PAR Technology Corporation revenue jumped on 14.2% and EBITDA Margin decreased slightly on 0.74 pp from -3.7% to -4.4%
03/15/2021 • About PAR Technology Corporation (
$PAR) • By InTwits
PAR Technology Corporation reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -4.4%
- PAR Technology Corporation spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 is 0.0%. Average EBITDA Margin for the same period was -1.0%
- PAR Technology Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 3.2%
- CAPEX is quite volatile: $1m in 2020, $2m in 2019, $4m in 2018, $5m in 2017, $3m in 2016
- The company has unprofitable business model: ROIC is -10.9%
- It operates with high leverage: Net Debt/EBITDA is 26.9x 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
PAR Technology Corporation's Revenue surged on 14.2%. Revenue growth showed slowdown in 20Q4 - it was 10.6% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.9 pp from 12.1% to 5.2% in 2020. EBITDA Margin followed a declining trend at -2.0 pp per annum in the last 5 years.
Gross Margin decreased slightly on 1.6 pp from 20.0% to 18.4% in 2020. SG&A as a % of Revenue increased slightly on 1.3 pp from 20.3% to 21.6% in 2020. SG&A as a % of Revenue followed a growing trend at 2.0 pp per annum in the last 5 years.
Net Income margin decreased on 8.8 pp from -8.3% to -17.1% in 2020. Net Income margin declined at -4.3 pp per annum in 2016-2020.
Investments (CAPEX, working capital and M&A)
PAR Technology Corporation's CAPEX/Revenue was 0.61% in 2020. The company's CAPEX/Revenue decreased slightly on 1.6 pp from 2.2% in 2017 to 0.61% in 2020. It's average level of CAPEX/Revenue for the last three years was 1.3%. During the last 5 years CAPEX as a % of Revenue topped in 2017 at 2.2% and was declining since that time.
Return on investment
The company operates at negative ROIC (-10.9%) and ROE (-28.0%). ROIC increased on 3.6 pp from -14.5% to -10.9% in 2020. ROE decreased slightly on 1.8 pp from -26.2% to -28.0% in 2020. During the last 5 years ROIC bottomed in 2018 at -15.7% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 26.9x and Debt / EBITDA is . Debt surged on 65.1% while cash jumped on 544%.
PAR Technology Corporation has no short term refinancing risk: cash is higher than short term debt (9,683.1%).
Management team
Savneet Singh is a PAR Technology Corporation's CEO. Savneet Singh has spent 2 years with the company. Bryan Menar is a PAR Technology Corporation's CFO. Bryan Menar has spent 4 years at the company.
Financial and operational results
FY ended 12/31/2020
PAR Technology Corporation ($PAR) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 229.7 | 232.6 | 201.2 | 187.2 | 213.8 | 14.2% |
| Gross Profit | 46.2 | 51.0 | 38.5 | 37.4 | 39.3 | 5.1% |
| SG&A | 31.4 | 38.2 | 35.0 | 38.1 | 46.2 | 21.4% |
| EBITDA | 6.8 | 3.9 | -5.2 | -6.9 | -9.5 | |
| Net Income | 1.8 | -3.4 | -24.1 | -15.6 | -36.6 | |
Balance Sheet
|
|---|
| Cash | 9.1 | 6.6 | 3.5 | 28.0 | 180.7 | 544.5% |
| Short Term Debt | 0.2 | 1.1 | 7.8 | 2.7 | 1.9 | -30.6% |
| Long Term Debt | 0.4 | 0.2 | 0.0 | 63.4 | 107.3 | 69.2% |
Cash flow
|
|---|
| Capex | 3.4 | 5.1 | 3.9 | 2.5 | 1.3 | -47.2% |
Ratios
|
|---|
| Revenue growth | 0.3% | 1.3% | -13.5% | -7.0% | 14.2% | |
| EBITDA growth | -29.5% | -42.8% | -232.1% | 34.1% | 37.0% | |
|
|---|
| Gross Margin | 20.1% | 21.9% | 19.1% | 20.0% | 18.4% | -1.6% |
| EBITDA Margin | 3.0% | 1.7% | -2.6% | -3.7% | -4.4% | -0.7% |
| SG&A, % of revenue | 13.7% | 16.4% | 17.4% | 20.3% | 21.6% | 1.3% |
| Net Income Margin | 0.8% | -1.5% | -12.0% | -8.3% | -17.1% | -8.8% |
| CAPEX, % of revenue | 1.5% | 2.2% | 2.0% | 1.3% | 0.6% | -0.7% |
|
|---|
| ROIC | 3.1% | -0.2% | -15.7% | -14.5% | -10.9% | 3.6% |
| ROE | 2.6% | -4.9% | -42.0% | -26.2% | -28.0% | -1.8% |
| Net Debt/EBITDA | -1.2x | -1.3x | | | |
PAR Technology Corporation ($PAR) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 55 | 46 | 55 | 59 | | 22.5% | 3.3% | 20.9% | 10.6% |
| EBITDA | -2 | -2 | 2 | -7 | | - | - | - | - |
| Net Income | -11 | -9 | -4 | -13 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 60 | 59 | 56 | 181 | | 1,350.7% | 0.2% | 18.8% | 544.5% |
| Short Term Debt | 3 | 2 | 2 | 2 | | -85.1% | 61.0% | 51.4% | -30.6% |
| Long Term Debt | 103 | 105 | 106 | 107 | | 4,618.5% | 71.1% | 71.2% | 69.2% |
Ratios
|
|---|
| Gross Margin | 20.2% | 19.9% | 21.3% | 13.1% | | -1.1% | 0.5% | 1.5% | -6.8% |
| EBITDA Margin | -4.2% | -4.7% | 4.5% | -11.7% | | -1.8% | -2.4% | 9.1% | -8.9% |
| Net Income Margin | -19.9% | -19.6% | -6.8% | -22.2% | | -13.8% | -17.1% | 6.2% | -11.1% |
Peers in Electronic Equipment & Instruments
Below we provide PAR Technology Corporation benchmarking against other companies in Electronic Equipment & Instruments 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 |
|---|
| 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 ($LUNA) | - | -21.0% | 29.7% | 64.3% | 17.3% |
| Cognex Corporation ($CGNX) | - | 44.7% | 5.3% | -10.0% | 11.8% |
| Identiv, Inc. ($INVE) | - | 7.2% | 29.8% | 7.2% | 3.8% |
| |
|---|
| Median (26 companies) | -3.8% | 5.0% | 11.6% | 5.2% | -3.5% |
|---|
| PAR Technology Corporation ($PAR) | - | 1.3% | -13.5% | -7.0% | 14.2% |
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 ($APDN) | 82.2% | 77.3% | 69.1% | 83.7% | 62.7% |
| |
|---|
| Median (26 companies) | 40.7% | 41.7% | 40.9% | 43.2% | 44.0% |
|---|
| PAR Technology Corporation ($PAR) | 20.1% | 21.9% | 19.1% | 20.0% | 18.4% |
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. ($BMI) | 18.6% | 20.1% | 18.7% | 21.1% | 21.2% |
| |
|---|
| Median (26 companies) | 3.2% | 5.2% | 4.2% | 13.6% | 12.0% |
|---|
| PAR Technology Corporation ($PAR) | 3.0% | 1.7% | -2.6% | -3.7% | -4.4% |
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. ($LPTH) | 6.5% | 7.8% | 7.7% | 5.7% | 7.0% |
| |
|---|
| Median (25 companies) | 2.1% | 1.6% | 2.3% | 2.0% | 2.8% |
|---|
| PAR Technology Corporation ($PAR) | 1.5% | 2.2% | 2.0% | 1.3% | 0.6% |
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 ($CGNX) | 17.7% | 25.6% | 20.1% | 11.9% | 13.9% |
| |
|---|
| Median (26 companies) | 2.1% | 3.7% | 1.3% | 7.9% | 5.7% |
|---|
| PAR Technology Corporation ($PAR) | 3.1% | -0.2% | -15.7% | -14.5% | -10.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Identiv, Inc. ($INVE) | - | - | 2.1x | 1.9x | 9.0x |
| Itron, Inc. ($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 |
| |
|---|
| Median (17 companies) | -0.8x | -0.7x | -0.9x | 0.3x | 0.4x |
|---|
