Atomera (ATOM) AI Stock Analysis

• Market Cap: $73.82M
• Dividend Yield: N/A
• Average Volume (3M): 464.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: -94.26%
• EPS Growth: 3.20%
• Country: US
• Employees: 20
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.17
• Shares Outstanding: 31,681,032
• 10 Day Avg. Volume: 463,975
• 30 Day Avg. Volume: 464,540
• PEG Ratio: 1.14
• Price to Book (P/B): 12.59
• Price to Sales (P/S): 2338.65
• P/FCF Ratio: -23.83
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 3.49K
• Enterprise Value/Gross Profit: -269.75
• Enterprise Value/Ebitda: -6.85
• 1Y Price Target: $5.00
• Price Target Upside: 114.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $2.50 ▲(7.30% Upside)

Atomera's overall stock score is primarily impacted by its weak financial performance, characterized by continuous losses and negative cash flow. Technical analysis further indicates bearish momentum, with the stock trading below key moving averages. Valuation metrics are poor due to a negative P/E ratio and lack of dividend yield. Although the earnings call highlighted some technological advancements and customer engagements, these are overshadowed by financial challenges and setbacks with key partners.

Positive Factors

New MST Implementation

The new MST implementation enhances semiconductor performance, potentially increasing Atomera's competitive edge and market demand for its technology.

Record Wafer Processing

Increased wafer processing indicates strong customer engagement and demand, suggesting potential for future revenue growth and market expansion.

Partnership with Capital Equipment Company

The partnership validates MST in advanced nodes, enhancing Atomera's credibility and facilitating broader adoption in the semiconductor industry.

Negative Factors

STMicroelectronics Setback

The setback with STMicroelectronics limits immediate revenue opportunities and highlights challenges in integrating MST with some partners.

Increased Net Loss

Rising net losses indicate ongoing financial challenges, impacting Atomera's ability to achieve profitability and sustain operations long-term.

Negative Gross Margin

Negative gross margins reflect operational inefficiencies and may hinder Atomera's ability to generate sustainable profits in the future.

Atomera Business Overview & Revenue Model

Company Description

Atomera Incorporated develops, commercializes, and licenses proprietary materials, processes, and technologies for the semiconductor industry in North America and the Asia Pacific. The company's lead technology is the Mears Silicon Technology, a thin film of reengineered silicon that can be applied as a transistor channel enhancement to CMOS-type transistors. Its customers include foundries, integrated device manufacturers, fabless semiconductor manufacturers, original equipment manufacturers, and electronic design automation companies. The company was formerly known as Mears Technologies, Inc. and changed its name to Atomera Incorporated in January 2016. Atomera Incorporated was incorporated in 2001 and is headquartered in Los Gatos, California.

How the Company Makes Money

Atomera generates revenue primarily through licensing its MST technology to semiconductor manufacturers. The company charges fees for the license agreements that allow clients to integrate Atomera's technology into their production processes. Additionally, Atomera may earn revenue from research and development contracts, collaborations with industry partners, and potential royalties based on the sales of products that utilize MST. Key partnerships with major semiconductor firms are crucial, as they not only provide direct revenue but also validate Atomera's technology, leading to wider adoption and increased sales opportunities.

Atomera Financial Statement Overview

Summary

Atomera is facing significant financial challenges, with continuous losses impacting profitability and cash flow. The company has a low debt-to-equity ratio, but its inability to generate positive net income or free cash flow raises concerns about operational efficiency and long-term viability.

Income Statement

Atomera's income statement indicates significant challenges with profitability. The gross profit margin has dropped due to decreasing gross profit despite minor revenue growth. The company has consistently reported negative net income, resulting in a negative net profit margin over the years. Although there was a slight revenue increase from the previous year, it has not translated into profitability improvements. The negative EBIT and EBITDA margins further highlight operational inefficiencies and high costs.

Balance Sheet

The balance sheet reveals a relatively low debt-to-equity ratio, suggesting manageable leverage. However, the return on equity is negative due to consistent net losses, indicating poor returns to shareholders. The equity ratio remains high, reflecting a stronger reliance on equity financing. Despite this, ongoing losses and declining equity raise concerns about long-term sustainability.

Cash Flow

Atomera's cash flow statement shows persistent negative free cash flow, suggesting operational cash burn. Operating cash flow to net income and free cash flow to net income ratios indicate inefficiencies in converting revenue into cash. While there was a significant inflow from financing activities, it mainly covers operational deficits without contributing to growth investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.00K	135.00K	550.00K	382.00K	400.00K	62.00K
Gross Profit	-491.00K	12.00K	522.00K	301.00K	400.00K	49.00K
EBITDA	-19.34M	-16.94M	-18.16M	-15.68M	-14.73M	-14.70M
Net Income	-20.41M	-18.43M	-19.79M	-17.36M	-15.71M	-14.88M
Balance Sheet
Total Assets	21.94M	29.12M	24.03M	26.73M	36.06M	39.40M
Cash, Cash Equivalents and Short-Term Investments	20.32M	26.77M	19.53M	21.18M	28.70M	37.94M
Total Debt	794.00K	1.98M	3.64M	4.88M	6.54M	692.00K
Total Liabilities	2.91M	4.05M	5.86M	6.42M	7.68M	2.05M
Stockholders Equity	19.03M	25.08M	18.17M	20.31M	28.38M	37.34M
Cash Flow
Free Cash Flow	-14.71M	-13.25M	-14.59M	-12.54M	-12.55M	-12.20M
Operating Cash Flow	-14.68M	-13.24M	-14.56M	-12.50M	-12.44M	-12.07M
Investing Cash Flow	3.58M	6.08M	-6.75M	-39.00K	-109.00K	-131.00K
Financing Cash Flow	17.66M	20.34M	12.71M	5.02M	3.31M	35.27M

Atomera Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATOM, the sentiment is Negative. The current price of 2.33 is below the 20-day moving average (MA) of 2.38, below the 50-day MA of 2.88, and below the 200-day MA of 4.32, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 44.12 is Neutral, neither overbought nor oversold. The STOCH value of 14.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATOM.

Atomera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASYS	66 Neutral	$175.15M	-5.75	-44.68%	―	-21.59%	-254.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AXTI	61 Neutral	$683.03M	-27.79	-12.00%	―	-4.54%	-119.39%
MRAM	54 Neutral	$204.34M	-357.60	-0.91%	―	-0.41%	-134.49%
SQNS	43 Neutral	$77.96M	―	-18.19%	―	2.80%	―
WKEY	42 Neutral	$90.36M	-9.44	-24.81%	―	-42.77%	83.21%
ATOM	41 Neutral	$73.82M	-3.45	-116.86%	―	-94.26%	3.20%

Atomera Corporate Events

Atomera Enhances Transparency with New Disclosure Strategy

Atomera Incorporated has announced that it will use its corporate website and LinkedIn account to distribute material information about the company and its industry, in accordance with SEC’s Regulation FD. This move aims to ensure that shareholders and interested parties have access to timely updates and information, enhancing transparency and communication.