SemiLEDs (LEDS) AI Stock Analysis

• Market Cap: $13.65M
• Dividend Yield: N/A
• Average Volume (3M): 33.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 485.62%
• EPS Growth: 85.02%
• Country: US
• Employees: 116
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 0.03
• Shares Outstanding: 8,222,403
• 10 Day Avg. Volume: 28,166
• 30 Day Avg. Volume: 33,059
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 9.84
• Enterprise Value/Ebitda: -49.64
• 1Y Price Target: $1.50
• Price Target Upside: -9.64% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: $1.50 ▼(-9.64% Downside)

SemiLEDs receives a low score due to significant financial challenges and technical weaknesses. The most significant factors include negative profitability, high leverage, and bearish technical indicators. The valuation further reflects these concerns with a negative P/E ratio. Improvements in cash flow are noted but insufficient to offset broader operational inefficiencies.

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 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

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

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

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.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	5.18M	5.98M	7.05M	4.74M	6.07M
Gross Profit	1.05M	1.01M	1.40M	1.03M	1.59M
EBITDA	-1.17M	-1.40M	-1.42M	-1.59M	654.00K
Net Income	-2.04M	-2.69M	-1.79M	-1.70M	1.60M
Balance Sheet
Total Assets	11.14M	13.46M	16.05M	18.24M	14.58M
Cash, Cash Equivalents and Short-Term Investments	1.75M	2.57M	4.27M	4.83M	2.83M
Total Debt	4.82M	7.74M	8.51M	9.31M	7.86M
Total Liabilities	8.89M	12.26M	12.56M	13.61M	12.01M
Stockholders Equity	2.20M	1.15M	3.45M	4.59M	2.52M
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	-113.00K	159.00K	518.00K
Financing Cash Flow	-449.00K	-456.00K	490.00K	3.99M	2.42M

SemiLEDs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.66
• 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 1.66 is below the 20-day moving average (MA) of 1.77, below the 50-day MA of 2.32, and below the 200-day MA of 1.90, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 38.26 is Neutral, neither overbought nor oversold. The STOCH value of 64.37 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
PXLW	52 Neutral	$51.33M	―	-2911.20%	―	-44.05%	-2.33%
Sector *	50 Neutral	C$3.52B	0.35	-5.03%	7.64%	17.01%	-2.22%
GSIT	49 Neutral	$91.34M	―	-36.97%	―	6.14%	1.71%
SQNS	49 Neutral	$30.11M	―	415.99%	―	32.23%	―
ASYS	47 Neutral	$72.29M	40.38	-47.86%	―	-20.20%	-58.57%
AXTI	47 Neutral	$99.63M	―	-12.56%	―	-2.63%	-78.34%
LEDS	42 Neutral	$13.65M	―	-14.79%	―	485.62%	85.02%