Xperi Corporation reports 693% EBITDA growth in 2020 and 24.4 pp EBITDA Margin growth from 16.4% to 40.8%
02/23/2021 • About Xperi Corporation (
$XPER) • By InTwits
Xperi Corporation reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Xperi Corporation is a fast growth stock: 2020 revenue growth was 219%, 5 year revenue CAGR was 26.7% at 2020 ROIC 10.6%
- EBITDA Margin is quite volatile: 40.8% in 2020, 16.4% in 2019, 34.3% in 2018, 23.4% in 2017, 47.6% in 2016
- Xperi Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 7.3%
- CAPEX is quite volatile: $7m in 2020, $9m in 2019, $3m in 2018, $3m in 2017, $4m in 2016
- The company has business model with average profitability: ROIC is 10.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.1x while industry average is -1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 219%. Revenue growth showed acceleration in 20Q4 - it increased 379.4% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.3 pp from -3.5% to 1.9% in 2020.
Gross Margin decreased on 5.8 pp from 97.0% to 91.2% in 2020. Gross Margin declined at -1.8 pp per annum in 2016-2020. SG&A as a % of Revenue dropped on 16.4 pp from 43.9% to 27.5% in 2020.
Net Income margin jumped on 38.8 pp from -22.3% to 16.5% in 2020.
Investments (CAPEX, working capital and M&A)
In 2020 the company had CAPEX/Revenue of 0.83%. Xperi Corporation showed almost no change in CAPEX/Revenue from 2017 to 2020. It's average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at good ROE (14.6%) while ROIC is low (10.6%). ROIC jumped on 17.1 pp from -6.5% to 10.6% in 2020. ROE jumped on 25.4 pp from -10.7% to 14.6% in 2020.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA dropped on 4.0x from 6.1x to 2.1x in 2020. Debt jumped on 161% while cash jumped on 128%.
Xperi Corporation has no short term refinancing risk: cash is higher than short term debt (276.4%).
Valuation and dividends
Xperi Corporation's trades at EV/EBITDA 8.2x and P/E 15.2x.
Management team
Jon E Kirchner is a the company's CEO. Jon E Kirchner has spent 3 years with the company. Xperi Corporation's CFO is Robert J Andersen. Robert J Andersen has 4 years tenure at the company.
Financial and operational results
FY ended 12/31/2020
Xperi Corporation ($XPER) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 259.6 | 373.7 | 406.1 | 280.1 | 892.0 | 218.5% |
| Gross Profit | 259.0 | 367.4 | 392.8 | 271.6 | 813.7 | 199.6% |
| SG&A | 72.1 | 144.6 | 127.9 | 122.9 | 245.4 | 99.6% |
| EBITDA | 123.5 | 87.6 | 139.1 | 45.9 | 364.4 | 693.3% |
| Net Income | 56.1 | -56.6 | -0.3 | -62.5 | 146.8 | |
Balance Sheet
|
|---|
| Cash | 65.6 | 138.3 | 113.6 | 74.6 | 170.2 | 128.3% |
| Short Term Debt | 6.0 | 34.5 | 0.0 | 5.8 | 61.6 | 953.6% |
| Long Term Debt | 577.2 | 545.2 | 482.2 | 348.1 | 861.9 | 147.6% |
Cash flow
|
|---|
| Capex | 3.8 | 3.3 | 3.3 | 8.8 | 7.4 | -16.3% |
Ratios
|
|---|
| Revenue growth | -5.0% | 44.0% | 8.7% | -31.0% | 218.5% | |
| EBITDA growth | -33.0% | -29.1% | 58.7% | -67.0% | 693.3% | |
|
|---|
| Gross Margin | 99.8% | 98.3% | 96.7% | 97.0% | 91.2% | -5.8% |
| EBITDA Margin | 47.6% | 23.4% | 34.3% | 16.4% | 40.8% | 24.4% |
| SG&A, % of revenue | 27.8% | 38.7% | 31.5% | 43.9% | 27.5% | -16.4% |
| Net Income Margin | 21.6% | -15.1% | -0.1% | -22.3% | 16.5% | 38.8% |
| CAPEX, % of revenue | 1.5% | 0.9% | 0.8% | 3.1% | 0.8% | -2.3% |
|
|---|
| ROIC | 11.0% | -2.9% | 2.2% | -6.5% | 10.6% | 17.1% |
| ROE | 11.0% | -12.0% | -0.1% | -10.7% | 14.6% | 25.4% |
| Net Debt/EBITDA | 4.2x | 5.0x | 2.6x | 6.1x | 2.1x | -4.0x |
Xperi Corporation ($XPER) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 118 | 138 | 203 | 434 | | 108.0% | 83.2% | 250.5% | 379.4% |
| EBITDA | 51 | 20 | 42 | 251 | | - | -3.2% | 1,209.5% | 1,000.3% |
| Net Income | 19 | -23 | -30 | 180 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 108 | 174 | 116 | 170 | | 41.7% | 244.5% | 52.8% | 128.3% |
| Short Term Debt | 6 | 62 | 61 | 62 | | 14.0% | 991.2% | 959.5% | 953.6% |
| Long Term Debt | 348 | 1,041 | 1,026 | 862 | | -22.1% | 161.0% | 157.5% | 147.6% |
Ratios
|
|---|
| Gross Margin | 98.7% | 93.0% | 83.2% | 92.4% | | 2.6% | -3.7% | -14.2% | -5.2% |
| EBITDA Margin | 43.3% | 14.6% | 20.9% | 57.8% | | 44.9% | -13.1% | 15.3% | 32.6% |
| Net Income Margin | 16.4% | -16.4% | -14.7% | 41.4% | | 60.8% | -8.7% | 12.3% | 59.1% |
Peers in Semiconductor Equipment
Below we provide Xperi Corporation 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 |
|---|
| 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% |
| Axcelis Technologies, Inc. ($ACLS) | - | 53.8% | 7.8% | -22.5% | 38.4% |
| |
|---|
| Median (27 companies) | 5.0% | 24.2% | 15.5% | -0.2% | 16.3% |
|---|
| Xperi Corporation ($XPER) | - | 44.0% | 8.7% | -31.0% | 218.5% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| PDF Solutions, Inc. ($PDFS) | 58.6% | 53.4% | 50.1% | 60.9% | 58.2% |
| Teradyne, Inc. ($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. ($CAMT) | 41.0% | 48.7% | 49.4% | 48.3% | 47.0% |
| |
|---|
| Median (27 companies) | 37.3% | 43.2% | 40.2% | 40.3% | 42.4% |
|---|
| Xperi Corporation ($XPER) | 99.8% | 98.3% | 96.7% | 97.0% | 91.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| 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% |
| Nova Measuring Instruments Ltd. ($NVMI) | 10.2% | 28.8% | 27.1% | 22.1% | 25.9% |
| |
|---|
| Median (25 companies) | 11.4% | 16.0% | 16.2% | 11.9% | 15.4% |
|---|
| Xperi Corporation ($XPER) | 47.6% | 23.4% | 34.3% | 16.4% | 40.8% |
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. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| |
|---|
| Median (24 companies) | 2.6% | 3.2% | 3.0% | 3.4% | 3.9% |
|---|
| Xperi Corporation ($XPER) | 1.5% | 0.9% | 0.8% | 3.1% | 0.8% |
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. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 6.9% | 13.1% | 12.1% | 5.6% | 10.2% |
|---|
| Xperi Corporation ($XPER) | 11.0% | -2.9% | 2.2% | -6.5% | 10.6% |
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 |
| 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 |
| MKS Instruments, Inc. ($MKSI) | 1.7x | 0.1x | -0.5x | 1.5x | 0.8x |
| |
|---|
| Median (23 companies) | -1.3x | -0.7x | -1.0x | -0.4x | -0.4x |
|---|
| Xperi Corporation ($XPER) | 4.2x | 5.0x | 2.6x | 6.1x | 2.1x |
