Stratasys, Ltd. reports 929% EBITDA decline in 2020 and 83.6 pp EBITDA Margin decline from 7.5% to -76.1%
03/01/2021 • About Stratasys, Ltd. (
$SSYS) • By InTwits
Stratasys, Ltd. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Stratasys, Ltd. is a company in decline: 2020 revenue growth was -18.1%, 5 years revenue CAGR was -5.6%
- Stratasys, Ltd. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 was 0.7% while average EBITDA Margin was -8.0% for the sames years
- Stratasys, Ltd. has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 5.5%
- CAPEX is quite volatile: $27m in 2020, $23m in 2019, $23m in 2018, $22m in 2017, $45m in 2016
- The company has unprofitable business model: ROIC is -46.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Stratasys, Ltd.'s Revenue dropped on 18.1%. Annual revenue decline showed slowdown in 20Q4 - revenue dropped on 11.0%. During the last 5 years Revenue growth topped in 2017 at -0.61% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 83.6 pp from 7.5% to -76.1% in 2020. During 2016-2020 EBITDA Margin topped in 2018 at 7.9% and was declining since that time.
Gross Margin decreased on 7.2 pp from 49.3% to 42.1% in 2020. During 2016-2020 Gross Margin topped in 2019 at 49.3%. SG&A as a % of Revenue increased on 3.1 pp from 36.3% to 39.4% in 2020. During the last 5 years SG&A as a % of Revenue bottomed in 2018 at 35.4% and was growing since that time.
Net Income margin dropped on 83.5 pp from -1.7% to -85.2% in 2020. During 2016-2020 Net Income margin topped in 2018 at -1.7% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In 2020 Stratasys, Ltd. had CAPEX/Revenue of 5.2%. CAPEX/Revenue increased slightly on 1.8 pp from 3.3% in 2017 to 5.2% in 2020. Average CAPEX/Revenue for the last three years was 4.1%. During 2016-2020 CAPEX as a % of Revenue bottomed in 2017 at 3.3% and was growing since that time.
Return on investment
The company operates at negative ROIC (-46.5%) and ROE (-46.3%). ROIC dropped on 45.6 pp from -0.91% to -46.5% in 2020. ROE dropped on 45.4 pp from -0.94% to -46.3% in 2020. During 2016-2020 ROIC topped in 2018 at -0.75% and was declining since that time. During 2016-2020 ROE topped in 2018 at -0.88% and was declining since that time.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and Debt / EBITDA. Debt increased slightly on 0.52% while cash decreased on 7.3%.
Stratasys, Ltd. has no short term refinancing risk: cash is higher than short term debt (2,931.4%).
Management team
Stratasys, Ltd.'s CEO is Yoav Zeif. Yoav Zeif has 1 year tenure with the company. Stratasys, Ltd.'s CFO Lilach Payorski has spent 4 years with the company.
Financial and operational results
FY ended 12/31/2020
Stratasys, Ltd. ($SSYS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 672.5 | 668.4 | 663.2 | 636.1 | 520.8 | -18.1% |
| Gross Profit | 317.3 | 322.8 | 325.2 | 313.7 | 219.4 | -30.1% |
| SG&A | 307.1 | 255.7 | 235.1 | 231.1 | 205.2 | -11.2% |
| EBITDA | 6.2 | 36.1 | 52.4 | 47.8 | -396.3 | -929.0% |
| EBIT | | | | -3.1 | | |
| Net Income | -77.2 | -40.0 | -11.0 | -10.8 | -443.7 | |
| Stock Based Compensation | | | | 20.6 | | |
Balance Sheet
|
|---|
| Cash | 280.3 | 328.8 | 393.2 | 293.5 | 272.1 | -7.3% |
| Accounts Receivable | | | | 132.6 | | |
| Inventory | | | | 168.5 | | |
| Accounts Payable | | | | 35.8 | | |
| Short Term Debt | 3.7 | 5.1 | 5.1 | 9.3 | 9.3 | -0.1% |
| Long Term Debt | 22.3 | 27.1 | 22.0 | 12.4 | 12.6 | 1.0% |
Cash flow
|
|---|
| Capex | 45.1 | 22.3 | 23.4 | 22.5 | 26.9 | 19.5% |
Ratios
|
|---|
| Revenue growth | -3.4% | -0.6% | -0.8% | -4.1% | -18.1% | |
| EBITDA growth | -100.5% | 485.9% | 45.1% | -8.8% | -929.0% | |
|
|---|
| Gross Margin | 47.2% | 48.3% | 49.0% | 49.3% | 42.1% | -7.2% |
| EBITDA Margin | 0.9% | 5.4% | 7.9% | 7.5% | -76.1% | -83.6% |
| EBIT Margin | | | | -0.5% | |
| SG&A, % of revenue | 45.7% | 38.3% | 35.4% | 36.3% | 39.4% | 3.1% |
| SBC, % of revenue | | | | 3.2% | |
| Net Income Margin | -11.5% | -6.0% | -1.7% | -1.7% | -85.2% | -83.5% |
| CAPEX, % of revenue | 6.7% | 3.3% | 3.5% | 3.5% | 5.2% | 1.6% |
|
|---|
| ROIC | -7.3% | -2.6% | -0.8% | -0.9% | -46.5% | -45.6% |
| ROE | -6.6% | -3.5% | -0.9% | -0.9% | -46.3% | -45.4% |
| Net Debt/EBITDA | -41.3x | -8.2x | -7.0x | -5.7x | |
People
|
|---|
| Insider ownership | | | | 2.4% | | |
| Employees | | | | 2,268 | | |
| Revenue/Employee, th. $ | | | | 280 | | |
Stratasys, Ltd. ($SSYS) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 133 | 118 | 128 | 142 | | -14.3% | -27.8% | -18.5% | -11.0% |
| EBITDA | -7 | -17 | -392 | 10 | | -182.7% | -227.9% | -5,699.5% | -4.0% |
| Net Income | -22 | -28 | -405 | 11 | | - | -2,898.6% | - | - |
Balance Sheet
|
|---|
| Cash | 297 | 285 | 253 | 272 | | -19.2% | -22.2% | -27.1% | -7.1% |
| Short Term Debt | 9 | 9 | 9 | 9 | | 2.8% | -3.7% | -3.6% | 3.1% |
| Long Term Debt | 11 | 9 | 11 | 13 | | -38.6% | -36.7% | -18.5% | 4.7% |
Ratios
|
|---|
| Gross Margin | 45.0% | 37.2% | 38.9% | 46.4% | | -4.0% | -12.8% | -10.1% | -2.6% |
| EBITDA Margin | -5.6% | -14.1% | -306.5% | 6.7% | | -11.4% | -22.1% | -310.9% | 0.5% |
| Net Income Margin | -16.3% | -23.8% | -316.7% | 7.7% | | -15.0% | -24.4% | -312.3% | 9.6% |
Peers in Technology Hardware, Storage & Peripherals
Below we provide Stratasys, Ltd. 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. ($PMTS) | - | -17.4% | 0.4% | 8.7% | 12.3% |
| |
|---|
| Median (20 companies) | 1.4% | 2.1% | 5.6% | -2.0% | -8.8% |
|---|
| Stratasys, Ltd. ($SSYS) | - | -0.6% | -0.8% | -4.1% | -18.1% |
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% |
| Socket Mobile, Inc. ($SCKT) | 50.2% | 53.5% | 51.4% | 52.5% | 53.1% |
| |
|---|
| Median (21 companies) | 38.5% | 38.9% | 38.3% | 32.7% | 37.4% |
|---|
| Stratasys, Ltd. ($SSYS) | 47.2% | 48.3% | 49.0% | 49.3% | 42.1% |
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 ($WDC) | 12.5% | 21.4% | 27.5% | 11.5% | 11.7% |
| |
|---|
| Median (19 companies) | 4.9% | 3.5% | 7.9% | 7.9% | 7.9% |
|---|
| Stratasys, Ltd. ($SSYS) | 0.9% | 5.4% | 7.9% | 7.5% | -76.1% |
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. ($PSTG) | 8.9% | 10.4% | 6.3% | 7.4% | 5.3% |
| Western Digital Corporation ($WDC) | 4.5% | 3.0% | 4.0% | 5.3% | 3.9% |
| Intevac, Inc. ($IVAC) | 4.2% | 3.9% | 3.4% | 3.8% | 2.7% |
| |
|---|
| Median (19 companies) | 1.7% | 1.8% | 2.2% | 1.7% | 1.7% |
|---|
| Stratasys, Ltd. ($SSYS) | 6.7% | 3.3% | 3.5% | 3.5% | 5.2% |
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 ($NCR) | 13.9% | 16.3% | 4.6% | 14.3% | 5.5% |
| |
|---|
| Median (21 companies) | 1.8% | 1.6% | 3.6% | 4.2% | 2.6% |
|---|
| Stratasys, Ltd. ($SSYS) | -7.3% | -2.6% | -0.8% | -0.9% | -46.5% |
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 | 1.1x | 1.8x | 3.0x |
|---|
