Spectra7 Micro (SEV) AI Stock Analysis

• Market Cap: $1.59M
• Dividend Yield: N/A
• Average Volume (3M): 188.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -76.27%
• EPS Growth: 17.99%
• Country: CA
• Employees: 30
• Sector: Technology
• Sector Strength: 69
• Industry: Semiconductors
• EPS (TTM): -0.23
• Shares Outstanding: 401,843,000
• 10 Day Avg. Volume: 383,650
• 30 Day Avg. Volume: 188,363
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 8.33
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Spectra7 Microsystems faces significant financial challenges, with declining revenue and negative profitability heavily weighing down its overall score. Technical analysis confirms a bearish market trend, compounded by poor valuation metrics. However, the significant order from Tencent provides a glimmer of hope, suggesting potential future revenue growth and industry relevance. Overall, the stock remains high-risk, with potential for recovery contingent on addressing financial inefficiencies and capitalizing on new opportunities.

Spectra7 Micro Business Overview & Revenue Model

Company Description

Spectra7 Microsystems Inc. (SEV) is a leading provider of high-performance analog semiconductor products designed to deliver unprecedented bandwidth, speed, and resolution in data centers, consumer electronics, and other communication systems. The company focuses on developing innovative cable interconnects that enhance connectivity and support advanced video and data delivery, primarily serving sectors such as data centers, consumer electronics, and virtual reality.

How the Company Makes Money

Spectra7 Microsystems Inc. generates revenue through the design, development, and sale of analog semiconductor products. The company's primary revenue streams include the sale of active cables and interconnect solutions that provide high-speed data transmission for data centers and consumer electronics. Spectra7 partners with cable manufacturers and technology firms to integrate its semiconductor solutions into their products, enabling higher performance and efficiency. Additionally, the company benefits from licensing its technology and intellectual property to other industry players, boosting its income through royalties and licensing fees. Key factors contributing to the company's earnings include its focus on innovation, strategic partnerships with leading technology companies, and a growing demand for high-speed connectivity solutions across various sectors.

Spectra7 Micro Financial Statement Overview

Summary

Spectra7 Micro is facing significant financial difficulties, characterized by declining revenues, persistent losses, and negative cash flows. Despite some improvement in equity, the company remains highly dependent on external financing.

Income Statement

The income statement reveals a challenging financial situation for Spectra7 Micro. The company has experienced a significant decline in revenues from $9.9 million in 2023 to $2.2 million in TTM 2024, indicating a severe negative revenue growth rate. The gross profit margin stands at 41.85% for TTM 2024, which is a positive aspect. However, the company has been incurring substantial losses, with a net profit margin of -844.9% and an EBIT margin of -417.3% in TTM 2024, reflecting ongoing profitability issues.

Balance Sheet

Spectra7 Micro's balance sheet shows some improvement in financial structure, with stockholders' equity reaching $7.6 million in TTM 2024, up from negative equity in previous years. However, the debt-to-equity ratio is low at 0.02, suggesting low financial leverage, but this is partially due to high equity. The equity ratio is 79.1%, indicating a strong equity position relative to assets. Nevertheless, the company has faced significant challenges in managing its debt levels over time.

Cash Flow

The cash flow statement shows negative operating and free cash flows, with operating cash flow at -$6.2 million and free cash flow at -$6.9 million in TTM 2024. This indicates cash outflows and challenges in generating positive cash flow from operations. The cash flow to net income ratio is negative due to persistent net losses. However, a significant inflow from financing activities in TTM 2024 suggests reliance on external funding.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
9.90M	11.29M	5.46M	1.03M	4.64M
	Gross Profit
5.65M	5.66M	3.16M	528.10K	2.57M
	EBIT
-5.13M	-5.21M	-4.69M	-4.25M	-9.16M
	EBITDA
-4.34M	-4.62M	-3.47M	-3.02M	-7.77M
	Net Income Common Stockholders
-8.18M	-7.04M	-5.79M	-6.16M	-11.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
658.58K	772.25K	5.94M	35.25K	71.12K
	Total Assets
8.49M	8.31M	12.22M	949.41K	2.99M
	Total Debt
8.03M	5.73M	6.28M	9.94M	10.70M
	Net Debt
7.38M	4.96M	334.91K	9.90M	10.63M
	Total Liabilities
10.28M	7.73M	8.67M	15.23M	14.82M
	Stockholders Equity
-1.79M	578.91K	3.55M	-14.28M	-11.82M
Cash Flow		Free Cash Flow
-5.57M	-5.14M	-11.05M	-1.53M	-6.52M
	Operating Cash Flow
-4.42M	-4.95M	-10.33M	-1.52M	-5.89M
	Investing Cash Flow
-1.15M	-167.32K	-717.95K	-8.21K	-628.75K
	Financing Cash Flow
5.39M	-246.33K	17.34M	2.16M	5.61M

Spectra7 Micro Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SEV, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.03, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 33.71 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SEV.

Spectra7 Micro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%
PTK	50 Neutral	$470.76M	―	-442.59%	―	-90.88%	-73.60%
KWE	46 Neutral	$3.66M	―	-245.52%	―	116.30%	37.26%
VQS	45 Neutral	C$8.90M	―	-227.19%	―	6.80%	62.78%
SEV	41 Neutral	$1.59M	―	-9999.00%	―	-76.27%	17.99%
DYA	40 Underperform	C$76.06M	―	2492.91%	―	258.52%	-4.87%

Spectra7 Micro Corporate Events

Spectra7 Completes Asset Sale to Parade Technologies and Plans Delisting

Spectra7 Microsystems Inc. has completed the sale of substantially all its assets to Parade Technologies for $9 million. The transaction involves the transfer of intellectual property, products, and other assets, with the net proceeds intended for distribution to shareholders. The company is also delisting its shares from the TSX Venture Exchange, following shareholder approval.

Spark’s Take on TSE:SEV Stock

According to Spark, TipRanks’ AI Analyst, TSE:SEV is a Underperform.

Spectra7 Micro is currently facing considerable financial challenges, including declining revenues and negative cash flows. The technical indicators reinforce a bearish outlook, and the valuation metrics highlight ongoing profitability issues. The company must address these challenges to improve its market position and financial health.

To see Spark’s full report on TSE:SEV stock, click here.

Spectra7 Shareholders Approve Asset Sale to Parade Technologies

Spectra7 Microsystems Inc. announced the approval of its asset sale to Parade Technologies, a move that includes the delisting of its shares from the TSX Venture Exchange, pending final conditions. This strategic transaction, along with the election of new directors and appointment of auditors, signifies a significant shift in the company’s operations and market positioning, potentially impacting shareholders and stakeholders involved.

Spark’s Take on TSE:SEV Stock

According to Spark, TipRanks’ AI Analyst, TSE:SEV is a Underperform.

Spectra7 Micro is currently facing considerable financial challenges, including declining revenues and negative cash flows. The technical indicators reinforce a bearish outlook, and the valuation metrics highlight ongoing profitability issues. The company must address these challenges to improve its market position and financial health.

To see Spark’s full report on TSE:SEV stock, click here.

Spectra7 Announces 2024 Financial Results and Parade Technologies Transaction Update

Spectra7 Microsystems Inc. has filed its 2024 annual financial results and provided an update on its transaction with Parade Technologies. Parade Technologies has agreed to acquire substantially all of Spectra7’s assets for $9 million, with plans for a special distribution of net proceeds to shareholders. The transaction includes a $750,000 bridge loan to maintain operations until closing, and the company anticipates distributing proceeds shortly after the transaction’s completion.

Spark’s Take on TSE:SEV Stock

According to Spark, TipRanks’ AI Analyst, TSE:SEV is a Underperform.

Spectra7 Micro is currently facing considerable financial challenges, including declining revenues and negative cash flows. The technical indicators reinforce a bearish outlook, and the valuation metrics highlight ongoing profitability issues. The company must address these challenges to improve its market position and financial health.

To see Spark’s full report on TSE:SEV stock, click here.

Spectra7 Secures Major Follow-On Order from Tencent for Active Copper Cable Solutions

Spectra7 Microsystems Inc. has announced a major follow-on order for its active copper cable solutions from a key Asia-based datacenter customer, Tencent. The order signifies Spectra7’s 100% market share in the specified application, highlighting its pivotal role in facilitating high-speed, low-latency, and energy-efficient data center operations vital for AI applications. By securing this order, Spectra7 strengthens its industry positioning and partnership with Tencent, underscoring the growing demand for their solutions amidst the shift towards ultra-high bandwidth applications.