Ceva (CEVA) AI Stock Analysis

• Market Cap: $508.94M
• Dividend Yield: N/A
• Average Volume (3M): 529.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.29
• 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: 1,062,598
• 30 Day Avg. Volume: 529,851
• 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: 0.95
• Enterprise Value/Revenue: 4.50
• Enterprise Value/Gross Profit: 5.16
• Enterprise Value/Ebitda: -90.27
• 1Y Price Target: $36.00
• Price Target Upside: 69.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.42
• Revenue Forecast (FY): $109.41M

• Rating: 52 Neutral
• Price Target: $20.50 ▼(-3.26% Downside)

Ceva's overall stock score reflects a challenging financial landscape with strong gross margins and strategic wins in AI and connectivity. However, persistent profitability issues, negative cash flows, and bearish technical indicators weigh heavily on the stock's attractiveness. The positive earnings call provides some optimism, but significant risks remain.

Positive Factors

Strategic AI Licensing Agreements

Securing strategic AI agreements, such as with Microchip, strengthens Ceva's position in the AI market, enhancing long-term revenue potential and market influence.

Growth in Royalty Revenue

Increasing royalty revenue indicates strong demand for Ceva's IP, supporting sustainable revenue growth and reinforcing its competitive edge in IoT and connectivity.

Record Shipments in IoT and Wi-Fi

Record IoT and Wi-Fi shipments demonstrate Ceva's robust market position and ability to capitalize on growing demand for connected devices, ensuring long-term growth.

Negative Factors

GAAP Operating Loss

Ongoing GAAP operating losses highlight profitability challenges, potentially impacting Ceva's ability to invest in growth and innovation over the long term.

Negative Cash Flows

Negative operating cash flows suggest difficulties in generating cash from core operations, which could constrain Ceva's financial flexibility and growth initiatives.

Decline in GAAP Net Income

A decline in GAAP net income reflects ongoing profitability issues, which may undermine investor confidence and limit resources for strategic investments.

Ceva Business Overview & Revenue Model

Company Description

Ceva (CEVA) is a leading technology company that specializes in digital signal processing (DSP) and artificial intelligence (AI) solutions for a wide range of applications, including mobile, automotive, and IoT (Internet of Things) devices. The company offers a portfolio of semiconductor intellectual property (IP) cores that enable customers to integrate advanced functionalities into their systems while minimizing power consumption and optimizing performance. Ceva's solutions cater to various sectors, such as consumer electronics, automotive, and industrial markets, positioning it as a key player in the growing demand for smart and connected devices.

How the Company Makes Money

Ceva generates revenue primarily through the licensing of its semiconductor IP cores, which are integrated into customer products across multiple sectors. The company charges licensing fees for the use of its technology, which can be structured as one-time upfront payments or recurring royalties based on the volume of chips sold that incorporate Ceva's IP. Additionally, Ceva offers design services and support, providing further revenue opportunities through consulting and customization of its solutions for specific customer needs. Strategic partnerships with major semiconductor manufacturers and technology companies also enhance Ceva's market presence and contribute to its earnings by expanding its customer base and driving adoption of its technologies in various applications.

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	306.01M	308.95M	304.08M	308.44M	331.77M	308.54M
Cash, Cash Equivalents and Short-Term Investments	152.06M	163.64M	166.54M	138.31M	154.86M	130.13M
Total Debt	3.78M	5.56M	6.46M	7.89M	8.40M	8.74M
Total Liabilities	37.30M	42.39M	39.74M	49.57M	55.04M	47.65M
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: Negative
• Last Price: 21.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 21.19 is below the 20-day moving average (MA) of 23.01, below the 50-day MA of 25.82, and below the 200-day MA of 24.71, indicating a bearish trend. The MACD of -1.63 indicates Positive momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 70.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CEVA.

Ceva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKYT	64 Neutral	$740.72M	5.92	101.23%	―	0.19%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AEHR	53 Neutral	$676.05M	―	-5.43%	―	-3.23%	-122.16%
CEVA	52 Neutral	$508.94M	―	-4.22%	―	5.55%	-239.94%
AIP	50 Neutral	$645.21M	―	―	―	20.45%	12.28%
ICHR	49 Neutral	$568.72M	―	-5.94%	―	16.86%	-26.89%
INDI	49 Neutral	$764.32M	―	-34.90%	―	-4.99%	-12.11%

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.