Impinj, Inc. reports 9.1% revenue decline in 2020 and 19.6 pp EBITDA Margin decline from -9.5% to -29.0%
02/10/2021 • About Impinj, Inc. (
$PI) • By InTwits
Impinj, Inc. reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -29.0%
- Impinj, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 is 0.0%. Average EBITDA Margin for the same period was -14.7%
- Impinj, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: $3m in 2020, $2m in 2019, $6m in 2018, $7m in 2017, $4m in 2016
- The company has unprofitable business model: ROIC is -23.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Impinj, Inc.'s Revenue decreased on 9.1%. Revenue decline showed acceleration in 20Q4 - it was 10.7% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 19.6 pp from -9.5% to -29.0% in 2020.
Gross Margin decreased slightly on 1.5 pp from 48.4% to 46.9% in 2020. Gross Margin declined at -1.6 pp per annum in the last 5 years. SG&A as a % of Revenue increased on 8.6 pp from 37.2% to 45.8% in 2020.
Net Income margin dropped on 22.3 pp from -15.0% to -37.4% in 2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.2% in 2020. Impinj, Inc. showed decline in CAPEX/Revenue of 3.0 pp from 5.2% in 2017 to 2.2% in 2020. It's average level of CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at negative ROIC (-23.8%) and ROE (-44.3%). ROIC dropped on 11.3 pp from -12.5% to -23.8% in 2020. ROE dropped on 23.7 pp from -20.6% to -44.3% in 2020.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2020. Debt showed almost no change in 2020 while cash dropped on 64.7%.
Impinj, Inc. has no short term refinancing risk: cash is higher than short term debt (649.2%).
Management team
Impinj, Inc.'s CEO is Chris Diorio. Chris Diorio has 6 years tenure with the company. Impinj, Inc.'s CFO is Cary L Baker. Cary L Baker has 1 year tenure at the company.
Financial and operational results
FY ended 12/31/2020
Impinj, Inc. ($PI) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 112.3 | 125.3 | 122.6 | 152.8 | 138.9 | -9.1% |
| Gross Profit | 59.5 | 64.9 | 58.3 | 74.0 | 65.1 | -12.0% |
| SG&A | 34.8 | 49.7 | 55.2 | 56.8 | 63.6 | 12.0% |
| EBITDA | 2.4 | -13.1 | -30.3 | -14.5 | -40.3 | |
| Net Income | -1.7 | -17.3 | -35.2 | -23.0 | -51.9 | |
Balance Sheet
|
|---|
| Cash | 33.6 | 19.3 | 17.5 | 66.9 | 23.6 | -64.7% |
| Short Term Debt | 3.7 | 5.0 | 6.5 | 3.6 | 3.6 | 0.1% |
| Long Term Debt | 11.4 | 6.2 | 17.9 | 69.8 | 69.8 | 0.1% |
Cash flow
|
|---|
| Capex | 3.5 | 6.6 | 6.4 | 2.4 | 3.1 | 26.6% |
Ratios
|
|---|
| Revenue growth | 43.1% | 11.6% | -2.1% | 24.6% | -9.1% | |
| EBITDA growth | -33.4% | -648.9% | 132.1% | -52.3% | 178.7% | |
|
|---|
| Gross Margin | 52.9% | 51.8% | 47.5% | 48.4% | 46.9% | -1.5% |
| EBITDA Margin | 2.1% | -10.4% | -24.7% | -9.5% | -29.0% | -19.6% |
| SG&A, % of revenue | 31.0% | 39.7% | 45.0% | 37.2% | 45.8% | 8.6% |
| Net Income Margin | -1.5% | -13.8% | -28.7% | -15.0% | -37.4% | -22.3% |
| CAPEX, % of revenue | 3.1% | 5.2% | 5.2% | 1.6% | 2.2% | 0.6% |
|
|---|
| ROIC | -0.6% | -12.5% | -27.2% | -12.5% | -23.8% | -11.3% |
| ROE | | -14.3% | -32.5% | -20.6% | -44.3% | -23.7% |
| Net Debt/EBITDA | -7.8x | | | | |
Impinj, Inc. ($PI) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 48 | 26 | 28 | 36 | | 44.6% | -30.7% | -30.8% | -10.7% |
| EBITDA | -2 | -15 | -11 | -13 | | - | - | - | - |
| Net Income | -4 | -18 | -14 | -16 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 84 | 97 | 40 | 24 | | 348.6% | 340.1% | 136.6% | -64.7% |
| Short Term Debt | 3 | 4 | 4 | 4 | | -69.0% | -27.1% | -47.1% | 0.1% |
| Long Term Debt | 70 | 70 | 70 | 70 | | 86.7% | 62.8% | 74.5% | 0.1% |
Ratios
|
|---|
| Gross Margin | 44.7% | 49.0% | 47.4% | 47.8% | | -3.3% | 0.8% | -1.1% | -1.1% |
| EBITDA Margin | -3.5% | -55.2% | -40.2% | -34.9% | | 12.2% | -49.6% | -35.0% | -22.6% |
| Net Income Margin | -9.0% | -66.3% | -50.9% | -43.1% | | 12.3% | -55.4% | -40.9% | -24.3% |
Peers in Semiconductors
Below we provide Impinj, Inc. benchmarking against other companies in Semiconductors 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 |
|---|
| Inphi Corporation ($IPHI) | - | 30.8% | -15.4% | 24.2% | 86.8% |
| Sequans Communications S.A. ($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 ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
| |
|---|
| Median (43 companies) | 1.2% | 10.9% | 4.9% | -3.2% | 2.8% |
|---|
| Impinj, Inc. ($PI) | - | 11.6% | -2.1% | 24.6% | -9.1% |
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. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
| |
|---|
| Median (43 companies) | 47.2% | 48.6% | 50.4% | 50.7% | 49.4% |
|---|
| Impinj, Inc. ($PI) | 52.9% | 51.8% | 47.5% | 48.4% | 46.9% |
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. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (41 companies) | 9.2% | 10.7% | 9.8% | 13.6% | 17.4% |
|---|
| Impinj, Inc. ($PI) | 2.1% | -10.4% | -24.7% | -9.5% | -29.0% |
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. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (40 companies) | 3.7% | 4.7% | 4.2% | 3.8% | 4.0% |
|---|
| Impinj, Inc. ($PI) | 3.1% | 5.2% | 5.2% | 1.6% | 2.2% |
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 ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| |
|---|
| Median (45 companies) | 1.7% | 3.2% | 3.0% | 3.8% | 5.5% |
|---|
| Impinj, Inc. ($PI) | -0.6% | -12.5% | -27.2% | -12.5% | -23.8% |
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. ($RMBS) | -0.1x | -0.1x | - | - | 5.9x |
| Inphi Corporation ($IPHI) | 4.5x | 33.7x | 32.2x | 4.5x | 3.4x |
| Canadian Solar Inc. ($CSIQ) | 11.3x | 6.8x | 2.7x | 3.4x | 3.3x |
| |
|---|
| Median (32 companies) | 0.4x | 0.4x | 0.3x | 0.5x | 0.3x |
|---|
