Cohu, Inc. reports 197% EBITDA growth in 2020 and 9.0% Revenue growth
02/11/2021 • About Cohu, Inc. (
$COHU) • By InTwits
Cohu, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cohu, Inc. is a fast growth stock: FY2020 revenue growth was 9.0%, 5 year revenue CAGR was 18.7% at FY2020 ROIC 0.61%
- EBITDA Margin is quite volatile: 10.9% in FY2020, 4.0% in FY2019, -0.8% in FY2018, 13.3% in FY2017, 5.7% in FY2016
- Cohu, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's in pair with industry average of 3.2%
- CAPEX is quite volatile: $19m in FY2020, $18m in FY2019, $5m in FY2018, $6m in FY2017, $3m in FY2016
- The company has potentially unprofitable business model: ROIC is 0.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.9x while industry average is -1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Cohu, Inc.'s Revenue increased on 9.0%. Revenue growth showed acceleration in FY20Q4 - it increased 42.5% YoY. During FY2016-FY2020 Revenue growth topped in FY2019 at 29.1%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.4 pp from 10.7% to 7.2% in 2020.
Gross Margin increased on 3.3 pp from 39.4% to 42.7% in FY2020. SG&A as a % of Revenue decreased on 4.2 pp from 24.5% to 20.3% in FY2020.
Net Income margin increased on 9.8 pp from -11.9% to -2.2% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.9% in FY2020. The company's CAPEX/Revenue increased slightly on 1.2 pp from 1.7% in FY2017 to 2.9% in FY2020. It's average level of CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at low but positive ROIC (0.6%) and negative ROE (-2.8%). ROIC increased on 6.2 pp from -5.6% to 0.61% in FY2020. ROE surged on 10.8 pp from -13.5% to -2.8% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.9x and Debt / EBITDA is 5.1x. Net Debt / EBITDA dropped on 7.2x from 10.1x to 2.9x in FY2020. Debt decreased on 9.9% while cash decreased on 3.8%.
Cohu, Inc. has no short term refinancing risk: cash is higher than short term debt (1,078.0%).
Management team
The company's CEO is Luis A Muller. Luis A Muller has 6 years tenure with the company. Jeffrey D Jones is a the company's CFO. Jeffrey D Jones has spent 13 years at the company.
Financial and operational results
FY ended 12/26/2020
Cohu, Inc. ($COHU) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 282.1 | 352.7 | 451.8 | 583.3 | 636.0 | 9.0% |
| Gross Profit | 94.8 | 143.4 | 159.3 | 229.8 | 271.8 | 18.3% |
| SG&A | 54.3 | 60.7 | 96.8 | 142.9 | 129.2 | -9.6% |
| EBITDA | 16.1 | 46.9 | -3.7 | 23.3 | 69.2 | 197.2% |
| Net Income | 3.0 | 32.8 | -32.2 | -69.7 | -13.8 | |
Balance Sheet
|
|---|
| Cash | 96.0 | 134.3 | 164.5 | 155.2 | 149.4 | -3.8% |
| Short Term Debt | 0.0 | 4.4 | 6.8 | 14.5 | 13.9 | -4.8% |
| Long Term Debt | 0.0 | 4.6 | 346.0 | 375.4 | 337.3 | -10.1% |
Cash flow
|
|---|
| Capex | 3.5 | 6.1 | 5.0 | 18.0 | 18.7 | 3.7% |
Ratios
|
|---|
| Revenue growth | 4.6% | 25.0% | 28.1% | 29.1% | 9.0% | |
| EBITDA growth | -16.4% | 191.8% | -108.0% | -723.5% | 197.2% | |
|
|---|
| Gross Margin | 33.6% | 40.7% | 35.3% | 39.4% | 42.7% | 3.3% |
| EBITDA Margin | 5.7% | 13.3% | -0.8% | 4.0% | 10.9% | 6.9% |
| SG&A, % of revenue | 19.3% | 17.2% | 21.4% | 24.5% | 20.3% | -4.2% |
| Net Income Margin | 1.1% | 9.3% | -7.1% | -11.9% | -2.2% | 9.8% |
| CAPEX, % of revenue | 1.2% | 1.7% | 1.1% | 3.1% | 2.9% | -0.2% |
|
|---|
| ROIC | 2.4% | 14.0% | -4.9% | -5.6% | 0.6% | 6.2% |
| ROE | 1.3% | 12.5% | -7.7% | -13.5% | -2.8% | 10.8% |
| Net Debt/EBITDA | -6.0x | -2.7x | | 10.1x | 2.9x | -7.2x |
Cohu, Inc. ($COHU) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 139 | 144 | 151 | 202 | | -6.0% | -4.0% | 5.0% | 42.5% |
| EBITDA | 3 | 14 | 19 | 34 | | - | 73.9% | 54.5% | 677.9% |
| Net Income | -17 | -5 | -7 | 15 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 171 | 163 | 170 | 149 | | 7.5% | 13.8% | 17.1% | -3.8% |
| Short Term Debt | 15 | 16 | 13 | 14 | | 22.6% | 40.0% | -5.6% | -4.8% |
| Long Term Debt | 375 | 375 | 358 | 337 | | 1.7% | 0.2% | -4.4% | -10.1% |
Ratios
|
|---|
| Gross Margin | 40.4% | 42.3% | 42.2% | 45.1% | | 3.6% | 0.7% | 1.1% | 7.0% |
| EBITDA Margin | 2.2% | 9.4% | 12.3% | 16.8% | | 2.8% | 4.2% | 3.9% | 13.8% |
| Net Income Margin | -12.4% | -3.3% | -4.4% | 7.3% | | 2.9% | 9.6% | 2.9% | 19.5% |
Peers in Semiconductor Equipment
Below you can find Cohu, 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% |
| Advanced Energy Industries, Inc. ($AEIS) | - | 38.7% | 7.1% | 9.7% | 79.5% |
| Ichor Holdings ($ICHR) | - | 61.7% | 25.6% | -24.6% | 47.3% |
| ACM Research, Inc. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| |
|---|
| Median (27 companies) | 5.0% | 24.2% | 14.0% | -2.8% | 16.9% |
|---|
| Cohu, Inc. ($COHU) | - | 25.0% | 28.1% | 29.1% | 9.0% |
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. ($KLIC) | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% |
| |
|---|
| Median (27 companies) | 40.0% | 44.0% | 41.2% | 40.5% | 42.4% |
|---|
| Cohu, Inc. ($COHU) | 33.6% | 40.7% | 35.3% | 39.4% | 42.7% |
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. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (25 companies) | 12.1% | 16.2% | 16.6% | 12.9% | 15.9% |
|---|
| Cohu, Inc. ($COHU) | 5.7% | 13.3% | -0.8% | 4.0% | 10.9% |
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. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| |
|---|
| Median (24 companies) | 2.6% | 3.2% | 3.0% | 3.4% | 3.9% |
|---|
| Cohu, Inc. ($COHU) | 1.2% | 1.7% | 1.1% | 3.1% | 2.9% |
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. ($ENTG) | 10.3% | 14.7% | 15.4% | 11.3% | 16.4% |
| Advanced Energy Industries, Inc. ($AEIS) | 41.2% | 45.7% | 31.3% | 6.9% | 15.5% |
| Ultra Clean Holdings, Inc. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 7.6% | 12.2% | 12.1% | 5.6% | 10.5% |
|---|
| Cohu, Inc. ($COHU) | 2.4% | 14.0% | -4.9% | -5.6% | 0.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Veeco Instruments Inc. ($VECO) | - | - | - | 577.2x | 3.4x |
| Xperi Corporation ($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 |
| MKS Instruments, Inc. ($MKSI) | 1.7x | 0.1x | -0.5x | 1.5x | 0.8x |
| |
|---|
| Median (23 companies) | -1.2x | -0.7x | -1.0x | -0.4x | -0.4x |
|---|
| Cohu, Inc. ($COHU) | -6.0x | -2.7x | - | 10.1x | 2.9x |
