Evans & Sutherland Computer Corp Net Income surged on 153% and EBITDA Margin increased on 5.1 pp from 6.6% to 11.7%
03/08/2019 • About Evans & Sutherland Computer Corp (
$ESCC) • By InTwits
Evans & Sutherland Computer Corp reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 11.7% in 2018, 6.6% in 2017, 8.0% in 2016, -1.1% in 2015, 0.5% in 2014
- Evans & Sutherland Computer Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has highly profitable business model: ROIC is 55.3%
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 21.9%. Revenue growth showed slowdown in 18Q4 - it was 11.3% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.8 pp from 9.2% to 2.3% in 2018. EBITDA Margin stuck to a growing trend at 3.0 pp per annum in the last 5 years.
Gross Margin increased slightly on 1.0 pp from 35.9% to 36.9% in 2018. SG&A as a % of Revenue decreased on 2.2 pp from 19.8% to 17.6% in 2018.
Net Income margin increased on 5.2 pp from 4.9% to 10.1% in 2018. Net Income margin followed a growing trend at 3.8 pp per annum in 2014-2018.
Investments (CAPEX, working capital and M&A)
In 2018 Evans & Sutherland Computer Corp had CAPEX/Revenue of 0.37%. CAPEX/Revenue showed almost no change from 2015 to 2018. It's average CAPEX/Revenue for the last three years was 0.46%.
Return on investment
The company operates at high and attractive ROIC (55.3%) and ROE (66.7%). ROIC jumped on 15.8 pp from 39.6% to 55.3% in 2018. ROE increased on 5.3 pp from 61.4% to 66.7% in 2018.
Leverage (Debt)
Debt level is -1.6x Net Debt / EBITDA and 0.4x Debt / EBITDA. Debt dropped on 12.7% while cash surged on 58.5%.
Evans & Sutherland Computer Corp has no short term refinancing risk: cash is higher than short term debt (3,529.5%).
Valuation and dividends
The company's trades at EV/EBITDA 0.5x and P/E 2.4x.
Financial and operational results
FY ended 12/31/2018
Evans & Sutherland Computer Corp ($ESCC) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 26.466 | 35.298 | 32.944 | 30.508 | 37.193 | 21.9% |
| Gross Profit | 9.477 | 12.342 | 12.073 | 10.951 | 13.724 | 25.3% |
| SG&A | 6.873 | 6.633 | 7.115 | 6.045 | 6.561 | 8.5% |
| EBITDA | 0.141 | -0.404 | 2.646 | 2.026 | 4.358 | 115.1% |
| Net Income | -1.305 | -1.275 | 1.743 | 1.481 | 3.747 | 153.0% |
Balance Sheet
|
|---|
| Cash | 7.038 | 3.734 | 6.823 | 5.276 | 8.365 | 58.5% |
| Short Term Debt | 2.362 | 0.199 | 0.211 | 0.224 | 0.237 | 5.8% |
| Long Term Debt | 0.000 | 1.975 | 1.764 | 1.540 | 1.303 | -15.4% |
Cash flow
|
|---|
| Capex | 0.395 | 0.182 | 0.174 | 0.148 | 0.136 | -8.1% |
Ratios
|
|---|
| Revenue growth | -10.5% | 33.4% | -6.7% | -7.4% | 21.9% | |
| EBITDA growth | -95.7% | -386.5% | -755.0% | -23.4% | 115.1% | |
|
|---|
| Gross Margin | 35.8% | 35.0% | 36.6% | 35.9% | 36.9% | 1.0% |
| EBITDA Margin | 0.5% | -1.1% | 8.0% | 6.6% | 11.7% | 5.1% |
| SG&A, % of revenue | 26.0% | 18.8% | 21.6% | 19.8% | 17.6% | -2.2% |
| Net Income Margin | -4.9% | -3.6% | 5.3% | 4.9% | 10.1% | 5.2% |
| CAPEX, % of revenue | 1.5% | 0.5% | 0.5% | 0.5% | 0.4% | -0.1% |
|
|---|
| ROIC | | | 83.3% | 39.6% | 55.3% | 15.8% |
| ROE | | | | 61.4% | 66.7% | 5.3% |
| Net Debt/EBITDA | -33.2x | | -1.8x | -1.7x | -1.6x | 0.2x |
Evans & Sutherland Computer Corp ($ESCC) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 9 | 12 | 9 | | -5.7% | 31.6% | 51.6% | 11.3% |
| EBITDA | 0 | 1 | 3 | 1 | | -78.0% | | 171.1% | 14.1% |
| Net Income | -0 | 1 | 2 | 1 | | -138.4% | | 207.8% | 4.0% |
Balance Sheet
|
|---|
| Cash | 5 | 5 | 8 | 8 | | -23.8% | -9.8% | 59.9% | 58.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | | 6.1% | 6.5% | 5.9% | 5.8% |
| Long Term Debt | 1 | 1 | 1 | 1 | | -13.3% | -13.9% | -14.7% | -15.4% |
Ratios
|
|---|
| Gross Margin | 34.4% | 35.5% | 38.9% | 36.1% | | 1.2% | 1.9% | 0.2% | -1.7% |
| EBITDA Margin | 1.1% | 7.9% | 20.7% | 9.8% | | -3.6% | 8.0% | 9.1% | 0.2% |
| Net Income Margin | -0.9% | 5.7% | 19.4% | 8.5% | | -3.2% | 8.3% | 9.8% | -0.6% |
Peers in Electronic Equipment & Instrum
Below we provide Evans & Sutherland Computer Corp 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% |
| Microvision, Inc. ($MVIS) | | 163.6% | 60.7% | -34.7% | 82.8% |
| Ipsidy Inc ($IDTY) | | | | | 66.2% |
| Magal Security Systems Ltd. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 3.5% | 1.2% | 4.6% | 9.1% |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | | 33.4% | -6.7% | -7.4% | 21.9% |
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 ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (60 companies) | 42.7% | 42.3% | 41.2% | 41.8% | 42.0% |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | 35.8% | 35.0% | 36.6% | 35.9% | 36.9% |
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. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.5% | 5.2% | 3.0% | 3.0% | 3.3% |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | 0.5% | -1.1% | 8.0% | 6.6% | 11.7% |
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 ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.9% | 2.0% | 2.1% | 1.7% | 2.3% |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | 1.5% | 0.5% | 0.5% | 0.5% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| 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% |
| Image Sensing Systems, Inc. ($ISNS) | -16.5% | 5.3% | 11.7% | 28.6% | 18.5% |
| |
|---|
| Median (72 companies) | 3.3% | 2.2% | 1.8% | 1.8% | 0.9% |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | | | 83.3% | 39.6% | 55.3% |
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 ($MTSC) | -0.0x | -0.4x | 5.8x | 3.9x | 3.2x |
| |
|---|
| Median (35 companies) | -0.7x | -0.9x | -0.8x | -0.6x | -0.8x |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | -33.2x | | -1.8x | -1.7x | -1.6x |
