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Navitas Semiconductor (NVTS)
NASDAQ:NVTS
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Navitas Semiconductor
(NASDAQ:NVTS)
44Neutral
Positive Factors
Revenue Diversification
Revenue diversification is expected to gain momentum, notably in solar microinverters and GaN in EVs, highlighting new growth opportunities.
Strategic Partnership
The strategic partnership with Infineon could accelerate GaN penetration in automotive and industrial markets, providing a potential positive turn.
Negative Factors
Revenue Guidance
The company is seeing sharp end-market headwinds and is guiding for a near 40% year-over-year decline in revenue.
Navitas Semiconductor (NVTS) vs. S&P 500 (SPY)
Market Cap
$474.46M
Dividend YieldN/A
Average Volume (3M)3.98M
Price to Earnings (P/E)―
Beta (1Y)2.77
Revenue Growth39.04%
EPS Growth42.79%
CountryUS
Employees314
SectorTechnology
Sector Strength54
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)-0.46
Shares Outstanding186,796,500
10 Day Avg. Volume4,121,703
30 Day Avg. Volume3,982,980
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.19
Price to Cash Flow (P/CF)-8.60
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
$3.52Price Target Upside57.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Navitas Semiconductor Business Overview & Revenue Model
Company DescriptionLive Oak Acquisition Corp II is a blank check company.
How the Company Makes MoneyNavitas Semiconductor generates revenue through the sale of its gallium nitride (GaN) power integrated circuits to manufacturers and OEMs in various industries. The company licenses its technology and designs to these clients, who integrate Navitas' GaN solutions into their own products, such as chargers, inverters, and power supplies. Additionally, Navitas benefits from strategic partnerships and collaborations with industry leaders, which help enhance its market presence and expand its technological capabilities. These collaborations may also lead to co-development projects and long-term supply agreements, further contributing to the company's revenue streams.
Navitas Semiconductor Financial Statement Overview
Summary
Navitas Semiconductor shows positive revenue growth but is challenged by ongoing losses and negative cash flows. The balance sheet is strong with high equity and low leverage, supporting future operations, but improving profitability and cash flows is critical.Income Statement
Navitas Semiconductor shows a significant increase in revenue, with TTM revenue growing by 15% from the previous year. However, the company is struggling with profitability, as evident from the negative net income and EBIT margins. The gross profit margin stands at approximately 35%, indicating a decent cost management at the production level, but operational and other costs are impacting overall profitability.45
Neutral
Balance Sheet
The company maintains a strong equity base with an equity ratio of 90.8%. The debt-to-equity ratio is low at 0.02, suggesting prudent leverage management. However, the company faces challenges in generating returns, with a negative ROE due to ongoing losses. The high level of cash and cash equivalents provides a buffer for operational losses.55
Neutral
Cash Flow
Cash flows remain under pressure with negative free cash flow growth and operating cash flows. The significant gap between operating cash flow and net income indicates cash earnings are not yet translating into profitability. The company needs to improve cash generation to support long-term sustainability.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 91.38M | 79.46M | 37.94M | 23.74M | 11.85M | 1.69M | Gross Profit |
| 32.33M | 31.06M | 11.95M | 10.69M | 3.71M | 520.00K | EBIT |
| -118.48M | -118.13M | -120.99M | -68.51M | -18.80M | -17.09M | EBITDA |
| -96.63M | -97.15M | -123.64M | -67.75M | -18.29M | -16.71M | Net Income Common Stockholders |
| -77.32M | -145.43M | 73.91M | -152.69M | -19.04M | -17.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.97M | 152.84M | 110.34M | 268.25M | 38.87M | 5.97M | Total Assets |
| 0.00 | 485.55M | 426.90M | 296.08M | 48.51M | 8.96M | Total Debt |
| 0.00 | 8.54M | 6.57M | 6.92M | 5.97M | 4.80M | Net Debt |
| 5.97M | -144.29M | -103.77M | -261.34M | -32.90M | -1.17M | Total Liabilities |
| 0.00 | 104.93M | 40.42M | 230.06M | 120.93M | 6.29M | Stockholders Equity |
| 2.67M | 380.62M | 382.85M | 66.02M | -72.42M | 2.67M |
| Cash Flow | Free Cash Flow | ||||
| -78.87M | -44.88M | -49.14M | -43.77M | -20.85M | -17.67M | Operating Cash Flow |
| -71.29M | -40.10M | -44.50M | -41.70M | -20.63M | -17.61M | Investing Cash Flow |
| -10.08M | -5.78M | -107.61M | -3.47M | -215.00K | -68.00K | Financing Cash Flow |
| 3.29M | 88.38M | -5.81M | 274.55M | 53.59M | 3.61M |
Navitas Semiconductor Technical Analysis
Negative
2.24
Price Trends
3.04
Negative
2.93
Negative
3.15
Negative
Market Momentum
-0.20
Positive
40.04
Neutral
43.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVTS, the sentiment is Negative. The current price of 2.24 is below the 20-day moving average (MA) of 2.69, below the 50-day MA of 3.04, and below the 200-day MA of 3.15, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 40.04 is Neutral, neither overbought nor oversold. The STOCH value of 43.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVTS.
Navitas Semiconductor Risk Analysis
Navitas Semiconductor disclosed 47 risk factors in its most recent earnings report. Navitas Semiconductor reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Navitas Semiconductor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $27.30B | 15.59 | 68.78% | 0.86% | 21.20% | 311.29% | |
67 Neutral | $18.06B | 11.79 | 18.97% | ― | -14.19% | -27.42% | |
63 Neutral | $3.95B | ― | -16.69% | ― | -25.29% | -449.44% | |
58 Neutral | $21.67B | 10.04 | -18.58% | 2.39% | 5.01% | -23.17% | |
55 Neutral | $6.64B | 245.03 | 0.77% | ― | 9.51% | ― | |
52 Neutral | $844.75M | ― | -128.47% | ― | -10.77% | -27.51% | |
44 Neutral | $474.46M | ― | -23.22% | ― | 39.04% | 42.79% |
* Technology Sector Average
Performance Comparison
NVTS
Navitas Semiconductor
2.24
-2.45
-52.24%
WOLF
Wolfspeed
5.11
-20.92
-80.37%
MPWR
Monolithic Power
571.21
-117.06
-17.01%
ON
ON Semiconductor
42.15
-35.02
-45.38%
SLAB
Silicon Laboratories
120.98
-13.07
-9.75%
QRVO
Qorvo
69.12
-44.46
-39.14%
Navitas Semiconductor Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -22.49% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
Navitas Semiconductor reported strong growth and achievements in its GaN business, design wins, and pipeline expansion, despite facing revenue challenges in certain markets and a decrease in gross margins. The company showed effective cost management and operational efficiency, positioning it well for future growth. However, challenges remain in the solar, industrial, and EV markets, as evidenced by the expected Q1 2025 revenue decline and issues with a silicon carbide distributor.Highlights
Record Revenue Despite Market Slowdown
Navitas Semiconductor achieved an all-time high of $83 million in revenue for 2024 despite a semiconductor industry slowdown, marking a 5% increase from $79.5 million in 2023.
Strong GaN Business Growth
The GaN business segment grew over 50% in 2024, with significant contributions from mobile, consumer, appliance, and initial data center markets.
Significant Design Wins and Pipeline Growth
Navitas secured $450 million in design wins and nearly doubled its customer pipeline from $1.25 billion to $2.4 billion by the end of 2024.
Data Center Segment Expansion
The data center customer pipeline more than doubled to over $165 million from $70 million the previous year, with 40 customer project wins.
EV Sector Achievements
Over 40 design wins in the EV space, including the first GaN design win for an electric vehicle with China's Changan, and a rapid expansion of the EV pipeline to over $900 million.
Cost Management and Operational Efficiency
Operating expenses were reduced to $19.9 million in Q4, showing effective cost management while continuing investment in next-generation technologies.
Lowlights
Revenue Decline in Certain Markets
Sequential revenue decline in Q4 to $18 million due to lower revenues in mobile, consumer, EV, solar, and industrial markets.
Challenges in Solar and Industrial Markets
Continued end-market weakness and inventory correction in solar, industrial, and EV markets expected to affect Q1 2025 revenues.
Silicon Carbide Distributor Challenges
The company disengaged with a silicon carbide distributor, resulting in a one-time $11.6 million expense related to inventory reserve and bad debt.
Lower Gross Margins
Gross margin decreased to 40.4% for 2024 from 41.8% in 2023, primarily due to less favorable market mix.
Company Guidance
In the recent conference call, Navitas Semiconductor provided guidance on its future financial performance and strategic growth areas. For 2025, the company expects a Q1 revenue decline to between $13 million and $15 million due to normal mobile seasonality and ongoing inventory corrections in the solar, industrial, and EV markets. However, a modest recovery is anticipated in Q2, with expectations for healthy growth in the second half of the year, driven by $450 million in design wins from 2024. The design wins, which include a significant presence in the data center and EV sectors, are projected to ramp significantly in 2025 and 2026. Navitas aims for a corporate margin improvement with an eye on achieving a long-term gross margin goal of over 50%. Additionally, they forecast reaching EBITDA breakeven by 2026, facilitated by their streamlined operations and strategic focus on high-growth markets. The company has also reduced operating expenses through workforce and site consolidations, expecting these to stabilize at around $15.5 million per quarter following Q1 2025.Navitas Semiconductor Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Navitas Semiconductor Appoints Dr. Ranbir Singh to Board
Positive
Dec 3, 2024
Navitas Semiconductor has announced the election of Dr. Ranbir Singh, a leader in silicon carbide technology and the founder of GeneSiC Semiconductor, to its board of directors. With extensive experience and numerous accolades in power electronics, Dr. Singh’s appointment is set to drive Navitas’s growth in AI, EV, and mobile markets, leveraging innovative wide band-gap technology. His expertise aligns with Navitas’s mission of advancing clean energy solutions for a sustainable future.
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.