SemiLEDs (LEDS) AI Stock Analysis

• Market Cap: $24.42M
• Dividend Yield: N/A
• Average Volume (3M): 62.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 729.81%
• EPS Growth: 61.92%
• Country: US
• Employees: 116
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.14
• Shares Outstanding: 8,222,403
• 10 Day Avg. Volume: 34,052
• 30 Day Avg. Volume: 62,499
• PEG Ratio: 0.24
• Price to Book (P/B): 5.19
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 8.79
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 9.84
• Enterprise Value/Ebitda: 68.99
• 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: 45 Neutral
• Price Target: $2.00 ▲(8.11% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. While revenue growth is strong, profitability challenges and negative returns on equity are significant concerns. The technical indicators suggest a bearish trend, and the negative P/E ratio highlights valuation issues. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product demand, supporting long-term business expansion and resilience.

Cash Flow Improvement

Better cash management enhances financial stability and provides resources for reinvestment and strategic initiatives, crucial for sustained growth.

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to withstand economic fluctuations, supporting long-term viability.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which could hinder long-term financial health and shareholder returns if not addressed.

Low Gross Profit Margin

Low gross margins suggest challenges in cost management, which can affect competitive positioning and limit reinvestment capabilities over time.

Negative Return on Equity

Negative ROE indicates inefficiencies in generating returns for shareholders, potentially impacting investor confidence and long-term capital access.

SemiLEDs Business Overview & Revenue Model

Company Description

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips, LED components, and LED modules and systems in the United States, Taiwan, the Netherlands, Germany, Japan, Ireland, and internationally. The company also sells enhanced vertical, LED product series in blue, white, green, and UV; LED chips to packagers or distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packages and sells its LED chips into LED components to distributors. Its products are used for general lighting applications, including commercial, industrial, and residential lighting; and specialty industrial applications, such as ultraviolet or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, germicidal and viricidal devices LED lighting for horticulture applications, architectural lighting, and entertainment lighting. SemiLEDs Corporation was incorporated in 2005 and is based in Chunan, Taiwan.

How the Company Makes Money

SemiLEDs generates revenue primarily through the sale of its LED chips and lighting products. The company has a diversified revenue model that includes direct sales to customers in the lighting and electronics industries, as well as partnerships with manufacturers who integrate SemiLEDs' products into their own lighting solutions. Key revenue streams include bulk sales of LED chips to commercial and industrial customers, as well as royalties and licensing fees from proprietary technologies. Additionally, SemiLEDs may benefit from government contracts and incentives aimed at promoting energy-efficient lighting solutions, which can further enhance its earnings.

SemiLEDs Financial Statement Overview

Summary

SemiLEDs is experiencing strong revenue growth, but profitability remains a significant challenge. The company has made strides in improving its leverage and cash flow, but negative returns on equity and low margins highlight ongoing operational inefficiencies. Continued focus on cost management and profitability will be crucial for future financial health.

Income Statement

SemiLEDs has shown a significant revenue growth rate of 38.26% in the latest year, indicating a positive trend in sales. However, the company struggles with profitability, as evidenced by its negative net profit margin of -2.63% and EBIT margin of 0%. The gross profit margin is relatively low at 5.65%, suggesting challenges in cost management. Overall, while revenue growth is promising, profitability remains a concern.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.87, which is an improvement from previous years, indicating better leverage management. However, the return on equity is negative at -40.65%, reflecting ongoing losses and inefficiencies in generating returns for shareholders. The equity ratio stands at 17.83%, suggesting a relatively low proportion of equity financing compared to total assets.

Cash Flow

SemiLEDs has improved its free cash flow, with a growth rate of 6.62%, indicating better cash management. The operating cash flow to net income ratio is 0.19, showing some ability to convert income into cash. However, the free cash flow to net income ratio is 0.74, suggesting that while cash flow is improving, it is still not fully aligned with net income levels.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.11M	43.01M	5.18M	5.98M	7.05M	4.74M
Gross Profit	2.35M	2.43M	1.05M	1.01M	1.40M	1.03M
EBITDA	336.00K	-272.00K	-1.17M	-1.40M	-1.42M	-1.59M
Net Income	-496.00K	-1.13M	-2.04M	-2.69M	-2.74M	-2.85M
Balance Sheet
Total Assets	23.18M	15.59M	11.14M	13.46M	16.05M	18.24M
Cash, Cash Equivalents and Short-Term Investments	2.44M	2.59M	1.67M	2.57M	4.27M	4.83M
Total Debt	3.04M	4.01M	4.82M	7.74M	8.51M	9.31M
Total Liabilities	19.19M	12.81M	8.89M	12.26M	12.56M	13.61M
Stockholders Equity	3.99M	2.78M	2.20M	1.15M	3.45M	4.59M
Cash Flow
Free Cash Flow	1.55M	1.64M	-488.00K	-1.18M	-1.79M	-1.85M
Operating Cash Flow	2.15M	2.21M	-365.00K	-984.00K	-1.51M	-1.74M
Investing Cash Flow	-626.00K	-595.00K	-101.00K	-321.00K	-113.00K	159.00K
Financing Cash Flow	-615.00K	-622.00K	-449.00K	-456.00K	490.00K	3.99M

SemiLEDs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEDS, the sentiment is Negative. The current price of 1.85 is below the 20-day moving average (MA) of 2.32, below the 50-day MA of 2.43, and below the 200-day MA of 2.23, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 33.59 is Neutral, neither overbought nor oversold. The STOCH value of 8.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEDS.

SemiLEDs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRT	62 Neutral	$28.78M	-471.63	0.84%	―	0.10%	-54.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VLN	51 Neutral	$161.74M	―	-23.56%	―	7.53%	-15.00%
PRSO	51 Neutral	$8.17M	―	-180.20%	―	2.15%	94.29%
LEDS	45 Neutral	$24.42M	-43.04	-45.37%	―	729.81%	61.92%
PXLW	45 Neutral	$38.77M	-1.11	―	―	-38.72%	16.01%
GCTS	41 Neutral	$74.85M	-2.01	―	―	-46.98%	-186.82%

SemiLEDs Corporate Events

SemiLEDs Approves Key Proposals at Annual Meeting

On August 28, 2025, SemiLEDs Corporation held its Annual Meeting of Stockholders, where shareholders voted on two key proposals. The first proposal involved the election of five directors to serve until the 2026 Annual Meeting, and the second was the ratification of YCM CPA Inc. as the independent registered public accounting firm for the fiscal year ending August 31, 2025. Both proposals were approved by the shareholders, indicating continued confidence in the company’s leadership and financial oversight.