Kopin Corporation revenue surged on 35.9% and EBITDA Margin surged on 74.7 pp from -82.0% to -7.4%
03/02/2021 • About Kopin Corporation (
$KOPN) • By InTwits
Kopin Corporation reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -7.4%
- Kopin Corporation motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -77.8% for the sames years
- Kopin Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: $1m in FY2020, $0m in FY2019, $1m in FY2018, $3m in FY2017, $0m in FY2016
- The company has unprofitable business model: ROIC is -14.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 35.9%. Revenue growth showed acceleration in FY20Q4 - it increased 59.5% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 11.5 pp from -13.4% to -1.9% in 2020. During FY2016-FY2020 EBITDA Margin bottomed in FY2018 at -155% and was growing since that time.
Gross Margin jumped on 17.5 pp from 29.2% to 46.7% in FY2020. SG&A as a % of Revenue dropped on 42.8 pp from 72.2% to 29.5% in FY2020.
Net Income margin jumped on 89.0 pp from -100.0% to -11.0% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.4% in FY2020. The company's CAPEX/Revenue decreased on 8.7 pp from 10.0% in FY2017 to 1.4% in FY2020. For the last three years the average CAPEX/Revenue was 2.3%.
Return on investment
The company operates at negative ROIC (-14.5%) and ROE (-15.5%). ROIC surged on 49.8 pp from -64.3% to -14.5% in FY2020. ROE surged on 61.7 pp from -77.2% to -15.5% in FY2020. During the last 5 years ROIC bottomed in FY2019 at -64.3%. During the last 5 years ROE bottomed in FY2019 at -77.2%.
Leverage (Debt)
Debt level is -2.2x Net Debt / EBITDA and Debt / EBITDA. Debt dropped on 36.3% while cash surged on 184%.
Kopin Corporation has no short term refinancing risk: cash is higher than short term debt (1,742.0%).
Management team
John C C Fan is a the company's CEO. John C C Fan has spent 36 years with the company. Kopin Corporation's CFO Richard A Sneider has spent 22 years with the company.
Financial and operational results
FY ended 12/26/2020
Kopin Corporation ($KOPN) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 22.643 | 27.841 | 24.465 | 29.519 | 40.128 | 35.9% |
| Gross Profit | 4.828 | 9.723 | 8.634 | 8.617 | 18.729 | 117.3% |
| SG&A | 16.962 | 20.541 | 27.211 | 21.316 | 11.823 | -44.5% |
| EBITDA | -19.479 | -27.796 | -38.008 | -24.215 | -2.956 | |
| Net Income | -23.434 | -25.241 | -35.870 | -29.506 | -4.411 | |
Balance Sheet
|
|---|
| Cash | 15.822 | 24.848 | 14.326 | 6.029 | 17.113 | 183.8% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 1.042 | 0.982 | -5.7% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 1.792 | 0.821 | -54.2% |
Cash flow
|
|---|
| Capex | 0.395 | 2.794 | 1.183 | 0.170 | 0.543 | 219.0% |
Ratios
|
|---|
| Revenue growth | -29.4% | 23.0% | -12.1% | 20.7% | 35.9% | |
| EBITDA growth | -15.7% | 42.7% | 36.7% | -36.3% | -87.8% | |
|
|---|
| Gross Margin | 21.3% | 34.9% | 35.3% | 29.2% | 46.7% | 17.5% |
| EBITDA Margin | -86.0% | -99.8% | -155.4% | -82.0% | -7.4% | 74.7% |
| SG&A, % of revenue | 74.9% | 73.8% | 111.2% | 72.2% | 29.5% | -42.8% |
| Net Income Margin | -103.5% | -90.7% | -146.6% | -100.0% | -11.0% | 89.0% |
| CAPEX, % of revenue | 1.7% | 10.0% | 4.8% | 0.6% | 1.4% | 0.8% |
|
|---|
| ROIC | -23.6% | -38.5% | -62.4% | -64.3% | -14.5% | 49.8% |
| ROE | -27.8% | -33.2% | -57.0% | -77.2% | -15.5% | 61.7% |
Kopin Corporation ($KOPN) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 9 | 10 | 14 | | 42.1% | -3.2% | 54.9% | 59.5% |
| EBITDA | -3 | -1 | -1 | 1 | | - | - | - | - |
| Net Income | -4 | -1 | -1 | 1 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 8 | 9 | 11 | 17 | | -49.7% | -27.7% | 21.3% | 183.8% |
| Short Term Debt | 1 | 1 | 1 | 1 | | 5.7% | 5.9% | -1.5% | -5.7% |
| Long Term Debt | 2 | 1 | 1 | 1 | | -41.5% | -46.6% | -52.2% | -54.2% |
Ratios
|
|---|
| Gross Margin | 28.3% | 45.8% | 49.3% | 55.9% | | 34.3% | 3.3% | 25.7% | 14.2% |
| EBITDA Margin | -39.2% | -7.3% | -7.3% | 10.5% | | 159.6% | 40.5% | 89.6% | 37.7% |
| Net Income Margin | -45.6% | -12.7% | -10.1% | 9.1% | | 158.8% | 34.0% | 97.9% | 92.6% |
Peers in Semiconductors
Below you can find Kopin Corporation benchmarking vs. other companies in Semiconductors industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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% |
| Monolithic Power Systems, Inc. ($MPWR) | - | 21.2% | 23.7% | 7.8% | 34.5% |
| |
|---|
| Median (43 companies) | 1.2% | 10.9% | 4.9% | -3.2% | 1.0% |
|---|
| Kopin Corporation ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
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. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
| |
|---|
| Median (43 companies) | 48.0% | 49.1% | 50.4% | 50.7% | 49.4% |
|---|
| Kopin Corporation ($KOPN) | 21.3% | 34.9% | 35.3% | 29.2% | 46.7% |
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. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (41 companies) | 9.2% | 10.7% | 9.8% | 13.6% | 17.4% |
|---|
| Kopin Corporation ($KOPN) | -86.0% | -99.8% | -155.4% | -82.0% | -7.4% |
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. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (40 companies) | 3.7% | 4.7% | 4.2% | 3.8% | 4.0% |
|---|
| Kopin Corporation ($KOPN) | 1.7% | 10.0% | 4.8% | 0.6% | 1.4% |
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 ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| |
|---|
| Median (45 companies) | 1.7% | 3.2% | 3.0% | 3.8% | 5.5% |
|---|
| Kopin Corporation ($KOPN) | -23.6% | -38.5% | -62.4% | -64.3% | -14.5% |
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 |
|---|
