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Everspin Technologies Inc (MRAM)
:MRAM
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Everspin Technologies
(NASDAQ:MRAM)
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Rating:68Neutral
Price Target:
$8.50
▲(3.41% Upside)
Everspin Technologies shows strong financial stability and growth potential, particularly in cash flow management and revenue growth across key sectors. However, high valuation metrics and overbought technical indicators suggest caution. The positive earnings call further supports the stock's potential, but profitability challenges remain a concern.
Positive Factors
Strong Cash Flow Management
Robust cash flow management with increased operational cash flow ensures financial flexibility and supports long-term strategic investments.
Growth in Key Sectors
Significant growth in data center and industrial automation sectors indicates strong demand and positions Everspin well in expanding markets.
Strong Balance Sheet
A strong balance sheet with low leverage provides financial stability and the ability to withstand economic fluctuations.
Negative Factors
Profitability Challenges
Ongoing profitability challenges with negative EBIT margins may limit reinvestment capacity and affect long-term growth potential.
Slight Decline in Gross Margin
A slight decline in gross margin could signal increasing cost pressures, impacting profitability and competitive pricing strategies.
Delayed New Product Contributions
Delays in new product contributions may hinder revenue growth and market competitiveness in the near term, affecting strategic positioning.
Everspin Technologies (MRAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$185.98M
Dividend YieldN/A
Average Volume (3M)112.68K
Price to Earnings (P/E)107.0
Beta (1Y)0.99
Revenue Growth-11.27%
EPS Growth-9.20%
CountryUS
Employees86
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.03
Shares Outstanding22,625,107
10 Day Avg. Volume209,908
30 Day Avg. Volume112,678
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.57
Enterprise Value/Revenue2.05
Enterprise Value/Gross Profit4.03
Enterprise Value/Ebitda84.26
Forecast
1Y Price Target
$8.50Price Target Upside3.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Everspin Technologies Business Overview & Revenue Model
Company DescriptionEverspin Technologies, Inc. manufactures and sells magnetoresistive random access memory (MRAM) products in the United States, Hong Kong, Japan, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for embedded MRAM. The company provides its products for applications, including data center, industrial, medical, automotive/transportation, and aerospace markets. It serves original equipment manufacturers and original design manufacturers through a direct sales channel and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.
How the Company Makes MoneyEverspin generates revenue primarily through the sale of its MRAM products, which include both standalone chips and embedded memory solutions. The company has established key partnerships with major players in the semiconductor industry, enabling it to integrate its technology into a variety of applications across automotive, industrial automation, and computing sectors. Significant revenue streams come from direct sales to original equipment manufacturers (OEMs) and distributors, as well as licensing agreements for its proprietary MRAM technology. The company also benefits from government contracts and grants aimed at promoting advanced semiconductor technologies, further contributing to its earnings.
Everspin Technologies Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
Everspin Technologies' earnings call showed positive revenue growth across product lines, significant increases in licensing and other revenue, and improvement in non-GAAP earnings, driven by strong performance in data center and industrial automation sectors. However, there were minor challenges such as a slight decline in gross margin and delayed significant contributions from new products.Q2-2025 Updates
Positive Updates
Strong Revenue Performance
Everspin reported revenue of $13.2 million for Q2 2025, at the high end of their guidance range of $12.5 million to $13.5 million. This reflects strength across all products.
Significant Growth in Licensing and Other Revenue
Licensing, royalty, patent and other revenue increased to $2.1 million in Q2 2025, up from $0.7 million in Q2 2024, driven by the contract with Purdue.
Positive Non-GAAP Earnings
Recorded a non-GAAP net income of $0.7 million or $0.03 per diluted share, a significant improvement from a non-GAAP net loss of $0.6 million or $0.03 per share in Q2 2024.
Strong Cash Flow and Balance Sheet
Cash flow from operations increased to $5.0 million for Q2 2025, up from $1.4 million in Q1, with cash and cash equivalents at $45.0 million, up from $42.2 million in the prior quarter.
Growth in Data Center and Industrial Automation
High single-digit sequential growth in data center business and over 20% growth from the industrial automation sector compared to Q1.
Negative Updates
Slight Decline in Gross Margin
GAAP gross margin was 51.3% for Q2 2025, down slightly from 51.4% in Q1, although up from 49% in Q2 2024.
Challenges in New Product Ramping
New products are not expected to significantly contribute to revenue until later, with full production anticipated in late 2025.
Company Guidance
During the Everspin Technologies Second Quarter 2025 Financial Results Conference Call, the company reported revenue of $13.2 million, achieving the high end of their guidance range of $12.5 million to $13.5 million. Non-GAAP earnings per share were $0.03, reflecting strong performance across all product lines, including data center, industrial automation, and low earth orbit applications. Everspin experienced a high single-digit growth in the data center business and over 20% sequential growth in industrial automation. The company maintained a GAAP gross margin of 51.3% and recorded non-GAAP net income of $0.7 million. Cash and cash equivalents rose to $45.0 million, with cash flow from operations increasing to $5.0 million. Everspin projects third-quarter revenue between $13.5 million and $14.5 million, with non-GAAP net income per share between $0.02 and $0.07. The outlook for 2025 remains positive, with expectations for the second half to be stronger due to typical seasonality.Everspin Technologies Financial Statement Overview
Summary
Everspin Technologies shows a mixed financial performance with strong operational cash flows and a well-capitalized balance sheet. However, challenges in declining revenues and profitability issues are evident, with a negative net profit margin and revenue contraction.Income Statement
Everspin Technologies showed a challenging financial period with a declining revenue trend over the TTM (Trailing-Twelve-Months). The Gross Profit Margin is healthy at 50.3%, but the company is struggling with profitability as indicated by a negative Net Profit Margin of -0.25% and negative EBIT Margin of -17.15%. EBITDA Margin remains slightly positive at 0.70%, highlighting some operational efficiency. Revenue growth has been negative, indicating contraction and pressure on expansion.65
Positive
Balance Sheet
The company has a solid equity position with an Equity Ratio of 78.57%, indicating a strong capitalization structure. The Debt-to-Equity Ratio is low at 0.07, showing a low reliance on debt financing which reduces financial risk. However, Return on Equity is negative, reflecting the impact of negative net income on shareholder returns.72
Positive
Cash Flow
The cash flow situation is moderately positive with an Operating Cash Flow to Net Income Ratio of 79.94, indicating robust cash operations relative to net income. Free Cash Flow to Net Income Ratio stands at 57.43, underscoring positive cash generation capability. However, Free Cash Flow Growth has been inconsistent, showing a decrease in the latest TTM compared to the previous year.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.67M | 50.40M | 63.77M | 59.98M | 55.15M | 42.03M |
| Gross Profit | 26.27M | 26.13M | 37.24M | 33.95M | 33.07M | 18.09M |
| EBITDA | 1.26M | 2.47M | 7.09M | 7.40M | 6.35M | -5.61M |
| Net Income | 1.66M | 781.00K | 9.05M | 6.13M | 4.34M | -8.51M |
Balance Sheet | ||||||
| Total Assets | 78.92M | 77.79M | 67.30M | 55.33M | 39.44M | 32.53M |
| Cash, Cash Equivalents and Short-Term Investments | 44.96M | 42.10M | 36.95M | 26.80M | 21.41M | 14.60M |
| Total Debt | 4.00M | 4.64M | 5.58M | 9.30M | 5.75M | 10.40M |
| Total Liabilities | 14.85M | 15.20M | 13.38M | 16.67M | 12.21M | 15.12M |
| Stockholders Equity | 64.08M | 62.59M | 53.92M | 38.66M | 27.24M | 17.41M |
Cash Flow | ||||||
| Free Cash Flow | 8.40M | 4.05M | 11.72M | 6.71M | 8.33M | -3.24M |
| Operating Cash Flow | 13.13M | 7.10M | 13.13M | 9.49M | 9.36M | -2.92M |
| Investing Cash Flow | -5.70M | -3.06M | -1.39M | -2.59M | -1.03M | -320.00K |
| Financing Cash Flow | 771.00K | 1.11M | -1.59M | -1.52M | -1.52M | 3.35M |
Everspin Technologies Technical Analysis
Positive
8.22
Price Trends
6.65
Positive
6.39
Positive
6.07
Positive
Market Momentum
0.53
Negative
69.84
Neutral
85.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRAM, the sentiment is Positive. The current price of 8.22 is above the 20-day moving average (MA) of 7.18, above the 50-day MA of 6.65, and above the 200-day MA of 6.07, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 69.84 is Neutral, neither overbought nor oversold. The STOCH value of 85.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRAM.
Everspin Technologies Risk Analysis
Everspin Technologies disclosed 26 risk factors in its most recent earnings report. Everspin Technologies 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
Everspin Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 322.06M | 22.32 | 23.81% | 6.01% | -9.22% | -13.57% | |
68 Neutral | $185.98M | 106.97 | 2.76% | ― | -11.27% | -9.20% | |
53 Neutral | 116.65M | -7.41 | -37.69% | ― | 6.14% | 1.71% | |
52 Neutral | 130.34M | -6.23 | -73.51% | ― | -92.34% | 8.99% | |
50 Neutral | 1.46B | -10.54 | -24.31% | ― | -25.65% | -130.95% | |
47 Neutral | 117.83M | -3.53 | -14.16% | ― | 4.09% | 9.30% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
MRAM
Everspin Technologies
8.13
2.23
37.80%
GSIT
GSI Technology
3.81
0.69
22.12%
MX
MagnaChip
3.19
-1.52
-32.27%
NVEC
NVE
66.58
-9.17
-12.11%
ATOM
Atomera
3.91
1.25
46.99%
NVTS
Navitas Semiconductor
6.51
4.07
166.80%
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.