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Pdf Solutions (PDFS)
NASDAQ:PDFS
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PDF Solutions
(NASDAQ:PDFS)
70Outperform
PDF Solutions (PDFS) vs. S&P 500 (SPY)
Market Cap
$741.60M
Dividend YieldN/A
Average Volume (3M)264.96K
Price to Earnings (P/E)183.0
Beta (1Y)1.45
Revenue Growth8.22%
EPS Growth26.42%
CountryUS
Employees539
SectorTechnology
Sector Strength40
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.10
Shares Outstanding39,113,754
10 Day Avg. Volume297,203
30 Day Avg. Volume264,956
Financial Highlights & Ratios
PEG Ratio6.93
Price to Book (P/B)N/A
Price to Sales (P/S)4.53
Price to Cash Flow (P/CF)126.60
P/FCF Ratio126.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.00Price Target Upside102.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
PDF Solutions Business Overview & Revenue Model
Company DescriptionPDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, China, Japan, Taiwan, and internationally. The company offers Exensio software products, such as Manufacturing Analytics that stores collected data in a common environment with a consistent view for enabling product engineers to identify and analyze production yield, performance, reliability, and other issues; Process Control that provides failure detection and classification capabilities for monitoring, alarming, and controlling manufacturing tool sets; Test Operations that offers data collection and analysis capabilities; and Assembly Operations that provides device manufacturers with the capability to link assembly and packaging data, including fabrication and characterization data over the product life cycle. It also provides design-for-inspection (DFI) Systems, such as DFI on-chip instruments; eProbe non-contactless E-beam tool; and Characterization Vehicle (CV) system, which includes CV test chips and pdFasTest electrical testers, as well as Exensio characterization software, designed to analyze the measurements collected from DFI on-chip instruments using the eProbe tool. In addition, the company offers Cimetrix software products that enables equipment manufacturers to provide industry standard interfaces on their products; and software-as-a-service, software related services, and characterization services. It sells its technologies and services through direct sales force, service teams, and strategic alliances to integrated device manufacturers, fabless semiconductor companies, foundries, equipment manufacturers, electronics manufacturing suppliers, original device manufacturers, out-sourced semiconductor assembly and test, and system houses. The company was founded in 1991 and is headquartered in Santa Clara, California.
How the Company Makes MoneyPDF Solutions generates revenue primarily through the sale of its software products and services, which include licensing fees for its Exensio platform and DFI solutions. The company also earns income from professional services, maintenance contracts, and customer support. Additionally, PDF Solutions partners with semiconductor manufacturers and foundries, which can lead to joint development projects and collaborations that contribute to its revenue streams. These partnerships are crucial in integrating PDF Solutions' technologies into the manufacturing processes of its clients, thereby driving demand and ensuring long-term engagements.
PDF Solutions Financial Statement Overview
Summary
PDF Solutions has shown impressive revenue growth and improvement in profitability, with a strong balance sheet characterized by low leverage and a robust equity base. However, cash flow management remains an area for improvement due to fluctuating free cash flow.Income Statement
PDF Solutions has shown strong revenue growth over the past few years, increasing from $88.05M in 2020 to $179.47M in 2024, with a significant increase in gross profit margin from 58.25% in 2020 to 69.83% in 2024. The net profit margin has improved from negative in previous years to 5.07% in 2024, indicating a turnaround in profitability. EBIT and EBITDA margins are still low, suggesting room for improvement in operational efficiency.85
Very Positive
Balance Sheet
The company maintains a strong equity position, with an equity ratio of 78.03% in 2024, indicating financial stability. The debt-to-equity ratio remains low at 0.02, reflecting prudent financial management. The return on equity has improved to 3.70% in 2024, showing better utilization of shareholder funds, although there is potential for further enhancement.78
Positive
Cash Flow
Free cash flow has fluctuated, with a shift from $3.13M in 2023 to negative $7.45M in 2024, raising concerns about cash generation. Operating cash flow to net income ratio is slightly above 1, indicating adequate cash generation relative to net income, but the free cash flow to net income ratio is negative, suggesting pressure on liquidity.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 179.47M | 165.84M | 148.55M | 111.06M | 88.05M | Gross Profit |
| 125.32M | 114.09M | 100.64M | 66.87M | 51.28M | EBIT |
| 1.83M | -1.13M | -2.09M | -12.63M | -16.79M | EBITDA |
| 7.79M | 8.39M | 6.92M | -6.26M | -9.89M | Net Income Common Stockholders |
| 4.06M | 3.10M | -3.43M | -21.49M | -40.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 114.89M | 135.52M | 139.18M | 140.23M | 145.30M | Total Assets |
| 315.29M | 290.14M | 278.67M | 273.77M | 287.58M | Total Debt |
| 5.18M | 6.19M | 7.34M | 7.02M | 8.44M | Net Debt |
| -85.42M | -92.79M | -112.28M | -20.67M | -21.87M | Total Liabilities |
| 69.25M | 61.19M | 68.66M | 54.18M | 53.07M | Stockholders Equity |
| 246.04M | 228.95M | 210.01M | 219.59M | 234.51M |
| Cash Flow | Free Cash Flow | |||
| -7.45M | 3.13M | 23.72M | 190.00K | 14.81M | Operating Cash Flow |
| 9.70M | 14.60M | 32.30M | 4.24M | 21.78M | Investing Cash Flow |
| -5.94M | -28.99M | 84.60M | -4.67M | -150.50M | Financing Cash Flow |
| -11.23M | -5.89M | -24.31M | -5.53M | 64.80M |
PDF Solutions Technical Analysis
Negative
17.79
Price Trends
22.53
Negative
25.90
Negative
28.92
Negative
Market Momentum
-1.13
Positive
31.51
Neutral
14.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDFS, the sentiment is Negative. The current price of 17.79 is below the 20-day moving average (MA) of 19.79, below the 50-day MA of 22.53, and below the 200-day MA of 28.92, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 31.51 is Neutral, neither overbought nor oversold. The STOCH value of 14.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PDFS.
PDF Solutions Risk Analysis
PDF Solutions disclosed 33 risk factors in its most recent earnings report. PDF Solutions reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PDF Solutions Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $741.60M | 183.01 | 1.71% | ― | 8.22% | 26.42% | |
62 Neutral | $893.60M | 416.47 | 3.87% | ― | 29.74% | ― | |
61 Neutral | $727.58M | ― | -7.99% | ― | 10.05% | 39.55% | |
57 Neutral | $20.31B | 10.03 | -14.49% | 2.79% | 5.15% | -23.76% | |
57 Neutral | $820.19M | ― | 29.80% | ― | 8.78% | 64.31% | |
56 Neutral | $774.47M | ― | -38.85% | ― | 19.85% | 13.78% | |
48 Neutral | $603.39M | ― | 75.95% | ― | 1.75% | 72.30% |
* Technology Sector Average
Performance Comparison
PDFS
PDF Solutions
17.79
-15.51
-46.58%
PRO
PROS Holdings
16.53
-20.00
-54.75%
PRCH
Porch Group
5.38
1.24
29.95%
DSP
Viant Technology
13.26
3.76
39.58%
RSKD
Riskified
4.27
-1.04
-19.59%
WEAV
Weave Communications
9.72
-2.27
-18.93%
PDF Solutions Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -36.65% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, with strong revenue growth, successful product conversions, and positive cash flow. However, challenges include a decline in certain revenue streams, high expenses, and potential revenue lumpiness in future quarters.Highlights
Strong Revenue Growth
Revenue for the second half of 2024 was up 16% compared to the same period in 2023, and up 22% for the fourth quarter. Total revenues for 2024 reached a record $179.5 million, an 8% increase from $165.8 million in 2023.
Successful eProbe Conversion
The manufacturing evaluation of the eProbe converted to revenue in Q4 2024, marking sales to three major leading-edge global semiconductor companies.
Record Analytics Revenue
Analytics revenue grew 22% in Q4 year-over-year and 11% for the full year 2024, accounting for 96% of total Q4 revenue and 94% for the year.
Positive Operating Cash Flow
Generated positive operating cash flow of approximately $10 million in 2024.
AI Executive Workshop Success
Hosted an AI executive workshop attended by 140 external attendees from over 75 organizations, receiving positive feedback on the focus on tangible applications and range of speakers.
Lowlights
Decline in Gainshare Revenue
IYR revenue has declined in recent years, although it's expected to recover in 2025 with new manufacturing volumes in Asia.
High SG&A Expenses
Sales and marketing and G&A expenses increased by 16% year-over-year, driven by increased customer presales activity and ongoing litigation expenses.
Accounts Receivable Concerns
Elevated accounts receivable balance noted at the end of the quarter, impacting cash flow, although the company is optimistic about collections.
Potential Revenue Lumpiness
Anticipated lumpiness in revenue quarter to quarter due to the timing of eProbe machine sales and conversions.
Company Guidance
During the conference call discussing PDF Solutions, Inc.'s financial results for the fourth quarter and full year 2024, several key metrics were highlighted. The company reported record total revenues of $179.5 million for 2024, marking an 8% increase from 2023, with Q4 alone seeing a 22% year-over-year growth to $50.1 million. Analytics revenue grew 22% in Q4 and 11% for the year, accounting for 96% of total Q4 revenue. The company also noted a gross margin of 72% for Q4 and 74% for the full year, along with an EPS of 25 cents per share for Q4 and 84 cents for the full year. PDF Solutions anticipates a revenue growth rate of approximately 15% for 2025, driven by strong interest in their DFI eProbe systems and various advanced applications, although they acknowledged potential revenue lumpiness due to the timing of eProbe sales.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.