Interlink Electronics, Inc. reports 8.1 pp EBITDA Margin growth from -2.3% to 5.9% in 2020 in 2020 while 5.7% Revenue decline
03/16/2021 • About Interlink Electronics, Inc. (
$LINK) • By InTwits
Interlink Electronics, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Interlink Electronics, Inc. is a company in decline: FY2020 revenue growth was -5.7%, 5 years revenue CAGR was -8.1%
- EBITDA Margin is expanding: 5.9% in FY2020 vs. -2.3% in FY2019 vs. in FY2016
- The company has potentially unprofitable business model: ROIC is 1.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Interlink Electronics, Inc.'s Revenue decreased on 5.7%. Annual revenue decline showed slowdown in FY20Q4 - revenue jumped on 15.1%. During FY2016-FY2020 Revenue growth bottomed in FY2018 at -20.2% and was accelerating since that time. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 8.1 pp from -2.3% to 5.9% in FY2020.
Gross Margin surged on 11.3 pp from 45.3% to 56.6% in FY2020. SG&A as a % of Revenue increased on 6.0 pp from 35.7% to 41.7% in FY2020.
Net Income margin increased on 7.9 pp from -6.3% to 1.6% in FY2020. Net Income margin followed a declining trend at -6.3 pp per annum in FY2016-FY2020.
Return on investment
The company operates at low ROIC (1.3%) and ROE (1.3%).
Leverage (Debt)
Debt level is -13.8x Net Debt / EBITDA and 1.4x Debt / EBITDA. Debt jumped on 148% while cash increased on 5.3%.
Interlink Electronics, Inc. has no short term refinancing risk: cash is higher than short term debt (1,511.1%).
Valuation and dividends
Interlink Electronics, Inc.'s trades at EV/EBITDA 210.3x and P/E 799.4x.
Financial and operational results
Interlink Electronics, Inc. ($LINK) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 11.886 | 11.153 | 8.904 | 7.305 | 6.888 | -5.7% |
| Gross Profit | 7.006 | 6.856 | | 3.310 | 3.902 | 17.9% |
| SG&A | 3.536 | 3.888 | | 2.608 | 2.874 | 10.2% |
| EBITDA | | | | -0.166 | 0.403 | |
| Net Income | 2.893 | 1.260 | 0.622 | -0.457 | 0.113 | |
Balance Sheet
|
|---|
| Cash | 6.009 | 7.772 | | 5.812 | 6.120 | 5.3% |
| Short Term Debt | 0.000 | 0.000 | | 0.154 | 0.405 | 163.0% |
| Long Term Debt | 0.000 | 0.000 | | 0.066 | 0.140 | 112.1% |
Cash flow
|
|---|
| Capex | | | | 0.141 | | |
Ratios
|
|---|
| Revenue growth | 13.0% | -6.2% | -20.2% | -18.0% | -5.7% | |
| EBITDA growth | | | | | -342.8% | |
|
|---|
| Gross Margin | 58.9% | 61.5% | | 45.3% | 56.6% | 11.3% |
| EBITDA Margin | | | | -2.3% | 5.9% | 8.1% |
| SG&A, % of revenue | 29.7% | 34.9% | | 35.7% | 41.7% | 6.0% |
| Net Income Margin | 24.3% | 11.3% | 7.0% | -6.3% | 1.6% | 7.9% |
| CAPEX, % of revenue | | | | 1.9% | | |
|
|---|
| ROIC | 34.8% | 20.4% | | | 1.3% | |
| ROE | 35.6% | 12.2% | | | 1.3% | |
| Net Debt/EBITDA | | | | | -13.8x |
Peers in Electronic Equipment & Instruments
Below we provide Interlink Electronics, 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 |
|---|
| 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 ($CGNX) | - | 44.7% | 5.3% | -10.0% | 11.8% |
| |
|---|
| Median (26 companies) | -3.8% | 5.0% | 11.6% | 5.2% | -2.7% |
|---|
| Interlink Electronics, Inc. ($LINK) | - | -6.2% | -20.2% | -18.0% | -5.7% |
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 ($APDN) | 82.2% | 77.3% | 69.1% | 83.7% | 62.7% |
| |
|---|
| Median (26 companies) | 39.4% | 41.0% | 40.5% | 42.2% | 42.9% |
|---|
| Interlink Electronics, Inc. ($LINK) | 58.9% | 61.5% | - | 45.3% | 56.6% |
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. ($BMI) | 18.6% | 20.1% | 18.7% | 21.1% | 21.2% |
| |
|---|
| Median (26 companies) | 3.0% | 5.1% | 3.5% | 13.6% | 12.0% |
|---|
| Interlink Electronics, Inc. ($LINK) | - | - | - | -2.3% | 5.9% |
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. ($LPTH) | 6.5% | 7.8% | 7.7% | 5.7% | 7.0% |
| |
|---|
| Median (26 companies) | 2.1% | 1.6% | 2.3% | 2.0% | 2.5% |
|---|
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Zebra Technologies Corporation ($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% | 2.6% | 1.1% | 7.9% | 5.7% |
|---|
| Interlink Electronics, Inc. ($LINK) | 34.8% | 20.4% | - | - | 1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Identiv, Inc. ($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 (16 companies) | -0.9x | -0.8x | -0.9x | 0.3x | 0.7x |
|---|
| Interlink Electronics, Inc. ($LINK) | - | - | - | - | -13.8x |
