Advanced Energy Industries, Inc. EBITDA surged on 169% and Revenue jumped on 79.5%
02/10/2021 • About Advanced Energy Industries, Inc. (
$AEIS) • By InTwits
Advanced Energy Industries, Inc. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Advanced Energy Industries, Inc. is a fast growth stock: 2020 revenue growth was 79.5%, 5 year revenue CAGR was 27.8% at 2020 ROIC 15.5%
- EBITDA Margin is quite volatile: 17.4% in 2020, 11.6% in 2019, 25.8% in 2018, 31.3% in 2017, 27.8% in 2016
- Advanced Energy Industries, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: $36m in 2020, $25m in 2019, $20m in 2018, $9m in 2017, $7m in 2016
- The company has highly profitable business model: ROIC is 15.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Advanced Energy Industries, Inc.'s Revenue surged on 79.5%. Revenue growth showed slowdown in 20Q4 - it was 9.7% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.8 pp from 11.6% to 17.4% in 2020.
Gross Margin decreased slightly on 1.7 pp from 40.0% to 38.3% in 2020. Gross Margin followed a declining trend at -4.1 pp per annum in 2016-2020. SG&A as a % of Revenue decreased on 4.7 pp from 18.1% to 13.3% in 2020.
Net Income margin increased slightly on 1.3 pp from 8.2% to 9.5% in 2020. Net Income margin stuck to a declining trend at -4.6 pp per annum in 2016-2020.
Investments (CAPEX, working capital and M&A)
In 2020 Advanced Energy Industries, Inc. had CAPEX/Revenue of 2.6%. CAPEX/Revenue increased slightly on 1.2 pp from 1.3% in 2017 to 2.6% in 2020. For the last three years the average CAPEX/Revenue was 2.9%.
Return on investment
The company operates at good ROIC (15.5%) and ROE (18.1%). ROIC increased on 8.6 pp from 6.9% to 15.5% in 2020. ROE increased on 7.9 pp from 10.1% to 18.1% in 2020. ROE stuck to a declining trend at -6.2 pp per annum in 2016-2020.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and 1.8x Debt / EBITDA. Debt decreased on 3.0% while cash jumped on 38.7%.
Advanced Energy Industries, Inc. has no short term refinancing risk: cash is higher than short term debt (1,409.0%).
Valuation and dividends
Advanced Energy Industries, Inc.'s trades at EV/EBITDA 16.8x and P/E 31.2x.
Management team
The company's CFO Paul Oldham has spent 2 years with the company.
Financial and operational results
FY ended 12/31/2020
Advanced Energy Industries, Inc. ($AEIS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 484 | 671 | 719 | 789 | 1,416 | 79.5% |
| Gross Profit | 253 | 356 | 366 | 316 | 542 | 71.7% |
| SG&A | 78 | 93 | 108 | 143 | 189 | 32.3% |
| EBITDA | 135 | 210 | 185 | 92 | 247 | 169.4% |
| EBIT | 127 | 201 | 172 | | | |
| Tax | 11 | 62 | 25 | | | |
| Net Income | 127 | 138 | 147 | 65 | 135 | 107.4% |
| Stock Based Compensation | 6 | 13 | 10 | | | |
Balance Sheet
|
|---|
| Cash | 282 | 407 | 349 | 346 | 480 | 38.7% |
| Accounts Receivable | 76 | 87 | 100 | | | |
| Inventory | 56 | 78 | 98 | | | |
| Accounts Payable | 46 | 48 | 40 | | | |
| Short Term Debt | 0 | 0 | 0 | 36 | 34 | -4.8% |
| Long Term Debt | 0 | 0 | 0 | 412 | 401 | -2.8% |
Cash flow
|
|---|
| Capex | 7 | 9 | 20 | 25 | 36 | 44.8% |
| Acquisitions | | 17 | 94 | | | |
Ratios
|
|---|
| Revenue growth | 16.6% | 38.7% | 7.1% | 9.7% | 79.5% | |
| EBITDA growth | 16.6% | 56.1% | -11.9% | -50.5% | 169.4% | |
|
|---|
| Gross Margin | 52.3% | 53.1% | 50.9% | 40.0% | 38.3% | -1.7% |
| EBITDA Margin | 27.8% | 31.3% | 25.8% | 11.6% | 17.4% | 5.8% |
| EBIT Margin | 26.2% | 29.9% | 23.9% | | |
| SG&A, % of revenue | 16.1% | 13.9% | 15.0% | 18.1% | 13.3% | -4.7% |
| SBC, % of revenue | 1.3% | 1.9% | 1.3% | | |
| Net Income Margin | 26.3% | 20.5% | 20.5% | 8.2% | 9.5% | 1.3% |
| CAPEX, % of revenue | 1.4% | 1.3% | 2.8% | 3.2% | 2.6% | -0.6% |
|
|---|
| ROIC | 41.2% | 45.7% | 31.3% | 6.9% | 15.5% | 8.6% |
| ROE | 38.9% | 30.2% | 26.1% | 10.1% | 18.1% | 7.9% |
| Net Debt/EBITDA | -2.1x | -1.9x | -1.9x | 1.1x | -0.2x | -1.3x |
People
|
|---|
| Insider ownership | 1.3% | 1.3% | 1.3% | | | |
| Employees | 1,558 | 1,876 | 2,259 | | | |
| Revenue/Employee, th. $ | 310 | 358 | 318 | | | |
Advanced Energy Industries, Inc. ($AEIS) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 315 | 340 | 390 | 371 | | 124.1% | 152.1% | 122.4% | 9.7% |
| EBITDA | 37 | 52 | 76 | 93 | | 134.3% | 241.1% | 366.4% | 181.2% |
| Net Income | 18 | 29 | 46 | 42 | | 17.5% | -8.0% | 498.7% | 307.6% |
Balance Sheet
|
|---|
| Cash | 353 | 381 | 429 | 480 | | 0.4% | 6.0% | 26.0% | 38.7% |
| Short Term Debt | 36 | 37 | 35 | 34 | | 390.3% | 282.5% | -1.2% | -4.8% |
| Long Term Debt | 412 | 406 | 406 | 401 | | 1,293.7% | 813.2% | -3.4% | -2.8% |
Ratios
|
|---|
| Gross Margin | 35.6% | 38.3% | 39.5% | 39.2% | | -11.1% | -9.2% | -2.5% | 6.0% |
| EBITDA Margin | 11.9% | 15.3% | 19.5% | 25.1% | | 0.5% | 4.0% | 10.2% | 15.3% |
| Net Income Margin | 5.7% | 8.6% | 11.7% | 11.3% | | -5.2% | -14.9% | 7.4% | 8.2% |
Peers in Semiconductor Equipment
Below you can find Advanced Energy Industries, Inc. 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% |
| Ichor Holdings ($ICHR) | - | 61.7% | 25.6% | -24.6% | 47.3% |
| ACM Research, Inc. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| Axcelis Technologies, Inc. ($ACLS) | - | 53.8% | 7.8% | -22.5% | 38.4% |
| |
|---|
| Median (27 companies) | 5.0% | 24.2% | 15.5% | -2.8% | 16.3% |
|---|
| Advanced Energy Industries, Inc. ($AEIS) | - | 38.7% | 7.1% | 9.7% | 79.5% |
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. ($KLIC) | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% |
| |
|---|
| Median (27 companies) | 37.3% | 43.2% | 40.2% | 40.5% | 42.7% |
|---|
| Advanced Energy Industries, Inc. ($AEIS) | 52.3% | 53.1% | 50.9% | 40.0% | 38.3% |
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. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (25 companies) | 11.4% | 16.0% | 16.2% | 12.9% | 15.4% |
|---|
| Advanced Energy Industries, Inc. ($AEIS) | 27.8% | 31.3% | 25.8% | 11.6% | 17.4% |
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. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| |
|---|
| Median (24 companies) | 2.6% | 3.2% | 3.0% | 3.4% | 3.9% |
|---|
| Advanced Energy Industries, Inc. ($AEIS) | 1.4% | 1.3% | 2.8% | 3.2% | 2.6% |
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. ($ENTG) | 10.3% | 14.7% | 15.4% | 11.3% | 16.4% |
| Ultra Clean Holdings, Inc. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| MKS Instruments, Inc. ($MKSI) | 10.1% | 20.3% | 22.7% | 8.3% | 14.1% |
| |
|---|
| Median (27 companies) | 6.9% | 12.2% | 11.2% | 5.5% | 10.2% |
|---|
| Advanced Energy Industries, Inc. ($AEIS) | 41.2% | 45.7% | 31.3% | 6.9% | 15.5% |
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. ($ENTG) | 0.7x | 0.1x | 1.1x | 1.6x | 1.0x |
| |
|---|
| Median (23 companies) | -1.2x | -0.7x | -1.0x | -0.4x | -0.4x |
|---|
| Advanced Energy Industries, Inc. ($AEIS) | -2.1x | -1.9x | -1.9x | 1.1x | -0.2x |
