Intellicheck, Inc. revenue returned to growth in 2018: increased 23.2% vs. 6.3% decline a year earliner
03/21/2019 • About Intellicheck, Inc. (
$IDN) • By InTwits
Intellicheck, Inc. reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -86.8%
- Intellicheck, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 is 0.0%. Average EBITDA Margin for the same period was -84.6%
- Intellicheck, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: $0m in 2018, $0m in 2017, $0m in 2016, $0m in 2015, $0m in 2014
- The company has unprofitable business model: ROIC is -28.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 23.2%. Revenue growth showed acceleration in 18Q4 - it increased 37.5% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 21.7 pp from -15.7% to 6.0% in FY2018. During the last 5 years EBITDA Margin bottomed in 2017 at -158%.
Gross Margin increased on 5.8 pp from 85.5% to 91.3% in 2018. Gross Margin grew at 9.4 pp per annum in the last 5 years. SG&A as a % of Revenue dropped on 44.9 pp from 163% to 118% in 2018. During 2014-2018 SG&A as a % of Revenue topped in 2016 at 167% and was declining since that time.
Net Income margin jumped on 77.9 pp from -167% to -89.4% in 2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.2% in 2018. Intellicheck, Inc. showed small growth in CAPEX/Revenue of 1.4 pp from 1.8% in 2015 to 3.2% in 2018. For the last three years the average CAPEX/Revenue was 2.0%. During 2014-2018 CAPEX as a % of Revenue bottomed in 2017 at 1.0%.
Return on investment
The company operates at negative ROIC (-28.3%) and ROE (-27.4%). ROIC surged on 13.6 pp from -41.9% to -28.3% in 2018. ROE surged on 14.2 pp from -41.6% to -27.4% in 2018. During 2014-2018 ROIC bottomed in 2017 at -41.9%.
Leverage (Debt)
The company has no debt. Cash dropped on 45.4%.
Management team
Intellicheck, Inc.'s CEO is Bryan Lewis. Bryan Lewis is a founder and has 1 year tenure with the company. The company's CFO is Bill J White. Bill J White has 1 year tenure at the company.
Financial and operational results
FY ended 12/31/2018
Intellicheck, Inc. ($IDN) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 6.613 | 7.015 | 3.839 | 3.598 | 4.433 | 23.2% |
| Gross Profit | 3.850 | 4.008 | 3.070 | 3.076 | 4.047 | 31.5% |
| SG&A | 1.374 | 6.894 | 6.414 | 5.865 | 5.236 | -10.7% |
| EBITDA | -2.280 | -4.460 | -5.315 | -5.668 | -3.848 | |
| Net Income | -7.644 | -5.334 | -5.735 | -6.021 | -3.964 | |
Balance Sheet
|
|---|
| Cash | 2.966 | 5.953 | 3.092 | 8.010 | 4.376 | -45.4% |
| 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 | 0.131 | 0.127 | 0.064 | 0.038 | 0.142 | 276.3% |
Ratios
|
|---|
| Revenue growth | -9.4% | 6.1% | -45.3% | -6.3% | 23.2% | |
| EBITDA growth | 68.2% | 95.6% | 19.2% | 6.6% | -32.1% | |
|
|---|
| Gross Margin | 58.2% | 57.1% | 80.0% | 85.5% | 91.3% | 5.8% |
| EBITDA Margin | -34.5% | -63.6% | -138.5% | -157.5% | -86.8% | 70.7% |
| SG&A, % of revenue | 20.8% | 98.3% | 167.1% | 163.0% | 118.1% | -44.9% |
| Net Income Margin | -115.6% | -76.0% | -149.4% | -167.3% | -89.4% | 77.9% |
| CAPEX, % of revenue | 2.0% | 1.8% | 1.7% | 1.0% | 3.2% | 2.1% |
|
|---|
| ROIC | -24.1% | -37.1% | -39.2% | -41.9% | -28.3% | 13.6% |
| ROE | -53.6% | -36.2% | -39.2% | -41.6% | -27.4% | 14.2% |
Intellicheck, Inc. ($IDN) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1 | 1 | 1 | 1 | | 49.0% | 5.3% | 7.5% | 37.5% |
| EBITDA | -1 | -1 | -1 | -1 | | | | | |
| Net Income | -1 | -1 | -1 | -1 | | | | | |
Balance Sheet
|
|---|
| Cash | 8 | 6 | 5 | 4 | | 237.1% | 524.3% | -39.7% | -45.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 90.5% | 91.8% | 89.2% | 93.1% | | 5.9% | 13.3% | 0.0% | 3.8% |
| EBITDA Margin | -96.3% | -108.1% | -105.0% | -48.9% | | 20.9% | -3.3% | -3.7% | 246.2% |
| Net Income Margin | -100.6% | -109.9% | -108.8% | -49.9% | | 30.9% | 5.6% | 2.4% | 250.9% |
Peers in Electronic Equipment & Instrum
Below you can find Intellicheck, 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. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 3.5% | 1.2% | 4.6% | 9.1% |
|---|
| Intellicheck, Inc. ($IDN) | | 6.1% | -45.3% | -6.3% | 23.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| 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% |
| Ipsidy Inc ($IDTY) | | | | 74.4% | 67.2% |
| |
|---|
| Median (60 companies) | 41.7% | 41.8% | 40.1% | 41.5% | 40.9% |
|---|
| Intellicheck, Inc. ($IDN) | 58.2% | 57.1% | 80.0% | 85.5% | 91.3% |
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. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.5% | 5.2% | 3.4% | 5.1% | 4.2% |
|---|
| Intellicheck, Inc. ($IDN) | -34.5% | -63.6% | -138.5% | -157.5% | -86.8% |
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 ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.8% | 2.0% | 2.1% | 1.7% | 2.2% |
|---|
| Intellicheck, Inc. ($IDN) | 2.0% | 1.8% | 1.7% | 1.0% | 3.2% |
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 ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 2.3% | 2.2% | 3.3% | 1.3% |
|---|
| Intellicheck, Inc. ($IDN) | -24.1% | -37.1% | -39.2% | -41.9% | -28.3% |
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 (36 companies) | -0.8x | -0.9x | -0.8x | -0.7x | -0.9x |
|---|
