Electro-Sensors, Inc. EBITDA dropped on 75.5% and Revenue decreased on 4.4%
03/20/2019 • About Electro-Sensors, Inc. (
$ELSE) • By InTwits
Electro-Sensors, Inc. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 2.3% in 2018, 9.2% in 2017, 6.7% in 2016, 8.4% in 2015, 8.5% in 2014
- Electro-Sensors, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has unprofitable business model: ROIC is -1.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Electro-Sensors, Inc.'s Revenue decreased on 4.4%. Annual revenue decline showed slowdown in 18Q4 - revenue increased slightly on 0.98%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from -35.1% to -31.0% in 2018.
Gross Margin decreased slightly on 0.84 pp from 54.8% to 54.0% in 2018. SG&A as a % of Revenue increased on 5.8 pp from 39.2% to 45.1% in 2018.
Net Income margin decreased on 3.9 pp from 3.8% to -0.13% in 2018. Net Income margin stuck to a declining trend at -4.3 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.43% in 2018. Electro-Sensors, Inc.'s CAPEX/Revenue showed almost no change from 2015 to 2018. For the last three years the average CAPEX/Revenue was 0.66%.
Return on investment
The company operates at negative ROIC (-1.1%) and ROE (-0.1%). ROIC decreased on 4.5 pp from 3.3% to -1.1% in 2018. ROE decreased on 2.4 pp from 2.4% to -0.079% in 2018. ROE declined at -2.7 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is -5.8x Net Debt / EBITDA and 0.2x Debt / EBITDA. Debt dropped on 80.7% while cash increased on 9.8%.
Electro-Sensors, Inc. has no short term refinancing risk: cash is higher than short term debt (21,140.0%).
Financial and operational results
FY ended 12/31/2018
Electro-Sensors, Inc. ($ELSE) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 7.041 | 7.636 | 7.174 | 7.840 | 7.495 | -4.4% |
| Gross Profit | 4.086 | 4.226 | 3.884 | 4.299 | 4.047 | -5.9% |
| SG&A | 2.885 | 3.183 | 2.947 | 3.077 | 3.379 | 9.8% |
| EBITDA | 0.600 | 0.638 | 0.483 | 0.718 | 0.176 | -75.5% |
| Net Income | 1.094 | 1.214 | 0.202 | 0.295 | -0.010 | -103.4% |
Balance Sheet
|
|---|
| Cash | 1.190 | 0.569 | 0.840 | 0.963 | 1.057 | 9.8% |
| Short Term Debt | 0.381 | 0.390 | 0.000 | 0.150 | 0.005 | -96.7% |
| Long Term Debt | 0.390 | 0.000 | 0.000 | 0.000 | 0.024 | |
Cash flow
|
|---|
| Capex | 0.046 | 0.070 | 0.008 | 0.114 | 0.032 | -71.9% |
Ratios
|
|---|
| Revenue growth | 7.6% | 8.5% | -6.1% | 9.3% | -4.4% | |
| EBITDA growth | 20.2% | 6.3% | -24.3% | 48.7% | -75.5% | |
|
|---|
| Gross Margin | 58.0% | 55.3% | 54.1% | 54.8% | 54.0% | -0.8% |
| EBITDA Margin | 8.5% | 8.4% | 6.7% | 9.2% | 2.3% | -6.8% |
| SG&A, % of revenue | 41.0% | 41.7% | 41.1% | 39.2% | 45.1% | 5.8% |
| Net Income Margin | 15.5% | 15.9% | 2.8% | 3.8% | -0.1% | -3.9% |
| CAPEX, % of revenue | 0.7% | 0.9% | 0.1% | 1.5% | 0.4% | -1.0% |
|
|---|
| ROIC | 3.3% | 2.3% | 1.4% | 3.3% | -1.1% | -4.5% |
| ROE | 9.6% | 10.3% | 1.7% | 2.4% | -0.1% | -2.4% |
| Net Debt/EBITDA | -0.7x | -0.3x | -1.7x | -1.1x | -5.8x | -4.7x |
Electro-Sensors, Inc. ($ELSE) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 2 | 2 | | 2.8% | -23.5% | 4.5% | 1.0% |
| EBITDA | -0 | 0 | 0 | 0 | | | -99.0% | -6.7% | 35.7% |
| Net Income | -0 | -0 | 0 | 0 | | | -119.3% | 23.0% | 1,100.0% |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 1 | | -10.3% | -15.3% | -28.0% | 9.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | | -100.0% | -100.0% | -100.0% | -96.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 53.4% | 54.6% | 55.7% | 52.0% | | -0.5% | -2.3% | 0.5% | 0.7% |
| EBITDA Margin | -11.8% | 0.2% | 13.0% | 5.1% | | -7.9% | -17.6% | -1.6% | 1.3% |
| Net Income Margin | -11.8% | -2.4% | 8.7% | 2.6% | | -6.7% | -12.0% | 1.3% | 2.4% |
Peers in Electronic Equipment & Instrum
Below you can find Electro-Sensors, 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. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 3.5% | 1.2% | 3.6% | 10.4% |
|---|
| Electro-Sensors, Inc. ($ELSE) | | 8.5% | -6.1% | 9.3% | -4.4% |
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 ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (60 companies) | 41.7% | 41.8% | 40.1% | 41.5% | 40.9% |
|---|
| Electro-Sensors, Inc. ($ELSE) | 58.0% | 55.3% | 54.1% | 54.8% | 54.0% |
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. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.3% | 3.9% | 3.0% | 3.0% | 4.2% |
|---|
| Electro-Sensors, Inc. ($ELSE) | 8.5% | 8.4% | 6.7% | 9.2% | 2.3% |
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 ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.9% | 2.0% | 2.1% | 1.7% | 2.3% |
|---|
| Electro-Sensors, Inc. ($ELSE) | 0.7% | 0.9% | 0.1% | 1.5% | 0.4% |
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 ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 1.8% | 2.2% | 1.8% | 1.3% |
|---|
| Electro-Sensors, Inc. ($ELSE) | 3.3% | 2.3% | 1.4% | 3.3% | -1.1% |
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 ($MTSC) | -0.0x | -0.4x | 5.8x | 3.9x | 3.2x |
| |
|---|
| Median (35 companies) | -0.8x | -0.9x | -0.8x | -0.6x | -0.8x |
|---|
| Electro-Sensors, Inc. ($ELSE) | -0.7x | -0.3x | -1.7x | -1.1x | -5.8x |
