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Netlist (NLST)
OTHER OTC:NLST
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Netlist
(OTC:NLST)
47Neutral
Netlist (NLST) vs. S&P 500 (SPY)
Market Cap
$241.08M
Dividend YieldN/A
Average Volume (3M)791.40K
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth112.56%
EPS Growth16.18%
CountryUS
Employees60
SectorTechnology
Sector Strength46
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.21
Shares Outstanding274,573,400
10 Day Avg. Volume338,435
30 Day Avg. Volume791,400
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.06
Price to Cash Flow (P/CF)-21.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.00Price Target Upside122.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Netlist Business Overview & Revenue Model
Company DescriptionNetlist, Inc. designs, manufactures, and markets memory subsystems for the server, high-performance computing, and communications markets in the United States and internationally. It offers HybriDIMM, a storage class memory product, which unifies dynamic random-access memory (DRAM) and NAND flash in a plug-and-play module delivering terabyte storage capacities operating at nanosecond memory speeds. The company also provides nonvolatile (NV) memory products, such as NVvault DDR4 NVDIMM that provides data acceleration and protection in a joint electron device engineering council standard DDR4 interface; and specialty DIMMs and embedded flash products for use in data center and industrial applications. It resells component products, including solid state drive (SSDs), NAND flash, and DRAM products to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products through a direct sales force and a network of independent sales representatives. Netlist, Inc. was incorporated in 2000 and is headquartered in Irvine, California.
How the Company Makes MoneyNetlist generates revenue through the sale of its advanced memory subsystem products, which include a variety of high-performance memory modules designed for servers, workstations, and other computing systems. The company's business model is centered around leveraging its intellectual property and proprietary technologies to create differentiated products that meet the needs of its customers. Key revenue streams include direct sales of memory products to original equipment manufacturers (OEMs) and other technology companies. Additionally, Netlist engages in licensing agreements for its patented technologies, which can provide a significant source of income through royalty payments. The company may also benefit from strategic partnerships and collaborations that help expand its market reach and enhance its product offerings.
Netlist Financial Statement Overview
Summary
Netlist faces significant financial challenges, including consistent negative income and cash flows, high leverage, and operational inefficiencies. The financial instability is primarily due to negative net profit margins, low gross profit margins, and negative equity. Strategic initiatives are needed to improve revenue, reduce costs, and strengthen equity.Income Statement
Netlist's financial performance shows challenges with consistent losses over the years. The TTM data shows a negative net profit margin and declining revenue, indicating financial struggles. The gross profit margin is very low, suggesting high cost of goods sold relative to revenue. The company needs to improve its revenue growth and cost management to enhance profitability.40
Negative
Balance Sheet
The balance sheet reveals high leverage, as shown by negative stockholders' equity in the TTM period, indicating financial distress. The debt-to-equity ratio cannot be calculated due to negative equity, but liabilities exceed assets, which is concerning. Improving the equity position is crucial for better financial stability.35
Negative
Cash Flow
Netlist exhibits negative operating and free cash flows, highlighting cash burn issues. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating operational inefficiencies. The company needs to address cash flow management for future sustainability.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 146.26M | 69.20M | 161.64M | 142.35M | 47.23M | 26.10M | Gross Profit |
| 3.78M | 2.39M | 11.89M | 48.90M | 6.73M | 2.57M | EBIT |
| -23.14M | -61.76M | -33.50M | 11.38M | -6.84M | -11.49M | EBITDA |
| -55.21M | -60.03M | -32.39M | 12.03M | -6.84M | -11.49M | Net Income Common Stockholders |
| -54.39M | -60.40M | -33.37M | 4.83M | -7.27M | -12.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 18.15M | 40.45M | 25.01M | 47.68M | 13.33M | 8.97M | Total Assets |
| 35.82M | 72.80M | 67.32M | 91.18M | 25.27M | 22.14M | Total Debt |
| 1.72M | 5.06M | 7.13M | 9.15M | 20.88M | 19.69M | Net Debt |
| -13.00M | -35.39M | -17.89M | -38.52M | 7.55M | 10.73M | Total Liabilities |
| 10.99M | 49.04M | 40.09M | 37.13M | 27.89M | 30.50M | Stockholders Equity |
| 24.83M | 23.76M | 27.24M | 54.04M | -2.62M | -8.36M |
| Cash Flow | Free Cash Flow | ||||
| -27.03M | -41.60M | -15.46M | 5.49M | -8.18M | -11.57M | Operating Cash Flow |
| -27.03M | -41.60M | -14.99M | 6.01M | -8.13M | -11.48M | Investing Cash Flow |
| -64.00K | 0.00 | -467.00K | -520.00K | -43.00K | -83.00K | Financing Cash Flow |
| 6.29M | 50.84M | 594.00K | 36.47M | 12.99M | 6.63M |
Netlist Technical Analysis
Negative
0.90
Price Trends
0.89
Negative
0.87
Positive
1.03
Negative
Market Momentum
-0.01
Positive
46.18
Neutral
28.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NLST, the sentiment is Negative. The current price of 0.9 is below the 20-day moving average (MA) of 0.94, above the 50-day MA of 0.89, and below the 200-day MA of 1.03, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 28.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NLST.
Netlist Risk Analysis
Netlist disclosed 46 risk factors in its most recent earnings report. Netlist 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
Netlist Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $247.10M | 10.69 | 21.69% | ― | -14.48% | 46.79% | |
61 Neutral | $277.27M | 18.51 | 23.13% | 7.06% | -27.68% | -30.47% | |
60 Neutral | $305.88M | ― | -3.36% | ― | -5.30% | 90.66% | |
59 Neutral | $9.97B | 10.09 | -6.54% | 3.08% | 7.41% | -11.60% | |
47 Neutral | $241.08M | ― | -608.27% | ― | 112.56% | 16.18% | |
37 Underperform | $239.55M | ― | -483.48% | ― | 7.56% | 16.16% |
* Technology Sector Average
Performance Comparison
NLST
Netlist
0.90
-0.48
-34.78%
AEHR
Aehr Test Systems
8.12
-3.02
-27.11%
NVEC
NVE
56.64
-19.66
-25.77%
AIP
Arteris
6.19
-0.46
-6.92%
BZAI
Blaize Holdings
2.51
-8.54
-77.29%
XPER
Xperi Inc
7.03
-2.95
-29.56%
Netlist Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -15.09% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call highlights Netlist's significant revenue growth, successful legal outcomes, and strong product introductions, despite facing short-term market challenges. The company's financial stability and strategic advancements in IP position it well for future growth.Highlights
Record Revenue Growth
Netlist's revenue more than doubled to $147 million in 2024, reflecting a 113% increase compared to the previous year, driven by recovery in the memory market.
Legal Victories Against Samsung
Netlist secured a second unanimous jury verdict confirming Samsung's breach of the joint development and license agreement, resulting in a total of $421 million in damages awarded across multiple cases.
Introduction of New Products
Netlist introduced the Lightning brand of ultra-low latency memory solutions and MRDIMM products, expected to grow significantly in the AI memory market.
Strong Financial Position
Netlist ended 2024 with cash and cash equivalents of $34.6 million and minimal debt, bolstered by a $15 million direct offering and a $10 million working capital line of credit.
Advancements in IP and Legal Team
Netlist increased its patent portfolio by over 10% in 2024 and enhanced its legal team with experienced IP experts.
Lowlights
Short-term Market Softness
The start of 2025 experienced short-term softness in the market, primarily due to reduced consumer demand, affecting Q1 2025 revenue expectations.
Company Guidance
During the Netlist Fourth Quarter 2024 Conference Call, CEO Chuck Hong reported significant achievements and forward-looking guidance. Netlist's revenue more than doubled to $147 million, reflecting a recovery in the memory market, despite some short-term softness expected in early 2025. The company anticipates continued growth driven by trends in high-bandwidth memory (HBM) and DDR5 technologies, with new products like the Lightning ultra-low latency memory solution and MRDIMM for the AI memory market expected to capitalize on these trends. Additionally, Netlist increased its patent portfolio by over 10% and secured $866 million in combined damages from patent infringement cases, emphasizing its strong IP strategy. Financially, Netlist ended 2024 with $34.6 million in cash, bolstered by a $15 million direct offering, and maintained financial flexibility with minimal debt and improved inventory and sales cycles.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.