Diebold Nixdorf Incorporated revenue decline accelerated from 3.7% in 2019 to 11.5% in 2020
02/10/2021 • About Diebold Nixdorf Incorporated (
$DBD) • By InTwits
Diebold Nixdorf Incorporated reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 7.6% in 2020, 7.0% in 2019, -2.3% in 2018, 3.4% in 2017, -0.8% in 2016
- Diebold Nixdorf Incorporated has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's in pair with industry average of 7.3%
- CAPEX is quite volatile: $28m in 2020, $43m in 2019, $59m in 2018, $69m in 2017, $40m in 2016
- The company has potentially unprofitable business model: ROIC is 2.3%
- It operates with high leverage: Net Debt/EBITDA is 7.3x while industry average is -0.1x
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 dropped on 11.5%. Annual revenue decline showed slowdown in 20Q4 - revenue decreased on 4.0%. Revenue decline was accelerating on average at -14.0 pp per annum in the last 5 years. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.64 pp from 7.0% to 7.6% in 2020.
Gross Margin increased on 2.3 pp from 24.2% to 26.5% in 2020. During the last 5 years Gross Margin bottomed in 2018 at 19.5% and was growing since that time. SG&A as a % of Revenue increased slightly on 1.4 pp from 20.6% to 22.0% in 2020. During 2016-2020 SG&A as a % of Revenue bottomed in 2018 at 19.3% and was growing since that time.
Net Income margin increased slightly on 0.85 pp from -7.7% to -6.9% in 2020. During 2016-2020 Net Income margin bottomed in 2018 at -12.4% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.70% in 2020. The company showed small CAPEX/Revenue decline of 0.80 pp from 1.5% in 2017 to 0.70% in 2020. For the last three years the average CAPEX/Revenue was 0.99%. During 2016-2020 CAPEX as a % of Revenue topped in 2017 at 1.5% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.3x and Debt / EBITDA is 8.4x. Net Debt / EBITDA surged on 0.7x from 6.6x to 7.3x in 2020. Debt increased on 8.0% while cash surged on 15.5%.
Diebold Nixdorf Incorporated has no short term refinancing risk: cash is higher than short term debt (488.7%).
Management team
Diebold Nixdorf Incorporated's CEO is Gerrard B Schmid. Gerrard B Schmid has 3 years tenure with the company. The company's CFO Jeffrey L Rutherford has spent 2 years with the company.
Financial and operational results
FY ended 12/31/2020
Diebold Nixdorf Incorporated ($DBD) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 3,316 | 4,609 | 4,579 | 4,409 | 3,902 | -11.5% |
| Gross Profit | 722 | 1,000 | 891 | 1,067 | 1,035 | -3.0% |
| SG&A | 761 | 934 | 886 | 909 | 859 | -5.5% |
| EBITDA | -25 | 159 | -104 | 309 | 298 | -3.4% |
| Net Income | -33 | -242 | -569 | -341 | -269 | |
Balance Sheet
|
|---|
| Cash | 653 | 543 | 458 | 281 | 325 | 15.5% |
| Short Term Debt | 107 | 67 | 50 | 95 | 66 | -30.3% |
| Long Term Debt | 1,691 | 1,787 | 2,190 | 2,215 | 2,429 | 9.6% |
Cash flow
|
|---|
| Capex | 40 | 69 | 59 | 43 | 28 | -35.9% |
Ratios
|
|---|
| Revenue growth | 37.1% | 39.0% | -0.7% | -3.7% | -11.5% | |
| EBITDA growth | -120.4% | -734.8% | -165.7% | -396.1% | -3.4% | |
|
|---|
| Gross Margin | 21.8% | 21.7% | 19.5% | 24.2% | 26.5% | 2.3% |
| EBITDA Margin | -0.8% | 3.4% | -2.3% | 7.0% | 7.6% | 0.6% |
| SG&A, % of revenue | 23.0% | 20.3% | 19.3% | 20.6% | 22.0% | 1.4% |
| Net Income Margin | -1.0% | -5.2% | -12.4% | -7.7% | -6.9% | 0.8% |
| CAPEX, % of revenue | 1.2% | 1.5% | 1.3% | 1.0% | 0.7% | -0.3% |
|
|---|
| ROIC | -8.2% | -3.6% | -16.1% | -0.3% | 2.3% | 2.7% |
| ROE | -6.6% | -46.6% | | | | |
| Net Debt/EBITDA | | 8.3x | | 6.6x | 7.3x | 0.7x |
Diebold Nixdorf Incorporated ($DBD) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 911 | 891 | 995 | 1,106 | | -11.4% | -22.6% | -7.7% | -4.0% |
| EBITDA | 52 | 97 | 80 | 70 | | -5.5% | 12.3% | -6.3% | 5.5% |
| Net Income | -93 | -24 | -101 | -51 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 512 | 446 | 277 | 325 | | 35.5% | 71.8% | 9.9% | 15.5% |
| Short Term Debt | 160 | 157 | 71 | 66 | | 47.3% | 49.3% | -39.4% | -30.3% |
| Long Term Debt | 2,450 | 2,454 | 2,517 | 2,429 | | 6.4% | 7.8% | 14.0% | 9.6% |
Ratios
|
|---|
| Gross Margin | 24.9% | 27.8% | 28.5% | 25.0% | | 1.2% | 3.7% | 3.4% | 1.5% |
| EBITDA Margin | 5.7% | 10.9% | 8.1% | 6.3% | | 0.4% | 3.4% | 0.1% | 0.6% |
| Net Income Margin | -10.2% | -2.7% | -10.2% | -4.6% | | 2.7% | 1.7% | -6.9% | 6.0% |
Peers in Technology Hardware, Storage & Peripherals
Below you can find Diebold Nixdorf Incorporated benchmarking vs. other companies in Technology Hardware, Storage & Peripherals 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 |
|---|
| 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. ($PMTS) | - | -17.4% | 0.4% | 8.7% | 12.3% |
| |
|---|
| Median (20 companies) | 1.4% | 1.5% | 5.6% | -2.0% | -8.8% |
|---|
| Diebold Nixdorf Incorporated ($DBD) | - | 39.0% | -0.7% | -3.7% | -11.5% |
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. ($SCKT) | 50.2% | 53.5% | 51.4% | 52.5% | 53.1% |
| |
|---|
| Median (21 companies) | 39.3% | 39.6% | 38.8% | 35.1% | 38.2% |
|---|
| Diebold Nixdorf Incorporated ($DBD) | 21.8% | 21.7% | 19.5% | 24.2% | 26.5% |
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 ($WDC) | 12.5% | 21.4% | 27.5% | 11.5% | 11.7% |
| |
|---|
| Median (19 companies) | 4.9% | 4.5% | 7.9% | 7.9% | 7.9% |
|---|
| Diebold Nixdorf Incorporated ($DBD) | -0.8% | 3.4% | -2.3% | 7.0% | 7.6% |
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 ($WDC) | 4.5% | 3.0% | 4.0% | 5.3% | 3.9% |
| |
|---|
| Median (19 companies) | 2.0% | 1.9% | 2.4% | 2.3% | 2.3% |
|---|
| Diebold Nixdorf Incorporated ($DBD) | 1.2% | 1.5% | 1.3% | 1.0% | 0.7% |
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 ($NCR) | 13.9% | 16.3% | 4.6% | 14.3% | 5.5% |
| |
|---|
| Median (21 companies) | 1.8% | 1.6% | 3.6% | 4.2% | 2.3% |
|---|
| Diebold Nixdorf Incorporated ($DBD) | -8.2% | -3.6% | -16.1% | -0.3% | 2.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| 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 |
| Avid Technology, Inc. ($AVID) | 1.7x | 5.6x | 4.8x | 3.5x | 3.3x |
| |
|---|
| Median (11 companies) | 0.2x | 0.2x | 0.6x | 1.3x | 2.7x |
|---|
| Diebold Nixdorf Incorporated ($DBD) | - | 8.3x | - | 6.6x | 7.3x |
