Flexpoint Sensor Systems Inc revenue dropped on 21.4% and EBITDA Margin dropped on 49.9 pp from -221% to -271%
04/01/2019 • About Flexpoint Sensor Systems Inc (
$FLXT) • By InTwits
Flexpoint Sensor Systems Inc reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -271.2%
- Flexpoint Sensor Systems Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -306.3% for the sames years
- Flexpoint Sensor Systems Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has unprofitable business model: ROIC is -22.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.1x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Flexpoint Sensor Systems Inc's Revenue dropped on 21.4%. Revenue decline showed acceleration in 18Q4 - it was 22.7% YoY. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 49.9 pp from -221% to -271% in 2018.
Gross Margin decreased slightly on 1.8 pp from 87.9% to 86.1% in 2018. Gross Margin stuck to a declining trend at -2.9 pp per annum in 2014-2018. SG&A as a % of Revenue surged on 25.6 pp from 216% to 242% in 2018.
Net Income margin dropped on 20.2 pp from -318% to -338% in 2018.
Return on investment
The company operates at negative ROIC (-22.7%) and ROE (-42.8%). ROIC decreased on 2.1 pp from -20.6% to -22.7% in 2018. ROE decreased on 3.2 pp from -39.6% to -42.8% in 2018.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2018. Debt jumped on 43.8% while cash jumped on 38.7%.
Flexpoint Sensor Systems Inc has short term refinancing risk: cash is only 1.4% of short term debt.
Financial and operational results
FY ended 12/31/2018
Flexpoint Sensor Systems Inc ($FLXT) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 0.270 | 0.138 | 0.314 | 0.341 | 0.268 | -21.4% |
| Gross Profit | 0.261 | 0.132 | 0.291 | 0.299 | 0.231 | -23.0% |
| SG&A | | 0.896 | 0.879 | 0.735 | 0.647 | -12.0% |
| EBITDA | -0.650 | -1.044 | -0.905 | -0.754 | -0.726 | |
| Net Income | -0.979 | -2.742 | -2.093 | -1.084 | -0.906 | |
Balance Sheet
|
|---|
| Cash | 0.018 | 0.023 | 0.000 | 0.013 | 0.018 | 38.7% |
| Short Term Debt | 0.905 | 0.245 | 1.205 | 0.888 | 1.277 | 43.8% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | 0.011 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | 168.3% | -48.8% | 127.3% | 8.3% | -21.4% | |
| EBITDA growth | -14.7% | 60.5% | -13.3% | -16.8% | -3.6% | |
|
|---|
| Gross Margin | 96.7% | 95.2% | 92.7% | 87.9% | 86.1% | -1.8% |
| EBITDA Margin | -240.5% | -754.3% | -287.8% | -221.2% | -271.2% | -49.9% |
| SG&A, % of revenue | | 647.6% | 279.4% | 215.9% | 241.5% | 25.6% |
| Net Income Margin | -362.3% | -1,982.0% | -665.6% | -318.2% | -338.4% | -20.2% |
| CAPEX, % of revenue | 0.0% | 0.0% | 3.6% | 0.0% | 0.0% | |
|
|---|
| ROIC | -17.0% | -24.5% | -22.0% | -20.6% | -22.7% | -2.1% |
| ROE | -24.2% | -67.1% | -56.3% | -39.6% | -42.8% | -3.2% |
Flexpoint Sensor Systems Inc ($FLXT) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 0 | 0 | 0 | 0 | | 29.8% | -66.9% | 77.8% | -22.7% |
| EBITDA | -0 | -0 | -0 | -0 | | | | | |
| Net Income | -0 | -0 | -0 | -1 | | | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | -100.0% | 704.5% | -72.3% | 38.7% |
| Short Term Debt | 1 | 1 | 1 | 1 | | -27.3% | -22.4% | -17.8% | 43.8% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | -100.0% | -100.0% | |
Ratios
|
|---|
| Gross Margin | 77.0% | 88.9% | 84.6% | 96.6% | | -16.2% | 8.9% | 5.6% | |
| EBITDA Margin | -172.4% | -299.4% | -172.2% | -479.0% | | 133.2% | -202.0% | 340.0% | -231.8% |
| Net Income Margin | -130.2% | -310.1% | -169.8% | -800.8% | | 347.1% | -185.0% | 391.4% | -361.0% |
Peers in Electronic Components
Below you can find Flexpoint Sensor Systems Inc benchmarking vs. other companies in Electronic Components 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 |
|---|
| Superconductor Technologies Inc. ($SCON) | | -61.4% | -46.3% | 240.5% | 248.9% |
| Akoustis Technologies, Inc. ($AKTS) | | | | | 148.3% |
| CPS Technologies Corp. ($CPSH) | | -5.9% | -29.5% | -5.0% | 48.0% |
| Littelfuse, Inc. ($LFUS) | | 1.9% | 21.7% | 15.7% | 40.7% |
| Cavitation Technologies Inc ($CVAT) | | -73.6% | 267.5% | -40.9% | 22.6% |
| |
|---|
| Median (22 companies) | | 0.0% | 1.1% | 7.7% | 16.6% |
|---|
| Flexpoint Sensor Systems Inc ($FLXT) | | -48.8% | 127.3% | 8.3% | -21.4% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cavitation Technologies Inc ($CVAT) | 93.5% | 85.0% | 93.2% | 93.5% | 90.6% |
| Dolby Laboratories ($DLB) | 92.7% | 90.2% | 89.4% | 89.1% | 87.9% |
| Airgain, Inc. ($AIRG) | 44.6% | 41.9% | 44.4% | 47.1% | 43.7% |
| II-VI Incorporated ($IIVI) | 33.2% | 36.6% | 37.8% | 40.0% | 39.8% |
| Corning Incorporated ($GLW) | 41.7% | 40.1% | 40.1% | 39.7% | 39.5% |
| |
|---|
| Median (22 companies) | 31.7% | 36.6% | 33.7% | 34.9% | 36.3% |
|---|
| Flexpoint Sensor Systems Inc ($FLXT) | 96.7% | 95.2% | 92.7% | 87.9% | 86.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Corning Incorporated ($GLW) | 32.2% | 27.5% | 27.9% | 27.3% | 25.4% |
| Dolby Laboratories ($DLB) | 34.1% | 29.1% | 30.9% | 30.8% | 25.1% |
| Amphenol Corporation ($APH) | 22.5% | 22.9% | 22.6% | 23.6% | 24.2% |
| Vishay Intertechnology, Inc. ($VSH) | 14.8% | 11.9% | 15.4% | 18.7% | 21.3% |
| IEH Corp ($IEHC) | 18.4% | 21.2% | 18.0% | 16.3% | 20.2% |
| |
|---|
| Median (22 companies) | 9.4% | 12.2% | 14.1% | 11.4% | 12.7% |
|---|
| Flexpoint Sensor Systems Inc ($FLXT) | -240.5% | -754.3% | -287.8% | -221.2% | -271.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Akoustis Technologies, Inc. ($AKTS) | | | | 334.0% | 574.7% |
| CBAK Energy Technology, Inc. ($CBAK) | 8.0% | 92.4% | 57.2% | 20.6% | 30.1% |
| Corning Incorporated ($GLW) | 11.1% | 13.7% | 12.0% | 17.8% | 19.9% |
| II-VI Incorporated ($IIVI) | 4.3% | 7.1% | 7.0% | 14.3% | 13.2% |
| Superconductor Technologies Inc. ($SCON) | 586.1% | 57.8% | 0.0% | 34.1% | 12.1% |
| |
|---|
| Median (22 companies) | 4.2% | 3.1% | 3.0% | 5.1% | 4.1% |
|---|
| Flexpoint Sensor Systems Inc ($FLXT) | 0.0% | 0.0% | 3.6% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vishay Intertechnology, Inc. ($VSH) | 8.3% | 4.5% | 9.8% | 18.4% | 27.8% |
| IEH Corp ($IEHC) | 27.7% | 28.2% | 24.2% | 19.2% | 26.1% |
| Amphenol Corporation ($APH) | 19.1% | 18.5% | 18.3% | 19.2% | 21.1% |
| Inrad Optics Inc ($INRD) | -26.7% | -5.2% | -9.2% | -10.4% | 17.7% |
| Littelfuse, Inc. ($LFUS) | 14.3% | 11.1% | 11.7% | 15.8% | 12.1% |
| |
|---|
| Median (22 companies) | 6.9% | 6.1% | 6.4% | 7.0% | 8.4% |
|---|
| Flexpoint Sensor Systems Inc ($FLXT) | -17.0% | -24.5% | -22.0% | -20.6% | -22.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Belden Inc ($BDC) | 3.9x | 5.2x | 2.1x | 2.6x | 2.3x |
| Inrad Optics Inc ($INRD) | | 9.9x | | | 1.4x |
| Corning Incorporated ($GLW) | -0.7x | -0.0x | -0.5x | 0.3x | 1.3x |
| Bel Fuse Inc. ($BELFA) | 4.6x | 2.0x | | 1.4x | 1.3x |
| Amphenol Corporation ($APH) | 1.4x | 0.8x | 1.4x | 1.1x | 1.2x |
| |
|---|
| Median (15 companies) | -0.6x | -0.2x | -0.5x | -0.3x | 0.6x |
|---|
