Image Sensing Systems, Inc. Net Income dropped on 10.4% and Revenue showed almost no change
03/14/2019 • About Image Sensing Systems, Inc. (
$ISNS) • By InTwits
Image Sensing Systems, Inc. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 18.0% in 2018, 18.6% in 2017, 7.6% in 2016, 7.4% in 2015, -7.5% in 2014
- Image Sensing Systems, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 5.2%
- CAPEX is quite volatile: $0m in 2018, $0m in 2017, $0m in 2016, $0m in 2015, $1m in 2014
- The company has highly profitable business model: ROIC is 18.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Image Sensing Systems, Inc.'s Revenue showed almost no change in 2018. Revenue growth showed slowdown in 18Q4 - it was -16.9% YoY. Revenue decline was slowing down on average by 8.1 pp per annum in the last 5 years. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.4 pp from -2.3% to 9.1% in 2018. EBITDA Margin stuck to a growing trend at 6.2 pp per annum in 2014-2018.
Gross Margin increased slightly on 1.0 pp from 79.9% to 80.9% in 2018. SG&A as a % of Revenue showed almost no change in 2018. SG&A as a % of Revenue declined at -1.8 pp per annum in 2014-2018.
Net Income margin decreased slightly on 1.5 pp from 14.3% to 12.8% in 2018. Net Income margin followed a growing trend at 16.7 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 1.3%. CAPEX/Revenue showed almost no change from 2015 to 2018. It's average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at good ROIC (18.5%) and ROE (19.3%). ROIC dropped on 10.0 pp from 28.6% to 18.5% in 2018. ROE decreased on 8.7 pp from 28.0% to 19.3% in 2018. ROIC stuck to a growing trend at 9.3 pp per annum in the last 5 years. ROE grew at 25.6 pp per annum in 2014-2018.
Leverage (Debt)
The company has no debt. Cash jumped on 32.8%.
Valuation and dividends
Image Sensing Systems, Inc.'s trades at EV/EBITDA 8.2x and P/E 13.9x.
Management team
Image Sensing Systems, Inc.'s CEO is Chad A Stelzig. Chad A Stelzig is a founder and has 2 years tenure with the company.
Financial and operational results
FY ended 12/31/2018
Image Sensing Systems, Inc. ($ISNS) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 18.143 | 15.215 | 14.142 | 14.524 | 14.561 | 0.3% |
| Gross Profit | 13.560 | 11.738 | 10.044 | 11.599 | 11.775 | 1.5% |
| SG&A | 9.392 | 7.264 | 6.285 | 6.467 | 6.495 | 0.4% |
| EBITDA | -1.353 | 1.133 | 1.077 | 2.702 | 2.626 | -2.8% |
| Net Income | -9.703 | -3.102 | 0.687 | 2.078 | 1.862 | -10.4% |
Balance Sheet
|
|---|
| Cash | 2.656 | 2.648 | 1.547 | 3.190 | 4.236 | 32.8% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.298 | 0.150 | 0.163 | 0.300 | 0.194 | -35.3% |
Ratios
|
|---|
| Revenue growth | -31.0% | -16.1% | -7.1% | 2.7% | 0.3% | |
| EBITDA growth | -77.5% | -183.7% | -4.9% | 150.9% | -2.8% | |
|
|---|
| Gross Margin | 74.7% | 77.1% | 71.0% | 79.9% | 80.9% | 1.0% |
| EBITDA Margin | -7.5% | 7.4% | 7.6% | 18.6% | 18.0% | -0.6% |
| SG&A, % of revenue | 51.8% | 47.7% | 44.4% | 44.5% | 44.6% | 0.1% |
| Net Income Margin | -53.5% | -20.4% | 4.9% | 14.3% | 12.8% | -1.5% |
| CAPEX, % of revenue | 1.6% | 1.0% | 1.2% | 2.1% | 1.3% | -0.7% |
|
|---|
| ROIC | -16.5% | 5.3% | 11.7% | 28.6% | 18.5% | -10.0% |
| ROE | -72.3% | -45.2% | 11.8% | 28.0% | 19.3% | -8.7% |
| Net Debt/EBITDA | | -2.3x | -1.4x | -1.2x | -1.6x | -0.4x |
Image Sensing Systems, Inc. ($ISNS) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 3 | 4 | 4 | 4 | | -2.4% | 12.0% | 11.7% | -16.9% |
| EBITDA | 0 | 1 | 1 | 1 | | -55.5% | 56.0% | 4.0% | -19.3% |
| Net Income | -0 | 1 | 1 | 1 | | -108.6% | 58.2% | -2.2% | -24.9% |
Balance Sheet
|
|---|
| Cash | 3 | 4 | 4 | 4 | | 56.7% | 38.9% | 28.6% | 32.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 85.1% | 82.0% | 81.6% | 75.2% | | 5.7% | 5.0% | -1.7% | -4.3% |
| EBITDA Margin | 5.2% | 17.8% | 26.3% | 19.7% | | -6.2% | 5.0% | -2.0% | -0.6% |
| Net Income Margin | -0.6% | 13.1% | 21.0% | 14.3% | | -7.0% | 3.8% | -3.0% | -1.5% |
Peers in Electronic Equipment & Instrum
Below you can find Image Sensing Systems, 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. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 4.5% | 1.2% | 4.6% | 10.4% |
|---|
| Image Sensing Systems, Inc. ($ISNS) | | -16.1% | -7.1% | 2.7% | 0.3% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intellicheck, Inc. ($IDN) | 58.2% | 57.1% | 80.0% | 85.5% | 91.3% |
| National Instruments Corporation ($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% |
| Ipsidy Inc ($IDTY) | | | | 74.4% | 67.2% |
| |
|---|
| Median (60 companies) | 41.7% | 41.8% | 40.1% | 41.5% | 40.9% |
|---|
| Image Sensing Systems, Inc. ($ISNS) | 74.7% | 77.1% | 71.0% | 79.9% | 80.9% |
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. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.5% | 3.9% | 3.0% | 3.0% | 3.3% |
|---|
| Image Sensing Systems, Inc. ($ISNS) | -7.5% | 7.4% | 7.6% | 18.6% | 18.0% |
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 ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.9% | 2.0% | 2.1% | 1.6% | 2.3% |
|---|
| Image Sensing Systems, Inc. ($ISNS) | 1.6% | 1.0% | 1.2% | 2.1% | 1.3% |
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 ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 1.8% | 1.8% | 1.8% | 0.9% |
|---|
| Image Sensing Systems, Inc. ($ISNS) | -16.5% | 5.3% | 11.7% | 28.6% | 18.5% |
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 ($MTSC) | -0.0x | -0.4x | 5.8x | 3.9x | 3.2x |
| |
|---|
| Median (35 companies) | -0.8x | -0.7x | -0.8x | -0.6x | -0.8x |
|---|
| Image Sensing Systems, Inc. ($ISNS) | | -2.3x | -1.4x | -1.2x | -1.6x |
