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Everspin Technologies Inc (MRAM)
NASDAQ:MRAM
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Everspin Technologies
(NASDAQ:MRAM)59Neutral
Positive Factors
Earnings
MRAM's revenue guidance came in above Street expectations.
Product Development
Traction for Everspin's STT product line is picking up driven by several key updates and developments.
Negative Factors
Gross Margin
Gross margin is being brought down as underutilization in the Chandler, Arizona fab persists.
Everspin Technologies (MRAM) vs. S&P 500 (SPY)
Market Cap
$115.80M
Dividend YieldN/A
Average Volume (3M)109.74K
Price to Earnings (P/E)159.5
Beta (1Y)1.01
Revenue Growth-20.96%
EPS Growth-92.24%
CountryUS
Employees83
SectorTechnology
Sector Strength56
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)0.03
Shares Outstanding22,141,045
10 Day Avg. Volume158,196
30 Day Avg. Volume109,743
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.35
Price to Cash Flow (P/CF)7.70
P/FCF Ratio7.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside52.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Everspin Technologies Business Overview & Revenue Model
Company DescriptionEverspin Technologies is a leading provider in the semiconductor industry, specializing in the development, manufacturing, and marketing of Magnetoresistive Random Access Memory (MRAM) products. The company's innovative memory solutions are used in various applications across automotive, industrial, and enterprise storage sectors. Everspin's MRAM technology is known for its high-speed performance, non-volatility, and endurance, which makes it highly suitable for critical data storage and processing needs.
How the Company Makes MoneyEverspin Technologies generates revenue primarily through the sale of its MRAM products to original equipment manufacturers (OEMs) and other industrial clients. The company's key revenue streams include the direct sale of discrete MRAM chips and licensing its MRAM technology to other semiconductor companies. Everspin also engages in partnerships and collaborations with technology firms to integrate its memory solutions into broader systems and devices. This not only diversifies their income but also strengthens their market position by increasing the adoption of MRAM technology across various industries.
Everspin Technologies Financial Statement Overview
Summary
Everspin Technologies shows a balanced financial profile with strong equity stability and some profitability at the net level. However, operational challenges persist, as indicated by negative EBIT and EBITDA margins. Despite revenue decline, the strong balance sheet, low debt-to-equity ratio, and high equity ratio provide a solid foundation. Cash flow management is critical due to negative free cash flow growth.Income Statement
Everspin Technologies has shown improvement in profitability with a positive net income in the most recent year, although there was a notable decline in revenue from the previous year. Gross profit margin stood at 51.8%, and the company recorded a negative EBIT margin of -14.1% indicating operational challenges. The net profit margin was positive at 1.55%, suggesting some profitability at the net level despite operational losses.65
Positive
Balance Sheet
The company's balance sheet shows stability with a strong equity position, evidenced by an equity ratio of 80.4%. The debt-to-equity ratio is low at 0.07, indicating conservative leverage. Return on equity was modest at 1.25%, reflecting the company's efforts to generate returns for shareholders in a challenging environment.78
Positive
Cash Flow
Everspin Technologies experienced a decline in operating cash flow to net income ratio to 9.08, reflecting efficient cash generation relative to net income. The free cash flow growth has been negative, indicating potential challenges in sustaining cash flow generation, but the company maintains positive free cash flow.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 50.40M | 63.77M | 59.98M | 55.15M | 42.03M | Gross Profit |
| 26.13M | 37.24M | 33.95M | 33.07M | 18.09M | EBIT |
| -7.09M | 5.88M | 6.23M | 5.04M | -7.56M | EBITDA |
| 2.47M | 7.09M | 7.40M | 6.35M | -5.61M | Net Income Common Stockholders |
| 781.00K | 9.05M | 6.13M | 4.34M | -8.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 42.10M | 36.95M | 26.80M | 21.41M | 14.60M | Total Assets |
| 77.79M | 67.30M | 55.33M | 39.44M | 32.53M | Total Debt |
| 4.64M | 5.58M | 9.30M | 5.75M | 10.40M | Net Debt |
| -37.45M | -31.37M | -17.50M | -15.65M | -4.20M | Total Liabilities |
| 15.20M | 13.38M | 16.67M | 12.21M | 15.12M | Stockholders Equity |
| 62.59M | 53.92M | 38.66M | 27.24M | 17.41M |
| Cash Flow | Free Cash Flow | |||
| 4.05M | 11.72M | 6.71M | 8.33M | -3.24M | Operating Cash Flow |
| 7.10M | 13.13M | 9.49M | 9.36M | -2.92M | Investing Cash Flow |
| -3.06M | -1.39M | -2.59M | -1.03M | -320.00K | Financing Cash Flow |
| 1.11M | -1.59M | -1.52M | -1.52M | 3.35M |
Everspin Technologies Technical Analysis
Negative
5.23
Price Trends
6.03
Negative
6.12
Negative
5.99
Negative
Market Momentum
-0.19
Positive
32.45
Neutral
13.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRAM, the sentiment is Negative. The current price of 5.23 is below the 20-day moving average (MA) of 5.66, below the 50-day MA of 6.03, and below the 200-day MA of 5.99, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 32.45 is Neutral, neither overbought nor oversold. The STOCH value of 13.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRAM.
Everspin Technologies Risk Analysis
Everspin Technologies disclosed 30 risk factors in its most recent earnings report. Everspin Technologies 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
Everspin Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.86B | 33.18 | 16.66% | ― | 20.71% | -45.51% | |
67 Neutral | $52.97B | 22.63 | 28.16% | 1.82% | -4.99% | -9.18% | |
67 Neutral | $18.61B | 12.15 | 18.97% | ― | -14.19% | -27.42% | |
63 Neutral | $4.35B | ― | -16.69% | ― | -25.29% | -449.44% | |
59 Neutral | $115.80M | 159.45 | 1.34% | ― | -20.96% | -92.24% | |
58 Neutral | $21.45B | 10.15 | -18.53% | 2.32% | 5.01% | -21.90% | |
48 Neutral | $2.04B | ― | -20.89% | ― | 25.78% | 32.95% |
* Technology Sector Average
Performance Comparison
MRAM
Everspin Technologies
5.23
-3.02
-36.61%
NXPI
NXP Semiconductors
208.84
-44.32
-17.51%
ON
ON Semiconductor
42.86
-39.73
-48.11%
RMBS
Rambus
51.55
-11.85
-18.69%
SLAB
Silicon Laboratories
123.80
-20.88
-14.43%
AMBA
Ambarella
49.62
-5.91
-10.64%
Everspin Technologies Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -8.08% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While Everspin demonstrated strong fourth quarter results, design wins, and partnerships, the full year results showed a decline in revenue, decreased licensing income, and lower gross margins. The guidance for Q1 2025 projects a loss, reflecting ongoing challenges. However, the company's strong cash position and ongoing projects provide a positive outlook for the future.Highlights
Strong Fourth Quarter Performance
Everspin reported fourth quarter revenue of $13.2 million, above expectations, and EPS of $0.05, at the high end of guidance. Strengths in product revenue and RadHard projects contributed to this outperformance.
Significant Design Wins
The company achieved a total of 178 design wins in 2024, demonstrating strong momentum in product adoption across industries such as aerospace, military, and automotive.
Successful Partnership with Lattice Semiconductor
Everspin's 4-megabit to 128-megabit STT-MRAM persist family was validated for configuration across all Lattice Semiconductor FPGAs, enhancing its role as a reliable configuration memory device.
Strong Cash Position
The company ended the quarter with $42.1 million in cash and cash equivalents, up $2.5 million from the previous quarter, maintaining a debt-free status.
Ongoing RadHard Projects
Continued progress on RadHard projects, including a significant contract with Purdue University to advance AI hardware, and ongoing revenue recognition from a $9.25 million Frontgrade Technologies project.
Lowlights
Year-over-Year Revenue Decline
Total revenue for the full year was $50.4 million, down 21% year-over-year due to lower product shipments, particularly in the distribution channel.
Decreased Licensing and Other Revenue
Licensing, royalty, patent, and other revenue in the fourth quarter decreased to $2.2 million from $4.3 million in Q4 '23, attributed to the completion of certain projects.
Lower Gross Margin
GAAP gross margin for the fourth quarter was 51.3%, down from 58.1% in Q4 '23, primarily due to lower volumes.
Projected First Quarter Loss
Guidance for Q1 2025 projects a net loss per basic share between $0.10 and $0.05, due to lower expected other income and typical seasonality.
Company Guidance
In the Everspin Technologies conference call, the management provided guidance for the first quarter of 2025, projecting total revenue in the range of $12 million to $13 million. They anticipate a GAAP net loss per basic share between a loss of $0.10 and $0.05, while on a non-GAAP basis, they expect net loss per basic share to be between $0.05 to break even. The guidance reflects a cautious outlook due to typical seasonality and ongoing inventory adjustments in the Asian markets. Additionally, Everspin plans to shift their non-GAAP metrics from adjusted EBITDA to non-GAAP EPS to better align with industry standards. The call also highlighted the company's strategic focus on scaling their business and converting design wins into revenue, with a particular emphasis on RadHard projects and collaborations, such as the one with Purdue University, which is expected to generate revenue over the four-year duration of the project.Everspin Technologies Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Everspin Technologies Appoints New Chief Financial Officer
Positive
Jan 8, 2025
Everspin Technologies has appointed William Cooper as the new Chief Financial Officer, effective January 6, 2025. With over 20 years of experience in semiconductor finance, Cooper’s leadership is expected to bolster Everspin’s growth and profitability as the company focuses on scaling operations and achieving additional design wins. This strategic hire aims to enhance Everspin’s industry positioning and deliver value to its stakeholders.
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.