MoSys, Inc. revenue surged on 87.7% and EBITDA Margin jumped on 42.8 pp from -104% to -60.9%
02/20/2019 • About MoSys, Inc. (
$MOSY) • By InTwits
MoSys, Inc. reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- MoSys, Inc. is a fast growth stock: 2018 revenue growth was 87.7%, 5 year revenue CAGR was 30.4% at 2018 ROIC -82.2%
- The company operates at negative EBITDA Margin: -60.9%
- MoSys, 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 -270.1%
- MoSys, Inc. has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.6%. At the same time it's a lot of higher than industry average of 7.6%.
- CAPEX is quite volatile: $0m in 2018, $0m in 2017, $1m in 2016, $1m in 2015, $1m in 2014
- The company has unprofitable business model: ROIC is -82.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 87.7%. Revenue growth showed slowdown in 18Q4 - it was -9.0% YoY. During 2014-2018 Revenue growth bottomed in 2015 at -18.4% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 15.2 pp from -6.3% to -21.5% in 2018. EBITDA Margin stuck to a growing trend at 163 pp per annum in the last 5 years.
Gross Margin jumped on 14.9 pp from 46.9% to 61.8% in 2018. SG&A as a % of Revenue dropped on 28.5 pp from 53.2% to 24.7% in 2018. SG&A as a % of Revenue stuck to a declining trend at -28.3 pp per annum in 2014-2018.
Net Income margin surged on 51.9 pp from -121% to -68.7% in 2018. Net Income margin grew at 167 pp per annum in 2014-2018.
Investments (CAPEX, working capital and M&A)
In 2018 MoSys, Inc. had CAPEX/Revenue of 0.30%. CAPEX/Revenue dropped on 27.1 pp from 27.4% in 2015 to 0.30% in 2018. For the last three years the average CAPEX/Revenue was 4.8%. During 2014-2018 CAPEX as a % of Revenue topped in 2015 at 27.4% and was declining since that time.
Return on investment
The company operates at negative ROIC (-82.2%) and ROE (-157.3%). ROIC dropped on 32.2 pp from -50.1% to -82.2% in 2018. ROE dropped on 63.2 pp from -94.1% to -157% in 2018. ROE followed a declining trend at -23.7 pp per annum in 2014-2018.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.7x and Debt / EBITDA is . Debt dropped on 70.8% while cash jumped on 83.7%.
The company has no short term refinancing risk: short term debt is zero.
Management team
MoSys, Inc.'s CEO is Daniel Lewis "Dan". Daniel Lewis "Dan" is a founder and has 1 year tenure with the company.
Financial and operational results
FY ended 12/31/2018
MoSys, Inc. ($MOSY) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 5.380 | 4.390 | 6.024 | 8.842 | 16.600 | 87.7% |
| Gross Profit | 3.062 | 1.916 | 2.949 | 4.148 | 10.254 | 147.2% |
| SG&A | 6.519 | 6.299 | 5.693 | 4.702 | 4.095 | -12.9% |
| EBITDA | -31.269 | -30.563 | -30.255 | -9.174 | -10.117 | |
| Net Income | -32.682 | -31.483 | -32.048 | -10.668 | -11.409 | |
Balance Sheet
|
|---|
| Cash | 3.110 | 5.640 | 8.766 | 3.868 | 7.104 | 83.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 8.250 | 9.160 | 2.671 | -70.8% |
Cash flow
|
|---|
| Capex | 0.596 | 1.202 | 0.646 | 0.300 | 0.050 | -83.3% |
Ratios
|
|---|
| Revenue growth | 22.3% | -18.4% | 37.2% | 46.8% | 87.7% | |
| EBITDA growth | 34.5% | -2.3% | -1.0% | -69.7% | 10.3% | |
|
|---|
| Gross Margin | 56.9% | 43.6% | 49.0% | 46.9% | 61.8% | 14.9% |
| EBITDA Margin | -581.2% | -696.2% | -502.2% | -103.8% | -60.9% | 42.8% |
| SG&A, % of revenue | 121.2% | 143.5% | 94.5% | 53.2% | 24.7% | -28.5% |
| Net Income Margin | -607.5% | -717.2% | -532.0% | -120.7% | -68.7% | 51.9% |
| CAPEX, % of revenue | 11.1% | 27.4% | 10.7% | 3.4% | 0.3% | -3.1% |
|
|---|
| ROIC | -52.4% | -66.7% | -91.7% | -50.1% | -82.2% | -32.2% |
| ROE | -52.3% | -66.7% | -106.5% | -94.1% | -157.3% | -63.2% |
MoSys, Inc. ($MOSY) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 5 | 4 | 3 | | 247.2% | 232.2% | 77.0% | -9.0% |
| EBITDA | 1 | 1 | -3 | -9 | | | | | |
| Net Income | 0 | 0 | -3 | -9 | | | | | |
Balance Sheet
|
|---|
| Cash | 4 | 4 | 4 | 7 | | -34.3% | 31.1% | 50.0% | 83.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | -100.0% | |
| Long Term Debt | 10 | 10 | 10 | 3 | | 10.8% | 10.9% | | -70.8% |
Ratios
|
|---|
| Gross Margin | 62.0% | 60.1% | 55.1% | 72.1% | | 11.6% | 13.0% | 6.3% | 27.5% |
| EBITDA Margin | 18.1% | 15.7% | -58.3% | -262.9% | | 345.3% | 271.7% | -4.4% | -253.8% |
| Net Income Margin | 8.3% | 6.9% | -64.7% | -268.3% | | 371.7% | 295.4% | 6.3% | -254.5% |
Peers in Semiconductors
Below we provide MoSys, Inc. benchmarking against other companies in Semiconductors 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 |
|---|
| NanoFlex Power Corp ($OPVS) | | | | 72.5% | 354.8% |
| SMART Global Holdings, Inc. ($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% |
| NVIDIA Corporation ($NVDA) | | 13.4% | 7.0% | 37.9% | 40.6% |
| |
|---|
| Median (67 companies) | 54.6% | 9.7% | 4.4% | 10.9% | 4.7% |
|---|
| MoSys, Inc. ($MOSY) | | -18.4% | 37.2% | 46.8% | 87.7% |
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. ($IMI) | 48.3% | 57.4% | 66.5% | 67.5% | 70.3% |
| |
|---|
| Median (65 companies) | 45.3% | 47.7% | 47.2% | 49.1% | 50.4% |
|---|
| MoSys, Inc. ($MOSY) | 56.9% | 43.6% | 49.0% | 46.9% | 61.8% |
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 ($INTC) | 42.8% | 41.0% | 35.2% | 41.7% | 45.7% |
| |
|---|
| Median (66 companies) | 9.9% | 11.5% | 9.2% | 10.7% | 10.0% |
|---|
| MoSys, Inc. ($MOSY) | -581.2% | -696.2% | -502.2% | -103.8% | -60.9% |
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. ($MU) | 19.0% | 24.8% | 46.9% | 23.3% | 29.2% |
| |
|---|
| Median (66 companies) | 3.6% | 4.0% | 3.6% | 4.7% | 4.6% |
|---|
| MoSys, Inc. ($MOSY) | 11.1% | 27.4% | 10.7% | 3.4% | 0.3% |
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 ($NVDA) | 9.2% | 13.3% | 13.1% | 27.3% | 35.3% |
| |
|---|
| Median (73 companies) | 5.7% | 3.8% | 1.7% | 3.2% | 5.2% |
|---|
| MoSys, Inc. ($MOSY) | -52.4% | -66.7% | -91.7% | -50.1% | -82.2% |
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) | -0.5x | -0.2x | 0.2x | 0.4x | 0.3x |
|---|
