Identiv, Inc. reports 29.8% revenue growth in 2018 and 4.8 pp EBITDA Margin growth from -3.1% to 1.7%
03/07/2019 • About Identiv, Inc. (
$INVE) • By InTwits
Identiv, Inc. reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is expanding: 1.7% in 2018 vs. -3.1% in 2017 vs. -12.8% in 2014
- Identiv, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -15.4% for the sames years
- Identiv, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: $1m in 2018, $1m in 2017, $1m in 2016, $0m in 2015, $1m in 2014
- The company has unprofitable business model: ROIC is -4.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.1x while industry average is -0.8x
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 29.8%. Revenue growth showed small slowdown in 18Q4 - it was 28.6% YoY. During the last 5 years Revenue growth bottomed in 2015 at -25.2% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 15.4 pp from -9.7% to -25.2% in FY2018. During the last 5 years EBITDA Margin bottomed in 2015 at -53.8% and was growing since that time.
Gross Margin increased on 5.9 pp from 36.8% to 42.7% in 2018. SG&A as a % of Revenue showed almost no change in 2018.
Net Income margin increased on 7.5 pp from -13.5% to -6.0% in 2018. During the last 5 years Net Income margin bottomed in 2015 at -64.4% and was growing since that time.
Investments (CAPEX, working capital and M&A)
Identiv, Inc.'s CAPEX/Revenue was 1.7% in 2018. CAPEX/Revenue increased slightly on 1.2 pp from 0.56% in 2015 to 1.7% in 2018. Average CAPEX/Revenue for the last three years was 1.4%. The company has spent a lot to CAPEX (103% of EBITDA) to secure its growth. During 2014-2018 CAPEX as a % of Revenue bottomed in 2015 at 0.56% and was growing since that time.
Return on investment
The company operates at negative ROIC (-4.4%) and ROE (-19.1%). ROIC jumped on 11.2 pp from -15.6% to -4.4% in 2018. ROE surged on 38.7 pp from -57.8% to -19.1% in 2018. During the last 5 years ROIC bottomed in 2015 at -76.8% and was growing since that time. During the last 5 years ROE bottomed in 2016 at -148% and was growing since that time.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and 10.4x Debt / EBITDA. Net Debt / EBITDA surged2.1x from to 2.1x in 2018. Debt increased on 6.3% while cash dropped on 43.0%.
Identiv, Inc. has short term refinancing risk: cash is only 80.2% of short term debt.
Management team
The company's CEO is Steven C Humphreys. Steven C Humphreys is a founder and has 3 years tenure with the company. Sandra Wallach is a the company's CFO. Sandra Wallach has spent 0 years at the company.
Financial and operational results
FY ended 12/31/2018
Identiv, Inc. ($INVE) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 81.249 | 60.794 | 56.168 | 60.219 | 78.142 | 29.8% |
| Gross Profit | 33.456 | 23.149 | 23.729 | 22.160 | 33.332 | 50.4% |
| SG&A | 33.386 | 39.840 | 25.341 | 20.693 | 27.215 | 31.5% |
| EBITDA | -10.425 | -32.731 | -8.050 | -1.878 | 1.302 | |
| Net Income | -17.794 | -39.144 | -13.695 | -8.138 | -4.708 | |
Balance Sheet
|
|---|
| Cash | 36.547 | 16.667 | 9.116 | 19.052 | 10.866 | -43.0% |
| Short Term Debt | 0.000 | 0.000 | 8.119 | 9.829 | 13.554 | 37.9% |
| Long Term Debt | 13.938 | 18.104 | 9.779 | 2.921 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 1.311 | 0.341 | 0.549 | 0.967 | 1.346 | 39.2% |
Ratios
|
|---|
| Revenue growth | 9.4% | -25.2% | -7.6% | 7.2% | 29.8% | |
| EBITDA growth | -46.5% | 214.0% | -75.4% | -76.7% | -169.3% | |
|
|---|
| Gross Margin | 41.2% | 38.1% | 42.2% | 36.8% | 42.7% | 5.9% |
| EBITDA Margin | -12.8% | -53.8% | -14.3% | -3.1% | 1.7% | 4.8% |
| SG&A, % of revenue | 41.1% | 65.5% | 45.1% | 34.4% | 34.8% | 0.5% |
| Net Income Margin | -21.9% | -64.4% | -24.4% | -13.5% | -6.0% | 7.5% |
| CAPEX, % of revenue | 1.6% | 0.6% | 1.0% | 1.6% | 1.7% | 0.1% |
|
|---|
| ROIC | -30.2% | -76.8% | -40.5% | -15.6% | -4.4% | 11.2% |
| ROE | -47.9% | -125.8% | -148.4% | -57.8% | -19.1% | 38.7% |
| Net Debt/EBITDA | | | | | 2.1x |
Identiv, Inc. ($INVE) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 17 | 20 | 20 | 21 | | 23.4% | 36.8% | 29.7% | 28.6% |
| EBITDA | -1 | -0 | 1 | 2 | | | | 100.0% | |
| Net Income | -2 | -3 | -0 | 1 | | | | | |
Balance Sheet
|
|---|
| Cash | 17 | 18 | 14 | 11 | | 111.7% | -0.3% | -9.5% | -43.0% |
| Short Term Debt | 14 | 16 | 13 | 14 | | 81.3% | 81.9% | 33.0% | 37.9% |
| Long Term Debt | 3 | 0 | 0 | 0 | | -65.7% | -100.0% | -100.0% | -100.0% |
Ratios
|
|---|
| Gross Margin | 39.4% | 40.2% | 42.4% | 47.8% | | -3.2% | 1.9% | 4.4% | 18.1% |
| EBITDA Margin | -6.1% | -1.2% | 3.2% | 8.9% | | -3.7% | 2.1% | 1.1% | 17.4% |
| Net Income Margin | -14.0% | -13.5% | -1.4% | 3.0% | | -8.8% | -0.7% | 5.3% | 30.2% |
Peers in Electronic Equipment & Instrum
Below you can find Identiv, Inc. benchmarking vs. other companies in Electronic Equipment & Instrum 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 |
|---|
| Hickok Inc ($HICKA) | | -7.2% | 13.5% | 258.4% | 178.7% |
| Electro Scientific Industries, Inc. ($ESIO) | | -12.2% | 15.9% | -12.7% | 128.5% |
| Microvision, Inc. ($MVIS) | | 163.6% | 60.7% | -34.7% | 82.8% |
| Ipsidy Inc ($IDTY) | | | | | 66.2% |
| Magal Security Systems Ltd. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 4.5% | 1.2% | 3.6% | 9.1% |
|---|
| Identiv, Inc. ($INVE) | | -25.2% | -7.6% | 7.2% | 29.8% |
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 ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (60 companies) | 42.7% | 42.3% | 40.1% | 41.8% | 40.9% |
|---|
| Identiv, Inc. ($INVE) | 41.2% | 38.1% | 42.2% | 36.8% | 42.7% |
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. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.5% | 5.2% | 3.4% | 5.1% | 4.2% |
|---|
| Identiv, Inc. ($INVE) | -12.8% | -53.8% | -14.3% | -3.1% | 1.7% |
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 ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.9% | 2.0% | 2.1% | 1.7% | 2.3% |
|---|
| Identiv, Inc. ($INVE) | 1.6% | 0.6% | 1.0% | 1.6% | 1.7% |
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 ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 2.3% | 2.2% | 3.3% | 1.3% |
|---|
| Identiv, Inc. ($INVE) | -30.2% | -76.8% | -40.5% | -15.6% | -4.4% |
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 ($MTSC) | -0.0x | -0.4x | 5.8x | 3.9x | 3.2x |
| |
|---|
| Median (35 companies) | -0.8x | -0.9x | -0.8x | -0.7x | -0.9x |
|---|
| Identiv, Inc. ($INVE) | | | | | 2.1x |
