Spectra7 Micro (SEV) AI Stock Analysis

• Market Cap: $4.26M
• Dividend Yield: N/A
• Average Volume (3M): 125.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -82.55%
• EPS Growth: -121.91%
• Country: CA
• Employees: 30
• Sector: Technology
• Sector Strength: 45
• Industry: Semiconductors and Equipment
• EPS (TTM): -0.41
• Shares Outstanding: 141,910,390
• 10 Day Avg. Volume: 260,581
• 30 Day Avg. Volume: 125,898
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.38
• Price to Cash Flow (P/CF): -0.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• 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 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.

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 speed, bandwidth, and signal fidelity in data transmission. The company specializes in creating innovative solutions that address the needs of data centers, virtual reality, augmented reality, and consumer electronics industries. Spectra7's core products include active cable interconnects and signal processing chips that enhance the performance of high-speed data connections, enabling faster, more efficient data transfer.

How the Company Makes Money

Spectra7 Microsystems generates revenue primarily through the sale of its semiconductor products and solutions to original equipment manufacturers (OEMs) and other technology companies. The company capitalizes on the growing demand for high-speed data transmission solutions in sectors such as data centers, virtual reality, and augmented reality. Spectra7's revenue streams are bolstered by strategic partnerships and collaborations with key players in these industries, allowing the company to integrate its technology into a wide range of applications. Additionally, the company's focus on innovation and development of cutting-edge products helps maintain its competitive position, contributing significantly to its earnings.

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.17M	9.90M	11.29M	5.46M	1.03M	4.64M
	Gross Profit
908.96K	5.65M	5.66M	3.16M	528.10K	2.57M
	EBIT
-9.06M	-5.13M	-5.21M	-4.69M	-4.25M	-9.16M
	EBITDA
-7.79M	-4.34M	-4.62M	-3.47M	-3.02M	-7.77M
	Net Income Common Stockholders
-18.35M	-8.18M	-7.04M	-5.79M	-6.16M	-11.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
932.20K	658.58K	772.25K	5.94M	35.25K	71.12K
	Total Assets
4.26M	8.49M	8.31M	12.22M	949.41K	2.99M
	Total Debt
7.58M	8.03M	5.73M	6.28M	9.94M	10.70M
	Net Debt
6.65M	7.38M	4.96M	334.91K	9.90M	10.63M
	Total Liabilities
11.24M	10.28M	7.73M	8.67M	15.23M	14.82M
	Stockholders Equity
-6.98M	-1.79M	578.91K	3.55M	-14.28M	-11.82M
Cash Flow		Free Cash Flow
-6.86M	-5.57M	-5.14M	-11.05M	-1.53M	-6.52M
	Operating Cash Flow
-6.16M	-4.42M	-4.95M	-10.33M	-1.52M	-5.89M
	Investing Cash Flow
-705.22K	-1.15M	-167.32K	-717.95K	-8.21K	-628.75K
	Financing Cash Flow
15.00M	5.39M	-246.33K	17.34M	2.16M	5.61M

Spectra7 Micro Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 0.03 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.09, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 27.99 is Positive, neither overbought nor oversold. The STOCH value of 8.67 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 *	58 Neutral	$21.35B	10.05	-19.26%	2.35%	5.02%	-22.63%
KWE	45 Neutral	C$6.55M	―	-245.52%	―	116.30%	37.26%
PTK	44 Neutral	$389.39M	―	-161.80%	―	-78.34%	-9.55%
VQS	42 Neutral	C$9.68M	―	-103.49%	―	6.14%	61.43%
SEV	34 Underperform	$4.26M	―	-347.00%	―	-82.55%	-121.91%
DYA	28 Underperform	C$66.48M	―	2492.91%	―	19.47%	-9.09%

Spectra7 Micro Corporate Events

Spectra7 and Keysight Showcase 800Gbps Interconnects

Spectra7 Microsystems and Keysight Technologies are set to showcase advanced performance testing of 800Gbps Active Copper Interconnects at the SC24 conference. The demonstration will feature Spectra7’s cutting-edge silicon technology alongside Keysight’s high-speed Ethernet test system, highlighting significant advancements in AI and data center connectivity.

Spectra7 Names Omar Javaid as New CEO

Spectra7 Microsystems Inc. has appointed Omar Javaid as its new CEO, bringing his extensive experience to steer the company towards growth in the AI and data center markets. The company is expanding its engagements with data center customers, focusing on its 112Gbps and forthcoming 224Gbps products. Despite a dip in revenue for the third quarter of 2024, Spectra7 is poised to leverage its unique technology for future advancements.