Yingli Green Energy Holding Co Ltd revenue dropped on 46.7% while EBITDA Margin jumped on 12.6 pp from -29.3% to -16.7%
04/30/2019 • About Yingli Green Energy Holding Co Ltd (
$YGEHY) • By InTwits
Yingli Green Energy Holding Co Ltd reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Yingli Green Energy Holding Co Ltd is a company in decline: 2018 revenue growth was -46.7%, 5 years revenue CAGR was -20.0%
- The company operates at negative EBITDA Margin: -16.7%
- Yingli Green Energy Holding Co Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -13.3% for the sames years
- Yingli Green Energy Holding Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: $0m in 2018, $0m in 2017, $0m in 2016, $0m in 2015, $0m in 2014
- The company has unprofitable business model: ROIC is -194.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 46.7%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 12.6 pp from -29.3% to -16.7% in 2018.
Gross Margin decreased on 9.9 pp from 3.6% to -6.2% in 2018. Gross Margin followed a declining trend at -5.5 pp per annum in 2014-2018. SG&A as a % of Revenue increased on 4.0 pp from 9.8% to 13.9% in 2018.
Net Income margin increased on 3.5 pp from -39.7% to -36.2% in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 Yingli Green Energy Holding Co Ltd had CAPEX/Revenue of 2.5%. CAPEX/Revenue showed almost no change from 2015 to 2018. It's average CAPEX/Revenue for the last three years was 2.7%.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2018. Debt increased slightly on 1.4% while cash dropped on 22.8%.
Yingli Green Energy Holding Co Ltd has short term refinancing risk: cash is only 2.7% of short term debt.
Management team
Yingli Green Energy Holding Co Ltd's CFO is Yiyu Wang. Yiyu Wang has 6 years tenure at the company.
Financial and operational results
FY ended 12/31/2018
Yingli Green Energy Holding Co Ltd ($YGEHY) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 12,838 | 9,966 | 8,376 | 8,364 | 4,456 | -46.7% |
| Gross Profit | 2,223 | 1,187 | 1,152 | 305 | -278 | -191.3% |
| SG&A | 1,698 | 1,377 | 1,174 | 823 | 618 | -24.9% |
| EBITDA | 1,187 | -3,043 | -788 | -2,447 | -742 | |
| Net Income | -1,291 | -5,601 | -2,098 | -3,318 | -1,613 | |
Balance Sheet
|
|---|
| Cash | 1,070 | 1,241 | 507 | 378 | 292 | -22.8% |
| Short Term Debt | 10,117 | 9,124 | 9,010 | 10,407 | 10,686 | 2.7% |
| Long Term Debt | 4,574 | 2,706 | 2,524 | 920 | 797 | -13.4% |
Cash flow
|
|---|
| Capex | 302 | 231 | 213 | 264 | 113 | -57.3% |
Ratios
|
|---|
| Revenue growth | -5.8% | -22.4% | -16.0% | -0.1% | -46.7% | |
| EBITDA growth | 549.1% | -356.4% | -74.1% | 210.5% | -69.7% | |
|
|---|
| Gross Margin | 17.3% | 11.9% | 13.8% | 3.6% | -6.2% | -9.9% |
| EBITDA Margin | 9.2% | -30.5% | -9.4% | -29.3% | -16.7% | 12.6% |
| SG&A, % of revenue | 13.2% | 13.8% | 14.0% | 9.8% | 13.9% | 4.0% |
| Net Income Margin | -10.1% | -56.2% | -25.0% | -39.7% | -36.2% | 3.5% |
| CAPEX, % of revenue | 2.4% | 2.3% | 2.5% | 3.2% | 2.5% | -0.6% |
|
|---|
| ROIC | -1.3% | -33.4% | -25.3% | -93.5% | -194.2% | -100.6% |
| Net Debt/EBITDA | 11.5x | | | | |
Peers in Semiconductors
Below we provide Yingli Green Energy Holding Co Ltd benchmarking against other companies in Semiconductors 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 |
|---|
| NanoFlex Power Corp ($OPVS) | | | | 72.5% | 354.8% |
| MoSys, Inc. ($MOSY) | | -18.4% | 37.2% | 46.8% | 87.7% |
| SMART Global Holdings, Inc. ($SGH) | | | -16.9% | 42.5% | 69.3% |
| Micron Technology, Inc. ($MU) | | -1.0% | -23.4% | 63.9% | 49.5% |
| Adesto Technologies Corporation ($IOTS) | | 4.3% | 1.6% | 27.6% | 48.8% |
| |
|---|
| Median (68 companies) | | 9.7% | 5.2% | 11.0% | 4.9% |
|---|
| Yingli Green Energy Holding Co Ltd ($YGEHY) | | -22.4% | -16.0% | -0.1% | -46.7% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| CEVA, Inc. ($CEVA) | 90.2% | 90.9% | 91.6% | 92.1% | 89.8% |
| NVE Corporation ($NVEC) | 77.9% | 80.3% | 76.1% | 78.5% | 79.0% |
| Rambus, Inc. ($RMBS) | 85.9% | 84.7% | 80.1% | 79.9% | 76.8% |
| Universal Display Corporation ($OLED) | 76.0% | 64.2% | 83.9% | 80.8% | 75.5% |
| Intermolecular, Inc. ($IMI) | 48.3% | 57.4% | 66.5% | 67.5% | 70.3% |
| |
|---|
| Median (67 companies) | 46.4% | 47.7% | 48.0% | 49.1% | 50.4% |
|---|
| Yingli Green Energy Holding Co Ltd ($YGEHY) | 17.3% | 11.9% | 13.8% | 3.6% | -6.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NVE Corporation ($NVEC) | 58.8% | 66.0% | 61.8% | 65.6% | 65.1% |
| Micron Technology, Inc. ($MU) | 31.7% | 35.0% | 25.4% | 47.9% | 65.0% |
| NXP Semiconductors N.V. ($NXPI) | 25.7% | 41.5% | 21.6% | 46.2% | 49.9% |
| Texas Instruments Incorporated ($TXN) | 39.7% | 42.0% | 43.5% | 46.7% | 48.6% |
| Intel Corp ($INTC) | 42.8% | 41.0% | 35.2% | 41.7% | 45.7% |
| |
|---|
| Median (68 companies) | 9.9% | 11.5% | 9.2% | 10.7% | 9.8% |
|---|
| Yingli Green Energy Holding Co Ltd ($YGEHY) | 9.2% | -30.5% | -9.4% | -29.3% | -16.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Alpha and Omega Semiconductor Limited ($AOSL) | 3.0% | 6.6% | 6.5% | 12.2% | 42.2% |
| Renesola Ltd. ($SOL) | 3.5% | 0.0% | 0.0% | 78.0% | 41.7% |
| First Solar, Inc. ($FSLR) | 7.6% | 4.0% | 7.9% | 17.5% | 33.0% |
| Sigma Designs Inc ($SIGM) | 11.0% | 6.5% | 6.2% | 14.1% | 29.3% |
| Micron Technology, Inc. ($MU) | 19.0% | 24.8% | 46.9% | 23.3% | 29.2% |
| |
|---|
| Median (68 companies) | 3.6% | 4.0% | 3.7% | 4.7% | 4.4% |
|---|
| Yingli Green Energy Holding Co Ltd ($YGEHY) | 2.4% | 2.3% | 2.5% | 3.2% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| SMART Global Holdings, Inc. ($SGH) | | | 2.5% | 21.5% | 51.7% |
| Texas Instruments Incorporated ($TXN) | 25.1% | 29.8% | 34.9% | 43.1% | 47.5% |
| Micron Technology, Inc. ($MU) | 18.8% | 15.8% | 0.8% | 21.5% | 42.9% |
| Applied Materials Inc ($AMAT) | 15.8% | 15.2% | 19.0% | 31.2% | 36.4% |
| NVIDIA Corporation ($NVDA) | 9.2% | 13.3% | 13.1% | 27.3% | 35.3% |
| |
|---|
| Median (76 companies) | 5.7% | 3.8% | 1.7% | 3.2% | 3.0% |
|---|
| Yingli Green Energy Holding Co Ltd ($YGEHY) | -1.3% | -33.4% | -25.3% | -93.5% | -194.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 25.4x | 3.3x | 3.0x | 7.2x | 98.6x |
| Inphi Corporation ($IPHI) | | -6.4x | 4.5x | 33.7x | 32.2x |
| JinkoSolar Holding Company Limited ($JKS) | 4.2x | 3.3x | 4.1x | 11.0x | 8.2x |
| Lattice Semiconductor Corporation ($LSCC) | -1.8x | | 6.5x | 19.0x | 3.9x |
| Renesola Ltd. ($SOL) | 7.0x | 35.0x | 123.6x | 2.3x | 3.3x |
| |
|---|
| Median (46 companies) | -0.6x | -0.2x | 0.2x | 0.4x | 0.3x |
|---|
