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SemiLEDs Corporation (LEDS)
:LEDS
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SemiLEDs (LEDS) AI Stock Analysis

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LEDS

SemiLEDs

(NASDAQ:LEDS)

Rating:48Neutral
Price Target:
$2.00
▲(17.65% Upside)
The overall score reflects significant financial challenges, including negative profitability and high leverage, despite some improvements in cash flow. Technical indicators suggest a bearish trend, and valuation metrics indicate the stock is overvalued. Shareholder confidence in leadership is a positive factor but does not outweigh the financial and technical concerns.

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 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 shows mixed financial performance with declining revenues and negative profitability. Despite improvements in cash flow, the company faces challenges with high leverage and operational inefficiencies.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue31.11M5.18M5.98M7.05M4.74M6.07M
Gross Profit2.35M1.05M1.01M1.40M1.03M1.59M
EBITDA-467.00K-1.17M-1.40M-1.42M-1.59M654.00K
Net Income-496.00K-2.04M-2.69M-1.79M-1.70M1.60M
Balance Sheet
Total Assets23.18M11.14M13.46M16.05M18.24M14.58M
Cash, Cash Equivalents and Short-Term Investments2.52M1.75M2.57M4.27M4.83M2.83M
Total Debt2.48M4.82M7.74M8.51M9.31M7.86M
Total Liabilities19.19M8.89M12.26M12.56M13.61M12.01M
Stockholders Equity3.99M2.20M1.15M3.45M4.59M2.52M
Cash Flow
Free Cash Flow1.54M-488.00K-1.21M-1.80M-1.87M-1.29M
Operating Cash Flow2.15M-365.00K-984.00K-1.51M-1.74M-1.00M
Investing Cash Flow-626.00K-101.00K-321.00K-113.00K159.00K518.00K
Financing Cash Flow-615.00K-449.00K-456.00K490.00K3.99M2.42M

SemiLEDs Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.70
Price Trends
50DMA
2.04
Negative
100DMA
2.26
Negative
200DMA
1.95
Negative
Market Momentum
MACD
-0.06
Negative
RSI
42.23
Neutral
STOCH
17.05
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 1.7 is below the 20-day moving average (MA) of 1.79, below the 50-day MA of 2.04, and below the 200-day MA of 1.95, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 17.05 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 48 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 (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$91.90M40.38-47.86%-20.20%-58.57%
55
Neutral
$143.45M-12.56%-2.63%-78.66%
54
Neutral
$296.22M3.18-13.34%2.78%5.71%-76.50%
51
Neutral
$85.24M-36.97%6.14%1.71%
49
Neutral
$20.04M415.99%32.23%
48
Neutral
$13.98M-14.79%485.62%85.02%
43
Neutral
$46.20M-2911.20%-44.05%-2.33%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LEDS
SemiLEDs
1.70
0.33
24.09%
ASYS
Amtech Systems
6.42
0.27
4.39%
AXTI
AXT
3.11
0.83
36.40%
GSIT
GSI Technology
2.93
-0.13
-4.25%
PXLW
Pixelworks
8.66
1.16
15.47%
SQNS
Sequans Communications S A
0.86
-1.69
-66.27%

SemiLEDs Corporate Events

Shareholder Meetings
SemiLEDs Approves Key Proposals at Annual Meeting
Positive
Sep 2, 2025

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.

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: Sep 02, 2025