Veritec Inc revenue dropped on 38.5% and EBITDA Margin dropped on 108 pp from -70.6% to -178%
09/30/2019 • About Veritec Inc (
$VRTC) • By InTwits
Veritec Inc reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Veritec Inc is a company in decline: FY2019 revenue growth was -38.5%, 5 years revenue CAGR was -28.5%
- The company operates at negative EBITDA Margin: -178.5%
- Veritec Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2015-FY2019 was 0.0% while average EBITDA Margin was -87.0% for the sames years
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Veritec Inc's Revenue dropped on 38.5%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 108 pp from -70.6% to -178% in FY2019.
Gross Margin dropped on 25.4 pp from 50.4% to 25.0% in FY2019. SG&A as a % of Revenue jumped on 79.2 pp from 118% to 197% in FY2019.
Net Income margin dropped on 273 pp from -3.7% to -277% in FY2019.
Leverage (Debt)
Company's Net Debt / EBITDA is -5.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2019. Debt surged on 19.6% while cash dropped on 34.5%.
Veritec Inc has short term refinancing risk: cash is only 2.1% of short term debt.
Financial and operational results
FY ended 06/30/2019
Veritec Inc ($VRTC) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 0.946 | 0.681 | 0.326 | 0.498 | 0.307 | -38.5% |
| Gross Profit | 0.616 | 0.358 | 0.065 | 0.251 | 0.077 | -69.5% |
| SG&A | 0.926 | 0.727 | 0.756 | 0.589 | 0.605 | 2.7% |
| EBITDA | -0.408 | -0.374 | -0.720 | -0.352 | -0.547 | |
| Net Income | -0.907 | -1.298 | -1.370 | -0.018 | -0.849 | |
Balance Sheet
|
|---|
| Cash | 0.053 | 0.061 | 0.047 | 0.139 | 0.091 | -34.5% |
| Short Term Debt | 3.563 | 2.033 | 2.869 | 3.597 | 4.301 | 19.6% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | -42.2% | -28.0% | -52.2% | 53.1% | -38.5% | |
| EBITDA growth | -183.0% | -8.3% | 92.6% | -51.1% | 55.5% | |
|
|---|
| Gross Margin | 65.1% | 52.6% | 19.9% | 50.4% | 25.0% | -25.4% |
| EBITDA Margin | -43.1% | -54.9% | -221.1% | -70.6% | -178.5% | -107.9% |
| SG&A, % of revenue | 97.9% | 106.8% | 232.2% | 118.1% | 197.4% | 79.2% |
| Net Income Margin | -95.9% | -190.6% | -420.8% | -3.7% | -277.1% | -273.5% |
|
|---|
Peers in Technology Hardware, Storage & Peripherals
Below we provide Veritec Inc benchmarking against other companies in Technology Hardware, Storage & Peripherals 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 |
|---|
| Crossroads Systems Inc ($CRSS) | -90.6% | -35.5% | -89.5% | 39,959.5% | |
| Immersion Corporation ($IMMR) | 19.8% | -9.9% | -38.7% | 217.0% | |
| Boxlight Corporation ($BOXL) | -88.5% | 503.2% | 26.4% | 47.0% | |
| Pure Storage, Inc. ($PSTG) | 308.2% | 152.4% | 67.9% | 38.6% | |
| One Stop Systems, Inc. ($OSS) | 24.0% | 32.7% | 45.9% | 34.5% | |
| |
|---|
| Median (30 companies) | -3.2% | -4.6% | 2.1% | 4.3% | 44.1% |
|---|
| Veritec Inc ($VRTC) | | | -52.2% | 53.1% | -38.5% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Immersion Corporation ($IMMR) | 99.3% | 99.7% | 99.4% | 99.8% | |
| Pure Storage, Inc. ($PSTG) | 55.5% | 61.9% | 65.9% | 65.5% | |
| NetApp, Inc. ($NTAP) | 62.6% | 60.8% | 61.3% | 62.7% | |
| Avid Technology, Inc. ($AVID) | 60.9% | 65.0% | 57.8% | 57.9% | |
| Datasea Inc ($DTSS) | | | 39.3% | 54.4% | |
| |
|---|
| Median (29 companies) | 35.7% | 38.5% | 39.6% | 38.3% | 27.8% |
|---|
| Veritec Inc ($VRTC) | | 52.6% | 19.9% | 50.4% | 25.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Immersion Corporation ($IMMR) | 9.0% | -25.1% | -127.0% | 48.6% | |
| Apple Inc. ($AAPL) | 35.3% | 32.7% | 31.2% | 30.8% | |
| Western Digital Corporation ($WDC) | 18.7% | 12.5% | 21.4% | 27.5% | |
| NetApp, Inc. ($NTAP) | 16.7% | 11.3% | 15.4% | 22.9% | |
| Seagate Technology PLC ($STX) | 21.1% | 11.3% | 16.7% | 20.0% | |
| |
|---|
| Median (29 companies) | 7.0% | 4.9% | 4.5% | 7.9% | 7.5% |
|---|
| Veritec Inc ($VRTC) | | -54.9% | -221.1% | -70.6% | -178.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Hewlett Packard Enterprise Company ($HPE) | 6.4% | 10.8% | 10.9% | 9.6% | |
| Pure Storage, Inc. ($PSTG) | 24.2% | 8.9% | 10.4% | 6.3% | |
| 3D Systems Corporation ($DDD) | 3.4% | 2.6% | 4.8% | 5.9% | |
| Apple Inc. ($AAPL) | 4.8% | 5.9% | 5.4% | 5.0% | |
| Western Digital Corporation ($WDC) | 4.2% | 4.5% | 3.0% | 4.0% | |
| |
|---|
| Median (29 companies) | 3.0% | 2.0% | 1.9% | 2.4% | 3.4% |
|---|
| Veritec Inc ($VRTC) | | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Avid Technology, Inc. ($AVID) | | | | 252.4% | |
| Ionix Technology Inc ($IINX) | | | 23.9% | 204.5% | 9.7% |
| Immersion Corporation ($IMMR) | 5.8% | -21.5% | -138.9% | 96.8% | |
| HP Inc. ($HPQ) | 8.7% | 15.8% | 60.8% | 72.9% | |
| NetApp, Inc. ($NTAP) | 14.8% | 7.3% | 14.0% | 28.1% | |
| |
|---|
| Median (37 companies) | 5.7% | -0.4% | 0.9% | 2.7% | -0.9% |
|---|
| Veritec Inc ($VRTC) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| CPI Card Group Inc. ($PMTS) | 3.5x | 5.8x | | 12.4x | |
| NCR Corporation ($NCR) | 6.6x | 2.7x | 2.3x | 5.2x | |
| Avid Technology, Inc. ($AVID) | 3.1x | 1.7x | 5.6x | 4.8x | |
| Xerox Corporation ($XRX) | 3.5x | 3.1x | 3.0x | 3.0x | |
| Electronics for Imaging, Inc. ($EFII) | 1.4x | 1.3x | 1.6x | 1.7x | |
| |
|---|
| Median (20 companies) | 0.6x | 0.2x | 0.3x | 0.6x | -1.8x |
|---|
