 167.4 | 121.2 | 87.7 | 90.5 | 3.1% |
| Gross Profit | 68.4 | 51.0 | 33.0 | 5.3 | 10.0 | 88.6% |
| SG&A | 43.0 | 40.8 | 36.3 | 38.2 | 30.5 | -20.0% |
| EBITDA | 10.5 | -5.5 | -16.0 | -42.1 | -32.6 | |
| Net Income | -6.3 | -22.3 | -23.7 | -43.1 | -36.5 | |
Balance Sheet
|
|---|
| Cash | 24.7 | 24.4 | 25.4 | 50.1 | 58.0 | 15.8% |
| Short Term Debt | 15.5 | 0.0 | 0.0 | 0.0 | 0.4 | 1,227.3% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 35.1 | 38.0 | 8.1% |
Cash flow
|
|---|
| Capex | 7.0 | 4.1 | 6.0 | 5.8 | 10.3 | 76.5% |
Ratios
|
|---|
| Revenue growth | -3.6% | -10.3% | -27.6% | -27.7% | 3.1% | |
| EBITDA growth | -41.0% | -152.1% | 193.6% | 163.0% | -22.5% | |
|
|---|
| Gross Margin | 36.7% | 30.4% | 27.2% | 6.0% | 11.1% | 5.0% |
| EBITDA Margin | 5.6% | -3.3% | -13.2% | -48.0% | -36.1% | 11.9% |
| SG&A, % of revenue | 23.1% | 24.4% | 29.9% | 43.5% | 33.8% | -9.8% |
| Net Income Margin | -3.4% | -13.3% | -19.6% | -49.2% | -40.4% | 8.8% |
| CAPEX, % of revenue | 3.7% | 2.5% | 4.9% | 6.6% | 11.3% | 4.7% |
|
|---|
| ROIC | -0.6% | -12.9% | -23.5% | -42.7% | -30.1% | 12.6% |
| ROE | -4.7% | -18.1% | -21.6% | -41.7% | -37.2% | 4.5% |
| Net Debt/EBITDA | -0.9x | | | | |
Peers in Electronic Manufacturing Servi
Below you can find Maxwell Technologies, Inc. benchmarking vs. other companies in Electronic Manufacturing Servi 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 |
|---|
| RF Industries, Ltd. ($RFIL) | | 41.9% | -7.8% | -24.0% | 118.4% |
| Alpine 4 Technologies Ltd ($ALPP) | | | 35,893.8% | 5.8% | 71.5% |
| Kemet Corporation ($KEM) | | -1.3% | -10.7% | 3.1% | 58.4% |
| SMTC Corporation ($SMTX) | | -3.5% | -23.9% | -17.1% | 55.2% |
| Deswell Industries, Inc. ($DSWL) | | -7.0% | 17.1% | -0.1% | 36.3% |
| |
|---|
| Median (27 companies) | | 2.8% | 1.7% | 3.0% | 9.8% |
|---|
| Maxwell Technologies, Inc. ($MXWL) | | -10.3% | -27.6% | -27.7% | 3.1% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Neonode Inc. ($NEON) | 68.2% | 66.0% | 86.9% | 77.1% | 89.2% |
| Andrea Electronics Corp ($ANDR) | 83.8% | 99.1% | 88.5% | 96.2% | 70.4% |
| Data I/O Corporation ($DAIO) | 53.9% | 52.4% | 55.0% | 58.9% | 59.4% |
| IPG Photonics Corporation ($IPGP) | 54.1% | 54.6% | 54.9% | 56.6% | 54.8% |
| CTS Corporation ($CTS) | 32.2% | 33.2% | 35.4% | 33.2% | 35.1% |
| |
|---|
| Median (27 companies) | 14.5% | 14.8% | 16.7% | 15.8% | 15.2% |
|---|
| Maxwell Technologies, Inc. ($MXWL) | 36.7% | 30.4% | 27.2% | 6.0% | 11.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| IPG Photonics Corporation ($IPGP) | 41.5% | 42.4% | 41.8% | 44.7% | 40.9% |
| TE Connectivity Ltd. ($TEL) | 19.7% | 19.3% | 20.9% | 20.4% | 21.4% |
| CTS Corporation ($CTS) | 14.7% | 9.0% | 20.7% | 14.0% | 17.8% |
| Methode Electronics, Inc. ($MEI) | 12.6% | 15.4% | 16.5% | 16.5% | 16.1% |
| RF Industries, Ltd. ($RFIL) | 12.4% | 6.7% | -12.1% | 3.1% | 15.9% |
| |
|---|
| Median (27 companies) | 4.4% | 5.8% | 5.4% | 5.0% | 4.8% |
|---|
| Maxwell Technologies, Inc. ($MXWL) | 5.6% | -3.3% | -13.2% | -48.0% | -36.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| IPG Photonics Corporation ($IPGP) | 11.5% | 7.8% | 12.6% | 9.0% | 11.0% |
| eMagin Corporation ($EMAN) | 5.8% | 4.7% | 6.7% | 6.2% | 8.8% |
| TE Connectivity Ltd. ($TEL) | 5.3% | 4.9% | 5.3% | 5.6% | 6.7% |
| CTS Corporation ($CTS) | 3.2% | 2.5% | 5.2% | 4.3% | 6.1% |
| Kemet Corporation ($KEM) | 3.9% | 2.7% | 2.8% | 3.4% | 5.4% |
| |
|---|
| Median (27 companies) | 2.5% | 2.4% | 2.8% | 2.7% | 2.4% |
|---|
| Maxwell Technologies, Inc. ($MXWL) | 3.7% | 2.5% | 4.9% | 6.6% | 11.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| RF Industries, Ltd. ($RFIL) | 8.5% | 4.6% | -18.7% | 0.9% | 29.2% |
| IPG Photonics Corporation ($IPGP) | 27.0% | 27.8% | 25.1% | 29.9% | 22.9% |
| Methode Electronics, Inc. ($MEI) | 19.7% | 26.1% | 22.7% | 20.8% | 19.2% |
| TE Connectivity Ltd. ($TEL) | 17.3% | 15.1% | 15.9% | 16.2% | 18.4% |
| Kemet Corporation ($KEM) | -2.8% | 3.8% | 6.2% | 6.9% | 16.9% |
| |
|---|
| Median (29 companies) | 5.0% | 5.3% | 6.7% | 5.7% | 6.7% |
|---|
| Maxwell Technologies, Inc. ($MXWL) | -0.6% | -12.9% | -23.5% | -42.7% | -30.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Alpine 4 Technologies Ltd ($ALPP) | | | | 34.1x | 65.7x |
| SigmaTron International, Inc. ($SGMA) | 2.7x | 4.1x | 2.4x | 3.4x | 16.0x |
| SMTC Corporation ($SMTX) | 3.5x | 1.8x | 1.0x | | 11.3x |
| IEC Electronics Corp. ($IEC) | 7.1x | 14.0x | 2.0x | 5.6x | 4.9x |
| Key Tronic Corporation ($KTCC) | 0.2x | 3.4x | 2.6x | 2.5x | 3.9x |
| |
|---|
| Median (23 companies) | 0.2x | -0.6x | 0.2x | 0.2x | 0.2x |
|---|
