Kulicke and Soffa Industries, Inc. Net Income jumped on 349% and Revenue jumped on 15.4%
11/18/2020 • About Kulicke and Soffa Industries, Inc. (
$KLIC) • By InTwits
Kulicke and Soffa Industries, 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: 13.7% in FY2020, 7.8% in FY2019, 20.9% in FY2018, 16.0% in FY2017, 11.0% in FY2016
- Kulicke and Soffa Industries, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 7.6%
- CAPEX is quite volatile: $12m in FY2020, $12m in FY2019, $20m in FY2018, $26m in FY2017, $6m in FY2016
- The company has business model with low profitability: ROIC is 7.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 15.4%. Revenue growth showed acceleration in FY20Q4 - it increased 27.1% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.1 pp from 27.6% to 28.7% in FY2020.
Gross Margin increased slightly on 0.67 pp from 47.1% to 47.8% in FY2020. SG&A as a % of Revenue decreased on 3.0 pp from 21.6% to 18.6% in FY2020.
Net Income margin increased on 6.2 pp from 2.2% to 8.4% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 1.9%. The company showed small CAPEX/Revenue decline of 1.3 pp from 3.2% in FY2017 to 1.9% in FY2020. For the last three years the average CAPEX/Revenue was 2.1%. During the last 5 years CAPEX as a % of Revenue topped in FY2017 at 3.2% and was declining since that time.
Return on investment
The company operates at low ROIC (7.0%) and ROE (6.8%). ROIC increased on 4.6 pp from 2.4% to 7.0% in FY2020. ROE increased on 5.4 pp from 1.4% to 6.8% in FY2020.
Leverage (Debt)
Debt level is -1.9x Net Debt / EBITDA and 0.3x Debt / EBITDA. Debt dropped on 60.2% while cash dropped on 48.3%.
Kulicke and Soffa Industries, Inc. has no short term refinancing risk: cash is higher than short term debt (3,187.0%).
Valuation and dividends
The company's trades at EV/EBITDA 20.3x and P/E 36.2x.
Management team
Kulicke and Soffa Industries, Inc.'s CEO Fusen E Chen has spent 4 years with the company. Lester A Wong is a the company's CFO. Lester A Wong has spent 2 years at the company.
Financial and operational results
FY ended 10/03/2020
Kulicke and Soffa Industries, Inc. ($KLIC) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 627.2 | 809.0 | 889.1 | 540.1 | 623.2 | 15.4% |
| Gross Profit | 286.7 | 382.1 | 409.4 | 254.6 | 298.0 | 17.0% |
| SG&A | 141.8 | 133.6 | 123.2 | 116.8 | 116.0 | -0.7% |
| EBITDA | 68.8 | 129.3 | 185.6 | 41.9 | 85.2 | 103.2% |
| Net Income | 47.1 | 126.1 | 56.7 | 11.7 | 52.3 | 348.8% |
Balance Sheet
|
|---|
| Cash | 547.9 | 392.4 | 320.6 | 364.2 | 188.1 | -48.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 60.9 | 5.9 | -90.3% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 18.3 | |
Cash flow
|
|---|
| Capex | 6.2 | 25.6 | 20.5 | 11.7 | 11.7 | -0.2% |
Ratios
|
|---|
| Revenue growth | 16.9% | 29.0% | 9.9% | -39.3% | 15.4% | |
| EBITDA growth | 22.3% | 88.1% | 43.5% | -77.4% | 103.2% | |
|
|---|
| Gross Margin | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% | 0.7% |
| EBITDA Margin | 11.0% | 16.0% | 20.9% | 7.8% | 13.7% | 5.9% |
| SG&A, % of revenue | 22.6% | 16.5% | 13.9% | 21.6% | 18.6% | -3.0% |
| Net Income Margin | 7.5% | 15.6% | 6.4% | 2.2% | 8.4% | 6.2% |
| CAPEX, % of revenue | 1.0% | 3.2% | 2.3% | 2.2% | 1.9% | -0.3% |
|
|---|
| ROIC | 6.5% | 12.8% | 18.0% | 2.4% | 7.0% | 4.6% |
| ROE | 6.0% | 14.6% | 6.3% | 1.4% | 6.8% | 5.4% |
| Net Debt/EBITDA | -8.0x | -3.0x | -1.7x | -7.2x | -1.9x | 5.3x |
Kulicke and Soffa Industries, Inc. ($KLIC) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 144 | 151 | 150 | 178 | | -8.2% | 30.1% | 18.4% | 27.1% |
| EBITDA | 20 | 18 | 18 | 30 | | 3.1% | 531.8% | 159.2% | 131.6% |
| Net Income | 13 | 12 | 11 | 16 | | 79.3% | - | 766.4% | 146.5% |
Balance Sheet
|
|---|
| Cash | 497 | 392 | 322 | 188 | | 79.3% | -6.3% | -18.6% | -48.3% |
| Short Term Debt | 81 | 121 | 5 | 6 | | - | 1,108.0% | -92.3% | -90.3% |
| Long Term Debt | 17 | 19 | 18 | 18 | | - | - | - | - |
Ratios
|
|---|
| Gross Margin | 48.8% | 46.0% | 46.1% | 50.0% | | 1.2% | -2.0% | -0.1% | 3.2% |
| EBITDA Margin | 13.8% | 11.6% | 11.8% | 16.9% | | 1.5% | 9.2% | 6.4% | 7.6% |
| Net Income Margin | 9.3% | 7.9% | 7.4% | 8.9% | | 4.6% | 11.0% | 6.4% | 4.3% |
Peers in Semiconductor Equipment
Below we provide Kulicke and Soffa Industries, Inc. benchmarking against other companies in Semiconductor Equipment 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 |
|---|
| Xperi Corporation ($XPER) | - | 44.0% | 8.7% | -31.0% | 218.5% |
| DAQO New Energy Corp. ($DQ) | - | 41.1% | -6.7% | 16.0% | 93.0% |
| Advanced Energy Industries, Inc. ($AEIS) | - | 38.7% | 7.1% | 9.7% | 79.5% |
| Ichor Holdings ($ICHR) | - | 61.7% | 25.6% | -24.6% | 47.3% |
| ACM Research, Inc. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| |
|---|
| Median (27 companies) | 5.0% | 24.2% | 15.5% | -0.2% | 16.9% |
|---|
| Kulicke and Soffa Industries, Inc. ($KLIC) | - | 29.0% | 9.9% | -39.3% | 15.4% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 99.8% | 98.3% | 96.7% | 97.0% | 91.2% |
| PDF Solutions, Inc. ($PDFS) | 58.6% | 53.4% | 50.1% | 60.9% | 58.2% |
| Teradyne, Inc. ($TER) | 54.7% | 57.2% | 58.1% | 58.4% | 57.2% |
| Nova Measuring Instruments Ltd. ($NVMI) | 45.9% | 59.1% | 57.8% | 54.2% | 56.8% |
| Camtek Ltd. ($CAMT) | 41.0% | 48.7% | 49.4% | 48.3% | 47.0% |
| |
|---|
| Median (27 companies) | 37.3% | 43.2% | 40.2% | 40.3% | 42.4% |
|---|
| Kulicke and Soffa Industries, Inc. ($KLIC) | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 47.6% | 23.4% | 34.3% | 16.4% | 40.8% |
| DAQO New Energy Corp. ($DQ) | 43.3% | 49.1% | 36.1% | 27.1% | 38.0% |
| Teradyne, Inc. ($TER) | 3.4% | 29.6% | 27.9% | 30.3% | 33.8% |
| Cabot Microelectronics Corporation ($CCMP) | 23.4% | 27.2% | 31.5% | 20.1% | 31.6% |
| Entegris, Inc. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (25 companies) | 12.1% | 16.2% | 16.2% | 12.9% | 15.9% |
|---|
| Kulicke and Soffa Industries, Inc. ($KLIC) | 11.0% | 16.0% | 20.9% | 7.8% | 13.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| DAQO New Energy Corp. ($DQ) | 29.5% | 19.8% | 47.4% | 79.7% | 17.5% |
| Photronics, Inc. ($PLAB) | 10.4% | 20.4% | 17.3% | 32.4% | 11.6% |
| Cabot Microelectronics Corporation ($CCMP) | 4.1% | 4.2% | 3.6% | 5.4% | 11.3% |
| Amkor Technology, Inc. ($AMKR) | 16.5% | 13.1% | 12.7% | 11.7% | 10.9% |
| ACM Research, Inc. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| |
|---|
| Median (24 companies) | 2.6% | 2.8% | 3.0% | 3.4% | 3.9% |
|---|
| Kulicke and Soffa Industries, Inc. ($KLIC) | 1.0% | 3.2% | 2.3% | 2.2% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Teradyne, Inc. ($TER) | -2.9% | 23.8% | 22.6% | 29.2% | 40.3% |
| DAQO New Energy Corp. ($DQ) | 12.7% | 23.2% | 12.2% | 5.6% | 18.5% |
| Entegris, Inc. ($ENTG) | 10.3% | 14.7% | 15.4% | 11.3% | 16.4% |
| Advanced Energy Industries, Inc. ($AEIS) | 41.2% | 45.7% | 31.3% | 6.9% | 15.5% |
| Ultra Clean Holdings, Inc. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 7.6% | 12.5% | 11.2% | 5.6% | 10.5% |
|---|
| Kulicke and Soffa Industries, Inc. ($KLIC) | 6.5% | 12.8% | 18.0% | 2.4% | 7.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Veeco Instruments Inc. ($VECO) | - | - | - | 577.2x | 3.4x |
| Cohu, Inc. ($COHU) | -6.0x | -2.7x | - | 10.1x | 2.9x |
| Xperi Corporation ($XPER) | 4.2x | 5.0x | 2.6x | 6.1x | 2.1x |
| Cabot Microelectronics Corporation ($CCMP) | -1.3x | -1.8x | -1.9x | 3.6x | 2.0x |
| Entegris, Inc. ($ENTG) | 0.7x | 0.1x | 1.1x | 1.6x | 1.0x |
| |
|---|
| Median (23 companies) | -1.2x | -0.7x | -1.0x | -0.4x | -0.3x |
|---|
| Kulicke and Soffa Industries, Inc. ($KLIC) | -8.0x | -3.0x | -1.7x | -7.2x | -1.9x |
