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Intellicheck, Inc. Net Income jumped on 122% and Revenue jumped on 40.1%

03/16/2021 • About Intellicheck, Inc. ($IDN) • By InTwits

Intellicheck, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • The company operates at negative EBITDA Margin: -0.7%
  • Intellicheck, 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 -57.2%
  • Intellicheck, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 3.0%.
  • CAPEX is quite volatile: $0m in FY2020, $0m in FY2019, $0m in FY2018, $0m in FY2017, $0m in FY2016
  • The company has unprofitable business model: ROIC is -1.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Intellicheck, Inc.'s Revenue jumped on 40.1%. Revenue growth showed slowdown in FY20Q4 - it was 6.3% YoY. Revenue decline was slowing down on average by 25.0 pp per annum in the last 5 years. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.1 pp from -2.3% to 5.9% in FY2020. EBITDA Margin followed a growing trend at 40.2 pp per annum in the last 5 years.

Gross Margin showed almost no change in FY2020. During the last 5 years Gross Margin topped in FY2018 at 91.3% and was declining since that time. SG&A as a % of Revenue dropped on 18.9 pp from 73.8% to 54.9% in FY2020. SG&A as a % of Revenue stuck to a declining trend at -31.4 pp per annum in the last 5 years.

Net Income margin surged on 38.5 pp from -33.3% to 5.2% in FY2020. Net Income margin followed a growing trend at 44.3 pp per annum in FY2016-FY2020.

Investments (CAPEX, working capital and M&A)

The company's CAPEX/Revenue was 4.1% in FY2020. Intellicheck, Inc. showed CAPEX/Revenue growth of 3.1 pp from 1.0% in FY2017 to 4.1% in FY2020. For the last three years the average CAPEX/Revenue was 2.5%.

Return on investment

The company operates at negative ROIC (-1.5%) and low but positive ROE (3.3%). ROIC jumped on 19.8 pp from -21.3% to -1.5% in FY2020. ROE surged on 24.0 pp from -20.7% to 3.3% in FY2020. ROIC followed a growing trend at 9.6 pp per annum in the last 5 years. ROE grew at 10.6 pp per annum in FY2016-FY2020.

Leverage (Debt)

Debt level is -13.8x Net Debt / EBITDA and Debt / EBITDA. Debt dropped on 79.4% while cash jumped on 292%.

Intellicheck, Inc. has no short term refinancing risk: cash is higher than short term debt (40,225.0%).

Management team

Intellicheck, Inc.'s CEO is Bryan Lewis. Bryan Lewis has 3 years tenure with the company. The company's CFO Bill J White has spent 3 years with the company.

Financial and operational results

Intellicheck, Inc. ($IDN) key annual financial indicators

mln. $201620172018201920202020/2019
Gross Profit3.0703.0764.0476.6689.30939.6%
Net Income-5.735-6.021-3.964-2.5490.558
Balance Sheet
Short Term Debt0.0000.0000.0000.1260.033-74.1%
Long Term Debt0.0000.0000.0000.0330.000-100.0%
Cash flow
Revenue growth-45.3%-6.3%23.2%72.9%40.1%
EBITDA growth19.2%6.6%-32.1%-37.7%-96.7%

Gross Margin80.0%85.5%91.3%87.0%86.7%-0.3%
EBITDA Margin-138.5%-157.5%-86.8%-31.3%-0.7%30.5%
SG&A, % of revenue167.1%163.0%118.1%73.8%54.9%-18.9%
Net Income Margin-149.4%-167.3%-89.4%-33.3%5.2%38.5%
CAPEX, % of revenue1.7%1.0%3.2%0.3%4.1%3.9%


Intellicheck, Inc. ($IDN) key quoterly financial indicators

mln. $FY20Q1FY20Q2FY20Q3FY20Q4 YoY change
Revenue3233 143.6%18.2%39.8%6.3%
EBITDA0-101 ---252.3%
Net Income0-101 ---1,086.3%
Balance Sheet
Cash3151313 -21.6%376.6%364.7%291.6%
Short Term Debt0100 261.5%523.4%-11.4%-74.1%
Long Term Debt0010 -100.0%364.9%1,074.7%-100.0%
Gross Margin77.8%88.6%89.1%92.6% -7.2%2.7%2.5%3.8%
EBITDA Margin 1.9% -39.2% 2.7% 16.6% 92.3%15.9%30.0%11.6%
Net Income Margin 0.9% -41.3% 1.2% 40.9% 95.7%14.8%30.6%37.3%

Peers in Electronic Equipment & Instruments

Below we provide Intellicheck, Inc. 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
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%
Identiv, Inc. ($INVE)-7.2%29.8%7.2%3.8%
Median (26 companies)-3.8%5.0%10.4%4.4%-3.5%
Intellicheck, Inc. ($IDN)--6.3%23.2%72.9%40.1%

Top companies by Gross margin, %

Top 5 FY2016 FY2017 FY2018 FY2019 FY2020
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%
Keysight Technologies Inc. ($KEYS)55.7%53.4%54.7%58.9%60.0%
Median (26 companies)39.4%41.0%40.4%42.2%42.9%
Intellicheck, Inc. ($IDN)80.0%85.5%91.3%87.0%86.7%

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. ($BMI)18.6%20.1%18.7%21.1%21.2%
Median (26 companies)3.2%5.2%4.2%13.6%12.0%
Intellicheck, Inc. ($IDN)-138.5%-157.5%-86.8%-31.3%-0.7%

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. ($LPTH)6.5%7.8%7.7%5.7%7.0%
Median (25 companies)2.1%1.6%2.2%2.0%2.1%
Intellicheck, Inc. ($IDN)1.7%1.0%3.2%0.3%4.1%

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 ($CGNX)17.7%25.6%20.1%11.9%13.9%
Median (26 companies)2.2%3.7%1.3%7.9%5.7%
Intellicheck, Inc. ($IDN)-39.2%-41.9%-28.3%-21.3%-1.5%

Top companies by Net Debt / EBITDA

Top 5 FY2016 FY2017 FY2018 FY2019 FY2020
Identiv, Inc. ($INVE)--2.1x1.9x9.0x
Itron, Inc. ($ITRI)1.0x2.0x12.3x3.2x7.3x
Track Group Inc ($TRCK)--12.2x5.2x3.5x
Trimble Inc. ($TRMB)1.1x1.3x3.4x2.9x2.2x
Luna Innovations Incorporated ($LUNA)-6.9x-108.1x-19.9x-2.9x1.8x
Median (17 companies)-0.9x-0.8x-0.9x0.3x0.4x