Pixelworks, Inc. revenue dropped on 40.6% and EBITDA Margin dropped on 38.3 pp from -7.7% to -46.0%
02/11/2021 • About Pixelworks, Inc. (
$PXLW) • By InTwits
Pixelworks, Inc. reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Pixelworks, Inc. is a company in decline: 2020 revenue growth was -40.6%, 5 years revenue CAGR was -7.2%
- The company operates at negative EBITDA Margin: -46.0%
- Pixelworks, 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 -8.1%
- Pixelworks, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's in pair with industry average of 3.7%
- CAPEX is quite volatile: $2m in 2020, $0m in 2019, $1m in 2018, $1m in 2017, $1m in 2016
- The company has unprofitable business model: ROIC is -46.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Pixelworks, Inc.'s Revenue dropped on 40.6%. Annual revenue decline showed slowdown in 20Q4 - revenue dropped on 39.8%. During the last 5 years Revenue growth topped in 2017 at 51.0% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 38.3 pp from -7.7% to -46.0% in 2020. During 2016-2020 EBITDA Margin topped in 2017 at 5.2% and was declining since that time.
Gross Margin decreased slightly on 0.76 pp from 50.2% to 49.4% in 2020. During 2016-2020 Gross Margin topped in 2017 at 51.8% and was declining since that time. SG&A as a % of Revenue surged on 17.7 pp from 30.8% to 48.6% in 2020. During the last 5 years SG&A as a % of Revenue bottomed in 2017 at 25.4% and was growing since that time.
Net Income margin dropped on 51.7 pp from -13.2% to -64.9% in 2020. During the last 5 years Net Income margin topped in 2017 at -5.2% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In 2020 the company had CAPEX/Revenue of 6.5%. Pixelworks, Inc. showed CAPEX/Revenue growth of 3.4 pp from 3.1% in 2017 to 6.5% in 2020. It's average CAPEX/Revenue for the last three years was 4.3%. During 2016-2020 CAPEX as a % of Revenue bottomed in 2018 at 2.7% and was growing since that time.
Return on investment
The company operates at negative ROIC (-46.5%) and ROE (-52.8%). ROIC dropped on 21.6 pp from -24.8% to -46.5% in 2020. ROE dropped on 34.1 pp from -18.7% to -52.8% in 2020. During 2016-2020 ROIC topped in 2017 at -6.2% and was declining since that time. During the last 5 years ROE topped in 2018 at -11.0% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.6x and Debt / EBITDA is . Debt surged on 23.8% while cash surged on 331%.
Pixelworks, Inc. has no short term refinancing risk: cash is higher than short term debt (1,533.0%).
Management team
Todd A Debonis is a the company's CEO. Todd A Debonis has spent 4 years with the company. Elias N Nader is a Pixelworks, Inc.'s CFO. Elias N Nader has spent 1 year at the company.
Financial and operational results
FY ended 12/31/2020
Pixelworks, Inc. ($PXLW) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 53.390 | 80.637 | 76.554 | 68.755 | 40.855 | -40.6% |
| Gross Profit | 25.068 | 41.764 | 39.478 | 34.495 | 20.185 | -41.5% |
| SG&A | 13.770 | 20.450 | 19.953 | 21.202 | 19.840 | -6.4% |
| EBITDA | -6.880 | 4.174 | 0.806 | -5.274 | -18.782 | |
| Net Income | -11.107 | -4.173 | -4.621 | -9.077 | -26.529 | |
Balance Sheet
|
|---|
| Cash | 19.622 | 27.523 | 17.944 | 7.257 | 31.257 | 330.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 1.545 | 2.039 | 32.0% |
| Long Term Debt | 0.000 | 6.069 | 0.000 | 4.212 | 5.088 | 20.8% |
Cash flow
|
|---|
| Capex | 2.144 | 2.484 | 2.096 | 2.629 | 2.637 | 0.3% |
Ratios
|
|---|
| Revenue growth | -10.3% | 51.0% | -5.1% | -10.2% | -40.6% | |
| EBITDA growth | 24.2% | -160.7% | -80.7% | -754.3% | 256.1% | |
|
|---|
| Gross Margin | 47.0% | 51.8% | 51.6% | 50.2% | 49.4% | -0.8% |
| EBITDA Margin | -12.9% | 5.2% | 1.1% | -7.7% | -46.0% | -38.3% |
| SG&A, % of revenue | 25.8% | 25.4% | 26.1% | 30.8% | 48.6% | 17.7% |
| Net Income Margin | -20.8% | -5.2% | -6.0% | -13.2% | -64.9% | -51.7% |
| CAPEX, % of revenue | 4.0% | 3.1% | 2.7% | 3.8% | 6.5% | 2.6% |
|
|---|
| ROIC | -42.3% | -6.2% | -10.6% | -24.8% | -46.5% | -21.6% |
| ROE | -48.9% | -14.3% | -11.0% | -18.7% | -52.8% | -34.1% |
| Net Debt/EBITDA | | -5.1x | -22.3x | | |
Pixelworks, Inc. ($PXLW) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 14 | 9 | 8 | 10 | | -17.3% | -48.7% | -54.6% | -39.8% |
| EBITDA | -3 | -5 | -6 | -5 | | - | - | - | - |
| Net Income | -5 | -7 | -8 | -6 | | -4,159.4% | - | - | - |
Balance Sheet
|
|---|
| Cash | 18 | 20 | 16 | 31 | | 3.4% | 21.9% | 3.0% | 330.7% |
| Short Term Debt | 7 | 6 | 6 | 2 | | 220.9% | 207.8% | 229.4% | 32.0% |
| Long Term Debt | 7 | 5 | 7 | 5 | | 55.3% | 28.1% | 94.3% | 20.8% |
Ratios
|
|---|
| Gross Margin | 49.2% | 54.6% | 48.5% | 45.5% | | -1.7% | 2.6% | -3.2% | -0.1% |
| EBITDA Margin | -23.5% | -48.6% | -75.7% | -50.3% | | -14.3% | -46.4% | -73.4% | -32.0% |
| Net Income Margin | -39.2% | -70.8% | -99.4% | -66.8% | | -40.0% | -57.2% | -86.6% | -39.0% |
Peers in Semiconductors
Below you can find Pixelworks, Inc. benchmarking vs. other companies in Semiconductors 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 |
|---|
| 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 ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
| |
|---|
| Median (43 companies) | 1.2% | 10.9% | 4.9% | -3.0% | 2.8% |
|---|
| Pixelworks, Inc. ($PXLW) | - | 51.0% | -5.1% | -10.2% | -40.6% |
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. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
| |
|---|
| Median (43 companies) | 48.0% | 48.6% | 50.2% | 50.7% | 49.2% |
|---|
| Pixelworks, Inc. ($PXLW) | 47.0% | 51.8% | 51.6% | 50.2% | 49.4% |
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. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (41 companies) | 9.2% | 10.7% | 9.8% | 13.6% | 17.4% |
|---|
| Pixelworks, Inc. ($PXLW) | -12.9% | 5.2% | 1.1% | -7.7% | -46.0% |
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. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (40 companies) | 3.6% | 4.7% | 4.4% | 3.8% | 3.6% |
|---|
| Pixelworks, Inc. ($PXLW) | 4.0% | 3.1% | 2.7% | 3.8% | 6.5% |
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 ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| |
|---|
| Median (45 companies) | 1.7% | 3.2% | 3.0% | 3.8% | 5.5% |
|---|
| Pixelworks, Inc. ($PXLW) | -42.3% | -6.2% | -10.6% | -24.8% | -46.5% |
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) | 0.2x | 0.4x | 0.3x | 0.5x | 0.3x |
|---|
