PDF Solutions, Inc. CAPEX dropped on 43.1% while Revenue increased on 2.9%
02/18/2021 • About PDF Solutions, Inc. (
$PDFS) • By InTwits
PDF Solutions, 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: -7.7%
- EBITDA Margin is quite volatile: -7.7% in 2020, -0.3% in 2019, -4.6% in 2018, 5.7% in 2017, 16.2% in 2016
- PDF Solutions, Inc. has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.0%. At the same time it's a lot of higher than industry average of 7.6%.
- CAPEX is quite volatile: $1m in 2020, $1m in 2019, $2m in 2018, $1m in 2017, $0m in 2016
- The company has unprofitable business model: ROIC is -7.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.7x 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
PDF Solutions, Inc.'s Revenue increased on 2.9%. Revenue growth showed slowdown in 20Q4 - it was -0.9% YoY. During the last 5 years Revenue growth bottomed in 2018 at -15.8% and was accelerating since that time. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 7.5 pp from -0.26% to -7.7% in 2020. EBITDA Margin declined at -5.4 pp per annum in 2016-2020.
Gross Margin decreased on 2.6 pp from 60.9% to 58.2% in 2020. SG&A as a % of Revenue increased on 6.4 pp from 30.7% to 37.1% in 2020. SG&A as a % of Revenue followed a growing trend at 4.1 pp per annum in 2016-2020.
Net Income margin dropped on 39.5 pp from -6.3% to -45.8% in 2020. Net Income margin followed a declining trend at -11.4 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In 2020 PDF Solutions, Inc. had CAPEX/Revenue of 6.8%. PDF Solutions, Inc.'s CAPEX/Revenue decreased on 3.2 pp from 10.1% in 2017 to 6.8% in 2020. It's average CAPEX/Revenue for the last three years was 11.5%.
Return on investment
The company operates at negative ROIC (-7.7%) and ROE (-18.7%). ROIC decreased on 3.6 pp from -4.1% to -7.7% in 2020. ROE dropped on 16.0 pp from -2.7% to -18.7% in 2020. ROIC stuck to a declining trend at -3.4 pp per annum in the last 5 years. ROE declined at -4.9 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and Debt / EBITDA. Debt dropped on 11.5% while cash dropped on 68.9%.
PDF Solutions, Inc. has no short term refinancing risk: cash is higher than short term debt (1,574.0%).
Management team
John K Kibarian is a PDF Solutions, Inc.'s CEO. John K Kibarian has spent 20 years with the company. The company's CFO Adnan Raza has spent 1 year with the company.
Financial and operational results
FY ended 12/31/2020
PDF Solutions, Inc. ($PDFS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 107.5 | 101.9 | 85.8 | 85.6 | 88.0 | 2.9% |
| Gross Profit | 63.0 | 54.4 | 43.0 | 52.1 | 51.3 | -1.6% |
| SG&A | 22.1 | 23.7 | 23.9 | 26.3 | 32.7 | 24.3% |
| EBITDA | 17.4 | 5.8 | -4.0 | -0.2 | -6.8 | |
| Net Income | 9.1 | -1.3 | -7.7 | -5.4 | -40.4 | |
Balance Sheet
|
|---|
| Cash | 116.8 | 101.3 | 96.1 | 97.6 | 30.3 | -68.9% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 1.9 | 1.9 | 3.2% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 7.7 | 6.5 | -15.1% |
Cash flow
|
|---|
| Capex | 11.3 | 10.3 | 13.1 | 10.6 | 6.0 | -43.1% |
Ratios
|
|---|
| Revenue growth | 9.7% | -5.2% | -15.8% | -0.2% | 2.9% | |
| EBITDA growth | -22.0% | -66.3% | -168.0% | -94.4% | 2,932.1% | |
|
|---|
| Gross Margin | 58.6% | 53.4% | 50.1% | 60.9% | 58.2% | -2.6% |
| EBITDA Margin | 16.2% | 5.7% | -4.6% | -0.3% | -7.7% | -7.5% |
| SG&A, % of revenue | 20.5% | 23.2% | 27.9% | 30.7% | 37.1% | 6.4% |
| Net Income Margin | 8.5% | -1.3% | -9.0% | -6.3% | -45.8% | -39.5% |
| CAPEX, % of revenue | 10.5% | 10.1% | 15.3% | 12.3% | 6.8% | -5.5% |
|
|---|
| ROIC | 7.3% | 0.1% | -5.5% | -4.1% | -7.7% | -3.6% |
| ROE | 4.9% | -0.7% | -3.9% | -2.7% | -18.7% | -16.0% |
| Net Debt/EBITDA | -6.7x | -17.3x | | | |
PDF Solutions, Inc. ($PDFS) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 21 | 21 | 23 | 22 | | 3.0% | 4.1% | 5.5% | -0.9% |
| EBITDA | -2 | -1 | 0 | -4 | | - | -227.2% | -60.6% | -525.6% |
| Net Income | -1 | -4 | -3 | -33 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 100 | 103 | 118 | 30 | | 11.0% | 19.1% | 18.1% | -68.9% |
| Short Term Debt | 2 | 2 | 2 | 2 | | 2.1% | 0.3% | -3.5% | 3.2% |
| Long Term Debt | 7 | 7 | 7 | 7 | | -13.6% | -13.2% | -12.5% | -15.1% |
Ratios
|
|---|
| Gross Margin | 59.9% | 58.2% | 58.9% | 56.0% | | -1.8% | -3.7% | -1.3% | -3.8% |
| EBITDA Margin | -7.3% | -3.4% | 2.0% | -16.3% | | -3.6% | -6.1% | -3.4% | -20.1% |
| Net Income Margin | -2.5% | -17.1% | -11.8% | -149.5% | | 10.6% | -13.6% | -8.7% | -143.7% |
Peers in Semiconductor Equipment
Below we provide PDF Solutions, Inc. benchmarking against other companies in Semiconductor Equipment 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 |
|---|
| 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. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| |
|---|
| Median (27 companies) | 5.0% | 24.7% | 15.5% | -2.8% | 16.9% |
|---|
| PDF Solutions, Inc. ($PDFS) | - | -5.2% | -15.8% | -0.2% | 2.9% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 99.8% | 98.3% | 96.7% | 97.0% | 91.2% |
| Teradyne, Inc. ($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% |
| Camtek Ltd. ($CAMT) | 41.0% | 48.7% | 49.4% | 48.3% | 47.0% |
| |
|---|
| Median (27 companies) | 37.3% | 43.2% | 40.2% | 40.3% | 42.4% |
|---|
| PDF Solutions, Inc. ($PDFS) | 58.6% | 53.4% | 50.1% | 60.9% | 58.2% |
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. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (25 companies) | 11.4% | 16.2% | 16.6% | 12.9% | 15.9% |
|---|
| PDF Solutions, Inc. ($PDFS) | 16.2% | 5.7% | -4.6% | -0.3% | -7.7% |
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. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| |
|---|
| Median (24 companies) | 2.2% | 2.8% | 2.9% | 3.2% | 3.3% |
|---|
| PDF Solutions, Inc. ($PDFS) | 10.5% | 10.1% | 15.3% | 12.3% | 6.8% |
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. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 7.1% | 13.1% | 12.1% | 5.6% | 10.5% |
|---|
| PDF Solutions, Inc. ($PDFS) | 7.3% | 0.1% | -5.5% | -4.1% | -7.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Veeco Instruments Inc. ($VECO) | - | - | - | 577.2x | 3.4x |
| Cohu, Inc. ($COHU) | -6.0x | -2.7x | - | 10.1x | 2.9x |
| 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 |
| |
|---|
| Median (24 companies) | -1.2x | -0.7x | -1.0x | -0.4x | -0.3x |
|---|
