Ichor Holdings EBITDA surged on 68.4% and EBITDA Margin increased slightly on 0.98 pp from 6.8% to 7.8%
02/02/2021 • About Ichor Holdings (
$ICHR) • By InTwits
Ichor Holdings reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Ichor Holdings is a fast growth stock: FY2020 revenue growth was 47.3%, 5 year revenue CAGR was 25.8% at FY2020 ROIC 8.2%
- Ichor Holdings has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: $10m in FY2020, $12m in FY2019, $14m in FY2018, $8m in FY2017, $4m in FY2016
- The company has business model with low profitability: ROIC is 8.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 47.3%. Revenue growth showed slowdown in FY20Q4 - it was 29.4% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.9 pp from 15.7% to 19.6% in 2020.
Gross Margin showed almost no change in FY2020. SG&A as a % of Revenue decreased slightly on 1.4 pp from 7.6% to 6.2% in FY2020.
Net Income margin increased slightly on 1.9 pp from 1.7% to 3.6% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 1.1%. CAPEX/Revenue showed almost no change from FY2017 to FY2020. It's average level of CAPEX/Revenue for the last three years was 1.6%. During FY2016-FY2020 CAPEX as a % of Revenue topped in FY2019 at 2.0%.
Return on investment
The company operates at low ROIC (8.2%) and ROE (10.5%). ROIC increased on 4.4 pp from 3.9% to 8.2% in FY2020. ROE increased on 5.4 pp from 5.1% to 10.5% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 3.0x. Debt increased on 9.4% while cash jumped on 317%.
Ichor Holdings has no short term refinancing risk: cash is higher than short term debt (1,822.3%).
Valuation and dividends
The company's trades at EV/EBITDA 15.6x and P/E 34.7x.
Management team
The company's CEO Jeffrey Andreson "Jeff" has spent 1 year with the company. The company's CFO Larry J Sparks has spent 1 year with the company.
Financial and operational results
FY ended 12/25/2020
Ichor Holdings ($ICHR) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 405.7 | 655.9 | 823.6 | 620.8 | 914.2 | 47.3% |
| Gross Profit | 65.4 | 100.8 | 136.1 | 86.4 | 124.9 | 44.6% |
| SG&A | 28.1 | 37.8 | 47.4 | 47.3 | 56.6 | 19.8% |
| EBITDA | 33.4 | 58.7 | 87.0 | 42.3 | 71.2 | 68.4% |
| Net Income | 16.7 | 56.5 | 57.9 | 10.7 | 33.3 | 210.2% |
Balance Sheet
|
|---|
| Cash | 50.9 | 68.8 | 43.8 | 60.6 | 252.9 | 317.2% |
| Short Term Debt | 0.0 | 6.5 | 8.8 | 14.2 | 13.9 | -2.6% |
| Long Term Debt | 37.9 | 180.2 | 192.1 | 178.4 | 196.8 | 10.3% |
Cash flow
|
|---|
| Capex | 4.3 | 8.2 | 13.9 | 12.3 | 10.3 | -16.5% |
Ratios
|
|---|
| Revenue growth | 39.6% | 61.7% | 25.6% | -24.6% | 47.3% | |
| EBITDA growth | 48.1% | 75.9% | 48.3% | -51.4% | 68.4% | |
|
|---|
| Gross Margin | 16.1% | 15.4% | 16.5% | 13.9% | 13.7% | -0.3% |
| EBITDA Margin | 8.2% | 8.9% | 10.6% | 6.8% | 7.8% | 1.0% |
| SG&A, % of revenue | 6.9% | 5.8% | 5.8% | 7.6% | 6.2% | -1.4% |
| Net Income Margin | 4.1% | 8.6% | 7.0% | 1.7% | 3.6% | 1.9% |
| CAPEX, % of revenue | 1.1% | 1.3% | 1.7% | 2.0% | 1.1% | -0.9% |
|
|---|
| ROIC | 15.1% | 15.6% | 15.7% | 3.9% | 8.2% | 4.4% |
| ROE | | 31.5% | 27.9% | 5.1% | 10.5% | 5.4% |
| Net Debt/EBITDA | -0.4x | 2.0x | 1.8x | 3.1x | -0.6x | -3.7x |
Ichor Holdings ($ICHR) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 220 | 222 | 228 | 245 | | 59.6% | 59.2% | 47.4% | 29.4% |
| EBITDA | 13 | 17 | 20 | 22 | | 28.4% | 66.9% | 92.2% | 81.4% |
| Net Income | 3 | 7 | 11 | 13 | | 123.9% | 1,927.1% | 1,042.8% | 57.5% |
Balance Sheet
|
|---|
| Cash | 42 | 57 | 79 | 253 | | 31.5% | 37.4% | 161.5% | 317.2% |
| Short Term Debt | 14 | 14 | 14 | 14 | | 2.0% | 0.2% | -0.9% | -2.6% |
| Long Term Debt | 180 | 202 | 200 | 197 | | -8.5% | 4.2% | 11.3% | 10.3% |
Ratios
|
|---|
| Gross Margin | 13.1% | 13.2% | 14.3% | 14.0% | | -1.6% | -0.8% | 0.9% | 0.3% |
| EBITDA Margin | 5.7% | 7.5% | 8.9% | 8.9% | | -1.4% | 0.3% | 2.1% | 2.6% |
| Net Income Margin | 1.5% | 3.1% | 4.6% | 5.1% | | 0.4% | 2.8% | 4.0% | 0.9% |
Peers in Semiconductor Equipment
Below you can find Ichor Holdings benchmarking vs. other companies in Semiconductor Equipment 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 |
|---|
| 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. ($AEIS) | - | 38.7% | 7.1% | 9.7% | 79.5% |
| ACM Research, Inc. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| Axcelis Technologies, Inc. ($ACLS) | - | 53.8% | 7.8% | -22.5% | 38.4% |
| |
|---|
| Median (27 companies) | 5.0% | 24.2% | 14.0% | -0.2% | 16.3% |
|---|
| Ichor Holdings ($ICHR) | - | 61.7% | 25.6% | -24.6% | 47.3% |
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% |
| Kulicke and Soffa Industries, Inc. ($KLIC) | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% |
| |
|---|
| Median (27 companies) | 40.0% | 44.0% | 41.2% | 40.5% | 42.7% |
|---|
| Ichor Holdings ($ICHR) | 16.1% | 15.4% | 16.5% | 13.9% | 13.7% |
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. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (25 companies) | 12.1% | 16.2% | 16.6% | 12.9% | 15.9% |
|---|
| Ichor Holdings ($ICHR) | 8.2% | 8.9% | 10.6% | 6.8% | 7.8% |
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. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| |
|---|
| Median (24 companies) | 2.6% | 3.2% | 3.0% | 3.4% | 3.9% |
|---|
| Ichor Holdings ($ICHR) | 1.1% | 1.3% | 1.7% | 2.0% | 1.1% |
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. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 6.9% | 12.2% | 11.2% | 5.6% | 10.5% |
|---|
| Ichor Holdings ($ICHR) | 15.1% | 15.6% | 15.7% | 3.9% | 8.2% |
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. ($ENTG) | 0.7x | 0.1x | 1.1x | 1.6x | 1.0x |
| |
|---|
| Median (23 companies) | -1.3x | -0.7x | -1.0x | -0.4x | -0.3x |
|---|
| Ichor Holdings ($ICHR) | -0.4x | 2.0x | 1.8x | 3.1x | -0.6x |
