Intevac, Inc. EBITDA dropped on 15.5% and Revenue dropped on 10.2%
02/03/2021 • About Intevac, Inc. (
$IVAC) • By InTwits
Intevac, Inc. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 9.2% in FY2020, 9.8% in FY2019, 0.4% in FY2018, 7.7% in FY2017, -3.4% in FY2016
- Intevac, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: $1m in 2020, $6m in 2019, $1m in 2018, $1m in 2017, $2m in 2016
- The company has potentially unprofitable business model: ROIC is 2.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Intevac, Inc.'s Revenue dropped on 10.2%. Revenue decline showed acceleration in FY20Q4 - it was 19.4% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 67.8 pp from -50.4% to 17.4% in 2020.
Gross Margin increased on 3.9 pp from 37.5% to 41.4% in FY2020. SG&A as a % of Revenue increased on 3.6 pp from 20.8% to 24.4% in FY2020.
Net Income margin showed almost no change in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 2.7%. The company showed small CAPEX/Revenue decline of 1.2 pp from 3.9% in FY2017 to 2.7% in FY2020. It's average level of CAPEX/Revenue for the last three years was 3.3%.
Return on investment
The company operates at low ROIC (2.8%) and ROE (1.1%). ROIC decreased slightly on 1.6 pp from 4.5% to 2.8% in FY2020. ROE showed almost no change in FY2020. During the last 5 years ROE topped in FY2017 at 5.3% and was declining since that time.
Leverage (Debt)
Debt level is -2.2x Net Debt / EBITDA and 1.1x Debt / EBITDA. Debt dropped on 19.9% while cash surged on 48.4%.
Intevac, Inc. has no short term refinancing risk: cash is higher than short term debt (1,028.4%).
Valuation and dividends
The company's trades at EV/EBITDA 15.2x and P/E 147.9x.
Management team
The company's CEO is Wendell T Blonigan. Wendell T Blonigan has 7 years tenure with the company. Intevac, Inc.'s CFO James P Moniz "Jim" has spent 6 years with the company.
Financial and operational results
FY ended 01/02/2021
Intevac, Inc. ($IVAC) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 80.1 | 112.8 | 95.1 | 108.9 | 97.8 | -10.2% |
| Gross Profit | 30.4 | 45.7 | 32.7 | 40.9 | 40.5 | -0.8% |
| SG&A | 19.9 | 23.3 | 20.2 | 22.6 | 23.9 | 5.6% |
| EBITDA | -2.7 | 8.7 | 0.4 | 10.6 | 9.0 | -15.5% |
| Net Income | -7.4 | 4.1 | 3.6 | 1.1 | 1.1 | -8.0% |
Balance Sheet
|
|---|
| Cash | 27.0 | 19.9 | 18.7 | 19.8 | 29.3 | 48.4% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 2.5 | 2.9 | 13.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 9.5 | 6.8 | -28.6% |
Cash flow
|
|---|
| Capex | 3.4 | 4.4 | 3.2 | 4.1 | 2.6 | -36.4% |
Ratios
|
|---|
| Revenue growth | 6.6% | 40.8% | -15.7% | 14.5% | -10.2% | |
| EBITDA growth | -34.2% | -419.8% | -95.4% | 2,577.1% | -15.5% | |
|
|---|
| Gross Margin | 38.0% | 40.5% | 34.4% | 37.5% | 41.4% | 3.9% |
| EBITDA Margin | -3.4% | 7.7% | 0.4% | 9.8% | 9.2% | -0.6% |
| SG&A, % of revenue | 24.9% | 20.7% | 21.2% | 20.8% | 24.4% | 3.6% |
| Net Income Margin | -9.3% | 3.6% | 3.8% | 1.1% | 1.1% | 0.0% |
| CAPEX, % of revenue | 4.2% | 3.9% | 3.4% | 3.8% | 2.7% | -1.1% |
|
|---|
| ROIC | -10.1% | 6.3% | -4.7% | 4.5% | 2.8% | -1.6% |
| ROE | -10.0% | 5.3% | 4.2% | 1.2% | 1.1% | -0.2% |
| Net Debt/EBITDA | | -2.3x | -47.1x | -0.7x | -2.2x | -1.5x |
Intevac, Inc. ($IVAC) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 19 | 29 | 22 | 29 | | -24.1% | 29.3% | -18.0% | -19.4% |
| EBITDA | -0 | 3 | 1 | 3 | | - | 312.3% | -41.9% | -71.4% |
| Net Income | -1 | 2 | -0 | 1 | | - | - | - | -78.6% |
Balance Sheet
|
|---|
| Cash | 21 | 24 | 27 | 29 | | -8.9% | 1.8% | 81.7% | 48.4% |
| Short Term Debt | 3 | 3 | 3 | 3 | | 1.8% | 9.0% | 16.0% | 13.0% |
| Long Term Debt | 9 | 8 | 8 | 7 | | -15.9% | -17.1% | -19.6% | -28.6% |
Ratios
|
|---|
| Gross Margin | 43.3% | 39.6% | 43.1% | 40.8% | | 14.1% | 2.1% | 9.7% | -5.7% |
| EBITDA Margin | -1.3% | 10.6% | 3.2% | 8.9% | | -0.6% | 7.2% | -1.3% | -16.2% |
| Net Income Margin | -6.5% | 5.3% | -1.7% | 3.9% | | 3.1% | 10.6% | 0.2% | -10.8% |
Peers in Technology Hardware, Storage & Peripherals
Below we provide Intevac, Inc. benchmarking against other companies in Technology Hardware, Storage & Peripherals 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 |
|---|
| Ionix Technology Inc ($IINX) | - | 246.0% | -5.8% | 92.3% | 66.8% |
| Veritec Inc ($VRTC) | - | -52.2% | 53.1% | -38.5% | 42.9% |
| Pure Storage, Inc. ($PSTG) | - | 67.9% | 38.6% | 32.7% | 20.9% |
| USA Technologies, Inc. ($USAT) | - | 34.5% | - | - | 12.9% |
| CPI Card Group Inc. ($PMTS) | - | -17.4% | 0.4% | 8.7% | 12.3% |
| |
|---|
| Median (20 companies) | 1.4% | 1.5% | 5.6% | -3.7% | -8.8% |
|---|
| Intevac, Inc. ($IVAC) | - | 40.8% | -15.7% | 14.5% | -10.2% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Immersion Corporation ($IMMR) | 99.7% | 99.4% | 99.8% | 99.5% | 99.4% |
| Datasea Inc ($DTSS) | - | 39.3% | 54.4% | - | 89.7% |
| Pure Storage, Inc. ($PSTG) | 61.9% | 65.9% | 65.5% | 66.4% | 69.0% |
| Avid Technology, Inc. ($AVID) | 65.0% | 57.8% | 57.9% | 60.5% | 63.3% |
| Socket Mobile, Inc. ($SCKT) | 50.2% | 53.5% | 51.4% | 52.5% | 53.1% |
| |
|---|
| Median (21 companies) | 39.3% | 38.9% | 38.8% | 32.7% | 37.4% |
|---|
| Intevac, Inc. ($IVAC) | 38.0% | 40.5% | 34.4% | 37.5% | 41.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Apple Inc. ($AAPL) | 32.7% | 31.2% | 30.8% | 29.4% | 28.7% |
| CPI Card Group Inc. ($PMTS) | 14.9% | -0.0% | 9.0% | 15.2% | 17.9% |
| Immersion Corporation ($IMMR) | -25.1% | -127.0% | 48.6% | -50.4% | 17.4% |
| Avid Technology, Inc. ($AVID) | 17.5% | 6.6% | 8.4% | 13.5% | 13.6% |
| Western Digital Corporation ($WDC) | 12.5% | 21.4% | 27.5% | 11.5% | 11.7% |
| |
|---|
| Median (19 companies) | 4.9% | 3.5% | 7.9% | 7.7% | 7.6% |
|---|
| Intevac, Inc. ($IVAC) | -3.4% | 7.7% | 0.4% | 9.8% | 9.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Datasea Inc ($DTSS) | - | 0.0% | 0.0% | - | 20.9% |
| Hewlett Packard Enterprise Company ($HPE) | 10.8% | 10.9% | 9.6% | 9.8% | 8.8% |
| Pure Storage, Inc. ($PSTG) | 8.9% | 10.4% | 6.3% | 7.4% | 5.3% |
| Stratasys, Ltd. ($SSYS) | 6.7% | 3.3% | 3.5% | 3.5% | 5.2% |
| Western Digital Corporation ($WDC) | 4.5% | 3.0% | 4.0% | 5.3% | 3.9% |
| |
|---|
| Median (19 companies) | 1.7% | 1.8% | 2.2% | 1.7% | 1.7% |
|---|
| Intevac, Inc. ($IVAC) | 4.2% | 3.9% | 3.4% | 3.8% | 2.7% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| HP Inc. ($HPQ) | 15.8% | 60.8% | 72.9% | 116.0% | 109.2% |
| Apple Inc. ($AAPL) | 27.0% | 23.8% | 28.0% | 29.5% | 33.0% |
| Avid Technology, Inc. ($AVID) | - | - | 252.4% | 42.1% | 30.0% |
| CPI Card Group Inc. ($PMTS) | 12.8% | -9.3% | 2.7% | 15.4% | 20.5% |
| NCR Corporation ($NCR) | 13.9% | 16.3% | 4.6% | 14.3% | 5.5% |
| |
|---|
| Median (21 companies) | 1.8% | 0.2% | 3.6% | 2.9% | 2.0% |
|---|
| Intevac, Inc. ($IVAC) | -10.1% | 6.3% | -4.7% | 4.5% | 2.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Diebold Nixdorf Incorporated ($DBD) | - | 8.3x | - | 6.6x | 7.3x |
| CPI Card Group Inc. ($PMTS) | 5.8x | - | 12.4x | 7.2x | 5.2x |
| Hewlett Packard Enterprise Company ($HPE) | 0.4x | 1.2x | 1.6x | 2.6x | 5.2x |
| NCR Corporation ($NCR) | 2.7x | 2.3x | 5.2x | 3.3x | 4.8x |
| Western Digital Corporation ($WDC) | 5.5x | 1.7x | 1.1x | 3.7x | 3.5x |
| |
|---|
| Median (11 companies) | 0.2x | 0.5x | 1.1x | 1.8x | 3.3x |
|---|
| Intevac, Inc. ($IVAC) | - | -2.3x | -47.1x | -0.7x | -2.2x |
