SemiLEDs (LEDS) AI Stock Analysis

• Market Cap: $16.26M
• 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): -0.09
• 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: 0.84
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 6.25
• Enterprise Value/Ebitda: -27.47
• 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: 50 Neutral
• Price Target: $2.00 ▲(3.09% Upside)

The score is driven primarily by improving financial performance (revenue growth, reduced leverage, and positive operating/free cash flow) but held back by still-weak profitability and thin margins. Technical signals are mixed with the stock below key longer-term averages, while valuation is constrained by losses (negative P/E). A recent financing-related event adds dilution risk despite near-term liquidity relief.

Positive Factors

Strong revenue growth

Sustained, multi-period revenue growth to $44.3M indicates expanding product adoption and market penetration across end markets. Durable top-line expansion supports scale, investment in R&D and capacity, and increases the company's ability to fund operating improvements without relying solely on external capital.

Positive operating and free cash flow

Consistent positive operating and free cash flow provide structural financial flexibility, enabling reinvestment, debt reduction, and working-capital needs to be met from operations. This reduces dependence on external financing and improves resilience through industry cycles over the medium term.

Lower leverage and reduced debt

Material reduction in debt and a lower debt-to-equity ratio improve solvency and lower fixed financial obligations. A stronger leverage profile provides longer runway for strategic initiatives, reduces bankruptcy risk, and supports the company's ability to negotiate better terms with suppliers and creditors.

Negative Factors

Very thin gross margins

A sub-5% gross margin constrains the firm's ability to generate sustainable operating profits as revenue scales. Low margins leave little buffer for cost inflation or pricing pressure, limit incremental earnings from growth, and force high revenue growth just to achieve modest profitability.

Reliance on insider financing; dilution risk

Repeated loan extensions with options to settle debt via newly issued shares signal dependence on insider funding and raise meaningful dilution risk. Structurally, this can erode shareholder value, complicate capital structures, and indicate limited access to third‑party financing on favorable terms.

Small equity base; vulnerable balance sheet

A modest equity cushion and negative returns on equity leave the balance sheet vulnerable to setbacks. Continued losses could quickly deplete capital, constraining growth investments, increasing financing costs, and limiting ability to withstand demand shocks or unexpected capex needs over the medium term.

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: strong TTM revenue growth and a return to positive operating/free cash flow, plus improved leverage. However, profitability remains weak (very low gross margin and still loss-making), and the balance sheet has relatively small equity, leaving limited cushion if losses persist.

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

SemiLEDs Technical Analysis

• Technical Analysis Sentiment: Neutral
• 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 Neutral. The current price of 1.94 is above the 20-day moving average (MA) of 1.81, below the 50-day MA of 2.04, and below the 200-day MA of 2.22, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.29 is Neutral, neither overbought nor oversold. The STOCH value of 65.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
TRT	59 Neutral	$59.17M	218.24	0.84%	―	0.10%	-54.98%
VLN	58 Neutral	$213.94M	-7.23	-23.56%	―	7.53%	-15.00%
LEDS	50 Neutral	$16.26M	-13.08	-45.37%	―	729.81%	61.92%
PXLW	47 Neutral	$42.73M	-1.47	―	―	-38.72%	16.01%
PRSO	46 Neutral	$9.56M	-1.06	-180.20%	―	2.15%	94.29%
GCTS	43 Neutral	$63.38M	-1.42	―	―	-46.98%	-186.82%

SemiLEDs Corporate Events

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.