Stratasys, Ltd. EBITDA surged on 45.1% and Revenue decreased slightly on 0.77%
03/07/2019 • About Stratasys, Ltd. (
$SSYS) • By InTwits
Stratasys, Ltd. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 7.9% in 2018 vs. 5.4% in 2017 vs. -5.2% in 2014
- Stratasys, Ltd. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -35.0% for the sames years
- Stratasys, Ltd. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%. At the same time it's a lot of higher than industry average of 5.2%.
- CAPEX is quite volatile: $23m in 2018, $22m in 2017, $45m in 2016, $84m in 2015, $60m in 2014
- The company has unprofitable business model: ROIC is -0.8%
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 decreased slightly on 0.77%. Revenue decline showed acceleration in 18Q4 - it was 1.2% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.5 pp from 5.4% to 7.9% in 2018. During 2014-2018 EBITDA Margin bottomed in 2015 at -182% and was growing since that time.
Gross Margin increased slightly on 0.74 pp from 48.3% to 49.0% in 2018. During 2014-2018 Gross Margin bottomed in 2015 at 14.7% and was growing since that time. SG&A as a % of Revenue decreased on 2.8 pp from 38.3% to 35.4% in 2018. During 2014-2018 SG&A as a % of Revenue topped in 2015 at 62.4% and was declining since that time.
Net Income margin increased on 4.3 pp from -6.0% to -1.7% in 2018. During the last 5 years Net Income margin bottomed in 2015 at -197% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In 2018 Stratasys, Ltd. had CAPEX/Revenue of 3.5%. CAPEX/Revenue decreased on 8.6 pp from 12.1% in 2015 to 3.5% in 2018. It's average level of CAPEX/Revenue for the last three years was 4.5%.
Return on investment
The company operates at negative ROIC (-0.8%) and ROE (-0.9%). ROIC increased slightly on 1.8 pp from -2.6% to -0.75% in 2018. ROE increased on 2.6 pp from -3.5% to -0.88% in 2018. During 2014-2018 ROIC bottomed in 2015 at -70.3% and was growing since that time. During 2014-2018 ROE bottomed in 2015 at -73.9% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -7.0x and Debt / EBITDA is 0.5x. Debt dropped on 15.9% while cash surged on 19.6%.
Stratasys, Ltd. has no short term refinancing risk: cash is higher than short term debt (7,644.7%).
Management team
Stratasys, Ltd.'s CEO Elchanan Jaglom "Elan" is a founder and has spent 3 years with the company. Lilach Payorski is a the company's CFO. Lilach Payorski has spent 2 years at the company.
Financial and operational results
FY ended 12/31/2018
Stratasys, Ltd. ($SSYS) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 750.1 | 696.0 | 672.5 | 668.4 | 663.2 | -0.8% |
| Gross Profit | 362.4 | 102.2 | 317.3 | 322.8 | 325.2 | 0.8% |
| SG&A | 352.0 | 434.6 | 307.1 | 255.7 | 235.1 | -8.0% |
| EBITDA | -38.8 | -1,265.1 | 6.2 | 36.1 | 52.4 | 45.1% |
| Net Income | -119.4 | -1,372.8 | -77.2 | -40.0 | -11.0 | |
Balance Sheet
|
|---|
| Cash | 442.1 | 257.6 | 280.3 | 328.8 | 393.2 | 19.6% |
| Short Term Debt | 50.0 | 0.0 | 3.7 | 5.1 | 5.1 | 0.0% |
| Long Term Debt | 0.0 | 0.0 | 22.3 | 27.1 | 22.0 | -18.9% |
Cash flow
|
|---|
| Capex | 60.5 | 84.3 | 45.1 | 22.3 | 23.4 | 4.7% |
Ratios
|
|---|
| Revenue growth | 54.9% | -7.2% | -3.4% | -0.6% | -0.8% | |
| EBITDA growth | -161.0% | 3,164.1% | -100.5% | 485.9% | 45.1% | |
|
|---|
| Gross Margin | 48.3% | 14.7% | 47.2% | 48.3% | 49.0% | 0.7% |
| EBITDA Margin | -5.2% | -181.8% | 0.9% | 5.4% | 7.9% | 2.5% |
| SG&A, % of revenue | 46.9% | 62.4% | 45.7% | 38.3% | 35.4% | -2.8% |
| Net Income Margin | -15.9% | -197.2% | -11.5% | -6.0% | -1.7% | 4.3% |
| CAPEX, % of revenue | 8.1% | 12.1% | 6.7% | 3.3% | 3.5% | 0.2% |
|
|---|
| ROIC | -5.6% | -70.3% | -7.3% | -2.6% | -0.8% | 1.8% |
| ROE | -4.7% | -73.9% | -6.6% | -3.5% | -0.9% | 2.6% |
| Net Debt/EBITDA | | | -41.3x | -8.2x | -7.0x | 1.2x |
Stratasys, Ltd. ($SSYS) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 154 | 170 | 162 | 177 | | -5.7% | 0.1% | 4.0% | -1.2% |
| Net Income | -13 | -4 | -1 | 6 | | | | | |
Balance Sheet
|
|---|
| Cash | 347 | 347 | 349 | 393 | | 16.6% | 13.5% | 15.2% | 19.6% |
| Short Term Debt | 5 | 5 | 5 | 5 | | 38.5% | 38.5% | 38.5% | 0.0% |
| Long Term Debt | 26 | 25 | 23 | 22 | | 21.1% | 20.3% | 19.4% | -18.9% |
Ratios
|
|---|
| Gross Margin | 49.2% | 49.1% | 48.7% | 49.1% | | 2.1% | 0.1% | 0.4% | 0.5% |
| Net Income Margin | -8.5% | -2.1% | -0.4% | 3.6% | | 0.0% | 1.4% | 6.1% | 9.1% |
Peers in Technology Hardware, Storage &
Below you can find Stratasys, Ltd. benchmarking vs. other companies in Technology Hardware, Storage & 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 |
|---|
| Crossroads Systems Inc ($CRSS) | | -90.6% | -35.5% | -89.5% | 39,959.5% |
| Immersion Corporation ($IMMR) | | 19.8% | -9.9% | -38.7% | 217.0% |
| Veritec Inc ($VRTC) | | -42.2% | -28.0% | -52.2% | 53.1% |
| Boxlight Corporation ($BOXL) | | -88.5% | 503.2% | 26.4% | 47.0% |
| Pure Storage, Inc. ($PSTG) | | 308.2% | 152.4% | 67.9% | 38.6% |
| |
|---|
| Median (30 companies) | -16.9% | -3.2% | -5.0% | 2.1% | 5.6% |
|---|
| Stratasys, Ltd. ($SSYS) | | -7.2% | -3.4% | -0.6% | -0.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Immersion Corporation ($IMMR) | 99.1% | 99.3% | 99.7% | 99.4% | 99.8% |
| Pure Storage, Inc. ($PSTG) | 43.5% | 55.5% | 61.9% | 65.9% | 65.5% |
| NetApp, Inc. ($NTAP) | 62.0% | 62.6% | 60.8% | 61.3% | 62.7% |
| Avid Technology, Inc. ($AVID) | 61.4% | 60.9% | 65.0% | 57.8% | 57.9% |
| Datasea Inc ($DTSS) | | | | 39.3% | 54.4% |
| |
|---|
| Median (29 companies) | 35.6% | 36.3% | 38.5% | 38.9% | 38.3% |
|---|
| Stratasys, Ltd. ($SSYS) | 48.3% | 14.7% | 47.2% | 48.3% | 49.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Immersion Corporation ($IMMR) | 12.3% | 9.0% | -25.1% | -127.0% | 48.6% |
| Apple Inc. ($AAPL) | 33.1% | 35.3% | 32.7% | 31.2% | 30.8% |
| Western Digital Corporation ($WDC) | 20.1% | 18.7% | 12.5% | 21.4% | 27.5% |
| NetApp, Inc. ($NTAP) | 16.9% | 16.7% | 11.3% | 15.4% | 22.9% |
| Seagate Technology PLC ($STX) | 19.3% | 21.1% | 11.3% | 16.7% | 20.0% |
| |
|---|
| Median (29 companies) | 8.6% | 7.4% | 4.9% | 3.5% | 7.9% |
|---|
| Stratasys, Ltd. ($SSYS) | -5.2% | -181.8% | 0.9% | 5.4% | 7.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Hewlett Packard Enterprise Company ($HPE) | 6.6% | 6.4% | 10.8% | 10.9% | 9.6% |
| Pure Storage, Inc. ($PSTG) | 28.7% | 24.2% | 8.9% | 10.4% | 6.3% |
| 3D Systems Corporation ($DDD) | 3.5% | 3.4% | 2.6% | 4.8% | 5.9% |
| Apple Inc. ($AAPL) | 5.2% | 4.8% | 5.9% | 5.4% | 5.0% |
| Western Digital Corporation ($WDC) | 4.2% | 4.2% | 4.5% | 3.0% | 4.0% |
| |
|---|
| Median (29 companies) | 2.6% | 2.9% | 1.7% | 1.8% | 2.2% |
|---|
| Stratasys, Ltd. ($SSYS) | 8.1% | 12.1% | 6.7% | 3.3% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Avid Technology, Inc. ($AVID) | | | | | 252.4% |
| Ionix Technology Inc ($IINX) | | | | 23.9% | 204.5% |
| Immersion Corporation ($IMMR) | 7.6% | 5.8% | -21.5% | -138.9% | 96.8% |
| HP Inc. ($HPQ) | 8.0% | 8.7% | 15.8% | 60.8% | 72.9% |
| NetApp, Inc. ($NTAP) | 12.5% | 14.8% | 7.3% | 14.0% | 28.1% |
| |
|---|
| Median (37 companies) | 6.0% | 5.7% | 1.8% | 1.6% | 3.6% |
|---|
| Stratasys, Ltd. ($SSYS) | -5.6% | -70.3% | -7.3% | -2.6% | -0.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| CPI Card Group Inc. ($PMTS) | 3.4x | 3.5x | 5.8x | | 12.4x |
| NCR Corporation ($NCR) | 4.9x | 6.6x | 2.7x | 2.3x | 5.2x |
| Avid Technology, Inc. ($AVID) | -0.7x | 3.1x | 1.7x | 5.6x | 4.8x |
| Xerox Corporation ($XRX) | 3.5x | 3.5x | 3.1x | 3.0x | 3.0x |
| Electronics for Imaging, Inc. ($EFII) | -0.2x | 1.4x | 1.3x | 1.6x | 1.7x |
| |
|---|
| Median (19 companies) | -0.2x | 0.5x | 0.4x | 0.5x | 1.1x |
|---|
| Stratasys, Ltd. ($SSYS) | | | -41.3x | -8.2x | -7.0x |
