tiprankstipranks
Trending News
More News >
Semileds Corp. (LEDS)
NASDAQ:LEDS
Advertisement

SemiLEDs (LEDS) AI Stock Analysis

Compare
185 Followers

Top Page

LEDS

SemiLEDs

(NASDAQ:LEDS)

Rating:43Neutral
Price Target:
$2.00
▲(5.26%Upside)
SemiLEDs struggles with negative profitability and high leverage, which significantly impacts its financial performance score. Technical analysis also shows bearish indicators, which further depress the score. The valuation is unattractive due to a negative P/E ratio and lack of dividends, making the stock less appealing to investors.

SemiLEDs (LEDS) vs. SPDR S&P 500 ETF (SPY)

SemiLEDs Business Overview & Revenue Model

Company DescriptionSemiLEDs 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 MoneySemiLEDs makes money by designing, manufacturing, and selling LED chips and components. The company's primary revenue stream comes from the sale of its LED products, which are used in various lighting applications. SemiLEDs also generates income through partnerships and collaborations with other companies in the lighting and semiconductor industries. Additionally, the company may engage in licensing agreements for its proprietary technology, which can provide an additional source of revenue. Key factors contributing to its earnings include the global demand for energy-efficient lighting solutions and the adoption of LED technology across different sectors.

SemiLEDs Financial Statement Overview

Summary
SemiLEDs exhibits a challenging financial situation with declining revenues, negative profitability, and high leverage. Despite improvements in cash flow, the company struggles with operational inefficiencies and unstable revenue streams.
Income Statement
35
Negative
SemiLEDs has experienced a challenging period with declining revenues and negative profitability. The TTM data shows a gross profit margin of 7.57% and a net profit margin of -1.59%, indicating operational inefficiencies and difficulty in achieving profitability. Revenue growth has been erratic, with a significant decline from the previous year, showing a drop of 40% from 2024 to TTM. This volatile performance and negative margins suggest struggles in maintaining stable income streams.
Balance Sheet
50
Neutral
The company's balance sheet reveals a high debt-to-equity ratio of 0.62, indicating moderate leverage. The equity ratio stands at 17.23%, highlighting a low level of equity relative to total assets, which may risk financial stability. However, the improvement in stockholders' equity over the TTM period points to some progress in strengthening the balance sheet. Return on Equity remains negative at -12.42%, underlining continued challenges in generating shareholder returns.
Cash Flow
60
Neutral
The cash flow analysis shows positive signs with a significant increase in operating cash flow in the TTM period. The free cash flow has also turned positive, indicating improved cash generation capabilities. The operating cash flow to net income ratio is -4.32, reflecting better cash conversion despite reported losses. The free cash flow to net income ratio is -3.11, further demonstrating effective management of cash resources despite overall profitability challenges.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue5.18M5.98M7.05M4.74M6.07M
Gross Profit1.05M1.01M1.40M1.03M1.59M
EBITDA-1.17M-1.40M-1.42M-1.59M654.00K
Net Income-2.04M-2.69M-1.79M-1.70M1.60M
Balance Sheet
Total Assets11.14M13.46M16.05M18.24M14.58M
Cash, Cash Equivalents and Short-Term Investments1.75M2.57M4.27M4.83M2.83M
Total Debt4.82M7.74M8.51M9.31M7.86M
Total Liabilities8.89M12.26M12.56M13.61M12.01M
Stockholders Equity2.20M1.15M3.45M4.59M2.52M
Cash Flow
Free Cash Flow-488.00K-1.21M-1.80M-1.87M-1.29M
Operating Cash Flow-365.00K-984.00K-1.51M-1.74M-1.00M
Investing Cash Flow-101.00K-321.00K-113.00K159.00K518.00K
Financing Cash Flow-449.00K-456.00K490.00K3.99M2.42M

SemiLEDs Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.90
Price Trends
50DMA
2.59
Negative
100DMA
2.34
Negative
200DMA
1.87
Positive
Market Momentum
MACD
-0.18
Positive
RSI
29.81
Positive
STOCH
12.49
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 1.9 is below the 20-day moving average (MA) of 2.44, below the 50-day MA of 2.59, and above the 200-day MA of 1.87, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 29.81 is Positive, neither overbought nor oversold. The STOCH value of 12.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEDS.

SemiLEDs Risk Analysis

SemiLEDs disclosed 47 risk factors in its most recent earnings report. SemiLEDs reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SemiLEDs Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
€9.14B16.974.09%1.85%4.14%-26.32%
58
Neutral
$141.38M-33.15%-5.73%47.83%
56
Neutral
$67.28M40.38-47.90%-16.52%-46.13%
55
Neutral
$54.58M378.21%39.81%
53
Neutral
$108.08M-9.50%21.44%-8.49%
43
Neutral
$16.36M-14.79%485.62%85.02%
43
Neutral
$71.29M-2911.20%-47.93%-37.78%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LEDS
SemiLEDs
1.90
0.37
24.18%
ASYS
Amtech Systems
4.68
-0.98
-17.31%
AXTI
AXT
2.35
-1.21
-33.99%
GSIT
GSI Technology
4.69
1.75
59.52%
PXLW
Pixelworks
12.22
0.46
3.91%
SQNS
Sequans Communications S A
1.98
0.73
58.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025