Coherent, Inc. EBITDA dropped on 267% and Revenue dropped on 14.1%
11/10/2020 • About Coherent, Inc. (
$COHR) • By InTwits
Coherent, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: -27.2% in FY2020, 13.9% in FY2019, 26.6% in FY2018, 24.9% in FY2017, 18.9% in FY2016
- Coherent, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's in pair with industry average of 7.6%
- CAPEX is quite volatile: $85m in FY2020, $64m in FY2019, $63m in FY2018, $31m in FY2017, $19m in FY2016
- The company has unprofitable business model: ROIC is -28.2%
- It operates with high leverage: Net Debt/EBITDA is 5.2x 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
The company's Revenue dropped on 14.1%. Annual revenue decline showed slowdown in FY20Q4 - revenue decreased on 5.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 41.1 pp from 13.9% to -27.2% in FY2020. During FY2016-FY2020 EBITDA Margin topped in FY2018 at 26.6% and was declining since that time.
Gross Margin decreased slightly on 0.57 pp from 34.0% to 33.4% in FY2020. Gross Margin followed a declining trend at -3.2 pp per annum in the last 5 years. SG&A as a % of Revenue increased on 3.0 pp from 19.0% to 22.0% in FY2020. During the last 5 years SG&A as a % of Revenue bottomed in FY2018 at 15.4% and was growing since that time.
Net Income margin dropped on 37.5 pp from 3.8% to -33.7% in FY2020. During the last 5 years Net Income margin topped in FY2018 at 13.0% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Coherent, Inc.'s CAPEX/Revenue was 5.3% in FY2020. CAPEX/Revenue increased slightly on 1.6 pp from 3.7% in FY2017 to 5.3% in FY2020. It's average CAPEX/Revenue for the last three years was 5.3%.
Return on investment
The company operates at negative ROIC (-28.2%) and ROE (-37.4%). ROIC dropped on 33.0 pp from 4.8% to -28.2% in FY2020. ROE dropped on 41.6 pp from 4.1% to -37.4% in FY2020. During the last 5 years ROIC topped in FY2017 at 24.0% and was declining since that time. During the last 5 years ROE topped in FY2017 at 20.0% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.2x and Debt / EBITDA is . Net Debt / EBITDA dropped on 0.5x from 0.5x to in FY2020. Debt jumped on 27.5% while cash jumped on 44.0%.
Coherent, Inc. has no short term refinancing risk: cash is higher than short term debt (1,351.2%).
Management team
Andreas Walter Mattes "Andy" is a the company's CEO. Andreas Walter Mattes "Andy" has spent 11 months with the company. Kevin S Palatnik is a Coherent, Inc.'s CFO. Kevin S Palatnik has spent 5 years at the company.
Financial and operational results
FY ended 10/03/2020
Coherent, Inc. ($COHR) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 857 | 1,723 | 1,903 | 1,431 | 1,229 | -14.1% |
| Gross Profit | 381 | 750 | 831 | 486 | 411 | -15.5% |
| SG&A | 169 | 292 | 294 | 272 | 270 | -0.7% |
| EBITDA | 162 | 430 | 506 | 199 | -334 | -267.4% |
| EBIT | 128 | 325 | 393 | | | |
| Interest expence | 1 | 34 | 26 | | | |
| Tax | 35 | 93 | 114 | | | |
| Net Income | 88 | 207 | 247 | 54 | -414 | -869.4% |
| Stock Based Compensation | 20 | 25 | 33 | | | |
Balance Sheet
|
|---|
| Cash | 354 | 443 | 310 | 306 | 440 | 44.0% |
| Accounts Receivable | 166 | 306 | 355 | | | |
| Inventory | 213 | 415 | 487 | | | |
| Accounts Payable | 45 | 76 | 70 | | | |
| Short Term Debt | 20 | 5 | 5 | 15 | 33 | 119.2% |
| Long Term Debt | 0 | 589 | 421 | 392 | 487 | 24.1% |
Cash flow
|
|---|
| Capex | 49 | 64 | 91 | 83 | 65 | -22.1% |
| Acquisitions | | 740 | 45 | | | |
Ratios
|
|---|
| Revenue growth | 6.8% | 101.0% | 10.4% | -24.8% | -14.1% | |
| EBITDA growth | 21.0% | 165.3% | 17.8% | -60.6% | -267.4% | |
|
|---|
| Gross Margin | 44.5% | 43.5% | 43.7% | 34.0% | 33.4% | -0.6% |
| EBITDA Margin | 18.9% | 24.9% | 26.6% | 13.9% | -27.2% | -41.1% |
| EBIT Margin | 14.9% | 18.9% | 20.7% | | |
| SG&A, % of revenue | 19.7% | 16.9% | 15.4% | 19.0% | 22.0% | 3.0% |
| SBC, % of revenue | 2.4% | 1.4% | 1.7% | | |
| Net Income Margin | 10.2% | 12.0% | 13.0% | 3.8% | -33.7% | -37.5% |
| CAPEX, % of revenue | 5.8% | 3.7% | 4.8% | 5.8% | 5.3% | -0.5% |
|
|---|
| ROIC | 15.6% | 24.0% | 21.5% | 4.8% | -28.2% | -33.0% |
| ROE | 10.3% | 20.0% | 20.0% | 4.1% | -37.4% | -41.6% |
| Net Debt/EBITDA | -2.1x | 0.4x | 0.2x | 0.5x | |
| Interest expence / Average debt | 6.7% | 11.2% | 5.1% | | | |
People
|
|---|
| Insider ownership | 1.5% | 1.5% | 1.5% | | | |
| Employees | 2,787 | 5,218 | 5,418 | | | |
| Revenue/Employee, th. $ | 308 | 330 | 351 | | | |
Coherent, Inc. ($COHR) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 321 | 293 | 298 | 317 | | -16.3% | -21.4% | -12.0% | -5.6% |
| EBITDA | 41 | -420 | 17 | 28 | | -49.8% | -840.5% | -32.8% | -22.1% |
| Net Income | 6 | -419 | -9 | 8 | | -83.7% | -2,118.9% | - | 1,132.2% |
Balance Sheet
|
|---|
| Cash | 350 | 369 | 379 | 440 | | 11.0% | 9.5% | 19.8% | 44.0% |
| Short Term Debt | 32 | 31 | 31 | 33 | | -30.6% | -34.5% | -31.7% | 119.2% |
| Long Term Debt | 474 | 454 | 468 | 487 | | 14.6% | 11.9% | 14.1% | 24.1% |
Ratios
|
|---|
| Gross Margin | 34.1% | 32.1% | 31.9% | 35.4% | | -4.9% | -3.0% | 3.0% | 3.1% |
| EBITDA Margin | 12.8% | -143.2% | 5.7% | 8.8% | | -8.6% | -158.4% | -1.8% | -1.9% |
| Net Income Margin | 1.8% | -142.9% | -2.9% | 2.4% | | -7.5% | -148.5% | -2.0% | 2.2% |
Peers in Electronic Equipment & Instruments
Below you can find Coherent, Inc. benchmarking vs. other companies in Electronic Equipment & Instruments 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 |
|---|
| 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 ($CGNX) | - | 44.7% | 5.3% | -10.0% | 11.8% |
| |
|---|
| Median (26 companies) | -3.8% | 4.1% | 11.6% | 5.2% | -2.7% |
|---|
| Coherent, Inc. ($COHR) | - | 101.0% | 10.4% | -24.8% | -14.1% |
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 ($APDN) | 82.2% | 77.3% | 69.1% | 83.7% | 62.7% |
| |
|---|
| Median (26 companies) | 39.4% | 41.0% | 40.4% | 43.2% | 44.0% |
|---|
| Coherent, Inc. ($COHR) | 44.5% | 43.5% | 43.7% | 34.0% | 33.4% |
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. ($BMI) | 18.6% | 20.1% | 18.7% | 21.1% | 21.2% |
| |
|---|
| Median (26 companies) | 2.9% | 4.1% | 3.3% | 12.0% | 12.0% |
|---|
| Coherent, Inc. ($COHR) | 18.9% | 24.9% | 26.6% | 13.9% | -27.2% |
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. ($LPTH) | 6.5% | 7.8% | 7.7% | 5.7% | 7.0% |
| |
|---|
| Median (25 companies) | 2.0% | 1.6% | 2.2% | 1.9% | 2.1% |
|---|
| Coherent, Inc. ($COHR) | 5.8% | 3.7% | 4.8% | 5.8% | 5.3% |
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 ($CGNX) | 17.7% | 25.6% | 20.1% | 11.9% | 13.9% |
| |
|---|
| Median (26 companies) | 2.1% | 2.6% | 0.9% | 7.9% | 5.7% |
|---|
| Coherent, Inc. ($COHR) | 15.6% | 24.0% | 21.5% | 4.8% | -28.2% |
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) | -0.8x | -0.9x | -1.0x | 0.2x | 0.4x |
|---|
