Ensilica PLC (ENSI) AI Stock Analysis

• Market Cap: £37.19M
• Dividend Yield: N/A
• Average Volume (3M): 488.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -28.03%
• EPS Growth: -1213.04%
• Country: UK
• Employees: 168
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.02
• Shares Outstanding: 96,600,640
• 10 Day Avg. Volume: 486,055
• 30 Day Avg. Volume: 488,798
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: 35.00p ▼(-9.09% Downside)

Ensilica PLC's overall stock score reflects significant financial and technical challenges. The company's declining revenue and profitability, coupled with bearish technical indicators, weigh heavily on the score. Additionally, the negative P/E ratio and lack of dividend yield further impact its valuation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Market Position

Ensilica's focus on high-demand sectors positions it well for capturing value in rapidly evolving markets, supporting long-term growth.

Business Model

A diversified revenue model through custom solutions and IP licensing enhances resilience and potential for sustained profitability.

Leverage Management

Manageable leverage indicates prudent financial management, allowing for operational flexibility and reduced financial risk.

Negative Factors

Revenue Decline

A significant decline in revenue growth suggests challenges in market demand or competitive positioning, impacting long-term viability.

Profitability Challenges

Negative profitability indicates operational inefficiencies and challenges in cost management, affecting long-term financial health.

Cash Flow Issues

Declining free cash flow growth reflects potential liquidity issues, limiting investment capacity and operational flexibility.

Ensilica PLC Business Overview & Revenue Model

Company Description

EnSilica plc designs and supplies mixed signal application specific integrated circuits in the United Kingdom and internationally. The company also offers core IP products covering cryptography, radar, and communications systems. It serves corporations and original equipment manufacturers, automotive Tier 1 suppliers, industrial enterprises, large software companies, and service providers developing proprietary hardware, as well as industrial, healthcare, and communications markets through representatives and distributors. The company was incorporated in 2001 and is headquartered in Abingdon, the United Kingdom.

How the Company Makes Money

Ensilica generates revenue through multiple streams, primarily by providing custom silicon solutions and electronic design services to clients across various industries. The company capitalizes on its intellectual property (IP) by licensing its innovative IP cores to other semiconductor firms, which represents a significant portion of its revenue. Additionally, Ensilica may engage in strategic partnerships with technology companies and manufacturers to co-develop products, further enhancing its market reach and profitability. The firm's focus on high-demand sectors such as telecommunications and automotive technology, coupled with its expertise in low-power design, positions it well to capture value in a rapidly evolving market.

Ensilica PLC Financial Statement Overview

Summary

Ensilica PLC is facing financial challenges, with declining revenue and profitability impacting its overall performance. The income statement shows a significant drop in sales and ongoing losses, while the balance sheet indicates a moderate financial position with manageable leverage. However, cash flow issues highlight concerns about cash generation and operational inefficiencies.

Income Statement

Ensilica PLC's income statement shows a concerning trend with declining revenue and profitability. The revenue growth rate is negative at -27.22%, indicating a significant drop in sales. The company also reported a negative net profit margin of -14.99%, reflecting ongoing losses. The gross profit margin stands at 40.32%, which is relatively healthy, but the negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio is 0.38, suggesting manageable leverage. However, the return on equity is negative at -13.04%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is 52.16%, showing a solid equity base relative to total assets.

Cash Flow

Cash flow analysis indicates challenges in cash generation. The free cash flow growth rate is negative at -123.82%, reflecting a substantial decline in free cash flow. The operating cash flow to net income ratio is 0.44, suggesting that cash generation from operations is not keeping pace with net income. The free cash flow to net income ratio is also low at 0.19, indicating limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.18M	18.18M	25.27M	20.48M	15.29M	8.61M
Gross Profit	7.33M	7.33M	9.00M	8.17M	5.05M	2.06M
EBITDA	-1.49M	-2.25M	1.69M	1.56M	362.00K	-1.95M
Net Income	-2.73M	-2.73M	-182.00K	1.79M	149.00K	-2.08M
Balance Sheet
Total Assets	40.07M	40.07M	37.21M	27.49M	19.84M	13.36M
Cash, Cash Equivalents and Short-Term Investments	1.96M	1.96M	5.16M	3.10M	5.74M	1.40M
Total Debt	7.98M	7.98M	6.12M	6.44M	5.16M	6.09M
Total Liabilities	19.17M	19.17M	14.81M	11.52M	7.69M	10.52M
Stockholders Equity	20.90M	20.90M	22.40M	15.96M	12.15M	2.84M
Cash Flow
Free Cash Flow	1.04M	521.00K	3.34M	-3.50M	-1.67M	-2.33M
Operating Cash Flow	1.72M	1.20M	4.27M	1.02M	851.00K	-612.00K
Investing Cash Flow	-6.48M	-6.48M	-7.35M	-4.53M	-2.49M	-1.72M
Financing Cash Flow	2.19M	2.19M	5.23M	72.00K	5.40M	1.39M

Ensilica PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ENSI, the sentiment is Positive. The current price of 38.5 is above the 20-day moving average (MA) of 35.92, below the 50-day MA of 38.59, and below the 200-day MA of 39.30, indicating a neutral trend. The MACD of -0.86 indicates Negative momentum. The RSI at 58.44 is Neutral, neither overbought nor oversold. The STOCH value of 75.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ENSI.

Ensilica PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OXIG	76 Outperform	$1.15B	85.63	4.64%	1.09%	-5.39%	-73.52%
CNC	69 Neutral	£192.68M	39.70	12.29%	0.95%	22.72%	-8.82%
CML	66 Neutral	£49.82M	42.19	2.28%	3.67%	-21.33%	-11.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ENSI	43 Neutral	£37.19M	-12.75	-9.74%	―	-28.03%	-1213.04%
IQE	42 Neutral	£48.54M	-0.98	-37.55%	―	-24.75%	-110.79%

Ensilica PLC Corporate Events

EnSilica Secures $28M Royalty Agreement with Satellite Provider

EnSilica has announced the initiation of its first royalty payments and an extended royalty agreement with a satellite service provider, estimated to be worth approximately US$28 million over the next decade. This development marks a significant financial milestone for the company, with five chips now in the supply phase generating recurring revenues and twelve in the design phase, reinforcing EnSilica’s confidence in its business prospects both in the short and long term.

EnSilica Expands with New Cambridge Engineering Hub

EnSilica has announced the establishment of a new engineering hub in Cambridge, UK, enhancing its capabilities in mmWave and RF integrated circuit design. This expansion is supported by a UK Space Agency award and increased contract momentum, positioning the company to capitalize on growth opportunities in the satellite and communications market. The new facility, which includes a team of highly skilled engineers, strengthens EnSilica’s presence in the UK’s semiconductor ecosystem and supports its strategic growth initiatives.

EnSilica Unveils New Ku-band Beamformer ICs for Satellite Terminals

EnSilica plc has announced the release of two new Ku-band beamformer ICs designed for use in satellite user terminals, particularly for Eutelsat OneWeb and other European constellations. These ICs provide a low-power, low-cost solution, crucial for the high demand of beamformer ICs in each terminal, and are fabricated and tested in Europe, ensuring a sovereign supply chain. Supported by the European Space Agency and the UK Space Agency, these new products are expected to enhance satellite broadband connectivity and strengthen EnSilica’s position in the fast-growing satellite communications market.

EnSilica to Showcase at Mello 2025 Investor Conference

EnSilica, a prominent chip maker of mixed signal ASICs, has announced its participation in the Mello 2025 investor conference in London. The event, scheduled for June 3-4, 2025, will feature presentations by EnSilica’s senior team and offer opportunities for investors to engage directly with the company. This participation underscores EnSilica’s commitment to engaging with investors and maintaining its position in the competitive semiconductor industry.

EnSilica Announces Change in Investment Manager for Major Shareholder

EnSilica announced that Amati AIM VCT plc has rebranded to Maven Renovar VCT plc, with Maven Capital Partners UK LLP taking over as the new Investment Manager. Although the VCT’s shareholding in EnSilica remains unchanged, it holds 4,900,000 ordinary shares, representing about 5.07% of the company’s issued share capital. This change in management of voting rights could influence EnSilica’s strategic decisions and stakeholder dynamics.

EnSilica Strengthens Position in Booming Space Industry

EnSilica PLC is capitalizing on the growing demand for silicon chips in the space industry, driven by geopolitical factors and the expansion of satellite communications. The company has secured significant contracts and funding, including a £10.4 million grant from the UK Space Agency and a €2.1 million contract from the European Space Agency, to enhance its capabilities in satellite technology. These developments position EnSilica as a key player in the space sector, with its advanced ASICs optimizing satellite performance and connectivity. The company’s strategic moves are expected to bolster its market presence and offer substantial revenue opportunities, particularly in the rapidly expanding LEO satellite market.

EnSilica Partners with European Satellite Operator for ASIC Development

EnSilica has signed a Memorandum of Understanding with a major European satellite operator to conduct a feasibility study for a satellite payload ASIC, which could lead to significant development in satellite communications technology. This agreement positions EnSilica to capitalize on the growing demand for specialized chips in the satellite communications sector, driven by increased investments and geopolitical tensions, enhancing its market presence and opportunities.

EnSilica Announces Trading Update Amid Customer Project Delays

EnSilica plc, a prominent player in the mixed signal ASIC industry, has announced a trading update for the year ending May 31, 2025. The company has secured six new design and supply contracts, expected to generate over $40 million in NRE revenues over the next two years and over $250 million in chip supply revenues. However, delays in two major customer projects will reduce NRE revenues for FY 2025, impacting anticipated revenues and EBITDA. Despite these setbacks, EnSilica remains confident in its growth trajectory, with a strong order book and plans to achieve positive cash generation by the end of FY 2026.