Pixelworks (PXLW) AI Stock Analysis

• Market Cap: $66.41M
• Dividend Yield: N/A
• Average Volume (3M): 68.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -47.93%
• EPS Growth: -37.78%
• Country: US
• Employees: 196
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): -1.32
• Shares Outstanding: 5,246,049
• 10 Day Avg. Volume: 44,726
• 30 Day Avg. Volume: 68,841
• PEG Ratio: 2.02
• Price to Book (P/B): -32.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.54
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: -0.28
• 1Y Price Target: $15.00
• Price Target Upside: 10.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: $14.00 ▲(3.02%Upside)

Pixelworks faces significant financial challenges, with declining revenues and profitability issues. Despite positive technical indicators suggesting bullish momentum, the valuation remains weak due to the company's unprofitability. The earnings call provided a mixed outlook, with some strategic improvements but ongoing financial difficulties.

Positive Factors

Cost Management

Operational expenses are being cut further, which will lower the break-even level.

Partnership Opportunities

TrueCut is in active discussions with three major device brands, indicating potential new partnerships.

Strategic Decisions

The Shanghai subsidiary's strategic process has multiple interested parties, and management believes a strategic decision can be made within 90 days.

Negative Factors

Gross Margin Challenges

The new projector SoC is experiencing growing pains; packaging yields are challenged, lowering GM estimates by approximately 600bps.

Revenue Guidance

Pixelworks delivered results at the low end of the range and guided the topline lower as Mobile recovers more slowly.

Pixelworks Business Overview & Revenue Model

Company Description

Pixelworks, Inc. (PXLW) is a technology company that specializes in the design and development of innovative visual display processing solutions. The company operates within the semiconductor sector and focuses on delivering advanced video and pixel processing technology. Pixelworks provides its technology to a range of industries, including consumer electronics, professional displays, and video streaming services. Its core products include video display processors, transcoders, and software solutions that enhance the visual experience across various devices.

How the Company Makes Money

Pixelworks generates revenue primarily through the sale of its semiconductor products and technology licensing. The company sells its display processing chips to original equipment manufacturers (OEMs) and original design manufacturers (ODMs) who integrate these chips into consumer electronics such as televisions, smartphones, and projectors. Additionally, Pixelworks licenses its video processing technology to other companies, enabling them to incorporate advanced visual processing capabilities into their own products. Significant partnerships with major consumer electronics brands and video streaming services also contribute to Pixelworks' revenue, as these collaborations often lead to increased sales and licensing opportunities.

Pixelworks Financial Statement Overview

Summary

Pixelworks is experiencing significant financial difficulties with declining revenues, negative profitability margins, a deteriorating balance sheet, and negative cash flows. The company's financial health is weak, necessitating strategic restructuring.

Income Statement

Pixelworks has been experiencing declining revenue over the years, with a notable drop in Total Revenue for the TTM (Trailing-Twelve-Months) period compared to previous years. The company has a negative Gross Profit Margin and Net Profit Margin, indicating operational inefficiencies and consistent losses. There is a significant negative EBIT and EBITDA margin, further reflecting the challenges in achieving profitability.

Balance Sheet

The balance sheet reveals high financial risk with a negative Stockholders' Equity, suggesting that liabilities exceed assets and shareholder value is eroded. The Debt-to-Equity ratio is not calculable due to negative equity, but the overall financial position is weak with declining asset base and increasing liabilities.

Cash Flow

Operating Cash Flow is negative, indicating that the company is not generating enough cash to sustain operations from its core activities. The Free Cash Flow is also negative and has worsened over time, highlighting cash management issues. The ratios of Operating and Free Cash Flow to Net Income are not meaningful due to negative figures, showcasing cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.21M	59.68M	70.15M	55.10M	40.85M
Gross Profit	22.29M	25.71M	35.88M	27.69M	20.18M
EBITDA	-25.21M	-22.27M	-11.32M	-15.24M	-20.46M
Net Income	-28.72M	-26.18M	-15.23M	-19.41M	-26.53M
Balance Sheet
Total Assets	64.07M	95.97M	102.32M	106.60M	72.04M
Cash, Cash Equivalents and Short-Term Investments	23.65M	47.54M	56.82M	61.59M	31.51M
Total Debt	3.49M	4.95M	3.54M	2.85M	5.09M
Total Liabilities	24.19M	30.96M	30.07M	35.47M	19.17M
Stockholders Equity	-10.57M	12.54M	32.42M	40.22M	52.87M
Cash Flow
Free Cash Flow	-23.57M	-22.80M	-15.84M	-12.63M	-6.50M
Operating Cash Flow	-19.81M	-18.81M	-12.83M	-9.16M	-3.71M
Investing Cash Flow	-3.12M	-3.99M	-3.01M	-3.23M	3.94M
Financing Cash Flow	-971.00K	13.53M	11.07M	42.71M	23.77M

Pixelworks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PXLW, the sentiment is Positive. The current price of 13.59 is above the 20-day moving average (MA) of 8.44, above the 50-day MA of 7.12, and above the 200-day MA of 8.27, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 83.72 is Negative, neither overbought nor oversold. The STOCH value of 92.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PXLW.

Pixelworks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	¥234.20B	14.80	7.50%	2.60%	9.27%	6.74%
PXLW	57 Neutral	$66.41M	―	-2911.20%	―	-47.93%	-37.78%
ASYS	56 Neutral	$67.28M	40.38	-47.90%	―	-16.52%	-46.13%
SQNS	55 Neutral	$59.41M	―	378.21%	―	39.81%	―
AXTI	53 Neutral	$108.08M	―	-9.50%	―	21.44%	-8.49%
LEDS	43 Neutral	$16.36M	―	-14.79%	―	485.62%	85.02%
WKEY	42 Neutral	$70.06M	―	-51.84%	―	-61.52%	35.64%

Pixelworks Corporate Events

Pixelworks Approves Reverse Stock Split at Shareholder Meeting

On May 23, 2025, Pixelworks, Inc. held its Annual Meeting of Shareholders, where several key proposals were voted on. The shareholders approved a reverse stock split at a ratio of 1-for-12, effective June 6, 2025, impacting the company’s stock trading on Nasdaq. Additionally, amendments to increase shares for the stock incentive plan and executive compensation were approved, along with the appointment of Grant Thornton LLP as the independent auditor. These decisions reflect strategic adjustments to enhance shareholder value and streamline corporate governance.

The most recent analyst rating on (PXLW) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Pixelworks stock, see the PXLW Stock Forecast page.