Netlist Inc revenue jumped on 81.0%
03/01/2021 • About Netlist Inc (
$NLST) • By InTwits
Netlist Inc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Netlist Inc is a fast growth stock: FY2020 revenue growth was 81.0%, 5 year revenue CAGR was 42.6% at FY2020 ROIC -45.3%
- EBITDA Margin is relatively stable: in FY2020 vs. -41.0% in FY2019 vs. -54.7% in FY2016
- Netlist Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -30.4%
- The company has unprofitable business model: ROIC is -45.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 81.0%. Revenue growth showed slowdown in FY20Q4 - it was 22.6% YoY. During the last 5 years Revenue growth bottomed in FY2019 at -22.1%.
Gross Margin increased on 4.4 pp from 9.8% to 14.3% in FY2020. During FY2016-FY2020 Gross Margin bottomed in FY2017 at 6.4% and was growing since that time. SG&A as a % of Revenue dropped on 11.4 pp from 28.9% to 17.5% in FY2020.
Net Income margin jumped on 32.3 pp from -47.7% to -15.4% in FY2020.
Leverage (Debt)
Debt increased on 3.3% while cash surged on 48.6%.
Netlist Inc has short term refinancing risk: cash is only 64.3% of short term debt.
Management team
The company's CEO Chun Ki Hong "Chuck" has spent 21 years with the company. The company's CFO is Gail M Sasaki. Gail M Sasaki has 13 years tenure at the company.
Financial and operational results
Netlist Inc ($NLST) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 19.655 | 38.322 | 33.529 | 26.103 | 47.234 | 81.0% |
| Gross Profit | 7.396 | 2.456 | 2.301 | 2.570 | 6.731 | 161.9% |
| SG&A | 9.033 | 7.374 | 6.856 | 7.546 | 8.247 | 9.3% |
| EBITDA | -10.747 | -12.574 | -16.118 | -10.695 | | |
| Net Income | -11.231 | -13.420 | -17.120 | -12.452 | -7.268 | |
Balance Sheet
|
|---|
| Cash | 9.476 | 6.720 | 14.802 | 8.966 | 13.326 | 48.6% |
| Short Term Debt | 0.827 | 2.024 | 2.669 | 3.913 | 20.734 | 429.9% |
| Long Term Debt | 14.251 | 14.766 | 17.346 | 16.291 | 0.146 | -99.1% |
Cash flow
|
|---|
| Capex | 0.346 | 0.094 | 0.074 | 0.083 | | |
Ratios
|
|---|
| Revenue growth | 145.3% | 95.0% | -12.5% | -22.1% | 81.0% | |
| EBITDA growth | -36.9% | 17.0% | 28.2% | -33.6% | | |
|
|---|
| Gross Margin | 37.6% | 6.4% | 6.9% | 9.8% | 14.3% | 4.4% |
| EBITDA Margin | -54.7% | -32.8% | -48.1% | -41.0% | |
| SG&A, % of revenue | 46.0% | 19.2% | 20.4% | 28.9% | 17.5% | -11.4% |
| Net Income Margin | -57.1% | -35.0% | -51.1% | -47.7% | -15.4% | 32.3% |
| CAPEX, % of revenue | 1.8% | 0.2% | 0.2% | 0.3% | | |
|
|---|
| ROIC | -81.5% | -98.2% | -126.5% | -86.8% | -45.3% | 41.5% |
Netlist Inc ($NLST) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 15 | 11 | 10 | 11 | | 186.6% | 97.9% | 67.0% | 22.6% |
| Net Income | -2 | -2 | -2 | -2 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 6 | 7 | 14 | 13 | | -42.8% | -3.8% | 123.7% | 48.6% |
| Short Term Debt | 5 | 2 | 4 | 21 | | 86.8% | -21.6% | 59.7% | 429.9% |
| Long Term Debt | 16 | 16 | 16 | 0 | | -10.1% | -8.9% | 0.8% | -99.1% |
Ratios
|
|---|
| Gross Margin | 14.4% | 16.7% | 13.1% | 12.7% | | 8.9% | 9.4% | 5.7% | -2.6% |
| Net Income Margin | -10.5% | -16.8% | -20.9% | -15.4% | | 68.8% | 47.1% | 30.0% | 3.6% |
Peers in Electronic Manufacturing Services
Below we provide Netlist Inc benchmarking against other companies in Electronic Manufacturing Services 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 |
|---|
| IEC Electronics Corp. ($IEC) | - | -24.1% | 21.2% | 34.3% | 16.4% |
| eMagin Corporation ($EMAN) | - | 3.0% | 19.1% | 1.9% | 10.1% |
| Jabil Inc. ($JBL) | - | 3.9% | 15.9% | 14.4% | 7.8% |
| Plexus Corp. ($PLXS) | - | -1.1% | 13.7% | 10.1% | 7.1% |
| SMTC Corporation ($SMTX) | - | -17.1% | 55.2% | 72.4% | 3.7% |
| |
|---|
| Median (13 companies) | 4.6% | 1.9% | 9.8% | 9.7% | -8.7% |
|---|
| Netlist Inc ($NLST) | - | 95.0% | -12.5% | -22.1% | 81.0% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Neonode Inc. ($NEON) | 86.9% | 77.1% | 89.2% | 89.7% | 82.0% |
| IPG Photonics Corporation ($IPGP) | 54.9% | 56.6% | 54.8% | 46.1% | 44.9% |
| CTS Corporation ($CTS) | 35.4% | 33.2% | 35.1% | 33.6% | 32.8% |
| TE Connectivity Ltd. ($TEL) | 33.7% | 34.3% | 33.9% | 32.7% | 30.7% |
| RF Industries, Ltd. ($RFIL) | 28.0% | 30.4% | 34.1% | 28.3% | 26.9% |
| |
|---|
| Median (13 companies) | 16.7% | 15.8% | 15.2% | 15.4% | 17.1% |
|---|
| Netlist Inc ($NLST) | 37.6% | 6.4% | 6.9% | 9.8% | 14.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| IPG Photonics Corporation ($IPGP) | 41.8% | 44.7% | 40.9% | 26.8% | 24.0% |
| CTS Corporation ($CTS) | 20.7% | 14.0% | 17.8% | 17.6% | 18.1% |
| TE Connectivity Ltd. ($TEL) | 20.9% | 20.4% | 21.4% | 19.8% | 11.1% |
| TTM Technologies, Inc. ($TTMI) | 14.0% | 14.6% | 13.5% | 15.8% | 9.7% |
| IEC Electronics Corp. ($IEC) | 7.4% | 3.8% | 4.3% | 6.6% | 7.5% |
| |
|---|
| Median (13 companies) | 5.4% | 5.0% | 4.8% | 6.1% | 5.3% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| eMagin Corporation ($EMAN) | 6.7% | 6.2% | 8.8% | 4.2% | 8.5% |
| IPG Photonics Corporation ($IPGP) | 12.6% | 9.0% | 11.0% | 10.2% | 7.3% |
| TTM Technologies, Inc. ($TTMI) | 3.4% | 5.7% | 5.3% | 6.7% | 4.9% |
| TE Connectivity Ltd. ($TEL) | 5.3% | 5.6% | 6.7% | 5.6% | 4.6% |
| Jabil Inc. ($JBL) | 5.0% | 3.8% | 4.7% | 4.0% | 3.6% |
| |
|---|
| Median (13 companies) | 2.8% | 3.4% | 2.5% | 1.6% | 3.4% |
|---|
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| IEC Electronics Corp. ($IEC) | 16.9% | 3.1% | 6.4% | 12.7% | 14.8% |
| Sanmina Corporation ($SANM) | 14.2% | 13.9% | 7.0% | 16.2% | 13.0% |
| Plexus Corp. ($PLXS) | 8.7% | 10.3% | 9.6% | 12.6% | 12.4% |
| Jabil Inc. ($JBL) | 12.3% | 9.3% | 12.5% | 16.1% | 10.8% |
| CTS Corporation ($CTS) | 18.1% | 9.8% | 14.8% | 11.8% | 9.2% |
| |
|---|
| Median (13 companies) | 6.7% | 5.7% | 6.7% | 11.8% | 7.3% |
|---|
| Netlist Inc ($NLST) | -81.5% | -98.2% | -126.5% | -86.8% | -45.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| SMTC Corporation ($SMTX) | 1.0x | - | 11.3x | 3.8x | 4.2x |
| TE Connectivity Ltd. ($TEL) | 1.4x | 1.3x | 1.1x | 1.1x | 2.7x |
| IEC Electronics Corp. ($IEC) | 2.0x | 5.6x | 4.9x | 3.6x | 2.1x |
| TTM Technologies, Inc. ($TTMI) | 2.2x | 1.5x | 3.2x | 3.3x | 2.0x |
| Jabil Inc. ($JBL) | 1.0x | 0.8x | 1.0x | 0.9x | 1.4x |
| |
|---|
| Median (11 companies) | 0.2x | 0.2x | 0.2x | 0.3x | -0.0x |
|---|
