SemiLEDs Corporation
Find Ratings Reports
0.06 |
1.94%
SEMILEDS CORP's gross profit margin for the fourth quarter of its fiscal year 2020 has significantly decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased. SEMILEDS CORP has very weak liquidity. Currently, the Quick Ratio is 0.47 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 greatly increased by 44.85% 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 | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Net Sales ($mil) | 1.4 | 1.56 |
| EBITDA ($mil) | 0.0 | -0.76 |
| EBIT ($mil) | -0.99 | -1.03 |
| Net Income ($mil) | -0.06 | -0.88 |
| Balance Sheet | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 2.92 | 1.38 |
| Total Assets ($mil) | 14.58 | 11.66 |
| Total Debt ($mil) | 8.36 | 6.85 |
| Equity ($mil) | 2.52 | 1.74 |
| Profitability | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Gross Profit Margin | 7.72 | 38.26 |
| EBITDA Margin | 0.0 | -48.93 |
| Operating Margin | -70.41 | -66.05 |
| Sales Turnover | 0.42 | 0.51 |
| Return on Assets | -3.73 | -30.56 |
| Return on Equity | -21.57 | -204.76 |
| Debt | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Current Ratio | 0.83 | 1.18 |
| Debt/Capital | 0.77 | 0.8 |
| Interest Expense | 0.09 | 0.08 |
| Interest Coverage | -11.59 | -13.69 |
| Share Data | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Shares outstanding (mil) | 4.01 | 3.59 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.02 | -0.25 |
| Book value / share | 0.63 | 0.48 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 72895.0 | 314898.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 4.86 indicates a premium versus the S&P 500 average of 3.87 and a significant discount versus the subsector average of 12.87. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, SEMILEDS CORP proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LEDS NM | Peers 47.91 | LEDS NA | Peers 35.49 | |||||||||||||||||||||
|
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 34.97 | LEDS NA | Peers 1.44 | |||||||||||||||||||||
|
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 4.86 | Peers 12.87 | LEDS 83.00 | Peers 71.06 | |||||||||||||||||||||
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Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. LEDS is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. LEDS is expected to have an earnings growth rate that exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| LEDS 2.02 | Peers 10.17 | LEDS 2.81 | Peers 21.47 | |||||||||||||||||||||
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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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