Identiv, Inc. reports 72.6% EBITDA decline in 2020 and 4.4 pp EBITDA Margin decline from 5.9% to 1.6%
03/04/2021 • About Identiv, Inc. (
$INVE) • By InTwits
Identiv, Inc. reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Identiv, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 was 0.0% while average EBITDA Margin was -0.6% for the sames years
- Identiv, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 3.7%
- CAPEX is quite volatile: $2m in 2020, $0m in 2019, $1m in 2018, $1m in 2017, $1m in 2016
- The company has unprofitable business model: ROIC is -5.6%
- It operates with high leverage: Net Debt/EBITDA is 9.0x while industry average is -0.8x
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 increased on 3.8%. Revenue growth showed acceleration in 20Q4 - it increased 30.9% YoY. During the last 5 years Revenue growth topped in 2018 at 29.8% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 13.0 pp from 11.9% to -1.1% in FY2020. During the last 5 years EBITDA Margin topped in 2019 at 5.9%.
Gross Margin decreased on 5.0 pp from 43.8% to 38.7% in 2020. SG&A as a % of Revenue decreased on 3.1 pp from 32.9% to 29.8% in 2020. SG&A as a % of Revenue stuck to a declining trend at -3.2 pp per annum in 2016-2020.
Net Income margin decreased on 4.5 pp from -1.4% to -5.9% in 2020. During 2016-2020 Net Income margin topped in 2019 at -1.4%.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.8% in 2020. CAPEX/Revenue showed almost no change from 2017 to 2020. It's average CAPEX/Revenue for the last three years was 1.3%. Identiv, Inc. investments to CAPEX were large: 115% of EBITDA.
Return on investment
The company operates at negative ROIC (-5.6%) and ROE (-17.8%). ROIC decreased on 6.0 pp from 0.39% to -5.6% in 2020. ROE dropped on 11.5 pp from -6.3% to -17.8% in 2020. During 2016-2020 ROIC topped in 2019 at 0.39%. During the last 5 years ROE topped in 2019 at -6.3%.
Leverage (Debt)
Company's Net Debt / EBITDA is 9.0x and Debt / EBITDA is 17.3x. Net Debt / EBITDA surged on 7.0x from 1.9x to 9.0x in 2020. Debt jumped on 24.3% while cash jumped on 21.6%.
Identiv, Inc. has short term refinancing risk: cash is only 53.4% of short term debt.
Management team
Identiv, Inc.'s CEO is Steven C Humphreys "Steve". Steven C Humphreys "Steve" has 5 years tenure with the company. Sandra Wallach is a Identiv, Inc.'s CFO. Sandra Wallach has spent 2 years at the company.
Financial and operational results
FY ended 12/31/2020
Identiv, Inc. ($INVE) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 56.168 | 60.219 | 78.142 | 83.755 | 86.920 | 3.8% |
| Gross Profit | 23.729 | 22.160 | 33.332 | 36.654 | 33.681 | -8.1% |
| SG&A | 25.341 | 20.693 | 27.215 | 27.583 | 25.893 | -6.1% |
| EBITDA | -8.050 | -1.878 | 1.302 | 4.974 | 1.365 | -72.6% |
| Net Income | -13.695 | -8.138 | -4.708 | -1.151 | -5.105 | |
Balance Sheet
|
|---|
| Cash | 9.116 | 19.052 | 10.866 | 9.383 | 11.409 | 21.6% |
| Short Term Debt | 8.119 | 9.829 | 13.554 | 16.003 | 21.363 | 33.5% |
| Long Term Debt | 9.779 | 2.921 | 0.000 | 3.013 | 2.272 | -24.6% |
Cash flow
|
|---|
| Capex | 0.549 | 0.967 | 1.346 | 0.289 | 1.564 | 441.2% |
Ratios
|
|---|
| Revenue growth | -7.6% | 7.2% | 29.8% | 7.2% | 3.8% | |
| EBITDA growth | -75.4% | -76.7% | -169.3% | 282.0% | -72.6% | |
|
|---|
| Gross Margin | 42.2% | 36.8% | 42.7% | 43.8% | 38.7% | -5.0% |
| EBITDA Margin | -14.3% | -3.1% | 1.7% | 5.9% | 1.6% | -4.4% |
| SG&A, % of revenue | 45.1% | 34.4% | 34.8% | 32.9% | 29.8% | -3.1% |
| Net Income Margin | -24.4% | -13.5% | -6.0% | -1.4% | -5.9% | -4.5% |
| CAPEX, % of revenue | 1.0% | 1.6% | 1.7% | 0.3% | 1.8% | 1.5% |
|
|---|
| ROIC | -40.5% | -15.6% | -4.4% | 0.4% | -5.6% | -6.0% |
| ROE | -148.4% | -57.8% | -19.1% | -6.3% | -17.8% | -11.5% |
| Net Debt/EBITDA | | | 2.1x | 1.9x | 9.0x | 7.0x |
Identiv, Inc. ($INVE) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 18 | 19 | 25 | 25 | | -7.2% | -14.1% | 8.0% | 30.9% |
| EBITDA | -1 | -1 | 2 | 2 | | -175.6% | -151.0% | -15.6% | - |
| Net Income | -2 | -3 | 0 | -1 | | - | -760.8% | -63.6% | - |
Balance Sheet
|
|---|
| Cash | 9 | 13 | 12 | 11 | | -2.6% | 18.0% | 11.2% | 21.6% |
| Short Term Debt | 19 | 25 | 26 | 21 | | 40.2% | 64.3% | 53.7% | 33.5% |
| Long Term Debt | 3 | 3 | 3 | 2 | | -35.3% | -21.9% | -21.6% | -24.6% |
Ratios
|
|---|
| Gross Margin | 41.4% | 40.4% | 39.8% | 34.6% | | -3.2% | -4.1% | -5.9% | -5.2% |
| EBITDA Margin | -3.3% | -5.5% | 8.8% | 6.5% | | -7.4% | -14.8% | -2.5% | 8.9% |
| Net Income Margin | -11.3% | -14.4% | 1.6% | -2.8% | | -7.1% | -16.3% | -3.1% | 6.8% |
Peers in Electronic Equipment & Instruments
Below you can find Identiv, Inc. benchmarking vs. other companies in Electronic Equipment & Instruments 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 |
|---|
| Intellicheck, Inc. ($IDN) | - | -6.3% | 23.2% | 72.9% | 40.1% |
| nLIGHT, Inc. ($LASR) | - | 36.8% | 38.1% | -7.7% | 26.1% |
| Luna Innovations Incorporated ($LUNA) | - | -21.0% | 29.7% | 64.3% | 17.3% |
| PAR Technology Corporation ($PAR) | - | 1.3% | -13.5% | -7.0% | 14.2% |
| Cognex Corporation ($CGNX) | - | 44.7% | 5.3% | -10.0% | 11.8% |
| |
|---|
| Median (26 companies) | -3.8% | 4.1% | 10.4% | 4.4% | -3.5% |
|---|
| Identiv, Inc. ($INVE) | - | 7.2% | 29.8% | 7.2% | 3.8% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Intellicheck, Inc. ($IDN) | 80.0% | 85.5% | 91.3% | 87.0% | 86.7% |
| Cognex Corporation ($CGNX) | 75.2% | 75.6% | 74.4% | 73.8% | 74.5% |
| National Instruments Corporation ($NATI) | 74.5% | 74.5% | 75.4% | 75.1% | 71.2% |
| Coda Octopus Group, Inc. ($CODA) | - | 66.4% | - | 65.6% | 63.5% |
| Applied DNA Sciences Inc ($APDN) | 82.2% | 77.3% | 69.1% | 83.7% | 62.7% |
| |
|---|
| Median (26 companies) | 39.4% | 41.7% | 40.4% | 42.2% | 44.0% |
|---|
| Identiv, Inc. ($INVE) | 42.2% | 36.8% | 42.7% | 43.8% | 38.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Keysight Technologies Inc. ($KEYS) | 18.5% | 14.6% | -0.9% | 23.7% | 27.0% |
| Cognex Corporation ($CGNX) | 31.9% | 36.0% | 30.1% | 24.0% | 25.3% |
| National Instruments Corporation ($NATI) | 15.7% | 16.9% | 17.9% | 20.0% | 22.3% |
| FLIR Systems, Inc. ($FLIR) | 21.3% | 20.0% | 21.7% | 20.6% | 22.0% |
| Badger Meter, Inc. ($BMI) | 18.6% | 20.1% | 18.7% | 21.1% | 21.2% |
| |
|---|
| Median (26 companies) | 3.2% | 5.2% | 4.2% | 13.6% | 12.0% |
|---|
| Identiv, Inc. ($INVE) | -14.3% | -3.1% | 1.7% | 5.9% | 1.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Know Labs Inc ($KNWN) | 0.4% | 0.0% | 2.3% | 4.4% | 57.5% |
| Applied DNA Sciences Inc ($APDN) | 16.1% | 3.1% | 6.8% | 1.3% | 55.1% |
| nLIGHT, Inc. ($LASR) | 4.0% | 4.0% | 6.1% | 7.7% | 10.9% |
| Vishay Precision Group, Inc. ($VPG) | 4.6% | 2.7% | 4.8% | 3.9% | 8.5% |
| LightPath Technologies, Inc. ($LPTH) | 6.5% | 7.8% | 7.7% | 5.7% | 7.0% |
| |
|---|
| Median (25 companies) | 2.1% | 1.6% | 2.3% | 2.0% | 2.8% |
|---|
| Identiv, Inc. ($INVE) | 1.0% | 1.6% | 1.7% | 0.3% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Zebra Technologies Corporation ($ZBRA) | 2.2% | 10.2% | 20.8% | 23.2% | 20.0% |
| Badger Meter, Inc. ($BMI) | 16.9% | 18.2% | 17.6% | 18.7% | 18.5% |
| Keysight Technologies Inc. ($KEYS) | 16.9% | 6.8% | -8.0% | 15.6% | 15.1% |
| National Instruments Corporation ($NATI) | 10.3% | 12.5% | 14.2% | 13.9% | 14.8% |
| Cognex Corporation ($CGNX) | 17.7% | 25.6% | 20.1% | 11.9% | 13.9% |
| |
|---|
| Median (26 companies) | 2.2% | 3.7% | 1.3% | 7.9% | 5.7% |
|---|
| Identiv, Inc. ($INVE) | -40.5% | -15.6% | -4.4% | 0.4% | -5.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Itron, Inc. ($ITRI) | 1.0x | 2.0x | 12.3x | 3.2x | 7.3x |
| Track Group Inc ($TRCK) | - | - | 12.2x | 5.2x | 3.5x |
| Trimble Inc. ($TRMB) | 1.1x | 1.3x | 3.4x | 2.9x | 2.2x |
| Luna Innovations Incorporated ($LUNA) | -6.9x | -108.1x | -19.9x | -2.9x | 1.8x |
| Zebra Technologies Corporation ($ZBRA) | 6.5x | 3.7x | 2.0x | 1.5x | 1.5x |
| |
|---|
| Median (16 companies) | -0.9x | -0.8x | -1.0x | 0.2x | 0.3x |
|---|
| Identiv, Inc. ($INVE) | - | - | 2.1x | 1.9x | 9.0x |
