CyberOptics Corporation reports 77.5% EBITDA growth in 2018 and 2.9 pp EBITDA Margin growth from 6.2% to 9.1%
02/19/2019 • About CyberOptics Corporation (
$CYBE) • By InTwits
CyberOptics Corporation reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- CyberOptics Corporation is a growth stock: 2018 revenue growth was 21.4%, 5 year revenue CAGR was 14.2% at 2018 ROIC 6.8%
- EBITDA Margin is quite volatile: 9.1% in 2018, 6.2% in 2017, 12.4% in 2016, -0.5% in 2015, 0.9% in 2014
- CyberOptics Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: $2m in 2018, $1m in 2017, $1m in 2016, $1m in 2015, $1m in 2014
- The company has potentially unprofitable business model: ROIC is 6.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 21.4%. Revenue growth showed acceleration in 18Q4 - it increased 37.1% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.9 pp from 6.2% to 9.1% in 2018.
Gross Margin decreased on 2.2 pp from 46.4% to 44.2% in 2018. SG&A as a % of Revenue decreased on 4.0 pp from 29.4% to 25.3% in 2018.
Net Income margin increased slightly on 1.9 pp from 2.5% to 4.4% in 2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.0% in 2018. CAPEX/Revenue increased slightly on 1.4 pp from 1.7% in 2015 to 3.0% in 2018. For the last three years the average CAPEX/Revenue was 2.5%. During the last 5 years CAPEX as a % of Revenue bottomed in 2015 at 1.7% and was growing since that time.
Return on investment
The company operates at low ROIC (6.8%) and ROE (5.2%). ROIC increased on 4.6 pp from 2.2% to 6.8% in 2018. ROE increased on 2.6 pp from 2.6% to 5.2% in 2018.
Leverage (Debt)
The company has no debt. Cash surged on 33.2%.
Valuation and dividends
The company's trades at EV/EBITDA 22.2x and P/E 49.2x.
Management team
CyberOptics Corporation's CEO Subodh K Kulkarni is a founder and has spent 5 years with the company. Jeffrey A Bertelsen is a CyberOptics Corporation's CFO. Jeffrey A Bertelsen has spent 14 years at the company.
Financial and operational results
FY ended 12/31/2018
CyberOptics Corporation ($CYBE) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 46.483 | 41.130 | 66.240 | 53.333 | 64.720 | 21.4% |
| Gross Profit | 21.185 | 18.141 | 29.055 | 24.760 | 28.611 | 15.6% |
| SG&A | 13.820 | 12.635 | 14.796 | 15.657 | 16.389 | 4.7% |
| EBITDA | 0.437 | -0.195 | 8.239 | 3.300 | 5.858 | 77.5% |
| Net Income | -1.487 | -2.089 | 11.562 | 1.312 | 2.827 | 115.5% |
Balance Sheet
|
|---|
| Cash | 5.171 | 4.274 | 10.640 | 6.944 | 9.248 | 33.2% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.251 | 0.691 | 1.363 | 1.226 | 1.964 | 60.2% |
Ratios
|
|---|
| Revenue growth | 39.6% | -11.5% | 61.1% | -19.5% | 21.4% | |
| EBITDA growth | -109.7% | -144.6% | -4,325.1% | -59.9% | 77.5% | |
|
|---|
| Gross Margin | 45.6% | 44.1% | 43.9% | 46.4% | 44.2% | -2.2% |
| EBITDA Margin | 0.9% | -0.5% | 12.4% | 6.2% | 9.1% | 2.9% |
| SG&A, % of revenue | 29.7% | 30.7% | 22.3% | 29.4% | 25.3% | -4.0% |
| Net Income Margin | -3.2% | -5.1% | 17.5% | 2.5% | 4.4% | 1.9% |
| CAPEX, % of revenue | 2.7% | 1.7% | 2.1% | 2.3% | 3.0% | 0.7% |
|
|---|
| ROIC | -3.8% | -5.8% | 15.2% | 2.2% | 6.8% | 4.6% |
| ROE | -3.9% | -5.7% | 27.2% | 2.6% | 5.2% | 2.6% |
| Net Debt/EBITDA | -11.8x | | -1.3x | -2.1x | -1.6x | 0.5x |
CyberOptics Corporation ($CYBE) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 14 | 16 | 17 | 18 | | 18.5% | -3.4% | 41.0% | 37.1% |
| EBITDA | 0 | 1 | 2 | 2 | | 2,690.9% | -32.9% | 383.2% | 207.8% |
| Net Income | -0 | 1 | 1 | 1 | | | -32.4% | | 137.2% |
Balance Sheet
|
|---|
| Cash | 7 | 8 | 8 | 9 | | -13.6% | 11.8% | 36.5% | 33.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 44.0% | 45.8% | 44.6% | 42.6% | | -1.2% | -1.3% | -2.7% | -3.2% |
| EBITDA Margin | 2.2% | 9.3% | 11.9% | 11.6% | | 2.1% | -4.1% | 8.4% | 6.4% |
| Net Income Margin | -1.2% | 4.7% | 6.4% | 6.6% | | 0.6% | -2.0% | 7.0% | 2.8% |
Peers in Semiconductor Equipment
Below you can find CyberOptics Corporation benchmarking vs. other companies in Semiconductor Equipment 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 |
|---|
| 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. ($SEDG) | | 144.0% | 50.7% | 23.9% | 54.4% |
| |
|---|
| Median (37 companies) | | -0.5% | 6.5% | 24.7% | 14.0% |
|---|
| CyberOptics Corporation ($CYBE) | | -11.5% | 61.1% | -19.5% | 21.4% |
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 ($NANO) | 47.2% | 47.9% | 51.6% | 52.9% | 56.7% |
| |
|---|
| Median (38 companies) | 34.4% | 38.3% | 37.3% | 43.2% | 40.2% |
|---|
| CyberOptics Corporation ($CYBE) | 45.6% | 44.1% | 43.9% | 46.4% | 44.2% |
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 ($CCMP) | 21.6% | 22.6% | 23.4% | 27.2% | 31.5% |
| |
|---|
| Median (37 companies) | 7.0% | 10.3% | 11.4% | 16.2% | 16.6% |
|---|
| CyberOptics Corporation ($CYBE) | 0.9% | -0.5% | 12.4% | 6.2% | 9.1% |
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. ($PLAB) | 20.0% | 19.8% | 10.4% | 20.4% | 17.3% |
| |
|---|
| Median (37 companies) | 2.2% | 2.9% | 2.6% | 3.2% | 2.9% |
|---|
| CyberOptics Corporation ($CYBE) | 2.7% | 1.7% | 2.1% | 2.3% | 3.0% |
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. ($SEDG) | -815.6% | 33.6% | 31.2% | 26.5% | 28.6% |
| |
|---|
| Median (39 companies) | 3.5% | 6.0% | 6.9% | 13.1% | 12.1% |
|---|
| CyberOptics Corporation ($CYBE) | -3.8% | -5.8% | 15.2% | 2.2% | 6.8% |
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. ($DQ) | 4.6x | 4.3x | 2.3x | 0.9x | 1.2x |
| |
|---|
| Median (31 companies) | -1.2x | -1.3x | -1.2x | -0.7x | -1.0x |
|---|
| CyberOptics Corporation ($CYBE) | -11.8x | | -1.3x | -2.1x | -1.6x |
