Everspin Technologies, Inc. revenue surged on 12.1% and EBITDA Margin surged on 19.9 pp from -29.6% to -9.7%
02/25/2021 • About Everspin Technologies, Inc. (
$MRAM) • By InTwits
Everspin Technologies, Inc. reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -9.7%
- Everspin Technologies, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 was 0.0% while average EBITDA Margin was -33.7% for the sames years
- Everspin Technologies, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's in pair with industry average of 3.7%
- CAPEX is quite volatile: $0m in 2020, $1m in 2019, $2m in 2018, $3m in 2017, $1m in 2016
- The company has unprofitable business model: ROIC is -25.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 12.1%. Revenue growth showed slowdown in 20Q4 - it was 3.4% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 25.0 pp from 5.9% to -19.1% in 2020. EBITDA Margin stuck to a growing trend at 11.2 pp per annum in 2016-2020.
Gross Margin decreased on 5.8 pp from 48.9% to 43.0% in 2020. During the last 5 years Gross Margin topped in 2017 at 59.8% and was declining since that time. SG&A as a % of Revenue dropped on 12.3 pp from 47.4% to 35.1% in 2020.
Net Income margin jumped on 18.9 pp from -39.1% to -20.3% in 2020. Net Income margin followed a growing trend at 10.2 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.76% in 2020. The company's CAPEX/Revenue decreased on 7.8 pp from 8.5% in 2017 to 0.76% in 2020. Average CAPEX/Revenue for the last three years was 2.3%. During the last 5 years CAPEX as a % of Revenue topped in 2017 at 8.5% and was declining since that time.
Return on investment
The company operates at negative ROIC (-25.7%) and ROE (-47.4%). ROIC surged on 16.6 pp from -42.2% to -25.7% in 2020. ROE surged on 20.2 pp from -67.6% to -47.4% in 2020. ROIC grew at 12.6 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is -1.7x Net Debt / EBITDA and Debt / EBITDA. Debt decreased on 7.5% while cash increased slightly on 0.77%.
Everspin Technologies, Inc. has no short term refinancing risk: cash is higher than short term debt (253.9%).
Financial and operational results
FY ended 12/31/2020
Everspin Technologies, Inc. ($MRAM) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 27.094 | 35.936 | 49.417 | 37.503 | 42.031 | 12.1% |
| Gross Profit | 14.699 | 21.485 | 25.334 | 18.331 | 18.089 | -1.3% |
| SG&A | 10.987 | 16.256 | 19.018 | 17.778 | 14.756 | -17.0% |
| EBITDA | -14.695 | -19.017 | -15.871 | -11.118 | -4.081 | |
| Net Income | -16.708 | -21.100 | -17.754 | -14.669 | -8.512 | |
Balance Sheet
|
|---|
| Cash | 29.727 | 12.950 | 23.379 | 14.487 | 14.599 | 0.8% |
| Short Term Debt | 5.218 | 6.011 | 5.977 | 2.252 | 5.750 | 155.3% |
| Long Term Debt | 4.218 | 8.178 | 6.509 | 8.989 | 4.651 | -48.3% |
Cash flow
|
|---|
| Capex | 1.040 | 3.070 | 1.914 | 0.861 | 0.320 | -62.8% |
Ratios
|
|---|
| Revenue growth | 2.1% | 32.6% | 37.5% | -24.1% | 12.1% | |
| EBITDA growth | -9.3% | 29.4% | -16.5% | -29.9% | -63.3% | |
|
|---|
| Gross Margin | 54.3% | 59.8% | 51.3% | 48.9% | 43.0% | -5.8% |
| EBITDA Margin | -54.2% | -52.9% | -32.1% | -29.6% | -9.7% | 19.9% |
| SG&A, % of revenue | 40.6% | 45.2% | 38.5% | 47.4% | 35.1% | -12.3% |
| Net Income Margin | -61.7% | -58.7% | -35.9% | -39.1% | -20.3% | 18.9% |
| CAPEX, % of revenue | 3.8% | 8.5% | 3.9% | 2.3% | 0.8% | -1.5% |
|
|---|
| ROIC | -77.1% | -65.5% | -55.2% | -42.2% | -25.7% | 16.6% |
| ROE | | -111.8% | -99.2% | -67.6% | -47.4% | 20.2% |
Everspin Technologies, Inc. ($MRAM) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 10 | 12 | 10 | 10 | | 0.8% | 36.8% | 10.3% | 3.4% |
| EBITDA | -1 | -1 | -3 | -1 | | - | - | - | - |
| Net Income | -2 | -1 | -4 | -2 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 14 | 13 | 14 | 15 | | -24.7% | -15.4% | -5.8% | 0.8% |
| Short Term Debt | 3 | 3 | 5 | 6 | | -61.6% | -65.4% | 206.6% | 155.3% |
| Long Term Debt | 8 | 9 | 6 | 5 | | 11.9% | 59.3% | -38.1% | -48.3% |
Ratios
|
|---|
| Gross Margin | 52.9% | 43.9% | 23.0% | 52.3% | | 5.2% | -2.6% | -24.4% | -1.3% |
| EBITDA Margin | -11.6% | -5.8% | -28.8% | -8.1% | | 22.1% | 25.6% | 1.3% | 15.3% |
| Net Income Margin | -17.1% | -10.9% | -38.5% | -15.9% | | 25.3% | 31.5% | 1.4% | 16.0% |
Peers in Semiconductors
Below we provide Everspin Technologies, Inc. benchmarking against other companies in Semiconductors 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 |
|---|
| Inphi Corporation ($IPHI) | - | 30.8% | -15.4% | 24.2% | 86.8% |
| Sequans Communications S.A. ($SQNS) | - | 5.9% | -16.6% | -23.3% | 65.0% |
| MaxLinear, Inc ($MXL) | - | 8.4% | -8.4% | -17.6% | 50.9% |
| Advanced Micro Devices, Inc. ($AMD) | - | 21.6% | 23.3% | 4.0% | 45.0% |
| Kopin Corporation ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
| |
|---|
| Median (43 companies) | 1.2% | 10.9% | 4.4% | -3.0% | 1.0% |
|---|
| Everspin Technologies, Inc. ($MRAM) | - | 32.6% | 37.5% | -24.1% | 12.1% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| CEVA, Inc. ($CEVA) | 91.6% | 92.1% | 89.8% | 88.4% | 89.3% |
| Universal Display Corporation ($OLED) | 83.9% | 80.8% | 75.5% | 78.5% | 80.1% |
| Rambus, Inc. ($RMBS) | 80.1% | 79.9% | 76.8% | 77.1% | 75.0% |
| Analog Devices, Inc. ($ADI) | 65.1% | 59.9% | 68.3% | 67.0% | 65.9% |
| MoSys, Inc. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
| |
|---|
| Median (43 companies) | 47.2% | 48.6% | 50.2% | 50.7% | 49.4% |
|---|
| Everspin Technologies, Inc. ($MRAM) | 54.3% | 59.8% | 51.3% | 48.9% | 43.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 43.5% | 46.7% | 48.6% | 47.5% | 47.6% |
| Intel Corp ($INTC) | 35.2% | 41.7% | 45.7% | 45.9% | 46.7% |
| Broadcom Inc. ($AVGO) | 19.9% | 40.4% | 44.2% | 40.9% | 46.2% |
| Universal Display Corporation ($OLED) | 44.8% | 51.6% | 35.3% | 48.0% | 45.9% |
| Analog Devices, Inc. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (41 companies) | 9.2% | 10.7% | 9.8% | 13.6% | 17.4% |
|---|
| Everspin Technologies, Inc. ($MRAM) | -54.2% | -52.9% | -32.1% | -29.6% | -9.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Micron Technology, Inc. ($MU) | 46.9% | 23.3% | 29.2% | 41.8% | 38.4% |
| Sequans Communications S.A. ($SQNS) | 11.8% | 13.3% | 22.9% | 29.6% | 27.1% |
| Intel Corp ($INTC) | 16.2% | 18.8% | 21.4% | 22.5% | 18.6% |
| First Solar, Inc. ($FSLR) | 7.9% | 17.5% | 33.0% | 21.8% | 15.4% |
| Power Integrations, Inc. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (40 companies) | 3.6% | 4.7% | 4.4% | 3.8% | 4.0% |
|---|
| Everspin Technologies, Inc. ($MRAM) | 3.8% | 8.5% | 3.9% | 2.3% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 34.9% | 43.1% | 47.5% | 39.7% | 38.2% |
| Applied Materials Inc ($AMAT) | 19.0% | 31.2% | 36.4% | 27.7% | 32.1% |
| Advanced Micro Devices, Inc. ($AMD) | -21.7% | 7.3% | 21.6% | 21.5% | 31.8% |
| QUALCOMM Incorporated ($QCOM) | 15.8% | 5.7% | 2.2% | 38.0% | 28.1% |
| NVIDIA Corporation ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| |
|---|
| Median (45 companies) | 1.7% | 3.2% | 3.0% | 3.8% | 5.5% |
|---|
| Everspin Technologies, Inc. ($MRAM) | -77.1% | -65.5% | -55.2% | -42.2% | -25.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| SunPower Corporation ($SPWR) | - | - | - | - | 8.2x |
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 3.0x | 7.2x | 98.6x | - | 6.6x |
| Rambus, Inc. ($RMBS) | -0.1x | -0.1x | - | - | 5.9x |
| Inphi Corporation ($IPHI) | 4.5x | 33.7x | 32.2x | 4.5x | 3.4x |
| Canadian Solar Inc. ($CSIQ) | 11.3x | 6.8x | 2.7x | 3.4x | 3.3x |
| |
|---|
| Median (32 companies) | 0.2x | 0.4x | 0.3x | 0.5x | 0.3x |
|---|
