Arteris, Inc. (NASDAQ: AIP)

Sector: Technology Industry: Semiconductors CIK: 0001667011
P/B -59.05
P/E -19.63
P/S 10.25
Market Cap 676.05 Mn
ROIC (Qtr) 1,392.11
Div Yield % 0.00
Rev 1y % (Qtr) 18.32
Total Debt (Qtr) 6.86 Mn
Debt/Equity (Qtr) -0.60

About

Arteris, Inc., a leading provider of semiconductor system IP, operates in the technology industry with a focus on interconnect and other intellectual property. The company's System IP solutions manage on-chip communications and IP block deployments in System-on-Chip (SoC) semiconductors and systems of chiplets, achieving this through connecting client IP blocks such as processors, memories, AI/ML accelerators, graphics subsystems, safety and security, and other I/Os via multiple NoCs. This enables customers to experience faster SoC targeting, as...

Read more

Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 17.42M provide 6.22x coverage of short-term debt 2.80M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 101.20M provides 14.76x coverage of total debt 6.86M, indicating robust asset backing and low credit risk.
  • Long-term investments of 20.96M provide solid 5.17x coverage of long-term debt 4.05M, indicating strategic financial planning.
  • Retained earnings of (163.13M) represent substantial 14.25x of equity (11.45M), indicating strong internal capital generation.
  • R&D investment of 48.21M represents healthy 0.52x of deferred revenue 92.62M, indicating strong future innovation pipeline.

Cons

  • Operating cash flow of 932000 barely covers its investment activities of (2.98M), with a coverage ratio of -0.31, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (2.98M) provide weak support for R&D spending of 48.21M, which is -0.06x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 932000 provides insufficient coverage of deferred revenue obligations of 92.62M, which is 0.01x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 932000 shows concerning coverage of stock compensation expenses of 17.90M, with a 0.05 ratio indicating potential earnings quality issues.
  • Free cash flow of (372000) provides weak coverage of capital expenditures of 1.30M, with a -0.29 ratio suggesting additional external financing needs for growth initiatives.

Peer Comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,276.26 Bn 43.11 22.85 10.48 Bn
2 AVGO Broadcom Inc. 1,690.87 Bn 89.31 28.22 64.23 Bn
3 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,514.32 Bn 29.36 12.71 31.18 Bn
4 AMD Advanced Micro Devices Inc 343.27 Bn 103.83 10.72 3.87 Bn
5 MU Micron Technology Inc 269.16 Bn 31.52 7.20 15.28 Bn
6 INTC Intel Corp 249.55 Bn 1,260.33 4.67 46.55 Bn
7 QCOM Qualcomm Inc/De 195.62 Bn 35.30 4.42 14.81 Bn
8 TXN Texas Instruments Inc 163.92 Bn 32.50 9.49 14.05 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 6.19 3.95
EV to Cash from Ops. 716.00 -331.60
EV to Debt 97.35 86.14
EV to EBIT -21.17 -55.96
EV to EBITDA -23.54 20.88
EV to Free Cash Flow [EV/FCF] -1,793.85 -4.09
EV to Market Cap 0.99 0.80
EV to Revenue 10.12 18.79
Price to Book Value [P/B] -59.05 5.23
Price to Earnings [P/E] -19.63 12.47

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 2.29
Dividend Payout Ratio % 0.00 8.00
Dividend per Basic Share 0.00 0.62
FCF Dividend Payout Ratio % 0.00 10.38
Interest Coverage -171.31 8.19

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -85.75 -155.77
Cash and Equivalents Growth (1y) % -2.31 44.44
Dividend Growth (1y) % 0.00 5.30
EBIAT Growth (1y) % 4.02 34.22
EBITDA Growth (1y) % 6.86 47.50
EBIT Growth (1y) % 5.13 30.14
EBT Growth (1y) % 5.35 47.04
EPS Growth (1y) % 12.63 36.18
FCF Growth (1y) % 78.98 252.76
Gross Profit Growth (1y) % 21.30 43.92

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.61 0.49
Cash Payout Ratio 0.00 0.09
Cash Ratio 0.26 2.23
Current Ratio 0.91 5.43
Debt to Equity Ratio -0.60 0.34
Interest Cover Ratio -171.31 8.19
Times Interest Earned -171.31 8.19

Profitability

Metric Value Industry Percentile
EBITDA Margin % -42.60 -112.44
EBIT Margin % -47.81 -92.10
EBT Margin % -48.09 -132.39
Gross Margin % 90.00 47.63
Net Profit Margin % -52.20 -133.41