Know Labs Inc revenue dropped on 93.2% and EBITDA Margin dropped on 5,030 pp from -256% to -5,286%
12/29/2020 • About Know Labs Inc (
$KNWN) • By InTwits
Know Labs Inc reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Know Labs Inc is a company in decline: FY2020 revenue growth was -93.2%, 5 years revenue CAGR was -54.6%
- The company operates at negative EBITDA Margin: -5,286.4%
- Know Labs 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 -110.2%
- Know Labs Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.9%. 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, $0m in FY2016
- The company has unprofitable business model: ROIC is -406.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Know Labs Inc's Revenue dropped on 93.2%. Revenue decline was accelerating on average at -21.7 pp per annum in FY2016-FY2020. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.3 pp from 7.3% to 10.6% in 2020.
Gross Margin surged on 19.2 pp from 23.6% to 42.8% in FY2020. Gross Margin followed a growing trend in FY2016-FY2020. SG&A as a % of Revenue surged on 3,741 pp from 232% to 3,973% in FY2020.
Net Income margin dropped on 10,701 pp from -422% to -11,122% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 57.5%. The company's CAPEX/Revenue jumped on 57.5 pp from 0% in FY2017 to 57.5% in FY2020. For the last three years the average CAPEX/Revenue was 21.4%.
Leverage (Debt)
Debt level is -1.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2020. Debt increased on 3.0% while cash surged on 126%.
Know Labs Inc has short term refinancing risk: cash is only 99.9% of short term debt.
Financial and operational results
FY ended 09/30/2020
Know Labs Inc ($KNWN) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 6.024 | 4.874 | 4.303 | 1.805 | 0.122 | -93.2% |
| Gross Profit | 0.988 | 0.908 | 0.822 | 0.427 | 0.052 | -87.8% |
| SG&A | 3.355 | 3.088 | 2.509 | 4.182 | 4.844 | 15.8% |
| EBITDA | -2.514 | -3.162 | -2.125 | -4.620 | -6.446 | |
| Net Income | -1.747 | -3.901 | -3.258 | -7.612 | -13.563 | |
Balance Sheet
|
|---|
| Cash | 0.188 | 0.103 | 0.934 | 1.901 | 4.298 | 126.1% |
| Short Term Debt | 2.080 | 1.736 | 2.400 | 4.079 | 4.303 | 5.5% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.122 | 0.023 | -80.9% |
Cash flow
|
|---|
| Capex | 0.023 | 0.000 | 0.097 | 0.080 | 0.070 | -12.3% |
Ratios
|
|---|
| Revenue growth | -4.2% | -19.1% | -11.7% | -58.1% | -93.2% | |
| EBITDA growth | 27.2% | 25.8% | -32.8% | 117.4% | 39.5% | |
|
|---|
| Gross Margin | 16.4% | 18.6% | 19.1% | 23.6% | 42.8% | 19.2% |
| EBITDA Margin | -41.7% | -64.9% | -49.4% | -255.9% | -5,286.4% | -5,030.5% |
| SG&A, % of revenue | 55.7% | 63.4% | 58.3% | 231.7% | 3,972.8% | 3,741.1% |
| Net Income Margin | -29.0% | -80.0% | -75.7% | -421.7% | -11,122.4% | -10,700.7% |
| CAPEX, % of revenue | 0.4% | 0.0% | 2.3% | 4.4% | 57.5% | 53.1% |
|
|---|
| ROIC | | | | -1,255.6% | -406.2% | 849.4% |
Peers in Electronic Equipment & Instruments
Below we provide Know Labs 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 ($CGNX) | - | 44.7% | 5.3% | -10.0% | 11.8% |
| |
|---|
| Median (26 companies) | -3.8% | 5.0% | 11.6% | 5.2% | -2.7% |
|---|
| Know Labs Inc ($KNWN) | - | -19.1% | -11.7% | -58.1% | -93.2% |
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 ($APDN) | 82.2% | 77.3% | 69.1% | 83.7% | 62.7% |
| |
|---|
| Median (26 companies) | 40.7% | 41.7% | 40.9% | 43.2% | 44.0% |
|---|
| Know Labs Inc ($KNWN) | 16.4% | 18.6% | 19.1% | 23.6% | 42.8% |
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. ($BMI) | 18.6% | 20.1% | 18.7% | 21.1% | 21.2% |
| |
|---|
| Median (26 companies) | 3.2% | 5.2% | 4.2% | 13.6% | 12.0% |
|---|
| Know Labs Inc ($KNWN) | -41.7% | -64.9% | -49.4% | -255.9% | -5,286.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| 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% |
| Coherent, Inc. ($COHR) | 5.8% | 3.7% | 4.8% | 5.8% | 5.3% |
| |
|---|
| Median (25 companies) | 2.1% | 1.6% | 2.2% | 1.9% | 2.1% |
|---|
| Know Labs Inc ($KNWN) | 0.4% | 0.0% | 2.3% | 4.4% | 57.5% |
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 ($CGNX) | 17.7% | 25.6% | 20.1% | 11.9% | 13.9% |
| |
|---|
| Median (26 companies) | 2.2% | 3.3% | 1.1% | 7.9% | 5.7% |
|---|
| Know Labs Inc ($KNWN) | - | - | - | -1,255.6% | -406.2% |
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) | -0.9x | -0.8x | -0.9x | 0.3x | 0.4x |
|---|
