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Atomera (ATOM)
NASDAQ:ATOM
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Atomera
(NASDAQ:ATOM)
44Neutral
Atomera (ATOM) vs. S&P 500 (SPY)
Market Cap
$173.17M
Dividend YieldN/A
Average Volume (3M)720.41K
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth-75.45%
EPS Growth15.25%
CountryUS
Employees21
SectorTechnology
Sector Strength51
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)-0.68
Shares Outstanding30,703,865
10 Day Avg. Volume354,152
30 Day Avg. Volume720,415
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1282.74
Price to Cash Flow (P/CF)-14.30
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
$7.00Price Target Upside24.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Atomera Business Overview & Revenue Model
Company DescriptionAtomera, Inc. engages in the development, commercializing, and licensing of proprietary processes and technologies for the semiconductor industry. It developed Mears Silicon Technology, which increases performance and power efficiency in semiconductor transistors. The company was founded by Robert Mears in April 26, 2001 and is headquartered in Los Gatos, CA.
How the Company Makes MoneyAtomera makes money primarily through the licensing of its Mears Silicon Technology (MST) to semiconductor manufacturers. The company enters into licensing agreements where it provides access to its patented technology, allowing manufacturers to incorporate MST into their semiconductor production processes. Revenue is generated from a combination of upfront licensing fees, milestone payments, and royalties based on the volume or value of semiconductor products sold that utilize MST. Key partnerships with leading semiconductor companies play a significant role in driving Atomera's revenue, as these collaborations facilitate the adoption and integration of MST across the industry.
Atomera Financial Statement Overview
Summary
Atomera is struggling financially, with continuous losses impacting profitability and cash flow. Despite low leverage, the inability to generate positive net income or free cash flow raises concerns about its operational efficiency and long-term viability.Income Statement
Atomera's income statement indicates significant challenges with profitability. The gross profit margin has dropped due to decreasing gross profit despite minor revenue growth. The company has consistently reported negative net income, resulting in a negative net profit margin over the years. Although there was a slight revenue increase from the previous year, it has not translated into profitability improvements. The negative EBIT and EBITDA margins further highlight operational inefficiencies and high costs.30
Negative
Balance Sheet
The balance sheet reveals a relatively low debt-to-equity ratio, suggesting manageable leverage. However, the return on equity is negative due to consistent net losses, indicating poor returns to shareholders. The equity ratio remains high, reflecting a stronger reliance on equity financing. Despite this, ongoing losses and declining equity raise concerns about long-term sustainability.45
Neutral
Cash Flow
Atomera's cash flow statement shows persistent negative free cash flow, suggesting operational cash burn. Operating cash flow to net income and free cash flow to net income ratios indicate inefficiencies in converting revenue into cash. While there was a significant inflow from financing activities, it mainly covers operational deficits without contributing to growth investments.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 135.00K | 550.00K | 382.00K | 400.00K | 62.00K | Gross Profit |
| 12.00K | 522.00K | 301.00K | 147.00K | 49.00K | EBIT |
| -19.34M | -20.68M | -17.53M | -15.53M | -14.92M | EBITDA |
| -16.94M | -18.16M | -15.68M | -15.27M | -14.70M | Net Income Common Stockholders |
| -18.43M | -19.79M | -17.36M | -15.71M | -14.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 26.77M | 19.53M | 21.18M | 28.70M | 37.94M | Total Assets |
| 29.12M | 24.03M | 26.73M | 36.06M | 39.40M | Total Debt |
| 1.98M | 3.64M | 4.88M | 6.54M | 692.00K | Net Debt |
| -23.79M | -8.95M | -16.31M | -22.16M | -37.25M | Total Liabilities |
| 4.05M | 5.86M | 6.42M | 7.68M | 2.05M | Stockholders Equity |
| 25.08M | 18.17M | 20.31M | 28.38M | 37.34M |
| Cash Flow | Free Cash Flow | |||
| -13.24M | -14.59M | -12.54M | -12.55M | -12.20M | Operating Cash Flow |
| -13.24M | -14.56M | -12.50M | -12.44M | -12.07M | Investing Cash Flow |
| 6.08M | -6.75M | -39.00K | -109.00K | -131.00K | Financing Cash Flow |
| 20.34M | 12.71M | 5.02M | 3.31M | 35.27M |
Atomera Technical Analysis
Negative
5.64
Price Trends
7.53
Negative
7.50
Negative
5.38
Positive
Market Momentum
-0.43
Negative
43.22
Neutral
43.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATOM, the sentiment is Negative. The current price of 5.64 is below the 20-day moving average (MA) of 5.71, below the 50-day MA of 7.53, and above the 200-day MA of 5.38, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATOM.
Atomera Risk Analysis
Atomera disclosed 24 risk factors in its most recent earnings report. Atomera 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
Atomera Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $97.35B | 23.05 | 50.42% | 1.13% | 13.21% | 27.25% | |
77 Outperform | $93.88B | 29.71 | 96.81% | 0.89% | 12.19% | 20.80% | |
76 Outperform | $123.59B | 19.90 | 35.19% | 1.05% | 4.45% | -10.01% | |
76 Outperform | $277.29B | 34.39 | 48.13% | 0.80% | 2.53% | -3.33% | |
70 Outperform | $6.68B | 33.39 | 11.01% | ― | 21.01% | 65.27% | |
58 Neutral | $21.97B | 10.49 | -18.75% | 2.40% | 4.80% | -25.17% | |
44 Neutral | $173.17M | ― | -85.25% | ― | -75.45% | 15.25% |
* Technology Sector Average
Performance Comparison
ATOM
Atomera
5.64
-0.36
-6.00%
AMAT
Applied Materials
152.12
-54.60
-26.41%
ASML
ASML Holding
716.22
-255.76
-26.31%
KLAC
KLA
706.49
12.95
1.87%
LRCX
Lam Research
77.99
-18.09
-18.83%
ONTO
Onto Innovation
140.92
-43.48
-23.58%
Atomera Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -34.80% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlights Atomera's progress with new customer engagements, advancements in key market segments, and financial stability. However, challenges include stalled negotiations with a transformative customer and delays in STMicro's process timeline, creating a balanced view of opportunities and obstacles.Highlights
Advanced Node and Memory Engagement
Atomera has moved from general discussions to specific engagements with advanced node and memory customers, indicating a higher level of interest and pull from these segments.
STMicro Progress
STMicro is progressing well with design and manufacturability efforts, moving towards process qualification. This step, typically a nine-month process, will lead to production and revenue recognition.
GaN Market Opportunity
Gallium nitride is emerging as a major market opportunity, projected to be a $12 billion market in five years with a 26% annual growth rate. Atomera is hopeful for engagements following recent tests.
Revenue and Financial Stability
Revenue in 2024 was $135,000 with a GAAP net loss of $18.4 million, a decrease from the previous year's loss. Cash reserves increased to $26.8 million, strengthening the balance sheet.
New Customer Engagements
Atomera made progress with several new transformative customers, marking a major milestone in engagement and potential volume production.
Lowlights
Stalled Negotiations with Transformative Customer
Negotiations with a major transformative customer have stalled, delaying potential deal closures and production opportunities.
No Revenue Guidance for Q1 2025
The company does not expect to recognize any revenue in Q1 2025, with timing dependent on wafer shipments and engineering services.
Delay in STMicro Process
The process with STMicro experienced a six-month delay due to logistics issues, potentially extending the timeline for production start.
Company Guidance
During the call, Atomera provided guidance indicating strong progress across various customer categories and markets, despite some setbacks. The company is advancing its MST technology, which promises significant performance improvements in the semiconductor industry, particularly in advanced logic and memory segments. Atomera's market opportunities span several sectors, with the gate-all-around architecture market valued at $150 billion in 2023, the memory segment at over $125 billion in 2024, and the power semiconductor market expected to reach over $52 billion in 2024. Additionally, the GaN market is projected to grow at more than 26% annually, representing a $12 billion opportunity in five years. Atomera reported 2024 revenue of $135,000, a net loss of $18.4 million, and operating expenses of $19.3 million. The company expects non-GAAP operating expenses for 2025 to be in the range of $17 to $18 million, and is focusing on building customer relationships with major industry players, anticipating that these efforts will lead to significant future revenues.Atomera Corporate Events
Executive/Board Changes
Atomera Appoints Shawn Thomas as VP of Marketing
Neutral
Jan 28, 2025
On January 22, 2025, Atomera appointed Shawn Thomas as Vice President of Marketing and Business Development, elevating him to an executive officer role. Mr. Thomas, who joined Atomera in July 2024, previously held significant roles at Applied Materials and GlobalWafers, aligning with Atomera’s market interests.
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.