Ceva (CEVA) AI Stock Analysis

• Market Cap: $624.70M
• Dividend Yield: N/A
• Average Volume (3M): 273.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.18
• Revenue Growth: 5.55%
• EPS Growth: -239.94%
• Country: US
• Employees: 406
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.11
• Shares Outstanding: 24,017,805
• 10 Day Avg. Volume: 243,233
• 30 Day Avg. Volume: 273,898
• PEG Ratio: 3.09
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 6.97
• P/FCF Ratio: 1.44K
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 4.50
• Enterprise Value/Gross Profit: 5.16
• Enterprise Value/Ebitda: -90.27
• 1Y Price Target: $36.00
• Price Target Upside: 38.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.44
• Revenue Forecast (FY): $109.24M

• Rating: 51 Neutral
• Price Target: $26.00 ▼(-0.31% Downside)

Ceva's overall stock score reflects a challenging financial landscape with strong gross margins and strategic wins in AI and wireless connectivity. However, profitability issues, negative cash flows, and a bearish technical outlook weigh heavily on the score. The positive earnings call provides some optimism, but the valuation remains a concern.

Positive Factors

Strategic AI Licensing Agreements

Strategic AI licensing agreements, such as with Microchip, enhance Ceva's market position in AI processing, promising future revenue growth and competitive advantage.

Growth in Royalty Revenue

Sustained growth in royalty revenue indicates strong market demand and successful integration of Ceva's technology in consumer IoT and automotive solutions.

Record Shipments in IoT and Wi-Fi

Record shipments in IoT and Wi-Fi highlight Ceva's robust market penetration and the growing adoption of its connectivity solutions, supporting long-term revenue growth.

Negative Factors

GAAP Operating Loss

Ongoing GAAP operating losses suggest challenges in achieving profitability, which could impact Ceva's ability to invest in growth and innovation over the long term.

Decline in GAAP Net Income

A decline in GAAP net income reflects financial instability, potentially affecting investor confidence and the company's capacity to fund future projects.

Negative Cash Flow from Operations

Negative cash flow from operations indicates potential liquidity issues, limiting Ceva's ability to sustain operations and invest in strategic initiatives.

Ceva Business Overview & Revenue Model

Company Description

CEVA, Inc. operates as a licensor of wireless connectivity and smart sensing technologies to semiconductor and original equipment manufacturer (OEM) companies worldwide. It designs and licenses various digital signal processors, AI processors, wireless platforms, and complementary software for sensor fusion, image enhancement, computer vision, voice input, and artificial intelligence (AI). The company licenses a family of wireless connectivity and smart sensing technologies, and integrated IP solutions, including DSP-based platforms for 5G baseband processing in mobile, IoT, and infrastructure; imaging and computer vision for any camera-enabled devices; audio/voice/speech and ultra-low power always-on/sensing applications for multiple IoT markets; sensor fusion software and inertial measurement unit solutions for hearables, wearables, AR/VR, PC, robotics, remote controls, and IoT; and wireless IoT for Bluetooth, Wi-Fi 4/5/6/6E, Ultra-wideband (UWB), and NB-IoT. Its technologies are licensed to companies, which design, manufacture, market, and sell application-specific integrated circuits and application-specific standard products to mobile, consumer, automotive, robotics, industrial, aerospace and defense, and IoT companies for incorporation into various end products. The company delivers its DSP cores, platforms, and AI processors in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools that facilitate system design, debug, and software development. The company licenses its technology through a direct sales force. The company was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. CEVA, Inc. was incorporated in 1999 and is headquartered in Rockville, Maryland.

How the Company Makes Money

Ceva generates revenue primarily through licensing its technologies to semiconductor manufacturers and system-on-chip (SoC) developers. The company's revenue model is based on upfront licensing fees, ongoing royalties based on the number of chips sold that incorporate Ceva's technology, and service fees for technical support and additional services. Key revenue streams include licensing agreements for DSP cores and AI processing units, which are critical for applications in smartphones, smart home devices, and automotive systems. Additionally, Ceva has established significant partnerships with major semiconductor companies, enhancing its market presence and contributing positively to its earnings through collaborative development projects and joint marketing initiatives.

Ceva Financial Statement Overview

Summary

Ceva's financial performance is mixed. While the company has strong gross profit margins and low leverage, profitability issues and negative cash flows from operations are concerning. The income statement shows a negative net profit margin, and the cash flow statement highlights significant volatility with negative operating cash flow.

Income Statement

Ceva's income statement reveals a challenging financial period. The company has experienced a slight revenue growth of 1.1% in the TTM, but profitability remains a concern with a negative net profit margin of -4.0% and declining EBIT and EBITDA margins. The gross profit margin is strong at 86.5%, indicating efficient production, but the overall profitability is hindered by high operating expenses.

Balance Sheet

Ceva's balance sheet shows a stable financial position with a low debt-to-equity ratio of 0.016, suggesting minimal leverage and financial risk. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio is not provided, but the low debt levels suggest a conservative capital structure.

Cash Flow

The cash flow statement highlights significant volatility. While there is a remarkable free cash flow growth rate of 2786.7% in the TTM, the operating cash flow is negative, raising concerns about the company's ability to generate cash from operations. The free cash flow to net income ratio is negative, reflecting challenges in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	107.53M	106.94M	97.42M	120.58M	113.83M	100.33M
Gross Profit	93.73M	94.17M	85.77M	105.45M	103.45M	89.58M
EBITDA	-5.36M	-3.41M	-8.58M	12.15M	16.63M	8.79M
Net Income	-11.28M	-8.79M	-11.88M	-23.18M	396.00K	-2.38M
Balance Sheet
Total Assets	91.61M	310.09M	304.08M	308.44M	328.66M	306.95M
Cash, Cash Equivalents and Short-Term Investments	149.25M	161.62M	166.54M	139.48M	154.86M	130.13M
Total Debt	3.78M	5.56M	6.46M	9.69M	8.40M	8.74M
Total Liabilities	12.59M	42.39M	39.74M	49.57M	51.93M	46.06M
Stockholders Equity	268.72M	266.56M	264.34M	258.87M	276.73M	260.89M
Cash Flow
Free Cash Flow	-6.50M	516.00K	-9.21M	3.42M	23.61M	12.23M
Operating Cash Flow	-4.04M	3.47M	-6.33M	6.92M	25.80M	15.16M
Investing Cash Flow	13.22M	-2.45M	10.84M	-15.12M	-16.71M	-15.22M
Financing Cash Flow	-4.93M	-5.57M	-2.77M	-3.31M	3.24M	-2.11M

Ceva Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CEVA, the sentiment is Positive. The current price of 26.08 is below the 20-day moving average (MA) of 27.20, below the 50-day MA of 26.62, and above the 200-day MA of 25.47, indicating a bullish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 40.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CEVA.

Ceva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKYT	63 Neutral	$1.14B	8.58	101.23%	―	0.19%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AEHR	55 Neutral	$737.86M	―	-5.43%	―	-3.23%	-122.16%
AIP	52 Neutral	$652.64M	―	―	―	20.45%	12.28%
CEVA	51 Neutral	$624.70M	―	-4.22%	―	5.55%	-239.94%
INDI	48 Neutral	$934.30M	―	-34.90%	―	-4.99%	-12.11%
ICHR	45 Neutral	$530.20M	―	-5.94%	―	16.86%	-26.89%

Ceva Corporate Events

Ceva, Inc. Reports Strong Q3 2025 Financial Results

Ceva, Inc. is a leading licensor of silicon and software IP for smart edge technology, specializing in wireless communications, sensing, and Edge AI solutions. The company has announced its financial results for the third quarter of 2025, reporting a total revenue of $28.4 million, marking an 11% sequential increase and a 4% year-over-year growth. This quarter was significant for Ceva’s AI business, with AI processor licensing contributing approximately one-third of the licensing revenue.

Ceva Inc. Exceeds Expectations Amid Strategic Wins

Ceva Inc’s recent earnings call painted a picture of optimism tempered with caution. The company reported better-than-expected revenue and earnings per share (EPS), driven by strategic wins in artificial intelligence (AI) and wireless connectivity, alongside significant growth in royalty revenue and Internet of Things (IoT) shipments. However, challenges remain with ongoing GAAP operating losses and a decline in GAAP net income, as well as a slight dip in Bluetooth shipments.

Ceva, Inc. Reports Q2 2025 Financial Results

Ceva, Inc. is a leading licensor of silicon and software IP that enhances smart edge devices with reliable and efficient connectivity, sensing, and data inference capabilities. The company operates primarily in the technology sector, focusing on wireless connectivity and edge AI solutions.

Ceva Inc. Earnings Call: Growth Amid Challenges

The recent earnings call for Ceva Inc. painted a picture of both accomplishments and challenges. While the company celebrated strong licensing execution and significant growth in the consumer IoT sector, it also faced hurdles such as a decline in overall revenue and operating losses. The sentiment was cautiously optimistic, with confidence in future growth potential, particularly in AI and consumer IoT, despite current financial softness.