CPS Technologies Corp. EBITDA jumped on 1,881% while Revenue decreased on 2.8%
02/24/2021 • About CPS Technologies Corp. (
$CPSH) • By InTwits
CPS Technologies Corp. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 7.6% in FY2020 vs. 0.4% in FY2019 vs. -4.1% in FY2016
- CPS Technologies Corp. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -0.7% for the sames years
- CPS Technologies Corp. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: $0m in FY2020, $0m in FY2019, $0m in FY2018, $0m in FY2017, $1m in FY2016
- The company has highly profitable business model: ROIC is 13.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.0x 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
The company's Revenue decreased on 2.8%. Revenue decline showed acceleration in FY20Q4 - it was 23.8% YoY. During the last 5 years Revenue growth topped in FY2018 at 48.0% and was decelerating since that time. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 7.3 pp from 0.38% to 7.6% in FY2020. During FY2016-FY2020 EBITDA Margin bottomed in FY2017 at -9.5% and was growing since that time.
Gross Margin increased on 8.1 pp from 11.8% to 20.0% in FY2020. SG&A as a % of Revenue increased slightly on 0.98 pp from 14.6% to 15.6% in FY2020.
Net Income margin increased on 7.3 pp from -3.0% to 4.4% in FY2020. During FY2016-FY2020 Net Income margin bottomed in FY2018 at -17.2% and was growing since that time.
Investments (CAPEX, working capital and M&A)
CPS Technologies Corp.'s CAPEX/Revenue was 1.5% in FY2020. The company showed almost no change in CAPEX/Revenue from FY2017 to FY2020. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at good ROIC (13.8%) and ROE (15.5%). ROIC jumped on 23.1 pp from -9.3% to 13.8% in FY2020. ROE surged on 27.0 pp from -11.4% to 15.5% in FY2020. During the last 5 years ROIC bottomed in FY2017 at -19.4% and was growing since that time. During FY2016-FY2020 ROE bottomed in FY2018 at -48.9% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is 0.1x. Net Debt / EBITDA dropped on 15.9x from 16.0x to 0.027x in FY2020. Debt dropped on 83.3% while cash surged on 45.7%.
CPS Technologies Corp. has no short term refinancing risk: cash is higher than short term debt (234.8%).
Valuation and dividends
CPS Technologies Corp.'s trades at EV/EBITDA 133.7x and P/E 235.1x.
Management team
The company's CEO Grant C Bennett has spent 28 years with the company. CPS Technologies Corp.'s CFO Charles K Griffith Jr "Chuck" has spent 1 year with the company.
Financial and operational results
FY ended 12/26/2020
CPS Technologies Corp. ($CPSH) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 15.351 | 14.577 | 21.581 | 21.468 | 20.873 | -2.8% |
| Gross Profit | 2.156 | 1.658 | 2.913 | 2.540 | 4.170 | 64.1% |
| SG&A | | 3.609 | 3.813 | 3.137 | 3.256 | 3.8% |
| EBITDA | -0.630 | -1.384 | -0.332 | 0.081 | 1.597 | 1,881.4% |
| Net Income | -0.454 | -1.718 | -3.706 | -0.638 | 0.908 | |
Balance Sheet
|
|---|
| Cash | 3.408 | 1.340 | 0.629 | 0.134 | 0.195 | 45.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 1.398 | 0.083 | -94.1% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.023 | 0.155 | 572.0% |
Cash flow
|
|---|
| Capex | 0.646 | 0.274 | 0.351 | 0.489 | 0.323 | -34.0% |
Ratios
|
|---|
| Revenue growth | -29.5% | -5.0% | 48.0% | -0.5% | -2.8% | |
| EBITDA growth | -154.1% | 119.6% | -76.0% | -124.2% | 1,881.4% | |
|
|---|
| Gross Margin | 14.0% | 11.4% | 13.5% | 11.8% | 20.0% | 8.1% |
| EBITDA Margin | -4.1% | -9.5% | -1.5% | 0.4% | 7.6% | 7.3% |
| SG&A, % of revenue | | 24.8% | 17.7% | 14.6% | 15.6% | 1.0% |
| Net Income Margin | -3.0% | -11.8% | -17.2% | -3.0% | 4.4% | 7.3% |
| CAPEX, % of revenue | 4.2% | 1.9% | 1.6% | 2.3% | 1.5% | -0.7% |
|
|---|
| ROIC | -10.8% | -19.4% | -11.9% | -9.3% | 13.8% | 23.1% |
| ROE | -4.2% | -17.1% | -48.9% | -11.4% | 15.5% | 27.0% |
| Net Debt/EBITDA | | | | 16.0x | 0.0x | -15.9x |
CPS Technologies Corp. ($CPSH) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 7 | 6 | 4 | 4 | | 23.6% | -9.6% | 1.5% | -23.8% |
| EBITDA | 1 | 1 | 0 | -0 | | - | 15.3% | - | -119.3% |
| Net Income | 1 | 0 | 0 | -0 | | - | 19.4% | - | -166.3% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | -47.1% | -27.8% | -76.1% | 45.7% |
| Short Term Debt | 2 | 1 | 1 | 0 | | 392.4% | 22.8% | 70.1% | -94.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | | 24.7% | 71.4% | 187.1% | 572.0% |
Ratios
|
|---|
| Gross Margin | 23.8% | 20.6% | 21.1% | 12.0% | | 20.8% | 2.1% | 16.0% | -6.0% |
| EBITDA Margin | 12.1% | 8.7% | 9.2% | -2.5% | | 22.9% | 1.9% | 16.7% | -12.5% |
| Net Income Margin | 9.2% | 5.2% | 5.2% | -5.6% | | 23.4% | 1.3% | 16.5% | -12.1% |
Peers in Electronic Components
Below we provide CPS Technologies Corp. benchmarking against other companies in Electronic Components 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 |
|---|
| 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% |
| Littelfuse, Inc. ($LFUS) | - | 15.7% | 40.7% | -12.5% | -3.9% |
| |
|---|
| Median (12 companies) | -10.4% | 8.3% | 14.1% | -3.9% | -5.8% |
|---|
| CPS Technologies Corp. ($CPSH) | - | -5.0% | 48.0% | -0.5% | -2.8% |
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. ($AIRG) | 44.4% | 47.1% | 43.7% | 45.4% | 46.6% |
| Rogers Corporation ($ROG) | 38.0% | 38.8% | 35.4% | 35.0% | 36.4% |
| Belden Inc ($BDC) | 41.6% | 39.1% | 39.0% | 37.2% | 35.6% |
| |
|---|
| Median (12 companies) | 33.7% | 38.3% | 37.6% | 36.6% | 35.1% |
|---|
| CPS Technologies Corp. ($CPSH) | 14.0% | 11.4% | 13.5% | 11.8% | 20.0% |
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 ($ROG) | 18.5% | 21.3% | 18.5% | 18.1% | 17.7% |
| |
|---|
| Median (12 companies) | 14.1% | 11.4% | 12.7% | 17.5% | 15.4% |
|---|
| CPS Technologies Corp. ($CPSH) | -4.1% | -9.5% | -1.5% | 0.4% | 7.6% |
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 ($BDC) | 2.3% | 2.7% | 3.8% | 5.2% | 4.8% |
| |
|---|
| Median (12 companies) | 3.0% | 5.1% | 4.1% | 5.0% | 4.0% |
|---|
| CPS Technologies Corp. ($CPSH) | 4.2% | 1.9% | 1.6% | 2.3% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Amphenol Corporation ($APH) | 18.3% | 19.2% | 21.1% | 19.4% | 18.0% |
| IEH Corp ($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% |
| Littelfuse, Inc. ($LFUS) | 11.7% | 15.8% | 12.1% | 8.5% | 6.9% |
| |
|---|
| Median (12 companies) | 6.4% | 7.0% | 8.4% | 8.5% | 6.4% |
|---|
| CPS Technologies Corp. ($CPSH) | -10.8% | -19.4% | -11.9% | -9.3% | 13.8% |
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 ($KN) | 2.0x | 1.0x | 0.7x | 0.9x | 0.6x |
| |
|---|
| Median (11 companies) | -0.5x | -0.3x | 0.6x | 0.6x | 0.1x |
|---|
| CPS Technologies Corp. ($CPSH) | - | - | - | 16.0x | 0.0x |
