Socket Mobile, Inc. revenue dropped on 18.5%
02/24/2021 • About Socket Mobile, Inc. (
$SCKT) • By InTwits
Socket Mobile, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Socket Mobile, Inc. is a company in decline: FY2020 revenue growth was -18.5%, 5 years revenue CAGR was -3.1%
- The company has unprofitable business model: ROIC is -37.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Socket Mobile, Inc.'s Revenue dropped on 18.5%. Annual revenue decline showed slowdown in FY20Q4 - revenue increased slightly on 1.5%.
Gross Margin increased slightly on 0.63 pp from 52.5% to 53.1% in FY2020. SG&A as a % of Revenue increased on 3.5 pp from 29.1% to 32.6% in FY2020.
Net Income margin dropped on 22.4 pp from 1.5% to -20.9% in FY2020.
Return on investment
The company operates at negative ROIC (-37.1%) and ROE (-27.5%). ROIC dropped on 43.3 pp from 6.2% to -37.1% in FY2020. ROE dropped on 29.7 pp from 2.2% to -27.5% in FY2020. ROIC stuck to a declining trend at -13.2 pp per annum in FY2016-FY2020.
Leverage (Debt)
Debt dropped on 24.4% while cash surged on 121%.
Socket Mobile, Inc. has no short term refinancing risk: cash is higher than short term debt (147.2%).
Financial and operational results
Socket Mobile, Inc. ($SCKT) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 20.788 | 21.286 | 16.454 | 19.253 | 15.700 | -18.5% |
| Gross Profit | 10.434 | 11.390 | 8.456 | 10.101 | 8.335 | -17.5% |
| SG&A | 4.982 | 5.499 | 5.402 | 5.601 | 5.119 | -8.6% |
| EBITDA | 2.842 | 2.731 | -0.154 | 1.482 | | |
| Net Income | 12.147 | -1.431 | -0.571 | 0.287 | -3.279 | -1,244.2% |
Balance Sheet
|
|---|
| Cash | 1.319 | 3.380 | 1.085 | 0.959 | 2.122 | 121.3% |
| Short Term Debt | 0.792 | 0.055 | 1.817 | 2.173 | 1.442 | -33.7% |
| Long Term Debt | 0.026 | 0.029 | 0.333 | 0.715 | 0.741 | 3.6% |
Cash flow
|
|---|
| Capex | 0.304 | 0.413 | 0.424 | 0.595 | | |
Ratios
|
|---|
| Revenue growth | 13.0% | 2.4% | -22.7% | 17.0% | -18.5% | |
| EBITDA growth | 22.2% | -3.9% | -105.6% | -1,062.8% | | |
|
|---|
| Gross Margin | 50.2% | 53.5% | 51.4% | 52.5% | 53.1% | 0.6% |
| EBITDA Margin | 13.7% | 12.8% | -0.9% | 7.7% | |
| SG&A, % of revenue | 24.0% | 25.8% | 32.8% | 29.1% | 32.6% | 3.5% |
| Net Income Margin | 58.4% | -6.7% | -3.5% | 1.5% | -20.9% | -22.4% |
| CAPEX, % of revenue | 1.5% | 1.9% | 2.6% | 3.1% | | |
|
|---|
| ROIC | 23.5% | 16.8% | -5.7% | 6.2% | -37.1% | -43.3% |
| ROE | 124.5% | -8.6% | -3.9% | 2.2% | -27.5% | -29.7% |
| Net Debt/EBITDA | -0.2x | -1.2x | | 1.3x | |
Socket Mobile, Inc. ($SCKT) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 3 | 4 | 5 | | -8.8% | -46.3% | -17.5% | 1.5% |
| Net Income | -0 | -1 | -4 | 2 | | -863.0% | -741.1% | -4,344.8% | 2,495.1% |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 2 | 2 | | 23.0% | -8.7% | 101.4% | 121.3% |
| Short Term Debt | 3 | 1 | 3 | 1 | | -3.7% | -45.9% | 12.1% | -33.7% |
| Long Term Debt | 1 | 1 | 1 | 1 | | -51.6% | 20.3% | -7.8% | 3.6% |
Ratios
|
|---|
| Gross Margin | 52.7% | 50.1% | 55.3% | 53.2% | | 0.8% | -1.8% | 2.4% | 0.1% |
| Net Income Margin | -2.1% | -28.3% | -97.4% | 34.0% | | -2.4% | -30.7% | -99.3% | 32.7% |
Peers in Technology Hardware, Storage & Peripherals
Below we provide Socket Mobile, Inc. benchmarking against other companies in Technology Hardware, Storage & Peripherals 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 |
|---|
| Ionix Technology Inc ($IINX) | - | 246.0% | -5.8% | 92.3% | 66.8% |
| Veritec Inc ($VRTC) | - | -52.2% | 53.1% | -38.5% | 42.9% |
| Pure Storage, Inc. ($PSTG) | - | 67.9% | 38.6% | 32.7% | 20.9% |
| USA Technologies, Inc. ($USAT) | - | 34.5% | - | - | 12.9% |
| CPI Card Group Inc. ($PMTS) | - | -17.4% | 0.4% | 8.7% | 12.3% |
| |
|---|
| Median (20 companies) | 1.4% | 1.5% | 5.6% | -3.7% | -8.8% |
|---|
| Socket Mobile, Inc. ($SCKT) | - | 2.4% | -22.7% | 17.0% | -18.5% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Immersion Corporation ($IMMR) | 99.7% | 99.4% | 99.8% | 99.5% | 99.4% |
| Datasea Inc ($DTSS) | - | 39.3% | 54.4% | - | 89.7% |
| Pure Storage, Inc. ($PSTG) | 61.9% | 65.9% | 65.5% | 66.4% | 69.0% |
| Avid Technology, Inc. ($AVID) | 65.0% | 57.8% | 57.9% | 60.5% | 63.3% |
| Veritec Inc ($VRTC) | 52.6% | 19.9% | 50.4% | 25.0% | 52.1% |
| |
|---|
| Median (21 companies) | 38.5% | 38.9% | 38.3% | 32.7% | 37.4% |
|---|
| Socket Mobile, Inc. ($SCKT) | 50.2% | 53.5% | 51.4% | 52.5% | 53.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Apple Inc. ($AAPL) | 32.7% | 31.2% | 30.8% | 29.4% | 28.7% |
| CPI Card Group Inc. ($PMTS) | 14.9% | -0.0% | 9.0% | 15.2% | 17.9% |
| Immersion Corporation ($IMMR) | -25.1% | -127.0% | 48.6% | -50.4% | 17.4% |
| Avid Technology, Inc. ($AVID) | 17.5% | 6.6% | 8.4% | 13.5% | 13.6% |
| Western Digital Corporation ($WDC) | 12.5% | 21.4% | 27.5% | 11.5% | 11.7% |
| |
|---|
| Median (20 companies) | 3.8% | 3.5% | 7.9% | 7.9% | 7.8% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Datasea Inc ($DTSS) | - | 0.0% | 0.0% | - | 20.9% |
| Hewlett Packard Enterprise Company ($HPE) | 10.8% | 10.9% | 9.6% | 9.8% | 8.8% |
| Pure Storage, Inc. ($PSTG) | 8.9% | 10.4% | 6.3% | 7.4% | 5.3% |
| Stratasys, Ltd. ($SSYS) | 6.7% | 3.3% | 3.5% | 3.5% | 5.2% |
| Western Digital Corporation ($WDC) | 4.5% | 3.0% | 4.0% | 5.3% | 3.9% |
| |
|---|
| Median (20 companies) | 2.0% | 1.8% | 2.2% | 1.7% | 2.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| HP Inc. ($HPQ) | 15.8% | 60.8% | 72.9% | 116.0% | 109.2% |
| Apple Inc. ($AAPL) | 27.0% | 23.8% | 28.0% | 29.5% | 33.0% |
| Avid Technology, Inc. ($AVID) | - | - | 252.4% | 42.1% | 30.0% |
| CPI Card Group Inc. ($PMTS) | 12.8% | -9.3% | 2.7% | 15.4% | 20.5% |
| NCR Corporation ($NCR) | 13.9% | 16.3% | 4.6% | 14.3% | 5.5% |
| |
|---|
| Median (21 companies) | -2.6% | 0.2% | 3.6% | 2.9% | 2.6% |
|---|
| Socket Mobile, Inc. ($SCKT) | 23.5% | 16.8% | -5.7% | 6.2% | -37.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Diebold Nixdorf Incorporated ($DBD) | - | 8.3x | - | 6.6x | 7.3x |
| CPI Card Group Inc. ($PMTS) | 5.8x | - | 12.4x | 7.2x | 5.2x |
| Hewlett Packard Enterprise Company ($HPE) | 0.4x | 1.2x | 1.6x | 2.6x | 5.2x |
| NCR Corporation ($NCR) | 2.7x | 2.3x | 5.2x | 3.3x | 4.8x |
| Western Digital Corporation ($WDC) | 5.5x | 1.7x | 1.1x | 3.7x | 3.5x |
| |
|---|
| Median (12 companies) | 0.4x | 0.5x | 0.6x | 1.8x | 3.0x |
|---|
