LightPath Technologies, Inc. EBITDA dropped on 38.5% while Revenue increased on 3.8%
09/12/2019 • About LightPath Technologies, Inc. (
$LPTH) • By InTwits
LightPath Technologies, Inc. reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 6.9% in FY2019, 11.6% in FY2018, 21.9% in FY2017, 16.5% in FY2016, 2.0% in FY2015
- LightPath Technologies, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.6%. At the same time it's in pair with industry average of 6.0%
- CAPEX is quite volatile: $2m in FY2019, $3m in FY2018, $2m in FY2017, $1m in FY2016, $1m in FY2015
- The company has unprofitable business model: ROIC is -2.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.9x while industry average is -0.9x
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 increased on 3.8%. During the last 5 years Revenue growth topped in FY2017 at 64.2% and was decelerating since that time. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 4.7 pp from 11.6% to 6.9% in FY2019. During the last 5 years EBITDA Margin topped in FY2017 at 21.9% and was declining since that time.
Gross Margin decreased slightly on 1.4 pp from 38.5% to 37.1% in FY2019. During the last 5 years Gross Margin topped in FY2016 at 53.9% and was declining since that time. SG&A as a % of Revenue increased on 2.8 pp from 28.3% to 31.1% in FY2019.
Net Income margin dropped on 11.2 pp from 3.3% to -7.9% in FY2019. During FY2015-FY2019 Net Income margin topped in FY2017 at 27.2% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 5.7% in FY2019. LightPath Technologies, Inc. showed small CAPEX/Revenue decline of 0.82 pp from 6.5% in FY2016 to 5.7% in FY2019. Average CAPEX/Revenue for the last three years was 7.1%. The company invested a large share of EBITDA (83.1%) to CAPEX. During the last 5 years CAPEX as a % of Revenue topped in FY2017 at 7.8% and was declining since that time.
Return on investment
The company operates at negative ROIC (-2.8%) and ROE (-7.8%). ROIC decreased on 3.7 pp from 0.90% to -2.8% in FY2019. ROE dropped on 11.0 pp from 3.3% to -7.8% in FY2019. During FY2015-FY2019 ROIC topped in FY2016 at 20.3% and was declining since that time. During FY2015-FY2019 ROE topped in FY2017 at 37.9% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is 2.9x. Net Debt / EBITDA surged on 0.4x from 0.5x to 0.9x in FY2019. Debt dropped on 10.9% while cash dropped on 16.4%. Net Debt/EBITDA grew at 1.1x per annum in FY2015-FY2019.
LightPath Technologies, Inc. has no short term refinancing risk: cash is higher than short term debt (467.1%).
Financial and operational results
FY ended 06/30/2019
LightPath Technologies, Inc. ($LPTH) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 13.662 | 17.272 | 28.367 | 32.525 | 33.749 | 3.8% |
| Gross Profit | 5.979 | 9.305 | 14.719 | 12.528 | 12.519 | -0.1% |
| SG&A | 5.130 | 6.581 | 8.651 | 9.218 | 10.499 | 13.9% |
| EBITDA | 0.278 | 2.857 | 6.218 | 3.777 | 2.324 | -38.5% |
| Net Income | -0.715 | 1.415 | 7.703 | 1.060 | -2.680 | -352.8% |
Balance Sheet
|
|---|
| Cash | 1.644 | 2.908 | 8.085 | 5.509 | 4.605 | -16.4% |
| Short Term Debt | 0.218 | 0.166 | 1.351 | 1.766 | 0.986 | -44.2% |
| Long Term Debt | 0.310 | 0.179 | 10.069 | 5.670 | 5.640 | -0.5% |
Cash flow
|
|---|
| Capex | 0.689 | 1.131 | 2.223 | 2.518 | 1.932 | -23.3% |
Ratios
|
|---|
| Revenue growth | 15.4% | 26.4% | 64.2% | 14.7% | 3.8% | |
| EBITDA growth | -4.1% | 926.0% | 117.6% | -39.3% | -38.5% | |
|
|---|
| Gross Margin | 43.8% | 53.9% | 51.9% | 38.5% | 37.1% | -1.4% |
| EBITDA Margin | 2.0% | 16.5% | 21.9% | 11.6% | 6.9% | -4.7% |
| SG&A, % of revenue | 37.6% | 38.1% | 30.5% | 28.3% | 31.1% | 2.8% |
| Net Income Margin | -5.2% | 8.2% | 27.2% | 3.3% | -7.9% | -11.2% |
| CAPEX, % of revenue | 5.0% | 6.5% | 7.8% | 7.7% | 5.7% | -2.0% |
|
|---|
| ROIC | -3.2% | 20.3% | 15.8% | 0.9% | -2.8% | -3.7% |
| ROE | -9.4% | 14.9% | 37.9% | 3.3% | -7.8% | -11.0% |
| Net Debt/EBITDA | -4.0x | -0.9x | 0.5x | 0.5x | 0.9x | 0.4x |
Peers in Electronic Equipment & Instruments
Below we provide LightPath Technologies, Inc. benchmarking against other companies in Electronic Equipment & Instruments 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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| SGOCO Group, Ltd ($SGOC) | -95.6% | 163.9% | -99.0% | 2,998.0% | |
| Hickok Inc ($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% | |
| Huami Corporation ($HMI) | | 73.6% | 31.6% | 77.9% | 59.4% |
| |
|---|
| Median (63 companies) | 3.0% | 0.3% | 4.1% | 10.4% | 8.8% |
|---|
| LightPath Technologies, Inc. ($LPTH) | | | 64.2% | 14.7% | 3.8% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Intellicheck, Inc. ($IDN) | 57.1% | 80.0% | 85.5% | 91.3% | |
| Image Sensing Systems, Inc. ($ISNS) | 77.1% | 71.0% | 79.9% | 80.9% | |
| National Instruments Corporation ($NATI) | 74.1% | 74.5% | 74.5% | 75.4% | |
| Cognex Corporation ($CGNX) | 77.2% | 75.2% | 75.6% | 74.4% | |
| Applied DNA Sciences Inc ($APDN) | | 82.2% | 77.3% | 69.1% | |
| |
|---|
| Median (62 companies) | 42.0% | 39.4% | 41.0% | 40.9% | 36.2% |
|---|
| LightPath Technologies, Inc. ($LPTH) | | 53.9% | 51.9% | 38.5% | 37.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Cognex Corporation ($CGNX) | 30.1% | 31.9% | 36.0% | 30.1% | |
| Coherent, Inc. ($COHR) | 16.7% | 18.9% | 24.9% | 26.6% | |
| Hollysys Automation Technologies, Ltd. ($HOLI) | 26.9% | 23.5% | 16.1% | 23.9% | 23.1% |
| Electro Scientific Industries, Inc. ($ESIO) | -19.1% | -2.0% | -17.8% | 23.1% | |
| FLIR Systems, Inc. ($FLIR) | 22.8% | 21.3% | 20.0% | 21.7% | |
| |
|---|
| Median (62 companies) | 4.2% | 2.9% | 4.1% | 3.3% | 12.6% |
|---|
| LightPath Technologies, Inc. ($LPTH) | | 16.5% | 21.9% | 11.6% | 6.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| SGOCO Group, Ltd ($SGOC) | 0.0% | 0.0% | 0.0% | 154.6% | |
| Wrap Technologies Inc ($WRTC) | | | | 61.4% | |
| ClearSign Combustion Corporation ($CLIR) | 80.3% | 22.1% | 17.4% | 17.7% | |
| Giga-tronics Inc ($GIGA) | 0.1% | 1.3% | 0.3% | 7.0% | |
| Applied DNA Sciences Inc ($APDN) | 3.9% | 16.1% | 3.1% | 6.8% | |
| |
|---|
| Median (62 companies) | 1.9% | 2.0% | 1.6% | 2.2% | 1.3% |
|---|
| LightPath Technologies, Inc. ($LPTH) | | 6.5% | 7.8% | 7.7% | 5.7% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | | 83.3% | 39.6% | 55.3% | |
| Electro Scientific Industries, Inc. ($ESIO) | -19.7% | -7.1% | -22.9% | 31.5% | |
| Huami Corporation ($HMI) | | 4.5% | 38.6% | 30.1% | 27.7% |
| Coherent, Inc. ($COHR) | 13.1% | 15.6% | 24.0% | 21.5% | |
| Zebra Technologies Corporation ($ZBRA) | 0.9% | 2.2% | 10.2% | 20.8% | |
| |
|---|
| Median (74 companies) | 2.3% | 2.1% | 2.6% | 1.3% | 16.3% |
|---|
| LightPath Technologies, Inc. ($LPTH) | | 20.3% | 15.8% | 0.9% | -2.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Itron, Inc. ($ITRI) | 1.9x | 1.0x | 2.0x | 12.3x | |
| Track Group Inc ($TRCK) | | | | 12.2x | |
| Mesa Laboratories, Inc. ($MLAB) | 1.1x | 1.7x | 2.0x | 3.5x | |
| Trimble Inc. ($TRMB) | 1.7x | 1.1x | 1.3x | 3.4x | |
| MTS Systems Corporation ($MTSC) | -0.4x | 5.8x | 3.9x | 3.2x | |
| |
|---|
| Median (36 companies) | -0.7x | -0.8x | -0.9x | -1.0x | -2.3x |
|---|
| LightPath Technologies, Inc. ($LPTH) | | -0.9x | 0.5x | 0.5x | 0.9x |
