CEVA, Inc. reports 36.9% EBITDA growth in 2020 and 15.1% Revenue growth
02/16/2021 • About CEVA, Inc. (
$CEVA) • By InTwits
CEVA, Inc. reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- CEVA, Inc. is a growth stock: 2020 revenue growth was 15.1%, 5 year revenue CAGR was 11.0% at 2020 ROIC -0.13%
- EBITDA Margin is quite volatile: 7.6% in 2020, 6.4% in 2019, 3.7% in 2018, 21.9% in 2017, 23.4% in 2016
- CEVA, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. 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 -0.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
CEVA, Inc.'s Revenue surged on 15.1%. Revenue growth showed slowdown in 20Q4 - it was -0.6% YoY. During 2016-2020 Revenue growth bottomed in 2018 at -11.0% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 13.0 pp from 11.9% to -1.1% in FY2020. During the last 5 years EBITDA Margin bottomed in 2018 at 3.7% and was growing since that time.
Gross Margin increased slightly on 0.88 pp from 88.4% to 89.3% in 2020. SG&A as a % of Revenue decreased slightly on 1.8 pp from 27.8% to 25.9% in 2020.
Net Income margin decreased on 2.4 pp from 0.032% to -2.4% in 2020. Net Income margin stuck to a declining trend at -6.0 pp per annum in 2016-2020.
Investments (CAPEX, working capital and M&A)
In 2020 the company had CAPEX/Revenue of 2.9%. CAPEX/Revenue decreased slightly on 1.8 pp from 4.7% in 2017 to 2.9% in 2020. It's average level of CAPEX/Revenue for the last three years was 3.7%. During 2016-2020 CAPEX as a % of Revenue topped in 2017 at 4.7% and was declining since that time.
Return on investment
The company operates at negative ROIC (-0.1%) and ROE (-0.9%). ROIC showed almost no change in 2020. ROE decreased slightly on 0.94 pp from 0.011% to -0.93% in 2020. During the last 5 years ROIC bottomed in 2018 at -0.51% and was growing since that time. ROE followed a declining trend at -2.2 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.6x and Debt / EBITDA is 1.1x. Debt dropped on 18.0% while cash decreased on 7.3%.
CEVA, Inc. has no short term refinancing risk: cash is higher than short term debt (712.1%).
Management team
Gideon Wertheizer is a the company's CEO. Gideon Wertheizer has spent 15 years with the company. CEVA, Inc.'s CFO Yaniv Arieli has spent 15 years with the company.
Financial and operational results
FY ended 12/31/2020
CEVA, Inc. ($CEVA) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 72.7 | 87.5 | 77.9 | 87.2 | 100.3 | 15.1% |
| Gross Profit | 66.6 | 80.6 | 69.9 | 77.0 | 89.6 | 16.3% |
| SG&A | 20.1 | 23.1 | 22.5 | 24.2 | 26.0 | 7.5% |
| EBITDA | 17.0 | 19.1 | 2.9 | 5.6 | 7.6 | 36.9% |
| Net Income | 13.1 | 17.0 | 0.6 | 0.0 | -2.4 | -8,596.4% |
Balance Sheet
|
|---|
| Cash | 18.4 | 21.7 | 22.3 | 22.8 | 21.1 | -7.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 2.4 | 3.0 | 24.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 8.3 | 5.8 | -30.2% |
Cash flow
|
|---|
| Capex | 2.4 | 4.1 | 3.3 | 3.5 | 2.9 | -15.2% |
Ratios
|
|---|
| Revenue growth | 22.1% | 20.4% | -11.0% | 11.9% | 15.1% | |
| EBITDA growth | 96.4% | 12.3% | -84.8% | 91.7% | 36.9% | |
|
|---|
| Gross Margin | 91.6% | 92.1% | 89.8% | 88.4% | 89.3% | 0.9% |
| EBITDA Margin | 23.4% | 21.9% | 3.7% | 6.4% | 7.6% | 1.2% |
| SG&A, % of revenue | 27.7% | 26.4% | 28.9% | 27.8% | 25.9% | -1.8% |
| Net Income Margin | 18.0% | 19.5% | 0.7% | 0.0% | -2.4% | -2.4% |
| CAPEX, % of revenue | 3.3% | 4.7% | 4.3% | 4.0% | 2.9% | -1.0% |
|
|---|
| ROIC | 7.3% | 7.0% | -0.5% | -0.4% | -0.1% | 0.2% |
| ROE | 6.6% | 7.5% | 0.2% | 0.0% | -0.9% | -0.9% |
| Net Debt/EBITDA | -1.1x | -1.1x | -7.6x | -2.2x | -1.6x | 0.6x |
CEVA, Inc. ($CEVA) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 24 | 24 | 25 | 28 | | 39.2% | 28.3% | 6.3% | -0.6% |
| EBITDA | 0 | 1 | 2 | 5 | | - | - | 8.9% | -23.0% |
| Net Income | -1 | -1 | -1 | 1 | | - | - | -195.4% | -79.3% |
Balance Sheet
|
|---|
| Cash | 23 | 30 | 22 | 21 | | 6.7% | 22.2% | 48.6% | -7.3% |
| Short Term Debt | 2 | 2 | 3 | 3 | | 53.3% | 22.4% | 2.6% | 24.1% |
| Long Term Debt | 8 | 8 | 8 | 6 | | 1.8% | -1.0% | 1.0% | -30.2% |
Ratios
|
|---|
| Gross Margin | 88.4% | 87.3% | 90.0% | 91.2% | | 0.3% | 0.8% | 1.8% | 1.1% |
| EBITDA Margin | 1.7% | 2.5% | 8.3% | 16.3% | | 10.7% | 6.6% | 0.2% | -4.7% |
| Net Income Margin | -5.0% | -4.6% | -3.0% | 2.3% | | 8.5% | 3.6% | -6.3% | -8.6% |
Peers in Semiconductors
Below we provide CEVA, 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 ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
| |
|---|
| Median (43 companies) | 1.2% | 10.9% | 4.9% | -3.2% | 1.0% |
|---|
| CEVA, Inc. ($CEVA) | - | 20.4% | -11.0% | 11.9% | 15.1% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| 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% |
| Texas Instruments Incorporated ($TXN) | 61.8% | 64.3% | 65.1% | 63.7% | 64.1% |
| |
|---|
| Median (43 companies) | 47.2% | 48.6% | 50.2% | 50.4% | 49.2% |
|---|
| CEVA, Inc. ($CEVA) | 91.6% | 92.1% | 89.8% | 88.4% | 89.3% |
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. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (41 companies) | 9.2% | 10.7% | 9.8% | 13.6% | 17.4% |
|---|
| CEVA, Inc. ($CEVA) | 23.4% | 21.9% | 3.7% | 6.4% | 7.6% |
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. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (40 companies) | 3.7% | 4.7% | 4.3% | 3.7% | 4.0% |
|---|
| CEVA, Inc. ($CEVA) | 3.3% | 4.7% | 4.3% | 4.0% | 2.9% |
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 ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| |
|---|
| Median (45 companies) | 1.4% | 3.2% | 3.0% | 3.8% | 5.5% |
|---|
| CEVA, Inc. ($CEVA) | 7.3% | 7.0% | -0.5% | -0.4% | -0.1% |
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. ($CSIQ) | 11.3x | 6.8x | 2.7x | 3.4x | 3.3x |
| |
|---|
| Median (31 companies) | 0.4x | 0.4x | 0.3x | 0.5x | 0.5x |
|---|
| CEVA, Inc. ($CEVA) | -1.1x | -1.1x | -7.6x | -2.2x | -1.6x |
