LightPath Technologies, Inc. reports 167% EBITDA growth in 2020 and 10.9 pp EBITDA Margin growth from 6.9% to 17.8%
09/10/2020 • About LightPath Technologies, Inc. (
$LPTH) • By InTwits
LightPath Technologies, Inc. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 17.8% in FY2020, 6.9% in FY2019, 11.6% in FY2018, 21.9% in FY2017, 16.5% in FY2016
- LightPath Technologies, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.0%. At the same time it's in pair with industry average of 7.7%
- CAPEX is quite volatile: $1m in FY2020, $3m in FY2019, $2m in FY2018, $2m in FY2017, $2m in FY2016
- The company has potentially unprofitable business model: ROIC is 5.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.4x while industry average is -0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
LightPath Technologies, Inc.'s Revenue increased on 3.6%. During FY2016-FY2020 Revenue growth topped in FY2017 at 64.2% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.9 pp from -6.2% to -1.2% in FY2020.
Gross Margin increased on 2.5 pp from 37.1% to 39.6% in FY2020. During the last 5 years Gross Margin bottomed in FY2019 at 37.1%. SG&A as a % of Revenue decreased on 5.5 pp from 31.1% to 25.6% in FY2020.
Net Income margin jumped on 10.4 pp from -7.9% to 2.5% in FY2020.
Investments (CAPEX, working capital and M&A)
LightPath Technologies, Inc.'s CAPEX/Revenue was 7.0% in FY2020. CAPEX/Revenue decreased slightly on 0.85 pp from 7.8% in FY2017 to 7.0% in FY2020. Average CAPEX/Revenue for the last three years was 6.8%.
Return on investment
The company operates at low ROIC (5.5%) and ROE (2.5%). ROIC increased on 8.3 pp from -2.8% to 5.5% in FY2020. ROE surged on 10.3 pp from -7.8% to 2.5% in FY2020. During FY2016-FY2020 ROIC bottomed in FY2019 at -2.8%.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 1.2x. Net Debt / EBITDA dropped on 0.5x from 0.9x to 0.4x in FY2020. Debt jumped on 15.1% while cash surged on 17.0%.
LightPath Technologies, Inc. has no short term refinancing risk: cash is higher than short term debt (266.1%).
Valuation and dividends
The company's trades at EV/EBITDA 11.1x and P/E 77.1x.
Financial and operational results
FY ended 06/30/2020
LightPath Technologies, Inc. ($LPTH) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 17.272 | 28.367 | 32.525 | 33.749 | 34.968 | 3.6% |
| Gross Profit | 9.305 | 14.719 | 12.528 | 12.519 | 13.842 | 10.6% |
| SG&A | 6.581 | 8.651 | 9.218 | 10.499 | 8.961 | -14.6% |
| EBITDA | 2.857 | 6.218 | 3.777 | 2.324 | 6.216 | 167.5% |
| Net Income | 1.415 | 7.703 | 1.060 | -2.680 | 0.867 | |
Balance Sheet
|
|---|
| Cash | 2.908 | 8.085 | 5.509 | 4.605 | 5.387 | 17.0% |
| Short Term Debt | 0.166 | 1.351 | 1.766 | 0.986 | 2.025 | 105.4% |
| Long Term Debt | 0.179 | 10.069 | 5.670 | 5.640 | 5.605 | -0.6% |
Cash flow
|
|---|
| Capex | 1.131 | 2.223 | 2.518 | 1.932 | 2.443 | 26.4% |
Ratios
|
|---|
| Revenue growth | 26.4% | 64.2% | 14.7% | 3.8% | 3.6% | |
| EBITDA growth | 926.0% | 117.6% | -39.3% | -38.5% | 167.5% | |
|
|---|
| Gross Margin | 53.9% | 51.9% | 38.5% | 37.1% | 39.6% | 2.5% |
| EBITDA Margin | 16.5% | 21.9% | 11.6% | 6.9% | 17.8% | 10.9% |
| SG&A, % of revenue | 38.1% | 30.5% | 28.3% | 31.1% | 25.6% | -5.5% |
| Net Income Margin | 8.2% | 27.2% | 3.3% | -7.9% | 2.5% | 10.4% |
| CAPEX, % of revenue | 6.5% | 7.8% | 7.7% | 5.7% | 7.0% | 1.3% |
|
|---|
| ROIC | 20.3% | 15.8% | 0.9% | -2.8% | 5.5% | 8.3% |
| ROE | 14.9% | 37.9% | 3.3% | -7.8% | 2.5% | 10.3% |
| Net Debt/EBITDA | -0.9x | 0.5x | 0.5x | 0.9x | 0.4x | -0.5x |
LightPath Technologies, Inc. ($LPTH) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 10 | 9 | 9 | | - | - | - | - |
| EBITDA | 0 | 2 | 2 | 2 | | - | - | - | - |
| Net Income | -1 | 1 | 1 | 1 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 5 | 4 | 4 | 5 | | - | - | - | - |
| Short Term Debt | 2 | 2 | 2 | 2 | | - | - | - | - |
| Long Term Debt | 7 | 6 | 6 | 6 | | - | - | - | - |
Ratios
|
|---|
| Gross Margin | 31.7% | 40.9% | 46.1% | 38.5% | | - | - | - | - |
| EBITDA Margin | 5.9% | 21.9% | 23.5% | 17.8% | | - | - | - | - |
| Net Income Margin | -18.2% | 8.0% | 9.4% | 7.2% | | - | - | - | - |
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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Intellicheck, Inc. ($IDN) | - | -6.3% | 23.2% | 72.9% | 40.1% |
| nLIGHT, Inc. ($LASR) | - | 36.8% | 38.1% | -7.7% | 26.1% |
| Luna Innovations Incorporated ($LUNA) | - | -21.0% | 29.7% | 64.3% | 17.3% |
| PAR Technology Corporation ($PAR) | - | 1.3% | -13.5% | -7.0% | 14.2% |
| Cognex Corporation ($CGNX) | - | 44.7% | 5.3% | -10.0% | 11.8% |
| |
|---|
| Median (26 companies) | -3.8% | 4.1% | 10.4% | 5.2% | -3.5% |
|---|
| LightPath Technologies, Inc. ($LPTH) | - | 64.2% | 14.7% | 3.8% | 3.6% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Intellicheck, Inc. ($IDN) | 80.0% | 85.5% | 91.3% | 87.0% | 86.7% |
| Cognex Corporation ($CGNX) | 75.2% | 75.6% | 74.4% | 73.8% | 74.5% |
| National Instruments Corporation ($NATI) | 74.5% | 74.5% | 75.4% | 75.1% | 71.2% |
| Coda Octopus Group, Inc. ($CODA) | - | 66.4% | - | 65.6% | 63.5% |
| Applied DNA Sciences Inc ($APDN) | 82.2% | 77.3% | 69.1% | 83.7% | 62.7% |
| |
|---|
| Median (26 companies) | 39.4% | 41.0% | 40.9% | 43.2% | 44.0% |
|---|
| LightPath Technologies, Inc. ($LPTH) | 53.9% | 51.9% | 38.5% | 37.1% | 39.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Keysight Technologies Inc. ($KEYS) | 18.5% | 14.6% | -0.9% | 23.7% | 27.0% |
| Cognex Corporation ($CGNX) | 31.9% | 36.0% | 30.1% | 24.0% | 25.3% |
| National Instruments Corporation ($NATI) | 15.7% | 16.9% | 17.9% | 20.0% | 22.3% |
| FLIR Systems, Inc. ($FLIR) | 21.3% | 20.0% | 21.7% | 20.6% | 22.0% |
| Badger Meter, Inc. ($BMI) | 18.6% | 20.1% | 18.7% | 21.1% | 21.2% |
| |
|---|
| Median (26 companies) | 2.9% | 4.1% | 3.3% | 13.6% | 8.7% |
|---|
| LightPath Technologies, Inc. ($LPTH) | 16.5% | 21.9% | 11.6% | 6.9% | 17.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Know Labs Inc ($KNWN) | 0.4% | 0.0% | 2.3% | 4.4% | 57.5% |
| Applied DNA Sciences Inc ($APDN) | 16.1% | 3.1% | 6.8% | 1.3% | 55.1% |
| nLIGHT, Inc. ($LASR) | 4.0% | 4.0% | 6.1% | 7.7% | 10.9% |
| Vishay Precision Group, Inc. ($VPG) | 4.6% | 2.7% | 4.8% | 3.9% | 8.5% |
| Coherent, Inc. ($COHR) | 5.8% | 3.7% | 4.8% | 5.8% | 5.3% |
| |
|---|
| Median (25 companies) | 2.0% | 1.6% | 2.2% | 1.9% | 2.1% |
|---|
| LightPath Technologies, Inc. ($LPTH) | 6.5% | 7.8% | 7.7% | 5.7% | 7.0% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Zebra Technologies Corporation ($ZBRA) | 2.2% | 10.2% | 20.8% | 23.2% | 20.0% |
| Badger Meter, Inc. ($BMI) | 16.9% | 18.2% | 17.6% | 18.7% | 18.5% |
| Keysight Technologies Inc. ($KEYS) | 16.9% | 6.8% | -8.0% | 15.6% | 15.1% |
| National Instruments Corporation ($NATI) | 10.3% | 12.5% | 14.2% | 13.9% | 14.8% |
| Cognex Corporation ($CGNX) | 17.7% | 25.6% | 20.1% | 11.9% | 13.9% |
| |
|---|
| Median (26 companies) | 2.1% | 2.6% | 1.3% | 7.9% | 3.6% |
|---|
| LightPath Technologies, Inc. ($LPTH) | 20.3% | 15.8% | 0.9% | -2.8% | 5.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Identiv, Inc. ($INVE) | - | - | 2.1x | 1.9x | 9.0x |
| Itron, Inc. ($ITRI) | 1.0x | 2.0x | 12.3x | 3.2x | 7.3x |
| Track Group Inc ($TRCK) | - | - | 12.2x | 5.2x | 3.5x |
| Trimble Inc. ($TRMB) | 1.1x | 1.3x | 3.4x | 2.9x | 2.2x |
| Luna Innovations Incorporated ($LUNA) | -6.9x | -108.1x | -19.9x | -2.9x | 1.8x |
| |
|---|
| Median (16 companies) | -0.8x | -0.9x | -1.0x | 0.2x | 0.7x |
|---|
| LightPath Technologies, Inc. ($LPTH) | -0.9x | 0.5x | 0.5x | 0.9x | 0.4x |
