StrikeForce Technologies Inc revenue dropped on 14.7% and EBITDA Margin dropped on 153 pp from -871% to -1,024%
04/15/2019 • About StrikeForce Technologies Inc (
$SFOR) • By InTwits
StrikeForce Technologies Inc reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- StrikeForce Technologies Inc is a company in decline: 2018 revenue growth was -14.7%, 5 years revenue CAGR was -11.7%
- The company operates at negative EBITDA Margin: -1,023.6%
- StrikeForce Technologies Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -643.6% for the sames years
- StrikeForce Technologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. 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, $0m in 2014
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
StrikeForce Technologies Inc's Revenue dropped on 14.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 153 pp from -871% to -1,024% in 2018. EBITDA Margin followed a declining trend at -174 pp per annum in the last 5 years.
Gross Margin decreased slightly on 1.5 pp from 95.4% to 94.0% in 2018. SG&A as a % of Revenue dropped on 57.7 pp from 389% to 332% in 2018. SG&A as a % of Revenue followed a growing trend at 77.3 pp per annum in the last 5 years.
Net Income margin dropped on 233 pp from -1,170% to -1,403% in 2018. During 2014-2018 Net Income margin topped in 2016 at 765% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.7% in 2018. The company showed small growth in CAPEX/Revenue of 1.8 pp from 0.87% in 2015 to 2.7% in 2018. Average CAPEX/Revenue for the last three years was 2.0%.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.6x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2018. Debt jumped on 16.0% while cash dropped on 81.1%.
StrikeForce Technologies Inc has short term refinancing risk: cash is only 1.7% of short term debt.
Financial and operational results
FY ended 12/31/2018
StrikeForce Technologies Inc ($SFOR) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 0.325 | 0.272 | 0.384 | 0.274 | 0.234 | -14.7% |
| Gross Profit | 0.315 | 0.263 | 0.378 | 0.262 | 0.220 | -16.0% |
| SG&A | 0.283 | 0.287 | 1.191 | 1.067 | 0.776 | -27.3% |
| EBITDA | -1.258 | -1.104 | -2.437 | -2.387 | -2.394 | |
| Net Income | -3.350 | -1.807 | 2.939 | -3.207 | -3.282 | |
Balance Sheet
|
|---|
| Cash | 0.013 | 0.037 | 0.804 | 0.455 | 0.086 | -81.1% |
| Short Term Debt | 4.466 | 5.795 | 4.249 | 4.250 | 4.928 | 16.0% |
| Long Term Debt | 0.097 | 0.243 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.006 | 0.002 | 0.008 | 0.003 | 0.006 | 89.5% |
Ratios
|
|---|
| Revenue growth | -25.3% | -16.4% | 41.5% | -28.7% | -14.7% | |
| EBITDA growth | 2.8% | -12.2% | 120.7% | -2.1% | 0.3% | |
|
|---|
| Gross Margin | 97.0% | 96.9% | 98.3% | 95.4% | 94.0% | -1.5% |
| EBITDA Margin | -387.4% | -406.6% | -634.3% | -870.8% | -1,023.6% | -152.8% |
| SG&A, % of revenue | 87.1% | 105.6% | 309.8% | 389.3% | 331.6% | -57.7% |
| Net Income Margin | -1,031.5% | -665.5% | 764.7% | -1,169.7% | -1,403.1% | -233.4% |
| CAPEX, % of revenue | 1.7% | 0.9% | 2.1% | 1.2% | 2.7% | 1.5% |
|
|---|
Peers in Systems Software
Below we provide StrikeForce Technologies Inc benchmarking against other companies in Systems Software 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 |
|---|
| Advantego Corp ($ADGO) | | | | | 973.8% |
| Solbright Group Inc ($SBRT) | | | 286.4% | 25.4% | 414.0% |
| Duos Technologies Group Inc ($DUOT) | | 61.0% | -9.8% | -36.4% | 210.2% |
| Dell Technologies Inc. ($DVMT) | | | | | 145.7% |
| Finjan Holdings, Inc. ($FNJN) | | -6.2% | 292.3% | 174.6% | 63.0% |
| |
|---|
| Median (48 companies) | | 20.6% | 14.6% | 16.6% | 20.4% |
|---|
| StrikeForce Technologies Inc ($SFOR) | | -16.4% | 41.5% | -28.7% | -14.7% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Varonis Systems, Inc. ($VRNS) | 90.2% | 90.6% | 90.5% | 90.4% | 89.8% |
| Check Point Software Technologies Ltd. ($CHKP) | 88.2% | 88.5% | 88.5% | 88.6% | 89.6% |
| Tableau Software, Inc. ($DATA) | 91.0% | 88.7% | 88.0% | 87.1% | 87.7% |
| Attunity Ltd. ($ATTU) | 90.7% | 84.9% | 83.9% | 84.1% | 87.5% |
| Dell Technologies Inc. ($DVMT) | | | | 87.6% | 87.5% |
| |
|---|
| Median (53 companies) | 76.1% | 74.5% | 73.1% | 73.9% | 73.5% |
|---|
| StrikeForce Technologies Inc ($SFOR) | 97.0% | 96.9% | 98.3% | 95.4% | 94.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Check Point Software Technologies Ltd. ($CHKP) | 54.3% | 52.4% | 49.8% | 50.7% | 48.8% |
| SolarWinds Corporation ($SWI) | | | -8.0% | 44.0% | 44.8% |
| Finjan Holdings, Inc. ($FNJN) | -192.1% | -295.2% | 2.2% | 30.2% | 42.0% |
| Oracle Corporation ($ORCL) | 46.2% | 43.8% | 40.8% | 40.2% | 40.8% |
| CA Inc. ($CA) | 33.9% | 36.7% | 37.2% | 36.1% | 35.3% |
| |
|---|
| Median (47 companies) | 1.0% | -5.0% | -8.0% | -3.6% | -3.9% |
|---|
| StrikeForce Technologies Inc ($SFOR) | -387.4% | -406.6% | -634.3% | -870.8% | -1,023.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| The Rubicon Project, Inc. ($RUBI) | 15.6% | 11.4% | 12.0% | 26.0% | 16.0% |
| CYREN Ltd. ($CYRN) | 2.4% | 4.4% | 3.2% | 5.8% | 9.2% |
| ServiceNow, Inc. ($NOW) | 8.0% | 8.7% | 7.6% | 7.8% | 8.6% |
| Qualys, Inc. ($QLYS) | 10.4% | 12.2% | 11.7% | 16.4% | 8.2% |
| Zscaler, Inc. ($ZS) | | 12.5% | 7.8% | 6.5% | 8.0% |
| |
|---|
| Median (48 companies) | 2.9% | 2.2% | 2.1% | 2.4% | 2.5% |
|---|
| StrikeForce Technologies Inc ($SFOR) | 1.7% | 0.9% | 2.1% | 1.2% | 2.7% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Finjan Holdings, Inc. ($FNJN) | -42.6% | -113.5% | 3.4% | 46.6% | 64.1% |
| Fortinet, Inc. ($FTNT) | 9.2% | 2.1% | 5.3% | 15.0% | 28.0% |
| Check Point Software Technologies Ltd. ($CHKP) | 22.2% | 23.7% | 24.7% | 26.8% | 25.5% |
| MAM Software Group, Inc. ($MAMS) | 13.3% | 19.3% | 21.1% | 24.2% | 25.2% |
| Red Hat, Inc. ($RHT) | 15.1% | 14.1% | 14.2% | 16.4% | 22.4% |
| |
|---|
| Median (56 companies) | 0.0% | 0.0% | -2.1% | -4.4% | -1.6% |
|---|
| StrikeForce Technologies Inc ($SFOR) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NXT-ID Inc. ($NXTD) | | | | | 9.7x |
| Symantec Corporation ($SYMC) | -3.2x | -1.5x | -5.0x | 10.0x | 4.7x |
| SolarWinds Corporation ($SWI) | | | | 6.2x | 4.1x |
| Oracle Corporation ($ORCL) | 0.4x | 1.2x | 1.6x | 2.4x | 2.4x |
| ServiceNow, Inc. ($NOW) | | | | 9.0x | 0.9x |
| |
|---|
| Median (23 companies) | -2.4x | -1.4x | -1.2x | -0.6x | -0.4x |
|---|
