Microvision, Inc. revenue returned to growth in 2018: increased 82.8% vs. 34.7% decline a year earliner
03/05/2019 • About Microvision, Inc. (
$MVIS) • By InTwits
Microvision, Inc. reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Microvision, Inc. is a fast growth stock: 2018 revenue growth was 82.8%, 5 year revenue CAGR was 24.6% at 2018 ROIC -381%
- The company operates at negative EBITDA Margin: -144.2%
- Microvision, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -167.2% for the sames years
- Microvision, Inc. has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.6%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: $1m in 2018, $3m in 2017, $1m in 2016, $1m in 2015, $0m in 2014
- The company has unprofitable business model: ROIC is -381.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Microvision, Inc.'s Revenue surged on 82.8%. Revenue growth showed slowdown in 18Q4 - it was -20.4% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 15.4 pp from -9.7% to -25.2% in FY2018.
Gross Margin surged on 41.9 pp from -2.4% to 39.6% in 2018. SG&A as a % of Revenue dropped on 51.3 pp from 105% to 54.1% in 2018.
Net Income margin jumped on 110 pp from -265% to -155% in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 Microvision, Inc. had CAPEX/Revenue of 6.3%. Microvision, Inc.'s CAPEX/Revenue decreased on 6.1 pp from 12.4% in 2015 to 6.3% in 2018. It's average CAPEX/Revenue for the last three years was 14.9%.
Return on investment
The company operates at negative ROIC (-381.2%) and ROE (-383.7%). ROIC dropped on 91.8 pp from -289% to -381% in 2018. ROE dropped on 93.4 pp from -290% to -384% in 2018.
Leverage (Debt)
Debt level is -47.1x Net Debt / EBITDA and Debt / EBITDA. Debt jumped while cash dropped on 18.9%.
Microvision, Inc. has no short term refinancing risk: cash is higher than short term debt (65,552.4%).
Management team
Microvision, Inc.'s CEO Perry M Mulligan is a founder and has spent 1 year with the company. The company's CFO is Stephen P Holt "Steve". Stephen P Holt "Steve" has 6 years tenure at the company.
Financial and operational results
FY ended 12/31/2018
Microvision, Inc. ($MVIS) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 3.485 | 9.188 | 14.761 | 9.634 | 17.607 | 82.8% |
| Gross Profit | 2.441 | 2.008 | 4.387 | -0.228 | 6.969 | |
| SG&A | 7.005 | 7.879 | 8.743 | 10.156 | 9.523 | -6.2% |
| EBITDA | -12.622 | -13.993 | -15.211 | -24.223 | -25.382 | |
| Net Income | -18.120 | -14.542 | -16.472 | -25.486 | -27.250 | |
Balance Sheet
|
|---|
| Cash | 8.349 | 7.888 | 15.139 | 16.966 | 13.766 | -18.9% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.021 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.033 | |
Cash flow
|
|---|
| Capex | 0.207 | 1.140 | 0.895 | 3.100 | 1.118 | -63.9% |
Ratios
|
|---|
| Revenue growth | -40.4% | 163.6% | 60.7% | -34.7% | 82.8% | |
| EBITDA growth | -9.9% | 10.9% | 8.7% | 59.2% | 4.8% | |
|
|---|
| Gross Margin | 70.0% | 21.9% | 29.7% | -2.4% | 39.6% | 41.9% |
| EBITDA Margin | -362.2% | -152.3% | -103.0% | -251.4% | -144.2% | 107.3% |
| SG&A, % of revenue | 201.0% | 85.8% | 59.2% | 105.4% | 54.1% | -51.3% |
| Net Income Margin | -519.9% | -158.3% | -111.6% | -264.5% | -154.8% | 109.8% |
| CAPEX, % of revenue | 5.9% | 12.4% | 6.1% | 32.2% | 6.3% | -25.8% |
|
|---|
| ROIC | -468.9% | -427.4% | -445.7% | -289.3% | -381.2% | -91.8% |
| ROE | | | | -290.3% | -383.7% | -93.4% |
Microvision, Inc. ($MVIS) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 12 | 2 | | 285.2% | 50.4% | 113.3% | -20.4% |
| EBITDA | -7 | -8 | 1 | -11 | | | | | |
| Net Income | -7 | -8 | 0 | -12 | | | | | |
Balance Sheet
|
|---|
| Cash | 7 | 21 | 13 | 14 | | -5.6% | 18.3% | -47.8% | -18.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 14.4% | 16.5% | 77.1% | -142.2% | | 22.8% | -9.3% | 82.3% | -131.4% |
| EBITDA Margin | -304.9% | -396.7% | 6.6% | -626.3% | | 721.8% | 16.7% | 103.0% | -295.1% |
| Net Income Margin | -326.0% | -420.0% | 2.5% | -651.8% | | 721.4% | 2.4% | 108.7% | -299.1% |
Peers in Electronic Equipment & Instrum
Below we provide Microvision, Inc. benchmarking against other companies in Electronic Equipment & Instrum 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 |
|---|
| Hickok Inc ($HICKA) | | -7.2% | 13.5% | 258.4% | 178.7% |
| Electro Scientific Industries, Inc. ($ESIO) | | -12.2% | 15.9% | -12.7% | 128.5% |
| Ipsidy Inc ($IDTY) | | | | | 66.2% |
| Magal Security Systems Ltd. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| nLIGHT, Inc. ($LASR) | | | | 36.8% | 38.1% |
| |
|---|
| Median (61 companies) | -78.5% | 3.5% | 0.3% | 4.6% | 9.1% |
|---|
| Microvision, Inc. ($MVIS) | | 163.6% | 60.7% | -34.7% | 82.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intellicheck, Inc. ($IDN) | 58.2% | 57.1% | 80.0% | 85.5% | 91.3% |
| Image Sensing Systems, Inc. ($ISNS) | 74.7% | 77.1% | 71.0% | 79.9% | 80.9% |
| National Instruments Corporation ($NATI) | 74.4% | 74.1% | 74.5% | 74.5% | 75.4% |
| Cognex Corporation ($CGNX) | 77.9% | 77.2% | 75.2% | 75.6% | 74.4% |
| Applied DNA Sciences Inc ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (60 companies) | 41.7% | 42.3% | 41.2% | 41.8% | 42.0% |
|---|
| Microvision, Inc. ($MVIS) | 70.0% | 21.9% | 29.7% | -2.4% | 39.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cognex Corporation ($CGNX) | 32.9% | 30.1% | 31.9% | 36.0% | 30.1% |
| Coherent, Inc. ($COHR) | 14.2% | 16.7% | 18.9% | 24.9% | 26.6% |
| Hollysys Automation Technologies, Ltd. ($HOLI) | 21.3% | 26.9% | 23.5% | 16.1% | 23.9% |
| Electro Scientific Industries, Inc. ($ESIO) | -10.1% | -19.1% | -2.0% | -17.8% | 23.1% |
| FLIR Systems, Inc. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.5% | 5.2% | 3.4% | 5.1% | 4.2% |
|---|
| Microvision, Inc. ($MVIS) | -362.2% | -152.3% | -103.0% | -251.4% | -144.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Wrap Technologies Inc ($WRTC) | | | | | 61.4% |
| ClearSign Combustion Corporation ($CLIR) | | 80.3% | 22.1% | 17.4% | 17.7% |
| LightPath Technologies, Inc. ($LPTH) | 16.8% | 5.0% | 6.5% | 7.8% | 7.7% |
| Giga-tronics Inc ($GIGA) | 1.7% | 0.1% | 1.3% | 0.3% | 7.0% |
| Applied DNA Sciences Inc ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.8% | 1.9% | 2.1% | 1.6% | 2.2% |
|---|
| Microvision, Inc. ($MVIS) | 5.9% | 12.4% | 6.1% | 32.2% | 6.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | | | 83.3% | 39.6% | 55.3% |
| Electro Scientific Industries, Inc. ($ESIO) | -11.7% | -19.7% | -7.1% | -22.9% | 31.5% |
| Coherent, Inc. ($COHR) | 9.9% | 13.1% | 15.6% | 24.0% | 21.5% |
| Zebra Technologies Corporation ($ZBRA) | 3.3% | 0.9% | 2.2% | 10.2% | 20.8% |
| Cognex Corporation ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 2.3% | 2.2% | 3.3% | 1.3% |
|---|
| Microvision, Inc. ($MVIS) | -468.9% | -427.4% | -445.7% | -289.3% | -381.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Itron, Inc. ($ITRI) | 2.1x | 1.9x | 1.0x | 2.0x | 12.3x |
| Track Group Inc ($TRCK) | | | | | 12.2x |
| Mesa Laboratories, Inc. ($MLAB) | 0.7x | 1.1x | 1.7x | 2.0x | 3.5x |
| Trimble Inc. ($TRMB) | 1.3x | 1.7x | 1.1x | 1.3x | 3.4x |
| MTS Systems Corporation ($MTSC) | -0.0x | -0.4x | 5.8x | 3.9x | 3.2x |
| |
|---|
| Median (36 companies) | -0.8x | -0.9x | -0.8x | -0.7x | -0.9x |
|---|
