Stratasys, Ltd. EBITDA decreased on 8.8% and EBITDA Margin showed almost no change
02/26/2020 • About Stratasys, Ltd. (
$SSYS) • By InTwits
Stratasys, Ltd. reported 2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Stratasys, Ltd. is a company in decline: 2019 revenue growth was -4.1%, 5 years revenue CAGR was -3.2%
- Stratasys, Ltd. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2015-2019 was 0.6% while average EBITDA Margin was -33.7% for the sames years. In 2019 SBC/Revenue was even higher: 3.2%
- Stratasys, Ltd. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's in pair with industry average of 5.8%
- CAPEX is quite volatile: $23m in 2019, $23m in 2018, $22m in 2017, $45m in 2016, $84m in 2015
- The company has unprofitable business model: ROIC is -0.9%
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 decreased on 4.1%. Revenue decline showed acceleration in 19Q4 - it was 9.7% YoY. During the last 5 years Revenue growth topped in 2017 at -0.61% and was decelerating since that time. EBITDA Margin showed almost no change in 2019. During 2015-2019 EBITDA Margin topped in 2018 at 7.9%.
Gross Margin showed almost no change in 2019. Gross Margin followed a growing trend in the last 5 years. SG&A as a % of Revenue increased slightly on 0.89 pp from 35.4% to 36.3% in 2019. SG&A as a % of Revenue followed a declining trend at -6.2 pp per annum in 2015-2019.
Net Income margin showed almost no change in 2019. During the last 5 years Net Income margin topped in 2018 at -1.7%.
Investments (CAPEX, working capital and M&A)
Stratasys, Ltd.'s CAPEX/Revenue was 3.5% in 2019. Stratasys, Ltd.'s CAPEX/Revenue decreased on 3.2 pp from 6.7% in 2016 to 3.5% in 2019. Average CAPEX/Revenue for the last three years was 3.5%. During 2015-2019 CAPEX as a % of Revenue bottomed in 2017 at 3.3% and was growing since that time.
Return on investment
The company operates at negative ROIC (-0.9%) and ROE (-0.9%). ROIC showed almost no change in 2019. ROE showed almost no change in 2019. During the last 5 years ROIC topped in 2018 at -0.75%. During the last 5 years ROE topped in 2018 at -0.88%.
Leverage (Debt)
Company's Net Debt / EBITDA is -5.7x and Debt / EBITDA is 0.5x. Debt dropped on 19.9% while cash dropped on 25.4%.
Stratasys, Ltd. has no short term refinancing risk: cash is higher than short term debt (3,158.5%).
Management team
Stratasys, Ltd.'s CEO Yoav Zeif is a founder and has spent 0 years with the company. Stratasys, Ltd.'s CFO Lilach Payorski has spent 3 years with the company.
At the end of financial year the company had 2.4% shares owned by insiders.
The company has 2,268 employees. Average revenue per employee in 2019 was
$280,459.
Financial and operational results
FY ended 12/31/2019
Stratasys, Ltd. ($SSYS) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 696.0 | 672.5 | 668.4 | 663.2 | 636.1 | -4.1% |
| Gross Profit | 102.2 | 317.3 | 322.8 | 325.2 | 313.7 | -3.5% |
| SG&A | 434.6 | 307.1 | 255.7 | 235.1 | 231.1 | -1.7% |
| EBITDA | -1,265.1 | 6.2 | 36.1 | 52.4 | 47.8 | -8.8% |
| EBIT | | | | | -3.1 | |
| Net Income | -1,372.8 | -77.2 | -40.0 | -11.0 | -10.8 | |
| Stock Based Compensation | | | | | 20.6 | |
Balance Sheet
|
|---|
| Cash | 257.6 | 280.3 | 328.8 | 393.2 | 293.5 | -25.4% |
| Accounts Receivable | | | | | 132.6 | |
| Inventory | | | | | 168.5 | |
| Accounts Payable | | | | | 35.8 | |
| Short Term Debt | 0.0 | 3.7 | 5.1 | 5.1 | 9.3 | 80.7% |
| Long Term Debt | 0.0 | 22.3 | 27.1 | 22.0 | 12.4 | -43.4% |
Cash flow
|
|---|
| Capex | 84.3 | 45.1 | 22.3 | 23.4 | 22.5 | -3.5% |
Ratios
|
|---|
| Revenue growth | -7.2% | -3.4% | -0.6% | -0.8% | -4.1% | |
| EBITDA growth | 3,164.1% | -100.5% | 485.9% | 45.1% | -8.8% | |
|
|---|
| Gross Margin | 14.7% | 47.2% | 48.3% | 49.0% | 49.3% | 0.3% |
| EBITDA Margin | -181.8% | 0.9% | 5.4% | 7.9% | 7.5% | -0.4% |
| EBIT Margin | | | | | -0.5% |
| SG&A, % of revenue | 62.4% | 45.7% | 38.3% | 35.4% | 36.3% | 0.9% |
| SBC, % of revenue | | | | | 3.2% |
| Net Income Margin | -197.2% | -11.5% | -6.0% | -1.7% | -1.7% | -0.1% |
| CAPEX, % of revenue | 12.1% | 6.7% | 3.3% | 3.5% | 3.5% | 0.0% |
|
|---|
| ROIC | -70.3% | -7.3% | -2.6% | -0.8% | -0.9% | -0.2% |
| ROE | -73.9% | -6.6% | -3.5% | -0.9% | -0.9% | -0.1% |
| Net Debt/EBITDA | | -41.3x | -8.2x | -7.0x | -5.7x | 1.3x |
People
|
|---|
| Insider ownership | | | | | 2.4% | |
| Employees | | | | | 2,268 | |
| Revenue/Employee, th. $ | | | | | 280 | |
Stratasys, Ltd. ($SSYS) key quoterly financial indicators
| mln. $ | 19Q1 | 19Q2 | 19Q3 | 19Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 155 | 163 | 157 | 160 | | 0.8% | -4.3% | -3.1% | -9.7% |
| EBITDA | 9 | 13 | 7 | 10 | | | -2.3% | | |
| Net Income | -2 | 1 | -7 | -3 | | | | | -147.6% |
Balance Sheet
|
|---|
| Cash | 368 | 366 | 347 | 293 | | 6.2% | 5.6% | -0.5% | -25.5% |
| Short Term Debt | 9 | 9 | 9 | 9 | | 75.0% | 75.0% | 75.0% | 75.0% |
| Long Term Debt | 18 | 15 | 13 | 12 | | -30.4% | -39.0% | -44.2% | -45.5% |
Ratios
|
|---|
| Gross Margin | 49.0% | 50.0% | 49.0% | 49.0% | | -0.2% | 0.9% | 0.3% | -0.1% |
| EBITDA Margin | 5.8% | 8.0% | 4.5% | 6.3% | | 5.8% | 0.2% | 4.5% | 6.3% |
| Net Income Margin | -1.3% | 0.6% | -4.5% | -1.9% | | 7.2% | 2.7% | -4.0% | -5.4% |
Peers in Technology Hardware, Storage & Peripherals
Below we provide Stratasys, Ltd. 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% | |
| Veritec Inc ($VRTC) | | | -52.2% | 53.1% | -38.5% |
| Boxlight Corporation ($BOXL) | -88.5% | 503.2% | 26.4% | 47.0% | |
| Pure Storage, Inc. ($PSTG) | 308.2% | 152.4% | 67.9% | 38.6% | |
| |
|---|
| Median (30 companies) | -3.2% | -5.0% | 2.1% | 5.6% | 26.9% |
|---|
| Stratasys, Ltd. ($SSYS) | | -3.4% | -0.6% | -0.8% | -4.1% |
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 ($DTSS) | | | 39.3% | 54.4% | |
| |
|---|
| Median (29 companies) | 36.3% | 38.5% | 38.9% | 38.3% | 25.0% |
|---|
| Stratasys, Ltd. ($SSYS) | 14.7% | 47.2% | 48.3% | 49.0% | 49.3% |
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 ($STX) | 21.1% | 11.3% | 16.7% | 20.0% | |
| |
|---|
| Median (29 companies) | 7.4% | 4.9% | 3.5% | 7.9% | -14.3% |
|---|
| Stratasys, Ltd. ($SSYS) | -181.8% | 0.9% | 5.4% | 7.9% | 7.5% |
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 ($WDC) | 4.2% | 4.5% | 3.0% | 4.0% | |
| |
|---|
| Median (29 companies) | 3.0% | 1.7% | 1.8% | 2.2% | 0.3% |
|---|
| Stratasys, Ltd. ($SSYS) | 12.1% | 6.7% | 3.3% | 3.5% | 3.5% |
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. ($NTAP) | 14.8% | 7.3% | 14.0% | 28.1% | |
| |
|---|
| Median (37 companies) | 5.8% | 1.8% | 1.6% | 3.6% | -16.4% |
|---|
| Stratasys, Ltd. ($SSYS) | -70.3% | -7.3% | -2.6% | -0.8% | -0.9% |
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. ($EFII) | 1.4x | 1.3x | 1.6x | 1.7x | |
| |
|---|
| Median (19 companies) | 0.6x | 0.4x | 0.5x | 1.1x | 2.1x |
|---|
| Stratasys, Ltd. ($SSYS) | | -41.3x | -8.2x | -7.0x | -5.7x |
