Netlist (NLST) AI Stock Analysis

• Market Cap: $261.61M
• Dividend Yield: N/A
• Average Volume (3M): 488.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 18.19%
• EPS Growth: 43.04%
• Country: US
• Employees: 60
• Sector: Technology
• Sector Strength: 85
• Industry: Semiconductors
• EPS (TTM): -0.02
• Shares Outstanding: 292,626,920
• 10 Day Avg. Volume: 353,744
• 30 Day Avg. Volume: 488,939
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 38.97
• Enterprise Value/Ebitda: -4.13
• 1Y Price Target: $2.00
• Price Target Upside: 119.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: ―

Netlist's overall stock score is primarily influenced by its financial performance challenges, including significant profitability and cash flow issues. The company's technical indicators suggest a bearish trend, further weighing down the score. However, the earnings call provided a more positive outlook with strong revenue growth and strategic advancements, slightly elevating the overall score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand for Netlist's products and suggests successful execution of its business strategy, positioning the company for continued expansion in the memory market.

Product Innovation

New product introductions in high-growth areas like AI memory markets demonstrate Netlist's commitment to innovation and its ability to capitalize on emerging technology trends, enhancing its competitive position.

Intellectual Property Strength

Expanding the patent portfolio strengthens Netlist's IP position, providing a competitive edge and potential revenue through licensing, while protecting its innovations from competitors.

Negative Factors

Profitability Challenges

Persistent profitability issues indicate operational inefficiencies and high costs, which could hinder long-term financial stability and limit the company's ability to reinvest in growth opportunities.

High Financial Leverage

High financial leverage and negative equity suggest potential financial instability, which could restrict Netlist's ability to secure additional financing and impact its long-term operational flexibility.

Cash Flow Issues

Ongoing cash flow challenges highlight difficulties in generating sufficient cash from operations, which could affect Netlist's ability to fund its growth initiatives and meet financial obligations.

Netlist Business Overview & Revenue Model

Company Description

Netlist, Inc. (NLST) is a company that operates within the technology sector, primarily focusing on the design, manufacture, and sale of high-performance memory subsystems. These products are crucial for a range of applications including data centers, cloud computing, and enterprise storage systems. Netlist is known for its innovative memory solutions that enhance the performance and efficiency of computing systems, catering to the demands of data-intensive applications.

How the Company Makes Money

Netlist 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 operates in the volatile semiconductor industry, facing significant profitability and cash flow challenges. Despite recent revenue growth, the company struggles with operational inefficiencies and high financial leverage. Sustained negative margins and cash flows highlight the need for strategic improvements to stabilize financial performance.

Income Statement

Netlist has seen fluctuating revenue trends with recent growth, but profitability remains a challenge. The Gross Profit Margin is low at around 2%, and Net Profit Margin is deeply negative due to significant net losses. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and high expenses relative to revenue.

Balance Sheet

The company's balance sheet reflects high financial leverage with a negative stockholders' equity, indicating more liabilities than assets. The Debt-to-Equity ratio cannot be calculated due to negative equity, and there is a negative Return on Equity due to persistent losses. This suggests potential financial instability and risk.

Cash Flow

Netlist's cash flow situation is concerning, with consistently negative Free Cash Flow and Operating Cash Flow. The Free Cash Flow to Net Income ratio is negative due to ongoing losses, indicating cash generation challenges. However, recent financing activities have provided some cash inflow, which is not sustainable long-term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.14M	147.10M	69.20M	161.64M	142.35M	47.23M
Gross Profit	4.09M	2.88M	2.39M	11.89M	48.90M	6.73M
EBITDA	-38.53M	-54.88M	-60.03M	-32.39M	12.53M	-6.69M
Net Income	-37.68M	-53.87M	-60.40M	-33.37M	4.83M	-7.27M
Balance Sheet
Total Assets	41.45M	41.84M	72.80M	67.32M	91.18M	25.27M
Cash, Cash Equivalents and Short-Term Investments	18.44M	22.51M	40.45M	25.01M	47.68M	13.33M
Total Debt	1.62M	2.52M	5.06M	7.13M	9.15M	20.88M
Total Liabilities	48.40M	47.89M	49.04M	40.09M	37.13M	27.89M
Stockholders Equity	-6.96M	-6.05M	23.76M	27.24M	54.04M	-2.62M
Cash Flow
Free Cash Flow	-30.25M	-34.66M	-41.60M	-15.46M	5.49M	-8.18M
Operating Cash Flow	-30.29M	-34.59M	-41.60M	-14.99M	6.01M	-8.13M
Investing Cash Flow	-32.00K	-71.00K	0.00	-467.00K	-520.00K	-43.00K
Financing Cash Flow	22.96M	16.42M	50.84M	594.00K	36.47M	12.99M

Netlist Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NLST, the sentiment is Positive. The current price of 0.91 is above the 20-day moving average (MA) of 0.84, above the 50-day MA of 0.73, and above the 200-day MA of 0.81, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 67.09 is Neutral, neither overbought nor oversold. The STOCH value of 95.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NLST.

Netlist Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEC	74 Outperform	$323.75M	22.27	23.09%	6.06%	-9.22%	-13.57%
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
AEHR	58 Neutral	$789.76M	19.55	-3.34%	―	-10.95%	-111.40%
XPER	49 Neutral	$283.57M	―	-0.92%	―	-6.09%	97.33%
NLST	47 Neutral	$261.61M	―	-608.27%	―	18.19%	43.04%
BZAI	46 Neutral	$342.75M	―	-1405.64%	―	―	-3299.52%
AIP	41 Neutral	$369.35M	―	-1369.57%	―	18.64%	16.54%