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Pixelworks (PXLW)
NASDAQ:PXLW
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Pixelworks
(NASDAQ:PXLW)
43Neutral
Pixelworks (PXLW) vs. S&P 500 (SPY)
Market Cap
$40.44M
Dividend YieldN/A
Average Volume (3M)298.48K
Price to Earnings (P/E)―
Beta (1Y)1.97
Revenue Growth-27.60%
EPS Growth-5.44%
CountryUS
Employees196
SectorTechnology
Sector Strength44
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.49
Shares Outstanding62,943,542
10 Day Avg. Volume206,563
30 Day Avg. Volume298,475
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.06
Price to Cash Flow (P/CF)-2.00
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
$1.75Price Target Upside177.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Pixelworks Business Overview & Revenue Model
Company DescriptionPixelworks, Inc., together with its subsidiaries, develops and markets semiconductor and software solutions for mobile, home entertainment, content, and business and education markets. The company provides video display processor products, including image processor integrated circuits, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; video co-processor integrated circuits that work with an image processor to post-process video signals to enhance the performance or feature set of the overall video solution; and transcoder integrated circuits, which comprise embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing for converting bitrates, resolutions, and codecs. As of March 31, 2022, it had an intellectual property portfolio of 334 patents related to the visual display of digital image data. The company sells its through a direct sales force, distributors, and manufacturers' representatives in Japan, China, Taiwan, the United States, Europe, and Korea. Pixelworks, Inc. was incorporated in 1997 and is based in Portland, Oregon.
How the Company Makes MoneyPixelworks generates revenue through the sale of its semiconductor products and licensing of its visual processing solutions to OEMs and other technology companies. The company's key revenue streams include the sale of its integrated circuits and chips that are embedded in consumer electronics to enhance display quality. Additionally, Pixelworks licenses its proprietary software and algorithms, which enable advanced video processing capabilities, to manufacturers of smartphones, tablets, and projectors. The company also benefits from strategic partnerships with leading technology firms, which help to drive the adoption of its solutions across various platforms and enhance its market presence. Moreover, Pixelworks may engage in collaborative projects and joint ventures to further expand its technology applications and revenue opportunities.
Pixelworks Financial Statement Overview
Summary
Pixelworks is experiencing significant financial challenges with declining revenues, persistent net losses, and a strained balance sheet marked by negative equity. Despite some efficiency in cost management, the overall financial indicators suggest a need for strategic improvements.Income Statement
Pixelworks has shown a declining trend in revenue over recent years, with a significant drop from $59.68M in 2023 to $43.21M in 2024. The gross profit margin has decreased from 43.09% in 2023 to 51.58% in 2024, indicating some efficiency in cost management despite revenue losses. However, consistent net losses and negative EBIT margins suggest ongoing profitability challenges. The net profit margin has worsened, reflecting deeper losses relative to revenue.45
Neutral
Balance Sheet
The balance sheet reveals financial strain, with stockholders' equity turning negative in 2024. The debt-to-equity ratio is not meaningful due to negative equity, and there's a high level of liabilities compared to assets. The declining equity ratio, from 32.88% in 2023 to negative, underlines financial instability and risk. While total debt has decreased, the overall financial position remains weak.30
Negative
Cash Flow
Operating cash flows have consistently been negative, with a slight increase in cash flow deficit in 2024. Free cash flow has deteriorated, driven by declining revenues and continued capital expenditures. The operating cash flow to net income ratio remains unfavorable, indicating cash flow challenges despite smaller capital investments.40
Negative
| 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 | EBIT |
| -31.36M | -28.64M | -16.82M | -20.00M | -24.70M | EBITDA |
| -25.21M | -22.27M | -11.32M | -15.24M | -20.46M | Net Income Common Stockholders |
| -28.72M | -26.18M | -15.23M | -19.41M | -26.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 23.65M | 47.54M | 56.82M | 61.59M | 31.51M | Total Assets |
| 64.07M | 95.97M | 102.32M | 106.60M | 72.04M | Total Debt |
| 1.45M | 4.95M | 3.54M | 2.85M | 5.09M | Net Debt |
| -22.20M | -42.60M | -53.28M | -58.73M | -26.17M | 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
Negative
0.63
Price Trends
0.77
Negative
0.76
Negative
0.79
Negative
Market Momentum
-0.02
Positive
37.51
Neutral
18.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PXLW, the sentiment is Negative. The current price of 0.63 is below the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.77, and below the 200-day MA of 0.79, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 37.51 is Neutral, neither overbought nor oversold. The STOCH value of 18.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PXLW.
Pixelworks Risk Analysis
Pixelworks disclosed 59 risk factors in its most recent earnings report. Pixelworks 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
Pixelworks Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.32B | 16.55 | 9.11% | 3.71% | -4.43% | 56.02% | |
73 Outperform | $6.89B | 31.22 | 14.46% | 1.10% | 12.36% | 9.70% | |
57 Neutral | $20.97B | 10.32 | -14.01% | 2.49% | 4.46% | -23.38% | |
56 Neutral | $249.45M | 7.37 | 29.19% | 2.14% | ― | ― | |
54 Neutral | $2.47B | 15.08 | 13.01% | ― | -1.85% | ― | |
46 Neutral | $2.11B | ― | -20.89% | ― | 25.78% | 32.95% | |
43 Neutral | $40.44M | ― | -2911.20% | ― | -27.60% | -5.44% |
* Technology Sector Average
Performance Comparison
PXLW
Pixelworks
0.63
-1.90
-75.10%
HIMX
Himax Technologies
7.35
2.18
42.17%
IMMR
Immersion
7.58
0.63
9.06%
SYNA
Synaptics
63.72
-31.17
-32.85%
OLED
Universal Display
139.48
-23.47
-14.40%
AMBA
Ambarella
50.33
1.36
2.78%
Pixelworks Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -23.17% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in the TrueCut Motion platform and cost reduction efforts, but was overshadowed by revenue decline and challenges in the mobile segment. The strategic review process may provide future opportunities.Highlights
TrueCut Motion Platform Progress
Pixelworks achieved significant ecosystem milestones for its TrueCut Motion platform, including agreements with major studios like Walt Disney and Universal Pictures. The platform is gaining momentum with commitments for additional theatrical releases and discussions with major device brands for future incorporation.
Gross Margin Improvement
Non-GAAP gross profit margin improved 350 basis points sequentially to 54.8% and increased 1,000 basis points compared to the fourth quarter of 2023, reflecting favorable product mix and focus on healthy margins.
Cost Reduction Efforts
Operating expenses decreased due to previously implemented cost reduction measures, with plans for further reductions contributing to a projected $10 million decrease in operating expenses for the full year of 2025.
Strategic Review Process
Pixelworks is engaged in a strategic review process for its Shanghai subsidiary with Morgan Stanley, receiving vetted indications of interest from multiple parties.
Lowlights
Revenue Decline
Fourth quarter 2024 revenue was $9.1 million, down from $9.5 million in the third quarter and $20.1 million in the fourth quarter of 2023, primarily due to near-term headwinds in the mobile segment.
Mobile Revenue Challenges
Mobile revenue remained low at approximately $550,000, reflecting ongoing headwinds in the segment, impacting the overall financial performance.
Net Loss Increase
Non-GAAP net loss for the fourth quarter of 2024 was $4.3 million, compared to $7.1 million in the prior quarter and $2.6 million in the fourth quarter of 2023, indicating continued financial challenges.
Company Guidance
During Pixelworks, Inc.'s Fourth Quarter 2024 Earnings Conference Call, management provided guidance for the first quarter of 2025, projecting total revenue between $7 million and $8 million. They expect non-GAAP gross profit margins to range from 49% to 51%, reflecting anticipated product mix and lower overhead absorption. Non-GAAP operating expenses are forecasted to be between $10 million and $11 million. The company anticipates non-GAAP EPS to range between a loss of $0.13 and a loss of $0.10 per share. Management highlighted various strategic initiatives, including potential IP licensing and ASIC design services, and expressed optimism about growth in mobile revenue and progress in the TrueCut Motion platform's adoption.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.