SemiLEDS Corporation revenue increased on 2.8% and EBITDA Margin surged on 25.6 pp from -43.6% to -17.9%
11/12/2020 • About SemiLEDS Corporation (
$LEDS) • By InTwits
SemiLEDS Corporation reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -17.9%
- SemiLEDS Corporation 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 -63.5%
- SemiLEDS Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's in pair with industry average of 7.7%
- CAPEX is quite volatile: $0m in FY2020, $0m in FY2019, $0m in FY2018, $0m in FY2017, $1m in FY2016
- The company has unprofitable business model: ROIC is -22.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
SemiLEDS Corporation's Revenue increased on 2.8%. Revenue growth showed slowdown in FY20Q4 - it was -10.0% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.3 pp from 7.3% to 10.6% in 2020.
Gross Margin jumped on 18.5 pp from 7.7% to 26.2% in FY2020. Gross Margin stuck to a growing trend at 15.7 pp per annum in the last 5 years. SG&A as a % of Revenue decreased slightly on 1.0 pp from 47.3% to 46.3% in FY2020.
Net Income margin jumped on 51.4 pp from -60.4% to -9.0% in FY2020.
Investments (CAPEX, working capital and M&A)
SemiLEDS Corporation's CAPEX/Revenue was 4.5% in FY2020. CAPEX/Revenue increased on 2.8 pp from 1.6% in FY2017 to 4.5% in FY2020. It's average CAPEX/Revenue for the last three years was 3.7%.
Return on investment
The company operates at negative ROIC (-22.0%) and ROE (-25.5%). ROIC jumped on 23.3 pp from -45.4% to -22.0% in FY2020. ROE surged on 80.2 pp from -106% to -25.5% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.6x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2020. Debt surged on 23.8% while cash surged on 108%.
SemiLEDS Corporation has short term refinancing risk: cash is only 58.4% of short term debt.
Financial and operational results
FY ended 08/31/2020
SemiLEDS Corporation ($LEDS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 10.140 | 9.214 | 7.495 | 5.902 | 6.068 | 2.8% |
| Gross Profit | -4.938 | 0.082 | -0.435 | 0.452 | 1.590 | 251.8% |
| SG&A | 4.767 | 3.708 | 3.184 | 2.792 | 2.808 | 0.6% |
| EBITDA | -15.079 | -3.232 | -2.676 | -2.572 | -1.088 | |
| Net Income | -21.275 | -4.091 | -2.981 | -3.565 | -0.544 | |
Balance Sheet
|
|---|
| Cash | 6.030 | 3.582 | 3.421 | 1.363 | 2.832 | 107.8% |
| Short Term Debt | 0.314 | 0.335 | 0.335 | 0.398 | 4.847 | 1,117.8% |
| Long Term Debt | 2.595 | 2.391 | 2.013 | 5.954 | 3.015 | -49.4% |
Cash flow
|
|---|
| Capex | 0.821 | 0.150 | 0.341 | 0.127 | 0.271 | 113.4% |
Ratios
|
|---|
| Revenue growth | -28.2% | -9.1% | -18.7% | -21.3% | 2.8% | |
| EBITDA growth | 81.0% | -78.6% | -17.2% | -3.9% | -57.7% | |
|
|---|
| Gross Margin | -48.7% | 0.9% | -5.8% | 7.7% | 26.2% | 18.5% |
| EBITDA Margin | -148.7% | -35.1% | -35.7% | -43.6% | -17.9% | 25.6% |
| SG&A, % of revenue | 47.0% | 40.2% | 42.5% | 47.3% | 46.3% | -1.0% |
| Net Income Margin | -209.8% | -44.4% | -39.8% | -60.4% | -9.0% | 51.4% |
| CAPEX, % of revenue | 8.1% | 1.6% | 4.5% | 2.2% | 4.5% | 2.3% |
|
|---|
| ROIC | -83.8% | -32.5% | -38.3% | -45.4% | -22.0% | 23.3% |
| ROE | -104.0% | -42.1% | -46.5% | -105.7% | -25.5% | 80.2% |
SemiLEDS Corporation ($LEDS) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 2 | 1 | | 60.8% | -5.7% | -10.1% | -10.0% |
| EBITDA | -0 | -0 | -0 | -0 | | - | - | - | - |
| Net Income | -0 | 0 | -1 | -0 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 1 | 3 | 2 | 3 | | -73.3% | 93.1% | 133.6% | 107.8% |
| Short Term Debt | 1 | 4 | 3 | 5 | | 66.6% | 1,012.5% | 920.1% | 1,117.8% |
| Long Term Debt | 6 | 5 | 4 | 3 | | 217.1% | -5.6% | -8.7% | -49.4% |
Ratios
|
|---|
| Gross Margin | 33.1% | 35.7% | 26.5% | 7.7% | | 55.7% | 35.5% | 7.0% | -13.4% |
| EBITDA Margin | -20.1% | -9.7% | -31.3% | -9.6% | | 57.9% | 29.2% | -7.3% | 39.4% |
| Net Income Margin | -20.3% | 22.6% | -32.7% | -4.4% | | 80.3% | 74.6% | 16.5% | 52.2% |
Peers in Semiconductors
Below we provide SemiLEDS Corporation benchmarking against other companies in Semiconductors 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 |
|---|
| Inphi Corporation ($IPHI) | - | 30.8% | -15.4% | 24.2% | 86.8% |
| Sequans Communications S.A. ($SQNS) | - | 5.9% | -16.6% | -23.3% | 65.0% |
| MaxLinear, Inc ($MXL) | - | 8.4% | -8.4% | -17.6% | 50.9% |
| Advanced Micro Devices, Inc. ($AMD) | - | 21.6% | 23.3% | 4.0% | 45.0% |
| Kopin Corporation ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
| |
|---|
| Median (43 companies) | 1.2% | 11.0% | 4.9% | -3.0% | 1.0% |
|---|
| SemiLEDS Corporation ($LEDS) | - | -9.1% | -18.7% | -21.3% | 2.8% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| CEVA, Inc. ($CEVA) | 91.6% | 92.1% | 89.8% | 88.4% | 89.3% |
| Universal Display Corporation ($OLED) | 83.9% | 80.8% | 75.5% | 78.5% | 80.1% |
| Rambus, Inc. ($RMBS) | 80.1% | 79.9% | 76.8% | 77.1% | 75.0% |
| Analog Devices, Inc. ($ADI) | 65.1% | 59.9% | 68.3% | 67.0% | 65.9% |
| MoSys, Inc. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
| |
|---|
| Median (43 companies) | 48.0% | 49.1% | 50.4% | 50.7% | 49.4% |
|---|
| SemiLEDS Corporation ($LEDS) | -48.7% | 0.9% | -5.8% | 7.7% | 26.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 43.5% | 46.7% | 48.6% | 47.5% | 47.6% |
| Intel Corp ($INTC) | 35.2% | 41.7% | 45.7% | 45.9% | 46.7% |
| Broadcom Inc. ($AVGO) | 19.9% | 40.4% | 44.2% | 40.9% | 46.2% |
| Universal Display Corporation ($OLED) | 44.8% | 51.6% | 35.3% | 48.0% | 45.9% |
| Analog Devices, Inc. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (41 companies) | 9.2% | 10.7% | 9.8% | 13.6% | 17.4% |
|---|
| SemiLEDS Corporation ($LEDS) | -148.7% | -35.1% | -35.7% | -43.6% | -17.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Micron Technology, Inc. ($MU) | 46.9% | 23.3% | 29.2% | 41.8% | 38.4% |
| Sequans Communications S.A. ($SQNS) | 11.8% | 13.3% | 22.9% | 29.6% | 27.1% |
| Intel Corp ($INTC) | 16.2% | 18.8% | 21.4% | 22.5% | 18.6% |
| First Solar, Inc. ($FSLR) | 7.9% | 17.5% | 33.0% | 21.8% | 15.4% |
| Power Integrations, Inc. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (40 companies) | 3.6% | 4.7% | 4.2% | 3.8% | 3.6% |
|---|
| SemiLEDS Corporation ($LEDS) | 8.1% | 1.6% | 4.5% | 2.2% | 4.5% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 34.9% | 43.1% | 47.5% | 39.7% | 38.2% |
| Applied Materials Inc ($AMAT) | 19.0% | 31.2% | 36.4% | 27.7% | 32.1% |
| Advanced Micro Devices, Inc. ($AMD) | -21.7% | 7.3% | 21.6% | 21.5% | 31.8% |
| QUALCOMM Incorporated ($QCOM) | 15.8% | 5.7% | 2.2% | 38.0% | 28.1% |
| NVIDIA Corporation ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| |
|---|
| Median (45 companies) | 1.7% | 3.2% | 3.0% | 3.8% | 5.5% |
|---|
| SemiLEDS Corporation ($LEDS) | -83.8% | -32.5% | -38.3% | -45.4% | -22.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| SunPower Corporation ($SPWR) | - | - | - | - | 8.2x |
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 3.0x | 7.2x | 98.6x | - | 6.6x |
| Rambus, Inc. ($RMBS) | -0.1x | -0.1x | - | - | 5.9x |
| Inphi Corporation ($IPHI) | 4.5x | 33.7x | 32.2x | 4.5x | 3.4x |
| Canadian Solar Inc. ($CSIQ) | 11.3x | 6.8x | 2.7x | 3.4x | 3.3x |
| |
|---|
| Median (32 companies) | 0.2x | 0.4x | 0.3x | 0.5x | 0.3x |
|---|
