SemiLEDs (LEDS) AI Stock Analysis

• Market Cap: $12.83M
• Dividend Yield: N/A
• Average Volume (3M): 62.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: 729.81%
• EPS Growth: 61.92%
• Country: US
• Employees: 116
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.09
• Shares Outstanding: 8,226,153
• 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: 1.07
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 6.28
• Enterprise Value/Ebitda: -27.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $1.50 ▼(-22.68% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held back primarily by weak profitability and a bearish technical trend, alongside material corporate-event risks (Nasdaq compliance and potential dilution). Positive operating/free cash flow and improved leverage provide some support but are not yet reinforced by durable earnings strength.

Positive Factors

Revenue Growth

Sizable TTM revenue growth indicates rising end-market demand and product traction across segments (automotive, horticulture, general lighting). Durable top-line expansion supports operating scalability and offsets some legacy margin pressure as volumes spread fixed costs over time.

Cash Generation

Positive operating and free cash flow across the trailing year shows the business can self-fund operations and modest investment without immediate external capital. That cash resilience reduces short-term liquidity stress and supports reinvestment or debt reduction as earnings recover.

Reduced Leverage

Material improvement in leverage and lower absolute debt levels enhance financial flexibility and reduce interest burden versus prior years. A stronger capital structure gives the company runway to execute growth initiatives and withstand cyclical semiconductor demand volatility.

Negative Factors

Weak Profitability

Very low gross margin and persistent net losses mean revenue growth does not yet translate into durable earnings. Structural cost or pricing issues could prevent sustainable operating leverage, leaving profitability vulnerable if volumes moderate or input costs rise.

Nasdaq Listing Risk

Noncompliance with listing equity thresholds is a material structural risk: potential delisting would impair liquidity, increase cost of capital, and weaken partner/customer confidence. Management must remediate within prescribed periods or face damaging governance and financing consequences.

Financing Dependence & Dilution Risk

Ongoing reliance on insider/related-party loans with equity repayment options signals constrained external funding access and raises dilution risk. This financing pattern can erode minority shareholder value and reflects structural dependence on affiliated capital rather than market financing.

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

Mixed fundamentals: revenue growth and improved leverage are positives, and operating/free cash flow are solidly positive. However, profitability remains weak with very low gross margin (~4.9%) and the business is still loss-making, limiting the score despite the turnaround progress.

Income Statement

TTM (Trailing-Twelve-Months) revenue is $44.3M and shows strong growth versus the prior annual period, but profitability remains weak: gross margin is ~4.9% and the company is still loss-making (net margin ~-3.0%, with negative EBIT/EBITDA). While losses have narrowed materially versus 2021–2024 (when net margins were deeply negative), the current cost structure still does not convert revenue into sustainable earnings.

Balance Sheet

Leverage has improved significantly over time, with debt-to-equity down to ~1.13 in TTM (Trailing-Twelve-Months) from much higher levels in earlier years, and total debt reduced to ~$2.34M. However, equity remains relatively small (~$2.07M) and returns on equity are still meaningfully negative, indicating the balance sheet is more stable than before but still vulnerable if losses persist.

Cash Flow

Cash generation is a clear bright spot: TTM (Trailing-Twelve-Months) operating cash flow is positive (~$2.75M) and free cash flow is also positive (~$2.27M), with strong free-cash-flow growth versus the prior annual period. The main caution is that earnings are still negative, so cash flow strength may be influenced by working-capital or other timing benefits rather than durable profitability.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	44.32M	43.01M	5.18M	5.98M	7.05M	4.74M
Gross Profit	2.19M	2.43M	1.05M	1.01M	1.40M	1.03M
EBITDA	-498.00K	-272.00K	-1.17M	-1.40M	-1.42M	-1.59M
Net Income	-1.32M	-1.13M	-2.04M	-2.69M	-2.74M	-2.85M
Balance Sheet
Total Assets	14.23M	15.59M	11.14M	13.46M	16.05M	18.24M
Cash, Cash Equivalents and Short-Term Investments	2.89M	2.59M	1.67M	2.57M	4.27M	4.83M
Total Debt	3.80M	4.01M	4.82M	7.74M	8.51M	9.31M
Total Liabilities	12.16M	12.81M	8.89M	12.26M	12.56M	13.61M
Stockholders Equity	2.07M	2.78M	2.20M	1.15M	3.45M	4.59M
Cash Flow
Free Cash Flow	2.25M	1.64M	-488.00K	-1.18M	-1.79M	-1.85M
Operating Cash Flow	2.73M	2.21M	-365.00K	-984.00K	-1.51M	-1.74M
Investing Cash Flow	-474.00K	-595.00K	-101.00K	-321.00K	-113.00K	159.00K
Financing Cash Flow	-494.00K	-622.00K	-449.00K	-456.00K	490.00K	3.99M

SemiLEDs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.94
• 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 LEDS, the sentiment is Negative. The current price of 1.94 is above the 20-day moving average (MA) of 1.64, above the 50-day MA of 1.75, and below the 200-day MA of 2.16, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 37.73 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VLN	56 Neutral	$156.62M	-5.29	-23.56%	―	7.53%	-15.00%
PRSO	54 Neutral	$8.06M	-0.92	-180.20%	―	2.15%	94.29%
TRT	54 Neutral	$40.34M	-222.71	0.84%	―	0.10%	-54.98%
PXLW	49 Neutral	$37.26M	-1.26	―	―	-38.72%	16.01%
LEDS	47 Neutral	$12.83M	-10.34	-45.37%	―	729.81%	61.92%
GCTS	44 Neutral	$75.37M	-1.73	―	―	-46.98%	-186.82%

SemiLEDs Corporate Events

SemiLEDs Receives Nasdaq Notice Over Listing Compliance

On January 30, 2026, SemiLEDs received a notice from The NASDAQ Stock Market that it no longer meets the minimum $2,500,000 stockholders’ equity requirement for continued listing under Listing Rule 5550(b)(1), and also fails to satisfy the alternative criteria based on market value of listed securities or net income from continuing operations. The company has 45 calendar days from that date to submit a plan to regain compliance and, if NASDAQ accepts the plan, SemiLEDs could receive an extension of up to 180 calendar days from January 30, 2026 to restore compliance, putting its continued listing status under review and creating uncertainty for shareholders and other stakeholders.

The most recent analyst rating on (LEDS) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on SemiLEDs stock, see the LEDS Stock Forecast page.

SemiLEDs Extends Insider Loan, Adds Stock Repayment Option

On January 8, 2019, SemiLEDs entered into secured loan agreements totaling $3.2 million with Chairman and CEO Trung Doan and its then-largest shareholder J.R. Simplot Company, later assigned to Simplot Taiwan Inc., at an annual interest rate of 8% and secured by a second priority lien on the company’s headquarters building. Since then, through a series of amendments dated between January 16, 2021, and January 15, 2026, the company has repeatedly extended the loans’ maturities—most recently to January 15, 2027—while progressively adding flexibility to repay principal and accrued interest with newly issued common stock, capitalizing $364,924.63 of unpaid interest into Simplot Taiwan’s loan and enabling up to $1.2 million of debt to be settled in equity, moves that ease near‑term cash obligations but increase potential dilution for shareholders and underscore SemiLEDs’ ongoing reliance on insider and major-shareholder financing.

The most recent analyst rating on (LEDS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on SemiLEDs stock, see the LEDS Stock Forecast page.