SemiLEDs Corporation
Find Ratings Reports
-0.41 |
-11.00%
SEMILEDS CORP's gross profit margin for the second quarter of its fiscal year 2021 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. SEMILEDS CORP has very weak liquidity. Currently, the Quick Ratio is 0.32 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 33.72% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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| Income Statement | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Net Sales ($mil) | 1.21 | 1.54 |
| EBITDA ($mil) | 0.0 | -0.19 |
| EBIT ($mil) | -0.71 | -0.39 |
| Net Income ($mil) | -0.26 | 0.35 |
| Balance Sheet | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Cash & Equiv. ($mil) | 2.17 | 3.24 |
| Total Assets ($mil) | 15.13 | 14.89 |
| Total Debt ($mil) | 9.96 | 8.51 |
| Equity ($mil) | 1.59 | 2.39 |
| Profitability | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Gross Profit Margin | 19.98 | 48.99 |
| EBITDA Margin | 0.0 | -12.16 |
| Operating Margin | -59.2 | -25.5 |
| Sales Turnover | 0.32 | 0.43 |
| Return on Assets | -10.09 | -11.47 |
| Return on Equity | -96.28 | -71.42 |
| Debt | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Current Ratio | 0.72 | 0.98 |
| Debt/Capital | 0.86 | 0.78 |
| Interest Expense | 0.09 | 0.1 |
| Interest Coverage | -7.76 | -3.92 |
| Share Data | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Shares outstanding (mil) | 4.01 | 3.62 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.06 | 0.08 |
| Book value / share | 0.4 | 0.66 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 551938.0 | 80913.0 |
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 13.78 indicates a significant premium versus the S&P 500 average of 4.31 and a significant premium versus the subsector average of 12.23. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, SEMILEDS CORP proves to trade at a premium to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LEDS NM | Peers 71.68 | LEDS NA | Peers 33.07 | |||||||||||||||||||||
|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. LEDS's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures. Ratio not available. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| LEDS NA | Peers 31.32 | LEDS NA | Peers 1.58 | |||||||||||||||||||||
|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| LEDS 13.78 | Peers 12.23 | LEDS 22.00 | Peers 56.93 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. LEDS is trading at a premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, LEDS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| LEDS 4.47 | Peers 12.69 | LEDS -23.55 | Peers 23.22 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. LEDS is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. LEDS significantly trails its peers on the basis of sales growth. |
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