Perceptron, Inc. reports 19.0% revenue decline in FY2020 and 4.9 pp EBITDA Margin growth from -6.2% to -1.2%
09/28/2020 • About Perceptron, Inc. (
$PRCP) • By InTwits
Perceptron, Inc. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Perceptron, Inc. is a company in decline: FY2020 revenue growth was -19.0%, 5 years revenue CAGR was -3.5%
- The company operates at negative EBITDA Margin: -1.2%
- Perceptron, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -0.4% for the sames years
- Perceptron, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: $1m in FY2020, $1m in FY2019, $1m in FY2018, $1m in FY2017, $2m in FY2016
- The company has unprofitable business model: ROIC is -6.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Perceptron, Inc.'s Revenue dropped on 19.0%. During the last 5 years Revenue growth topped in FY2017 at 12.7% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.9 pp from -6.2% to -1.2% in FY2020.
Gross Margin increased on 2.0 pp from 35.4% to 37.4% in FY2020. SG&A as a % of Revenue increased on 3.0 pp from 24.7% to 27.7% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue bottomed in FY2018 at 21.8% and was growing since that time.
Net Income margin increased on 2.5 pp from -8.8% to -6.4% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.1% in FY2020. CAPEX/Revenue showed almost no change from FY2017 to FY2020. For the last three years the average CAPEX/Revenue was 1.5%.
Return on investment
The company operates at negative ROIC (-6.9%) and ROE (-9.9%). ROIC increased on 7.9 pp from -14.9% to -6.9% in FY2020. ROE increased on 5.4 pp from -15.3% to -9.9% in FY2020.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and Debt / EBITDA. Debt jumped while cash jumped on 132%.
Perceptron, Inc. has no short term refinancing risk: cash is higher than short term debt (323.5%).
Management team
Jay W Freeland is a the company's CEO. Jay W Freeland has spent 4 years with the company.
Financial and operational results
FY ended 06/30/2020
Perceptron, Inc. ($PRCP) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 69.135 | 77.947 | 84.693 | 76.822 | 62.262 | -19.0% |
| Gross Profit | 21.139 | 27.769 | 32.000 | 27.192 | 23.305 | -14.3% |
| SG&A | 20.316 | 17.347 | 18.469 | 18.980 | 17.245 | -9.1% |
| EBITDA | -7.247 | 4.013 | 7.224 | -4.730 | -0.770 | |
| Net Income | -22.113 | -0.168 | 3.716 | -6.791 | -3.971 | |
Balance Sheet
|
|---|
| Cash | 6.787 | 3.704 | 5.830 | 4.585 | 10.621 | 131.6% |
| Short Term Debt | 0.200 | 0.000 | 0.175 | 0.000 | 3.283 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 5.228 | |
Cash flow
|
|---|
| Capex | 1.641 | 0.682 | 1.153 | 1.493 | 0.676 | -54.7% |
Ratios
|
|---|
| Revenue growth | -7.1% | 12.7% | 8.7% | -9.3% | -19.0% | |
| EBITDA growth | -783.0% | -155.4% | 80.0% | -165.5% | -83.7% | |
|
|---|
| Gross Margin | 30.6% | 35.6% | 37.8% | 35.4% | 37.4% | 2.0% |
| EBITDA Margin | -10.5% | 5.1% | 8.5% | -6.2% | -1.2% | 4.9% |
| SG&A, % of revenue | 29.4% | 22.3% | 21.8% | 24.7% | 27.7% | 3.0% |
| Net Income Margin | -32.0% | -0.2% | 4.4% | -8.8% | -6.4% | 2.5% |
| CAPEX, % of revenue | 2.4% | 0.9% | 1.4% | 1.9% | 1.1% | -0.9% |
|
|---|
| ROIC | -19.6% | 4.3% | 10.9% | -14.9% | -6.9% | 7.9% |
| ROE | -44.5% | -0.4% | 8.7% | -15.3% | -9.9% | 5.4% |
| Net Debt/EBITDA | | -0.9x | -0.8x | | |
Perceptron, Inc. ($PRCP) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 18 | 19 | 13 | 13 | | - | - | - | - |
| EBITDA | 2 | 1 | -3 | -0 | | - | - | - | - |
| Net Income | 1 | 1 | -4 | -1 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 4 | 6 | 11 | 11 | | - | - | - | - |
| Short Term Debt | 1 | 1 | 3 | 3 | | - | - | - | - |
| Long Term Debt | 3 | 3 | 3 | 5 | | - | - | - | - |
Ratios
|
|---|
| Gross Margin | 39.5% | 37.3% | 34.8% | 37.5% | | - | - | - | - |
| EBITDA Margin | 9.2% | 7.2% | -26.6% | -3.3% | | - | - | - | - |
| Net Income Margin | 3.5% | 3.9% | -31.1% | -11.2% | | - | - | - | - |
Peers in Electronic Equipment & Instruments
Below we provide Perceptron, 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 ($CGNX) | - | 44.7% | 5.3% | -10.0% | 11.8% |
| |
|---|
| Median (26 companies) | -3.8% | 4.1% | 11.6% | 5.2% | -2.7% |
|---|
| Perceptron, Inc. ($PRCP) | - | 12.7% | 8.7% | -9.3% | -19.0% |
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 ($APDN) | 82.2% | 77.3% | 69.1% | 83.7% | 62.7% |
| |
|---|
| Median (26 companies) | 40.7% | 41.7% | 40.9% | 43.2% | 44.0% |
|---|
| Perceptron, Inc. ($PRCP) | 30.6% | 35.6% | 37.8% | 35.4% | 37.4% |
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. ($BMI) | 18.6% | 20.1% | 18.7% | 21.1% | 21.2% |
| |
|---|
| Median (26 companies) | 3.2% | 4.1% | 3.3% | 13.6% | 12.0% |
|---|
| Perceptron, Inc. ($PRCP) | -10.5% | 5.1% | 8.5% | -6.2% | -1.2% |
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% |
| LightPath Technologies, Inc. ($LPTH) | 6.5% | 7.8% | 7.7% | 5.7% | 7.0% |
| |
|---|
| Median (25 companies) | 2.0% | 1.6% | 2.3% | 2.0% | 2.8% |
|---|
| Perceptron, Inc. ($PRCP) | 2.4% | 0.9% | 1.4% | 1.9% | 1.1% |
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 ($CGNX) | 17.7% | 25.6% | 20.1% | 11.9% | 13.9% |
| |
|---|
| Median (26 companies) | 2.2% | 2.6% | 0.9% | 7.9% | 5.7% |
|---|
| Perceptron, Inc. ($PRCP) | -19.6% | 4.3% | 10.9% | -14.9% | -6.9% |
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 (17 companies) | -0.9x | -0.7x | -1.0x | 0.3x | 0.4x |
|---|
