CBAK Energy Technology, Inc. revenue started to decline in 2018: dropped 58.1% vs. 463% growth a year earliner
04/16/2019 • About CBAK Energy Technology, Inc. (
$CBAK) • By InTwits
CBAK Energy Technology, Inc. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CBAK Energy Technology, Inc. is a company in decline: 2018 revenue growth was -58.1%, 5 years revenue CAGR was -33.3%
- The company operates at negative EBITDA Margin: -44.9%
- CBAK Energy Technology, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -20.5% for the sames years
- CBAK Energy Technology, Inc. has high CAPEX intensity: 5 year average CAPEX/Revenue was 41.7%. At the same time it's a lot of higher than industry average of 30.9%.
- CAPEX is quite volatile: $2m in 2018, $0m in 2017, $1m in 2016, $1m in 2015, $7m in 2014
- The company has unprofitable business model: ROIC is -32.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.8x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
CBAK Energy Technology, Inc.'s Revenue dropped on 58.1%. Revenue decline showed acceleration in 18Q4 - it was 69.0% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 358 pp from -332% to 25.5% in 2018.
Gross Margin increased on 4.0 pp from -17.5% to -13.5% in 2018. During 2014-2018 Gross Margin bottomed in 2017 at -17.5%. SG&A as a % of Revenue jumped on 14.0 pp from 12.9% to 26.9% in 2018.
Net Income margin jumped on 28.8 pp from -36.8% to -8.0% in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 30.1%. CBAK Energy Technology, Inc.'s CAPEX/Revenue dropped on 62.3 pp from 92.4% in 2015 to 30.1% in 2018. It's average CAPEX/Revenue for the last three years was 36.0%.
Return on investment
The company operates at negative ROIC (-32.6%) and ROE (-154.8%). ROIC jumped on 18.5 pp from -51.1% to -32.6% in 2018. ROE surged on 93.6 pp from -248% to -155% in 2018. During the last 5 years ROIC bottomed in 2017 at -51.1%.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2018. Debt jumped on 12.6% while cash dropped on 72.7%.
CBAK Energy Technology, Inc. has short term refinancing risk: cash is only 2.5% of short term debt.
Management team
CBAK Energy Technology, Inc.'s CEO Yunfei Li is a founder and has spent 2 years with the company. The company's CFO is Wenwu Wang. Wenwu Wang has 2 years tenure at the company.
Financial and operational results
FY ended 12/31/2018
CBAK Energy Technology, Inc. ($CBAK) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 123.0 | 13.9 | 10.4 | 58.4 | 24.4 | -58.1% |
| Gross Profit | 9.6 | 0.9 | -1.7 | -10.2 | -3.3 | |
| SG&A | 16.9 | 3.5 | 5.7 | 7.5 | 6.6 | -12.8% |
| EBITDA | -2.4 | -3.1 | -11.0 | -19.6 | -11.0 | |
| Net Income | 37.8 | 15.9 | -12.7 | -21.5 | -1.9 | |
Balance Sheet
|
|---|
| Cash | 1.0 | 6.8 | 2.0 | 1.6 | 0.4 | -72.7% |
| Short Term Debt | 4.9 | 12.6 | 5.9 | 14.6 | 17.8 | 21.7% |
| Long Term Debt | 0.0 | 0.0 | 19.0 | 19.5 | 20.6 | 5.8% |
Cash flow
|
|---|
| Capex | 9.8 | 12.9 | 5.9 | 12.0 | 7.4 | -38.9% |
Ratios
|
|---|
| Revenue growth | -33.7% | -88.7% | -25.4% | 463.0% | -58.1% | |
| EBITDA growth | -97.1% | 31.6% | 250.5% | 78.0% | -44.0% | |
|
|---|
| Gross Margin | 7.8% | 6.8% | -16.7% | -17.5% | -13.5% | 4.0% |
| EBITDA Margin | -1.9% | -22.6% | -106.1% | -33.6% | -44.9% | -11.4% |
| SG&A, % of revenue | 13.7% | 24.9% | 55.3% | 12.9% | 26.9% | 14.0% |
| Net Income Margin | 30.7% | 114.2% | -122.0% | -36.8% | -8.0% | 28.8% |
| CAPEX, % of revenue | 8.0% | 92.4% | 57.2% | 20.6% | 30.1% | 9.5% |
|
|---|
| ROIC | -16.7% | -18.2% | -29.4% | -51.1% | -32.6% | 18.5% |
| ROE | | | -68.8% | -248.4% | -154.8% | 93.6% |
CBAK Energy Technology, Inc. ($CBAK) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 3 | 6 | 6 | 9 | | -10.9% | -4.6% | -68.5% | -69.0% |
| EBITDA | -2 | -3 | -3 | -3 | | | | | |
| Net Income | -3 | -3 | 8 | -4 | | | | | |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 0 | | 184.8% | -73.9% | 493.9% | -72.7% |
| Short Term Debt | 18 | 21 | 21 | 18 | | 2.1% | 42.5% | 55.1% | 21.7% |
| Long Term Debt | 20 | 18 | 19 | 21 | | 9.8% | -3.6% | -2.0% | 5.8% |
Ratios
|
|---|
| Gross Margin | -10.5% | -17.3% | -32.9% | -0.7% | | 0.7% | 6.2% | -25.2% | 22.0% |
| EBITDA Margin | -56.6% | -44.7% | -62.1% | -30.8% | | -9.0% | 7.3% | -40.5% | 4.2% |
| Net Income Margin | -77.5% | -57.0% | 141.9% | -40.7% | | -21.9% | 2.3% | 165.5% | -3.3% |
Peers in Electronic Components
Below we provide CBAK Energy Technology, Inc. benchmarking against other companies in Electronic Components 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 |
|---|
| 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 ($CVAT) | | -73.6% | 267.5% | -40.9% | 22.6% |
| |
|---|
| Median (22 companies) | | 0.0% | 2.1% | 7.7% | 16.6% |
|---|
| CBAK Energy Technology, Inc. ($CBAK) | | -88.7% | -25.4% | 463.0% | -58.1% |
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% |
| Flexpoint Sensor Systems Inc ($FLXT) | 96.7% | 95.2% | 92.7% | 87.9% | 86.1% |
| Airgain, Inc. ($AIRG) | 44.6% | 41.9% | 44.4% | 47.1% | 43.7% |
| II-VI Incorporated ($IIVI) | 33.2% | 36.6% | 37.8% | 40.0% | 39.8% |
| |
|---|
| Median (22 companies) | 33.2% | 36.7% | 33.7% | 38.3% | 37.6% |
|---|
| CBAK Energy Technology, Inc. ($CBAK) | 7.8% | 6.8% | -16.7% | -17.5% | -13.5% |
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 ($IEHC) | 18.4% | 21.2% | 18.0% | 16.3% | 20.2% |
| |
|---|
| Median (22 companies) | 9.4% | 12.2% | 14.1% | 11.4% | 12.7% |
|---|
| CBAK Energy Technology, Inc. ($CBAK) | -1.9% | -22.6% | -106.1% | -33.6% | -44.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Akoustis Technologies, Inc. ($AKTS) | | | | 334.0% | 574.7% |
| Corning Incorporated ($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% |
| Knowles Corporation ($KN) | 7.4% | 7.4% | 4.5% | 6.9% | 9.7% |
| |
|---|
| Median (22 companies) | 3.9% | 2.7% | 3.0% | 4.2% | 3.8% |
|---|
| CBAK Energy Technology, Inc. ($CBAK) | 8.0% | 92.4% | 57.2% | 20.6% | 30.1% |
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. ($LFUS) | 14.3% | 11.1% | 11.7% | 15.8% | 12.1% |
| |
|---|
| Median (22 companies) | 6.9% | 6.1% | 6.4% | 7.0% | 8.4% |
|---|
| CBAK Energy Technology, Inc. ($CBAK) | -16.7% | -18.2% | -29.4% | -51.1% | -32.6% |
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 |
|---|
