Veritec Inc revenue surged on 42.9% and EBITDA Margin jumped on 86.7 pp from -178% to -91.8%
09/15/2020 • About Veritec Inc (
$VRTC) • By InTwits
Veritec Inc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -91.8%
- Veritec Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -106.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Veritec Inc's Revenue surged on 42.9%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 86.7 pp from -178% to -91.8% in FY2020.
Gross Margin surged on 27.1 pp from 25.0% to 52.1% in FY2020. SG&A as a % of Revenue dropped on 53.5 pp from 197% to 144% in FY2020.
Net Income margin surged on 146 pp from -277% to -132% in FY2020.
Leverage (Debt)
Debt level is Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2020. Debt surged on 16.1% while cash surged on 150%.
Veritec Inc has short term refinancing risk: cash is only 4.6% of short term debt.
Financial and operational results
FY ended 06/30/2020
Veritec Inc ($VRTC) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 0.681 | 0.326 | 0.498 | 0.307 | 0.438 | 42.9% |
| Gross Profit | 0.358 | 0.065 | 0.251 | 0.077 | 0.228 | 197.5% |
| SG&A | 0.727 | 0.756 | 0.589 | 0.605 | 0.630 | 4.1% |
| EBITDA | -0.374 | -0.720 | -0.352 | -0.547 | -0.402 | |
| Net Income | -1.298 | -1.370 | -0.018 | -0.849 | -0.576 | |
Balance Sheet
|
|---|
| Cash | 0.061 | 0.047 | 0.139 | 0.091 | 0.228 | 150.2% |
| Short Term Debt | 2.033 | 2.869 | 3.597 | 4.301 | 4.992 | 16.1% |
| 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 | -28.0% | -52.2% | 53.1% | -38.5% | 42.9% | |
| EBITDA growth | -8.3% | 92.6% | -51.1% | 55.5% | -26.5% | |
|
|---|
| Gross Margin | 52.6% | 19.9% | 50.4% | 25.0% | 52.1% | 27.1% |
| EBITDA Margin | -54.9% | -221.1% | -70.6% | -178.5% | -91.8% | 86.7% |
| SG&A, % of revenue | 106.8% | 232.2% | 118.1% | 197.4% | 143.8% | -53.5% |
| Net Income Margin | -190.6% | -420.8% | -3.7% | -277.1% | -131.5% | 145.6% |
|
|---|
Veritec Inc ($VRTC) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 0 | 0 | 0 | 0 | | - | - | - | - |
| EBITDA | -0 | -0 | -0 | -0 | | - | - | - | - |
| Net Income | 0 | -0 | -0 | -0 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | - | - | - | - |
| Short Term Debt | 4 | 5 | 5 | 5 | | - | - | - | - |
| Long Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
Ratios
|
|---|
| Gross Margin | 64.0% | 24.0% | 55.1% | 50.2% | | - | - | - | - |
| EBITDA Margin | -36.9% | -176.7% | -82.8% | -127.8% | | - | - | - | - |
| Net Income Margin | 19.5% | -297.4% | -154.6% | -222.8% | | - | - | - | - |
Peers in Technology Hardware, Storage & Peripherals
Below you can find Veritec Inc benchmarking vs. other companies in Technology Hardware, Storage & Peripherals industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Ionix Technology Inc ($IINX) | - | 246.0% | -5.8% | 92.3% | 66.8% |
| Pure Storage, Inc. ($PSTG) | - | 67.9% | 38.6% | 32.7% | 20.9% |
| USA Technologies, Inc. ($USAT) | - | 34.5% | - | - | 12.9% |
| CPI Card Group Inc. ($PMTS) | - | -17.4% | 0.4% | 8.7% | 12.3% |
| Apple Inc. ($AAPL) | - | 6.3% | 15.9% | -2.0% | 5.5% |
| |
|---|
| Median (20 companies) | 1.4% | 2.1% | 4.3% | -2.0% | -10.2% |
|---|
| Veritec Inc ($VRTC) | - | -52.2% | 53.1% | -38.5% | 42.9% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Immersion Corporation ($IMMR) | 99.7% | 99.4% | 99.8% | 99.5% | 99.4% |
| Datasea Inc ($DTSS) | - | 39.3% | 54.4% | - | 89.7% |
| Pure Storage, Inc. ($PSTG) | 61.9% | 65.9% | 65.5% | 66.4% | 69.0% |
| Avid Technology, Inc. ($AVID) | 65.0% | 57.8% | 57.9% | 60.5% | 63.3% |
| Socket Mobile, Inc. ($SCKT) | 50.2% | 53.5% | 51.4% | 52.5% | 53.1% |
| |
|---|
| Median (21 companies) | 38.5% | 39.6% | 38.3% | 35.1% | 37.4% |
|---|
| Veritec Inc ($VRTC) | 52.6% | 19.9% | 50.4% | 25.0% | 52.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Apple Inc. ($AAPL) | 32.7% | 31.2% | 30.8% | 29.4% | 28.7% |
| CPI Card Group Inc. ($PMTS) | 14.9% | -0.0% | 9.0% | 15.2% | 17.9% |
| Immersion Corporation ($IMMR) | -25.1% | -127.0% | 48.6% | -50.4% | 17.4% |
| Avid Technology, Inc. ($AVID) | 17.5% | 6.6% | 8.4% | 13.5% | 13.6% |
| Western Digital Corporation ($WDC) | 12.5% | 21.4% | 27.5% | 11.5% | 11.7% |
| |
|---|
| Median (19 companies) | 4.9% | 4.5% | 7.9% | 7.9% | 7.9% |
|---|
| Veritec Inc ($VRTC) | -54.9% | -221.1% | -70.6% | -178.5% | -91.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Datasea Inc ($DTSS) | - | 0.0% | 0.0% | - | 20.9% |
| Hewlett Packard Enterprise Company ($HPE) | 10.8% | 10.9% | 9.6% | 9.8% | 8.8% |
| Pure Storage, Inc. ($PSTG) | 8.9% | 10.4% | 6.3% | 7.4% | 5.3% |
| Stratasys, Ltd. ($SSYS) | 6.7% | 3.3% | 3.5% | 3.5% | 5.2% |
| Western Digital Corporation ($WDC) | 4.5% | 3.0% | 4.0% | 5.3% | 3.9% |
| |
|---|
| Median (19 companies) | 2.0% | 1.9% | 2.4% | 2.3% | 2.3% |
|---|
| Veritec Inc ($VRTC) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| HP Inc. ($HPQ) | 15.8% | 60.8% | 72.9% | 116.0% | 109.2% |
| Apple Inc. ($AAPL) | 27.0% | 23.8% | 28.0% | 29.5% | 33.0% |
| Avid Technology, Inc. ($AVID) | - | - | 252.4% | 42.1% | 30.0% |
| CPI Card Group Inc. ($PMTS) | 12.8% | -9.3% | 2.7% | 15.4% | 20.5% |
| NCR Corporation ($NCR) | 13.9% | 16.3% | 4.6% | 14.3% | 5.5% |
| |
|---|
| Median (21 companies) | -0.4% | 0.9% | 2.7% | 4.0% | 2.3% |
|---|
| Veritec Inc ($VRTC) | - | - | - | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Diebold Nixdorf Incorporated ($DBD) | - | 8.3x | - | 6.6x | 7.3x |
| CPI Card Group Inc. ($PMTS) | 5.8x | - | 12.4x | 7.2x | 5.2x |
| Hewlett Packard Enterprise Company ($HPE) | 0.4x | 1.2x | 1.6x | 2.6x | 5.2x |
| NCR Corporation ($NCR) | 2.7x | 2.3x | 5.2x | 3.3x | 4.8x |
| Western Digital Corporation ($WDC) | 5.5x | 1.7x | 1.1x | 3.7x | 3.5x |
| |
|---|
| Median (12 companies) | 0.2x | 0.3x | 0.6x | 1.4x | 3.0x |
|---|
