Inphi Corporation reports 153% CAPEX growth in 2020 and 86.8% Revenue growth
02/02/2021 • About Inphi Corporation (
$IPHI) • By InTwits
Inphi Corporation reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Inphi Corporation is a fast growth stock: 2020 revenue growth was 86.8%, 5 year revenue CAGR was 28.8% at 2020 ROIC -1.8%
- EBITDA Margin is quite volatile: 17.5% in 2020, 14.3% in 2019, 2.9% in 2018, 2.2% in 2017, 21.1% in 2016
- Inphi Corporation has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.8%. At the same time it's a lot of higher than industry average of 7.3%.
- CAPEX is quite volatile: $75m in 2020, $30m in 2019, $32m in 2018, $37m in 2017, $22m in 2016
- The company has unprofitable business model: ROIC is -1.8%
- It operates with high leverage: Net Debt/EBITDA is 3.4x while industry average is 0.3x
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 86.8%. Revenue growth showed small slowdown in 20Q4 - it was 82.3% YoY. During the last 5 years Revenue growth bottomed in 2018 at -15.4% and was accelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.1 pp from -6.2% to 0.91% in 2020. During the last 5 years EBITDA Margin bottomed in 2017 at 2.2% and was growing since that time.
Gross Margin decreased on 3.9 pp from 58.2% to 54.3% in 2020. SG&A as a % of Revenue decreased on 4.0 pp from 21.4% to 17.4% in 2020. During the last 5 years SG&A as a % of Revenue topped in 2018 at 24.2% and was declining since that time.
Net Income margin surged on 11.2 pp from -19.9% to -8.7% in 2020. During the last 5 years Net Income margin bottomed in 2018 at -32.5% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 11.0% in 2020. The company showed almost no change in CAPEX/Revenue from 2017 to 2020. Average CAPEX/Revenue for the last three years was 9.9%. The company invested a big chunk of EBITDA (62.7%) to CAPEX to fuel its growth.
Return on investment
The company operates at negative ROIC (-1.8%) and ROE (-17.1%). ROIC increased on 3.9 pp from -5.7% to -1.8% in 2020. ROE increased on 3.4 pp from -20.4% to -17.1% in 2020. During 2016-2020 ROIC bottomed in 2018 at -9.0% and was growing since that time. During 2016-2020 ROE bottomed in 2018 at -24.6% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.4x and Debt / EBITDA is 4.2x. Net Debt / EBITDA dropped on 1.1x from 4.5x to 3.4x in 2020. Debt decreased on 2.5% while cash dropped on 63.4%. During the last 5 years Net Debt/EBITDA topped in 2017 at 33.7x and was declining since that time.
Inphi Corporation has no short term refinancing risk: cash is higher than short term debt (166.1%).
Management team
Inphi Corporation's CEO Ford G Tamer has spent 9 years with the company. The company's CFO John S Edmunds has spent 13 years with the company.
Financial and operational results
FY ended 12/31/2020
Inphi Corporation ($IPHI) key annual financial indicatorsmln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
---|
P&L
|
---|
Revenue | 266.3 | 348.2 | 294.5 | 365.6 | 683.0 | 86.8% |
Gross Profit | 180.7 | 196.5 | 165.1 | 212.8 | 371.1 | 74.4% |
SG&A | 47.7 | 66.2 | 71.4 | 78.4 | 118.8 | 51.6% |
EBITDA | 56.2 | 7.7 | 8.6 | 52.3 | 119.3 | 128.0% |
Net Income | 99.5 | -74.9 | -95.8 | -72.9 | -59.7 | |
Balance Sheet
|
---|
Cash | 144.9 | 163.5 | 172.0 | 282.7 | 103.5 | -63.4% |
Short Term Debt | 0.0 | 0.0 | 0.0 | 220.0 | 62.3 | -71.7% |
Long Term Debt | 396.9 | 421.4 | 447.8 | 299.8 | 444.6 | 48.3% |
Cash flow
|
---|
Capex | 22.3 | 37.4 | 31.7 | 29.5 | 74.8 | 153.5% |
Ratios
|
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Revenue growth | 38.2% | 30.8% | -15.4% | 24.2% | 86.8% | |
EBITDA growth | 223.9% | -86.4% | 11.8% | 511.6% | 128.0% | |
|
---|
Gross Margin | 67.9% | 56.4% | 56.1% | 58.2% | 54.3% | -3.9% |
EBITDA Margin | 21.1% | 2.2% | 2.9% | 14.3% | 17.5% | 3.2% |
SG&A, % of revenue | 17.9% | 19.0% | 24.2% | 21.4% | 17.4% | -4.0% |
Net Income Margin | 37.4% | -21.5% | -32.5% | -19.9% | -8.7% | 11.2% |
CAPEX, % of revenue | 8.4% | 10.8% | 10.8% | 8.1% | 11.0% | 2.9% |
|
---|
ROIC | 3.7% | -8.1% | -9.0% | -5.7% | -1.8% | 3.9% |
ROE | 26.4% | -17.1% | -24.6% | -20.4% | -17.1% | 3.4% |
Net Debt/EBITDA | 4.5x | 33.7x | 32.2x | 4.5x | 3.4x | -1.1x |
Inphi Corporation ($IPHI) key quoterly financial indicators
mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
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P&L
|
---|
Revenue | 139 | 175 | 181 | 188 | | 69.6% | 103.2% | 91.8% | 82.3% |
EBITDA | 15 | 31 | 39 | 33 | | 56.9% | 178.8% | 161.0% | 105.3% |
Net Income | -20 | -24 | -3 | -12 | | - | - | - | - |
Balance Sheet
|
---|
Cash | 98 | 134 | 148 | 104 | | -55.1% | -16.1% | -2.1% | -63.4% |
Short Term Debt | 224 | 51 | 110 | 62 | | 11,418.2% | 3,011.7% | 3,778.0% | -71.7% |
Long Term Debt | 304 | 496 | 441 | 445 | | -34.6% | 5.5% | -8.0% | 48.3% |
Ratios
|
---|
Gross Margin | 52.9% | 53.0% | 56.2% | 54.9% | | -5.1% | -3.9% | -1.6% | -5.0% |
EBITDA Margin | 11.0% | 17.7% | 21.8% | 17.9% | | -0.9% | 4.8% | 5.8% | 2.0% |
Net Income Margin | -14.5% | -13.7% | -1.9% | -6.4% | | 13.1% | 10.1% | 15.3% | 6.6% |
Peers in Semiconductors
Below you can find Inphi Corporation benchmarking vs. other companies in Semiconductors 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 |
---|
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% |
Monolithic Power Systems, Inc. ($MPWR) | - | 21.2% | 23.7% | 7.8% | 34.5% |
|
---|
Median (43 companies) | 1.2% | 10.9% | 4.9% | -3.2% | 1.0% |
---|
Inphi Corporation ($IPHI) | - | 30.8% | -15.4% | 24.2% | 86.8% |
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. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
|
---|
Median (43 companies) | 47.2% | 48.6% | 50.2% | 50.4% | 49.2% |
---|
Inphi Corporation ($IPHI) | 67.9% | 56.4% | 56.1% | 58.2% | 54.3% |
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. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
|
---|
Median (41 companies) | 9.2% | 10.7% | 9.8% | 12.9% | 17.3% |
---|
Inphi Corporation ($IPHI) | 21.1% | 2.2% | 2.9% | 14.3% | 17.5% |
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. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
|
---|
Median (40 companies) | 3.6% | 4.7% | 4.2% | 3.7% | 3.6% |
---|
Inphi Corporation ($IPHI) | 8.4% | 10.8% | 10.8% | 8.1% | 11.0% |
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 ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
|
---|
Median (45 companies) | 1.4% | 3.2% | 3.0% | 3.8% | 5.5% |
---|
Inphi Corporation ($IPHI) | 3.7% | -8.1% | -9.0% | -5.7% | -1.8% |
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. ($RMBS) | -0.1x | -0.1x | - | - | 5.9x |
Canadian Solar Inc. ($CSIQ) | 11.3x | 6.8x | 2.7x | 3.4x | 3.3x |
Broadcom Inc. ($AVGO) | 4.0x | 0.9x | 1.4x | 3.0x | 3.1x |
|
---|
Median (31 companies) | -0.0x | 0.4x | 0.3x | 0.5x | 0.1x |
---|
Inphi Corporation ($IPHI) | 4.5x | 33.7x | 32.2x | 4.5x | 3.4x |