Littelfuse, Inc. reports 9.1% EBITDA decline in 2020 and 3.9% Revenue decline
02/03/2021 • About Littelfuse, Inc. (
$LFUS) • By InTwits
Littelfuse, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Littelfuse, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.4%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: $15m in FY2020, $47m in FY2019, $45m in FY2018, $70m in FY2017, $187m in FY2016
- The company has potentially unprofitable business model: ROIC is 6.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.1x while industry average is -0.7x
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 decreased on 3.9%. Annual revenue decline showed slowdown in FY20Q4 - revenue jumped on 18.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.1 pp from -0.073% to 5.0% in FY2020.
Gross Margin decreased slightly on 1.3 pp from 36.0% to 34.7% in FY2020. During the last 5 years Gross Margin topped in FY2017 at 41.5% and was declining since that time. SG&A as a % of Revenue decreased slightly on 1.0 pp from 15.2% to 14.1% in FY2020. SG&A as a % of Revenue declined at -1.3 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2020. Net Income margin stuck to a declining trend at -0.23 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2020 Littelfuse, Inc. had CAPEX/Revenue of 3.9%. Littelfuse, Inc. showed small CAPEX/Revenue decline of 1.5 pp from 5.4% in FY2017 to 3.9% in FY2020. For the last three years the average CAPEX/Revenue was 4.1%. During FY2016-FY2020 CAPEX as a % of Revenue topped in FY2017 at 5.4% and was declining since that time.
Return on investment
The company operates at low ROIC (6.9%) and ROE (8.4%). ROIC decreased slightly on 1.6 pp from 8.5% to 6.9% in FY2020. ROE decreased slightly on 0.98 pp from 9.4% to 8.4% in FY2020. During the last 5 years ROIC topped in FY2017 at 15.8% and was declining since that time. ROE stuck to a declining trend at -1.5 pp per annum in FY2016-FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 2.6x. Net Debt / EBITDA dropped on 0.5x from 0.6x to 0.1x in FY2020. Debt showed almost no change in FY2020 while cash jumped on 29.4%.
Littelfuse, Inc. has no short term refinancing risk: cash is higher than short term debt (10,094.3%).
Valuation and dividends
The company's trades at EV/EBITDA 24.3x and P/E 49.7x.
Management team
David W Heinzmann "Dave" is a the company's CEO. David W Heinzmann "Dave" has spent 4 years with the company. The company's CFO Meenal A Sethna has spent 4 years with the company.
Financial and operational results
FY ended 12/26/2020
Littelfuse, Inc. ($LFUS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 1,056 | 1,222 | 1,718 | 1,504 | 1,446 | -3.9% |
| Gross Profit | 413 | 507 | 653 | 541 | 501 | -7.4% |
| SG&A | 206 | 213 | 288 | 228 | 205 | -10.3% |
| EBITDA | 184 | 282 | 328 | 294 | 267 | -9.1% |
| EBIT | 131 | 219 | 225 | | | |
| Interest expence | 9 | 13 | 23 | | | |
| Tax | 19 | 85 | 40 | | | |
| Net Income | 104 | 120 | 165 | 139 | 130 | -6.5% |
| Stock Based Compensation | 9 | 16 | 27 | | | |
Balance Sheet
|
|---|
| Cash | 275 | 430 | 490 | 531 | 688 | 29.4% |
| Accounts Receivable | 198 | 183 | 233 | | | |
| Inventory | 114 | 141 | 258 | | | |
| Accounts Payable | 91 | 102 | 126 | | | |
| Short Term Debt | 6 | 6 | 10 | 17 | 7 | -60.5% |
| Long Term Debt | 448 | 489 | 685 | 686 | 700 | 2.0% |
Cash flow
|
|---|
| Capex | 46 | 66 | 75 | 62 | 56 | -9.2% |
| Dividends | 28 | 32 | 40 | | | |
| Acquisitions | 471 | 39 | 318 | | | |
Ratios
|
|---|
| Revenue growth | 21.7% | 15.7% | 40.7% | -12.5% | -3.9% | |
| EBITDA growth | 26.1% | 53.2% | 16.6% | -10.4% | -9.1% | |
|
|---|
| Gross Margin | 39.1% | 41.5% | 38.0% | 36.0% | 34.7% | -1.3% |
| EBITDA Margin | 17.4% | 23.0% | 19.1% | 19.5% | 18.5% | -1.1% |
| EBIT Margin | 12.4% | 17.9% | 13.1% | | |
| SG&A, % of revenue | 19.5% | 17.4% | 16.8% | 15.2% | 14.1% | -1.0% |
| SBC, % of revenue | 0.8% | 1.3% | 1.6% | | |
| Net Income Margin | 9.9% | 9.8% | 9.6% | 9.2% | 9.0% | -0.3% |
| CAPEX, % of revenue | 4.4% | 5.4% | 4.3% | 4.1% | 3.9% | -0.2% |
|
|---|
| ROIC | 11.7% | 15.8% | 12.1% | 8.5% | 6.9% | -1.6% |
| ROE | 13.4% | 13.7% | 13.7% | 9.4% | 8.4% | -1.0% |
| Net Debt/EBITDA | 1.0x | 0.2x | 0.6x | 0.6x | 0.1x | -0.5x |
| Interest expence / Average debt | 1.9% | 2.8% | 3.8% | | | |
People
|
|---|
| Insider ownership | 2.8% | 2.8% | 2.8% | | | |
| Employees | 10,300 | 10,700 | 12,300 | | | |
| Revenue/Employee, th. $ | 103 | 114 | 140 | | | |
Littelfuse, Inc. ($LFUS) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 346 | 307 | 392 | 401 | | -14.6% | -22.8% | 8.2% | 18.4% |
| EBITDA | 71 | 12 | 89 | 89 | | -17.9% | -84.8% | 22.8% | 54.3% |
| Net Income | 25 | -9 | 55 | 59 | | -33.4% | -120.5% | 55.3% | 160.3% |
Balance Sheet
|
|---|
| Cash | 621 | 652 | 642 | 688 | | 30.2% | 37.3% | 34.8% | 29.4% |
| Short Term Debt | 17 | 7 | 7 | 7 | | -2.1% | -60.5% | -59.4% | -60.5% |
| Long Term Debt | 780 | 791 | 740 | 700 | | 12.0% | 13.8% | 7.9% | 2.0% |
Ratios
|
|---|
| Gross Margin | 35.7% | 32.2% | 35.3% | 34.5% | | -2.5% | -3.4% | -0.9% | 0.9% |
| EBITDA Margin | 20.4% | 3.8% | 22.7% | 22.3% | | -0.8% | -15.7% | 2.7% | 5.2% |
| Net Income Margin | 7.1% | -2.9% | 14.1% | 14.7% | | -2.0% | -13.9% | 4.3% | 8.0% |
Peers in Electronic Components
Below you can find Littelfuse, Inc. benchmarking vs. other companies in Electronic Components 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 |
|---|
| Cavitation Technologies Inc ($CVAT) | - | -40.9% | 22.6% | -16.3% | 52.6% |
| IEH Corp ($IEHC) | - | 4.0% | 16.6% | 21.0% | 13.2% |
| Amphenol Corporation ($APH) | - | 11.5% | 17.0% | 0.3% | 4.5% |
| Corning Incorporated ($GLW) | - | 7.7% | 11.6% | 1.9% | -1.7% |
| CPS Technologies Corp. ($CPSH) | - | -5.0% | 48.0% | -0.5% | -2.8% |
| |
|---|
| Median (12 companies) | -10.4% | 7.7% | 14.1% | -0.1% | -5.8% |
|---|
| Littelfuse, Inc. ($LFUS) | - | 15.7% | 40.7% | -12.5% | -3.9% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cavitation Technologies Inc ($CVAT) | 93.2% | 93.5% | 90.6% | 93.7% | 97.6% |
| Dolby Laboratories ($DLB) | 89.4% | 89.1% | 87.9% | 87.0% | 87.4% |
| Airgain, Inc. ($AIRG) | 44.4% | 47.1% | 43.7% | 45.4% | 46.6% |
| Rogers Corporation ($ROG) | 38.0% | 38.8% | 35.4% | 35.0% | 36.4% |
| Belden Inc ($BDC) | 41.6% | 39.1% | 39.0% | 37.2% | 35.6% |
| |
|---|
| Median (12 companies) | 33.7% | 34.9% | 36.3% | 36.2% | 33.7% |
|---|
| Littelfuse, Inc. ($LFUS) | 39.1% | 41.5% | 38.0% | 36.0% | 34.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dolby Laboratories ($DLB) | 30.9% | 30.8% | 25.1% | 27.6% | 28.7% |
| Amphenol Corporation ($APH) | 22.6% | 23.6% | 24.2% | 24.7% | 22.6% |
| Corning Incorporated ($GLW) | 27.9% | 27.3% | 25.4% | 25.7% | 18.0% |
| Rogers Corporation ($ROG) | 18.5% | 21.3% | 18.5% | 18.1% | 17.7% |
| Vishay Intertechnology, Inc. ($VSH) | 15.4% | 18.7% | 21.3% | 16.8% | 16.0% |
| |
|---|
| Median (12 companies) | 13.6% | 8.7% | 9.3% | 16.9% | 14.4% |
|---|
| Littelfuse, Inc. ($LFUS) | 17.4% | 23.0% | 19.1% | 19.5% | 18.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Corning Incorporated ($GLW) | 12.0% | 17.8% | 19.9% | 17.2% | 12.2% |
| Dolby Laboratories ($DLB) | 9.8% | 9.2% | 6.9% | 7.8% | 5.7% |
| Rogers Corporation ($ROG) | 2.8% | 3.3% | 5.4% | 5.7% | 5.0% |
| Vishay Intertechnology, Inc. ($VSH) | 5.8% | 6.6% | 7.6% | 5.9% | 4.9% |
| Belden Inc ($BDC) | 2.3% | 2.7% | 3.8% | 5.2% | 4.8% |
| |
|---|
| Median (12 companies) | 3.0% | 4.2% | 3.8% | 5.0% | 3.7% |
|---|
| Littelfuse, Inc. ($LFUS) | 4.4% | 5.4% | 4.3% | 4.1% | 3.9% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Amphenol Corporation ($APH) | 18.3% | 19.2% | 21.1% | 19.4% | 18.0% |
| CPS Technologies Corp. ($CPSH) | -10.8% | -19.4% | -11.9% | -9.3% | 13.8% |
| IEH Corp ($IEHC) | 24.2% | 19.2% | 26.1% | 36.6% | 12.8% |
| Vishay Intertechnology, Inc. ($VSH) | 9.8% | 18.4% | 27.8% | 13.2% | 9.9% |
| Dolby Laboratories ($DLB) | 12.2% | 12.0% | 8.4% | 11.4% | 9.6% |
| |
|---|
| Median (12 companies) | 4.7% | 6.0% | 7.8% | 7.9% | 6.4% |
|---|
| Littelfuse, Inc. ($LFUS) | 11.7% | 15.8% | 12.1% | 8.5% | 6.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Belden Inc ($BDC) | 2.1x | 2.6x | 2.3x | 3.1x | 4.6x |
| Corning Incorporated ($GLW) | -0.5x | 0.3x | 1.3x | 2.1x | 2.6x |
| Amphenol Corporation ($APH) | 1.4x | 1.1x | 1.2x | 1.4x | 1.1x |
| Bel Fuse Inc. ($BELFA) | - | 1.4x | 1.3x | 3.7x | 1.1x |
| Knowles Corporation ($KN) | 2.0x | 1.0x | 0.7x | 0.9x | 0.6x |
| |
|---|
| Median (11 companies) | -0.5x | -0.3x | 0.6x | 0.9x | 0.0x |
|---|
| Littelfuse, Inc. ($LFUS) | 1.0x | 0.2x | 0.6x | 0.6x | 0.1x |
