Rogers Corporation CAPEX dropped on 21.7% and Revenue dropped on 10.7%
02/18/2021 • About Rogers Corporation (
$ROG) • By InTwits
Rogers Corporation reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Rogers Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.4%. At the same time it's in pair with industry average of 3.7%
- CAPEX is quite volatile: $40m in 2020, $52m in 2019, $47m in 2018, $27m in 2017, $18m in 2016
- The company has potentially unprofitable business model: ROIC is 6.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 10.7%. Annual revenue decline showed slowdown in 20Q4 - revenue increased on 8.7%. During the last 5 years Revenue growth topped in 2017 at 25.1% and was decelerating since that time. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.9 pp from 15.7% to 19.6% in 2020. During 2016-2020 EBITDA Margin topped in 2017 at 21.3% and was declining since that time.
Gross Margin increased slightly on 1.4 pp from 35.0% to 36.4% in 2020. SG&A as a % of Revenue increased on 3.9 pp from 18.8% to 22.7% in 2020. During the last 5 years SG&A as a % of Revenue bottomed in 2018 at 18.7% and was growing since that time.
Net Income margin increased slightly on 0.96 pp from 5.3% to 6.2% in 2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 5.0% in 2020. CAPEX/Revenue increased slightly on 1.7 pp from 3.3% in 2017 to 5.0% in 2020. For the last three years the average CAPEX/Revenue was 5.4%. During 2016-2020 CAPEX as a % of Revenue topped in 2019 at 5.7%.
Return on investment
The company operates at low ROIC (6.4%) and ROE (5.1%). ROIC decreased on 3.9 pp from 10.3% to 6.4% in 2020. ROE showed almost no change in 2020. During 2016-2020 ROIC topped in 2017 at 14.5% and was declining since that time. During 2016-2020 ROE topped in 2017 at 11.5% and was declining since that time.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and 0.2x Debt / EBITDA. Debt dropped on 73.9% while cash jumped on 14.9%.
Rogers Corporation has no short term refinancing risk: cash is higher than short term debt (2,728.1%).
Valuation and dividends
Rogers Corporation's trades at EV/EBITDA 21.3x and P/E 63.7x.
Management team
Rogers Corporation's CEO is Bruce D Hoechner. Bruce D Hoechner has 9 years tenure with the company. Rogers Corporation's CFO Michael M Ludwig has spent 2 years with the company.
Financial and operational results
FY ended 12/31/2020
Rogers Corporation ($ROG) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 656.3 | 821.0 | 879.1 | 898.3 | 802.6 | -10.7% |
| Gross Profit | 249.5 | 318.6 | 310.8 | 314.3 | 291.8 | -7.2% |
| SG&A | 136.3 | 160.0 | 164.0 | 168.7 | 182.3 | 8.1% |
| EBITDA | 121.7 | 174.9 | 162.8 | 162.8 | 142.0 | -12.7% |
| EBIT | 83.9 | 130.8 | 112.7 | | | |
| Tax | 34.0 | 52.5 | 22.9 | | | |
| Net Income | 48.3 | 80.5 | 87.7 | 47.3 | 50.0 | 5.6% |
| Stock Based Compensation | 11.3 | 11.8 | 11.2 | | | |
Balance Sheet
|
|---|
| Cash | 227.8 | 181.2 | 167.7 | 166.8 | 191.8 | 14.9% |
| Accounts Receivable | 119.6 | 140.6 | 144.6 | | | |
| Inventory | 91.1 | 112.6 | 132.6 | | | |
| Accounts Payable | 28.4 | 36.1 | 40.3 | | | |
| Short Term Debt | 4.0 | 0.6 | 0.4 | 2.7 | 7.0 | 156.3% |
| Long Term Debt | 235.9 | 131.0 | 228.5 | 129.5 | 27.5 | -78.7% |
Cash flow
|
|---|
| Capex | 18.1 | 27.2 | 47.1 | 51.6 | 40.4 | -21.7% |
| Acquisitions | 133.9 | 60.2 | 78.0 | | | |
Ratios
|
|---|
| Revenue growth | 2.3% | 25.1% | 7.1% | 2.2% | -10.7% | |
| EBITDA growth | 10.3% | 43.7% | -6.9% | -0.0% | -12.7% | |
|
|---|
| Gross Margin | 38.0% | 38.8% | 35.4% | 35.0% | 36.4% | 1.4% |
| EBITDA Margin | 18.5% | 21.3% | 18.5% | 18.1% | 17.7% | -0.4% |
| EBIT Margin | 12.8% | 15.9% | 12.8% | | |
| SG&A, % of revenue | 20.8% | 19.5% | 18.7% | 18.8% | 22.7% | 3.9% |
| SBC, % of revenue | 1.7% | 1.4% | 1.3% | | |
| Net Income Margin | 7.4% | 9.8% | 10.0% | 5.3% | 6.2% | 1.0% |
| CAPEX, % of revenue | 2.8% | 3.3% | 5.4% | 5.7% | 5.0% | -0.7% |
|
|---|
| ROIC | 10.1% | 14.5% | 11.3% | 10.3% | 6.4% | -3.9% |
| ROE | 7.9% | 11.5% | 10.9% | 5.3% | 5.1% | -0.2% |
| Net Debt/EBITDA | 0.1x | -0.3x | 0.4x | -0.2x | -1.1x | -0.9x |
People
|
|---|
| Insider ownership | 1.4% | 1.4% | 1.4% | | | |
| Employees | 3,100 | 3,400 | 3,700 | | | |
| Revenue/Employee, th. $ | 212 | 241 | 238 | | | |
Rogers Corporation ($ROG) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 199 | 191 | 202 | 211 | | -17.1% | -21.3% | -9.0% | 8.7% |
| EBITDA | 29 | 37 | 32 | 44 | | -37.4% | -20.4% | -24.4% | 60.2% |
| Net Income | 13 | 15 | 7 | 15 | | -53.3% | -40.2% | -70.0% | - |
Balance Sheet
|
|---|
| Cash | 308 | 299 | 186 | 192 | | 90.2% | 72.6% | 32.2% | 14.9% |
| Short Term Debt | 3 | 7 | 7 | 7 | | -7.6% | 121.5% | 130.2% | 156.3% |
| Long Term Debt | 280 | 225 | 62 | 28 | | 20.8% | 10.7% | -54.9% | -78.7% |
Ratios
|
|---|
| Gross Margin | 33.0% | 36.6% | 37.4% | 38.3% | | -2.6% | 1.3% | 1.8% | 5.2% |
| EBITDA Margin | 14.7% | 19.2% | 16.0% | 20.8% | | -4.7% | 0.2% | -3.3% | 6.7% |
| Net Income Margin | 6.7% | 7.6% | 3.5% | 7.2% | | -5.2% | -2.4% | -7.1% | 22.1% |
Peers in Electronic Components
Below you can find Rogers Corporation 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. ($CPSH) | - | -5.0% | 48.0% | -0.5% | -2.8% |
| |
|---|
| Median (12 companies) | -10.4% | 7.7% | 16.6% | -4.3% | -4.6% |
|---|
| Rogers Corporation ($ROG) | - | 25.1% | 7.1% | 2.2% | -10.7% |
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% |
| Airgain, Inc. ($AIRG) | 44.4% | 47.1% | 43.7% | 45.4% | 46.6% |
| Belden Inc ($BDC) | 41.6% | 39.1% | 39.0% | 37.2% | 35.6% |
| Knowles Corporation ($KN) | 38.2% | 38.5% | 39.0% | 38.4% | 35.5% |
| |
|---|
| Median (12 companies) | 33.7% | 34.9% | 37.6% | 36.6% | 33.3% |
|---|
| Rogers Corporation ($ROG) | 38.0% | 38.8% | 35.4% | 35.0% | 36.4% |
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% |
| Vishay Intertechnology, Inc. ($VSH) | 15.4% | 18.7% | 21.3% | 16.8% | 16.0% |
| |
|---|
| Median (12 companies) | 13.6% | 8.7% | 9.3% | 16.9% | 14.4% |
|---|
| Rogers Corporation ($ROG) | 18.5% | 21.3% | 18.5% | 18.1% | 17.7% |
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% |
| 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% |
| Knowles Corporation ($KN) | 4.5% | 6.9% | 9.7% | 4.8% | 4.2% |
| |
|---|
| Median (12 companies) | 3.4% | 5.1% | 3.8% | 4.5% | 3.6% |
|---|
| Rogers Corporation ($ROG) | 2.8% | 3.3% | 5.4% | 5.7% | 5.0% |
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 ($DLB) | 12.2% | 12.0% | 8.4% | 11.4% | 9.6% |
| |
|---|
| Median (12 companies) | 4.7% | 6.0% | 7.8% | 7.9% | 6.9% |
|---|
| Rogers Corporation ($ROG) | 10.1% | 14.5% | 11.3% | 10.3% | 6.4% |
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 ($KN) | 2.0x | 1.0x | 0.7x | 0.9x | 0.6x |
| |
|---|
| Median (11 companies) | -0.5x | -0.1x | 0.7x | 0.9x | 0.1x |
|---|
| Rogers Corporation ($ROG) | 0.1x | -0.3x | 0.4x | -0.2x | -1.1x |
