Airgain, Inc. reports 158% EBITDA decline in 2020 and 4.6 pp EBITDA Margin decline from 2.7% to -1.8%
02/18/2021 • About Airgain, Inc. (
$AIRG) • By InTwits
Airgain, Inc. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -1.8%
- EBITDA Margin is quite volatile: -1.8% in 2020, 2.7% in 2019, -3.5% in 2018, 4.0% in 2017, 9.9% in 2016
- Airgain, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 3.7%
- CAPEX is quite volatile: $1m in 2020, $1m in 2019, $1m in 2018, $0m in 2017, $0m in 2016
- The company has unprofitable business model: ROIC is -6.7%
- It operates with high leverage: Net Debt/EBITDA is 5.0x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Airgain, Inc.'s Revenue dropped on 13.0%. Annual revenue decline showed slowdown in 20Q4 - revenue decreased slightly on 1.5%. Revenue decline was accelerating on average at -16.1 pp per annum in the last 5 years. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.6 pp from 2.7% to -1.8% in 2020.
Gross Margin increased slightly on 1.1 pp from 45.4% to 46.6% in 2020. SG&A as a % of Revenue increased on 5.6 pp from 28.6% to 34.3% in 2020.
Net Income margin decreased on 8.4 pp from 1.7% to -6.8% in 2020.
Investments (CAPEX, working capital and M&A)
In 2020 Airgain, Inc. had CAPEX/Revenue of 1.5%. The company showed small growth in CAPEX/Revenue of 0.97 pp from 0.53% in 2017 to 1.5% in 2020. For the last three years the average CAPEX/Revenue was 1.8%.
Return on investment
The company operates at negative ROIC (-6.7%) and ROE (-6.9%). ROIC decreased on 7.5 pp from 0.82% to -6.7% in 2020. ROE decreased on 8.8 pp from 2.0% to -6.9% in 2020.
Leverage (Debt)
The company has no debt. Cash jumped on 189%.
Financial and operational results
FY ended 12/31/2020
Airgain, Inc. ($AIRG) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 43.434 | 49.521 | 60.625 | 55.739 | 48.502 | -13.0% |
| Gross Profit | 19.277 | 23.302 | 26.511 | 25.324 | 22.585 | -10.8% |
| SG&A | 10.203 | 15.013 | 20.578 | 15.955 | 16.612 | 4.1% |
| EBITDA | 4.321 | 1.987 | -2.123 | 1.528 | -0.892 | -158.4% |
| Net Income | 3.734 | 1.141 | -2.584 | 0.926 | -3.279 | -454.1% |
Balance Sheet
|
|---|
| Cash | 45.161 | 15.026 | 13.621 | 13.197 | 38.173 | 189.3% |
| Short Term Debt | 1.389 | 1.333 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 1.333 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.276 | 0.263 | 0.990 | 1.214 | 0.727 | -40.1% |
Ratios
|
|---|
| Revenue growth | 56.3% | 14.0% | 22.4% | -8.1% | -13.0% | |
| EBITDA growth | 2,941.9% | -54.0% | -206.8% | -172.0% | -158.4% | |
|
|---|
| Gross Margin | 44.4% | 47.1% | 43.7% | 45.4% | 46.6% | 1.1% |
| EBITDA Margin | 9.9% | 4.0% | -3.5% | 2.7% | -1.8% | -4.6% |
| SG&A, % of revenue | 23.5% | 30.3% | 33.9% | 28.6% | 34.3% | 5.6% |
| Net Income Margin | 8.6% | 2.3% | -4.3% | 1.7% | -6.8% | -8.4% |
| CAPEX, % of revenue | 0.6% | 0.5% | 1.6% | 2.2% | 1.5% | -0.7% |
|
|---|
| ROIC | 12.4% | 2.0% | -7.3% | 0.8% | -6.7% | -7.5% |
| ROE | | 2.5% | -5.7% | 2.0% | -6.9% | -8.8% |
| Net Debt/EBITDA | -9.8x | -6.9x | | -8.6x | |
Airgain, Inc. ($AIRG) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 11 | 11 | 13 | 13 | | -25.8% | -20.9% | -1.0% | -1.5% |
| EBITDA | -1 | -0 | 0 | -0 | | -297.1% | -142.6% | -6.3% | -326.3% |
| Net Income | -1 | -1 | -0 | -1 | | -457.3% | -211.2% | - | -1,814.3% |
Balance Sheet
|
|---|
| Cash | 23 | 29 | 36 | 38 | | 91.8% | 109.6% | 178.1% | 189.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
| Long Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
Ratios
|
|---|
| Gross Margin | 47.5% | 47.1% | 46.3% | 45.5% | | 2.6% | 0.9% | 0.1% | 1.1% |
| EBITDA Margin | -9.1% | -2.8% | 0.5% | -3.4% | | -12.6% | -8.0% | -0.0% | -4.9% |
| Net Income Margin | -10.7% | -6.4% | -2.0% | -8.4% | | -12.9% | -11.0% | -1.0% | -8.9% |
Peers in Electronic Components
Below you can find Airgain, Inc. benchmarking vs. other companies in Electronic Components 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 |
|---|
| Cavitation Technologies Inc ($CVAT) | - | -40.9% | 22.6% | -16.3% | 52.6% |
| IEH Corp ($IEHC) | - | 4.0% | 16.6% | 21.0% | 13.2% |
| Amphenol Corporation ($APH) | - | 11.5% | 17.0% | 0.3% | 4.5% |
| Corning Incorporated ($GLW) | - | 7.7% | 11.6% | 1.9% | -1.7% |
| CPS Technologies Corp. ($CPSH) | - | -5.0% | 48.0% | -0.5% | -2.8% |
| |
|---|
| Median (12 companies) | -10.4% | 7.7% | 14.1% | -0.1% | -4.6% |
|---|
| Airgain, Inc. ($AIRG) | - | 14.0% | 22.4% | -8.1% | -13.0% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cavitation Technologies Inc ($CVAT) | 93.2% | 93.5% | 90.6% | 93.7% | 97.6% |
| Dolby Laboratories ($DLB) | 89.4% | 89.1% | 87.9% | 87.0% | 87.4% |
| Rogers Corporation ($ROG) | 38.0% | 38.8% | 35.4% | 35.0% | 36.4% |
| Belden Inc ($BDC) | 41.6% | 39.1% | 39.0% | 37.2% | 35.6% |
| Knowles Corporation ($KN) | 38.2% | 38.5% | 39.0% | 38.4% | 35.5% |
| |
|---|
| Median (12 companies) | 33.7% | 34.9% | 36.3% | 35.5% | 33.3% |
|---|
| Airgain, Inc. ($AIRG) | 44.4% | 47.1% | 43.7% | 45.4% | 46.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dolby Laboratories ($DLB) | 30.9% | 30.8% | 25.1% | 27.6% | 28.7% |
| Amphenol Corporation ($APH) | 22.6% | 23.6% | 24.2% | 24.7% | 22.6% |
| Littelfuse, Inc. ($LFUS) | 17.4% | 23.0% | 19.1% | 19.5% | 18.5% |
| Corning Incorporated ($GLW) | 27.9% | 27.3% | 25.4% | 25.7% | 18.0% |
| Rogers Corporation ($ROG) | 18.5% | 21.3% | 18.5% | 18.1% | 17.7% |
| |
|---|
| Median (12 companies) | 14.1% | 11.4% | 12.7% | 17.5% | 15.4% |
|---|
| Airgain, Inc. ($AIRG) | 9.9% | 4.0% | -3.5% | 2.7% | -1.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Corning Incorporated ($GLW) | 12.0% | 17.8% | 19.9% | 17.2% | 12.2% |
| Dolby Laboratories ($DLB) | 9.8% | 9.2% | 6.9% | 7.8% | 5.7% |
| Rogers Corporation ($ROG) | 2.8% | 3.3% | 5.4% | 5.7% | 5.0% |
| Vishay Intertechnology, Inc. ($VSH) | 5.8% | 6.6% | 7.6% | 5.9% | 4.9% |
| Belden Inc ($BDC) | 2.3% | 2.7% | 3.8% | 5.2% | 4.8% |
| |
|---|
| Median (12 companies) | 3.4% | 5.1% | 4.1% | 5.0% | 4.0% |
|---|
| Airgain, Inc. ($AIRG) | 0.6% | 0.5% | 1.6% | 2.2% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Amphenol Corporation ($APH) | 18.3% | 19.2% | 21.1% | 19.4% | 18.0% |
| CPS Technologies Corp. ($CPSH) | -10.8% | -19.4% | -11.9% | -9.3% | 13.8% |
| IEH Corp ($IEHC) | 24.2% | 19.2% | 26.1% | 36.6% | 12.8% |
| Vishay Intertechnology, Inc. ($VSH) | 9.8% | 18.4% | 27.8% | 13.2% | 9.9% |
| Dolby Laboratories ($DLB) | 12.2% | 12.0% | 8.4% | 11.4% | 9.6% |
| |
|---|
| Median (12 companies) | 4.7% | 7.0% | 8.4% | 8.5% | 6.9% |
|---|
| Airgain, Inc. ($AIRG) | 12.4% | 2.0% | -7.3% | 0.8% | -6.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Belden Inc ($BDC) | 2.1x | 2.6x | 2.3x | 3.1x | 4.6x |
| Corning Incorporated ($GLW) | -0.5x | 0.3x | 1.3x | 2.1x | 2.6x |
| Amphenol Corporation ($APH) | 1.4x | 1.1x | 1.2x | 1.4x | 1.1x |
| Bel Fuse Inc. ($BELFA) | - | 1.4x | 1.3x | 3.7x | 1.1x |
| Knowles Corporation ($KN) | 2.0x | 1.0x | 0.7x | 0.9x | 0.6x |
| |
|---|
| Median (12 companies) | -0.4x | -0.0x | 0.6x | 0.9x | 0.0x |
|---|
