SemiLEDs (LEDS) AI Stock Analysis

• Market Cap: $23.73M
• Dividend Yield: N/A
• Average Volume (3M): 63.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 160.76%
• EPS Growth: 74.71%
• Country: US
• Employees: 116
• Sector: Technology
• Sector Strength: 79
• Industry: Semiconductors
• EPS (TTM): 0.05
• Shares Outstanding: 8,200,967
• 10 Day Avg. Volume: 62,867
• 30 Day Avg. Volume: 63,667
• PEG Ratio: 0.32
• Price to Book (P/B): 7.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.01
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 8.19
• Enterprise Value/Ebitda: -3.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: $3.00 ▲(9.09%Upside)

SemiLEDs' stock score is primarily influenced by its financial challenges, including negative profitability and high leverage. Despite these issues, technical indicators show strong bullish trends, which partially offset the financial risks. Valuation concerns remain due to the negative P/E ratio and lack of dividend yield.

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 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

The financial performance of SemiLEDs is challenged by persistent negative net income and EBIT margins. Despite slight improvements in gross profit margin and cash flow, the company continues to struggle with profitability and has a high debt-to-equity ratio, indicating financial risks.

Income Statement

The income statement reveals significant challenges, with negative net income and EBIT margins over the years. The TTM period shows a slight improvement in gross profit margin to 13.26% from prior periods, but overall revenue growth has been inconsistent, and net losses persist. The company has struggled with profitability as indicated by negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 0.83 in the TTM period, indicating a substantial reliance on debt financing, although it has improved from previous years. Stockholders' equity has shown some recovery, but remains low relative to total liabilities, suggesting potential financial risk.

Cash Flow

Cash flow analysis shows a positive turn in operating cash flow and free cash flow in the TTM period, indicating better liquidity management. The free cash flow to net income ratio improved significantly, although historical cash flow has been volatile with negative figures in prior years.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
14.78M	5.18M	5.98M	7.05M	4.74M	6.07M
	Gross Profit
1.96M	1.05M	1.01M	1.40M	1.03M	1.59M
	EBIT
-1.84M	-2.95M	-3.40M	-3.40M	-4.20M	-2.76M
	EBITDA
-519.00K	-1.17M	-1.40M	-1.42M	-1.59M	654.00K
	Net Income Common Stockholders
-1.04M	-2.04M	-2.69M	-1.79M	-1.70M	1.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.38M	1.75M	2.57M	4.27M	4.83M	2.83M
	Total Assets
23.19M	11.14M	13.46M	16.05M	18.24M	14.58M
	Total Debt
2.99M	4.82M	7.74M	8.51M	9.31M	7.86M
	Net Debt
603.00K	3.14M	5.17M	4.23M	4.48M	5.03M
	Total Liabilities
19.59M	8.89M	12.26M	12.56M	13.61M	12.01M
	Stockholders Equity
3.60M	2.20M	1.15M	3.45M	4.59M	2.52M
Cash Flow		Free Cash Flow
1.24M	-488.00K	-1.21M	-1.80M	-1.87M	-1.29M
	Operating Cash Flow
1.56M	-365.00K	-984.00K	-1.51M	-1.74M	-1.00M
	Investing Cash Flow
-324.00K	-101.00K	-321.00K	-113.00K	159.00K	518.00K
	Financing Cash Flow
-569.00K	-449.00K	-456.00K	490.00K	3.99M	2.42M

SemiLEDs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEDS, the sentiment is Positive. The current price of 2.75 is below the 20-day moving average (MA) of 2.76, above the 50-day MA of 2.43, and above the 200-day MA of 1.71, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 52.75 is Neutral, neither overbought nor oversold. The STOCH value of 34.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEDS.

SemiLEDs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
AXTI	57 Neutral	$107.17M	―	-9.50%	―	21.44%	-8.49%
LEDS	55 Neutral	$23.73M	―	-31.27%	―	160.76%	74.71%
ASYS	53 Neutral	$62.41M	40.38	-47.90%	―	-16.52%	-46.13%
SQNS	53 Neutral	$48.74M	―	378.21%	―	39.81%	―
GSIT	52 Neutral	$81.67M	―	-33.15%	―	-5.73%	47.83%
PXLW	41 Neutral	$27.38M	―	-2911.20%	―	-47.93%	-37.78%