Cavitation Technologies Inc Net Income jumped on 118% and Revenue jumped on 52.6%
10/13/2020 • About Cavitation Technologies Inc (
$CVAT) • By InTwits
Cavitation Technologies Inc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cavitation Technologies Inc is a fast growth stock: FY2020 revenue growth was 52.6%, 5 year revenue CAGR was 27.7% at FY2020 ROIC
- Cavitation Technologies 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 -18.2%
- Cavitation Technologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 7.7%.
- CAPEX is quite volatile: $0m in FY2020, $0m in FY2019, $0m in FY2018, $0m in FY2017, $0m in FY2016
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Cavitation Technologies Inc's Revenue jumped on 52.6%. Revenue growth showed acceleration in FY20Q4 - it increased 135.6% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 77.5 pp from -62.6% to 14.9% in FY2020.
Gross Margin increased on 3.9 pp from 93.7% to 97.6% in FY2020. SG&A as a % of Revenue dropped on 70.8 pp from 159% to 88.3% in FY2020.
Net Income margin jumped on 74.0 pp from -66.3% to 7.7% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 3.0%. Cavitation Technologies Inc's CAPEX/Revenue decreased on 2.2 pp from 5.2% in FY2017 to 3.0% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.4x and Debt / EBITDA is 1.7x. Debt surged while cash surged on 16.9%.
Cavitation Technologies Inc has no short term refinancing risk: cash is higher than short term debt (1,405.6%).
Valuation and dividends
The company's trades at EV/EBITDA 10.4x and P/E 22.9x.
Financial and operational results
FY ended 06/30/2020
Cavitation Technologies Inc ($CVAT) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 1.798 | 1.063 | 1.303 | 1.090 | 1.663 | 52.6% |
| Gross Profit | 1.677 | 0.994 | 1.181 | 1.021 | 1.623 | 59.0% |
| SG&A | 1.215 | 2.033 | 1.530 | 1.735 | 1.469 | -15.3% |
| EBITDA | 0.493 | -1.016 | -0.300 | -0.682 | 0.248 | |
| Net Income | 0.433 | -1.067 | -0.250 | -0.723 | 0.128 | |
Balance Sheet
|
|---|
| Cash | 0.657 | 0.549 | 0.945 | 0.649 | 0.759 | 16.9% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.054 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.362 | |
Cash flow
|
|---|
| Capex | 0.062 | 0.056 | 0.000 | 0.016 | 0.050 | 212.5% |
Ratios
|
|---|
| Revenue growth | 267.5% | -40.9% | 22.6% | -16.3% | 52.6% | |
| EBITDA growth | -138.2% | -306.1% | -70.5% | 127.3% | -136.4% | |
|
|---|
| Gross Margin | 93.2% | 93.5% | 90.6% | 93.7% | 97.6% | 3.9% |
| EBITDA Margin | 27.4% | -95.6% | -23.0% | -62.6% | 14.9% | 77.5% |
| SG&A, % of revenue | 67.5% | 191.3% | 117.4% | 159.2% | 88.3% | -70.8% |
| Net Income Margin | 24.1% | -100.4% | -19.2% | -66.3% | 7.7% | 74.0% |
| CAPEX, % of revenue | 3.4% | 5.2% | 0.0% | 1.5% | 3.0% | 1.5% |
|
|---|
| Net Debt/EBITDA | -1.3x | | | | -1.4x |
Cavitation Technologies Inc ($CVAT) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 0 | 0 | 0 | 1 | | 538.2% | -92.9% | 8.7% | 135.6% |
| EBITDA | 0 | -1 | 0 | 1 | | - | - | - | 2,637.0% |
| Net Income | 0 | -1 | -0 | 1 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 1 | | 42.4% | 5.4% | 50.3% | 16.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
| Long Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
Ratios
|
|---|
| EBITDA Margin | 19.1% | -2,032.0% | 2.2% | 73.0% | | 466.4% | -1,910.5% | 7.3% | 66.7% |
| Net Income Margin | 10.8% | -2,216.0% | -21.5% | 69.4% | | 476.3% | -2,091.4% | -12.4% | 70.3% |
Peers in Electronic Components
Below we provide Cavitation Technologies Inc benchmarking against other companies in Electronic Components 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 |
|---|
| IEH Corp ($IEHC) | - | 4.0% | 16.6% | 21.0% | 13.2% |
| Amphenol Corporation ($APH) | - | 11.5% | 17.0% | 0.3% | 4.5% |
| Corning Incorporated ($GLW) | - | 7.7% | 11.6% | 1.9% | -1.7% |
| CPS Technologies Corp. ($CPSH) | - | -5.0% | 48.0% | -0.5% | -2.8% |
| Littelfuse, Inc. ($LFUS) | - | 15.7% | 40.7% | -12.5% | -3.9% |
| |
|---|
| Median (12 companies) | -10.4% | 8.3% | 14.1% | -0.1% | -5.8% |
|---|
| Cavitation Technologies Inc ($CVAT) | - | -40.9% | 22.6% | -16.3% | 52.6% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dolby Laboratories ($DLB) | 89.4% | 89.1% | 87.9% | 87.0% | 87.4% |
| Airgain, Inc. ($AIRG) | 44.4% | 47.1% | 43.7% | 45.4% | 46.6% |
| Rogers Corporation ($ROG) | 38.0% | 38.8% | 35.4% | 35.0% | 36.4% |
| Belden Inc ($BDC) | 41.6% | 39.1% | 39.0% | 37.2% | 35.6% |
| Knowles Corporation ($KN) | 38.2% | 38.5% | 39.0% | 38.4% | 35.5% |
| |
|---|
| Median (12 companies) | 33.7% | 34.9% | 36.3% | 35.5% | 33.3% |
|---|
| Cavitation Technologies Inc ($CVAT) | 93.2% | 93.5% | 90.6% | 93.7% | 97.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dolby Laboratories ($DLB) | 30.9% | 30.8% | 25.1% | 27.6% | 28.7% |
| Amphenol Corporation ($APH) | 22.6% | 23.6% | 24.2% | 24.7% | 22.6% |
| Littelfuse, Inc. ($LFUS) | 17.4% | 23.0% | 19.1% | 19.5% | 18.5% |
| Corning Incorporated ($GLW) | 27.9% | 27.3% | 25.4% | 25.7% | 18.0% |
| Rogers Corporation ($ROG) | 18.5% | 21.3% | 18.5% | 18.1% | 17.7% |
| |
|---|
| Median (12 companies) | 13.6% | 11.4% | 12.7% | 17.5% | 14.9% |
|---|
| Cavitation Technologies Inc ($CVAT) | 27.4% | -95.6% | -23.0% | -62.6% | 14.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Corning Incorporated ($GLW) | 12.0% | 17.8% | 19.9% | 17.2% | 12.2% |
| Dolby Laboratories ($DLB) | 9.8% | 9.2% | 6.9% | 7.8% | 5.7% |
| Rogers Corporation ($ROG) | 2.8% | 3.3% | 5.4% | 5.7% | 5.0% |
| Vishay Intertechnology, Inc. ($VSH) | 5.8% | 6.6% | 7.6% | 5.9% | 4.9% |
| Belden Inc ($BDC) | 2.3% | 2.7% | 3.8% | 5.2% | 4.8% |
| |
|---|
| Median (12 companies) | 3.0% | 4.2% | 4.1% | 5.0% | 4.0% |
|---|
| Cavitation Technologies Inc ($CVAT) | 3.4% | 5.2% | 0.0% | 1.5% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Amphenol Corporation ($APH) | 18.3% | 19.2% | 21.1% | 19.4% | 18.0% |
| CPS Technologies Corp. ($CPSH) | -10.8% | -19.4% | -11.9% | -9.3% | 13.8% |
| IEH Corp ($IEHC) | 24.2% | 19.2% | 26.1% | 36.6% | 12.8% |
| Vishay Intertechnology, Inc. ($VSH) | 9.8% | 18.4% | 27.8% | 13.2% | 9.9% |
| Dolby Laboratories ($DLB) | 12.2% | 12.0% | 8.4% | 11.4% | 9.6% |
| |
|---|
| Median (12 companies) | 6.0% | 6.5% | 8.1% | 8.2% | 6.7% |
|---|
| Cavitation Technologies Inc ($CVAT) | - | - | - | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Belden Inc ($BDC) | 2.1x | 2.6x | 2.3x | 3.1x | 4.6x |
| Corning Incorporated ($GLW) | -0.5x | 0.3x | 1.3x | 2.1x | 2.6x |
| Amphenol Corporation ($APH) | 1.4x | 1.1x | 1.2x | 1.4x | 1.1x |
| Bel Fuse Inc. ($BELFA) | - | 1.4x | 1.3x | 3.7x | 1.1x |
| Knowles Corporation ($KN) | 2.0x | 1.0x | 0.7x | 0.9x | 0.6x |
| |
|---|
| Median (11 companies) | -0.4x | -0.3x | 0.6x | 0.7x | 0.1x |
|---|
| Cavitation Technologies Inc ($CVAT) | -1.3x | - | - | - | -1.4x |
