Ceva Inc (NASDAQ: CEVA)

Sector: Technology Industry: Semiconductors CIK: 0001173489
Market Cap 552.52 Mn
P/B 2.06
P/E -49.00
P/S 5.14
ROIC (Qtr) -12.00
Div Yield % 0.00
Rev 1y % (Qtr) 4.33
Total Debt (Qtr) 3.78 Mn
Debt/Equity (Qtr) 0.01

About

CEVA Inc., a prominent company in the technology industry with the ticker symbol CEVA, specializes in providing innovative silicon and software IP solutions that enhance the connectivity, sensing, and inference capabilities of smart edge products. The company's main business activities revolve around designing and licensing a wide range of robust processors, platforms, and software, which simplify the development of application-specific solutions. CEVA offers an extensive range of products and services that cater to various industries, including...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 17.27M provide 13.98x coverage of short-term debt 1.24M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 246.45M provides 65.23x coverage of total debt 3.78M, indicating robust asset backing and low credit risk.
  • Tangible assets of 246.45M provide exceptional 80.75x coverage of deferred revenue 3.05M, showing strong service capability backing.
  • Short-term investments of 134.79M provide solid 6.21x coverage of other current liabilities 21.69M, indicating strong liquidity.
  • Tangible assets of 246.45M provide robust 11.36x coverage of other current liabilities 21.69M, indicating strong asset backing.

Bear case

  • Operating cash flow of (4.04M) barely covers its investment activities of 13.22M, 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 13.22M provide weak support for R&D spending of 72.78M, which is 0.18x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (4.04M) provides insufficient coverage of deferred revenue obligations of 3.05M, which is -1.32x, raising concerns about future service delivery capabilities.
  • Short-term investments of 134.79M significantly exceed cash reserves of 17.27M, which is 7.80x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (4.04M) shows concerning coverage of stock compensation expenses of 17.99M, with a -0.22 ratio indicating potential earnings quality issues.

Timing of Transfer of Good or Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,120.22 Bn 6,867.04 847.78 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,782.57 Bn 362.79 138.75 31.18 Bn
3 AVGO Broadcom Inc. 1,393.11 Bn 119.76 35.84 65.14 Bn
4 MU Micron Technology Inc 453.24 Bn 657.82 30.76 12.43 Bn
5 AMD Advanced Micro Devices Inc 338.42 Bn 78.07 9.77 3.85 Bn
6 TXN Texas Instruments Inc 225.71 Bn 66.70 17.17 14.05 Bn
7 INTC Intel Corp 225.13 Bn -843.17 4.26 46.59 Bn
8 QCOM Qualcomm Inc/De 147.37 Bn 27.47 3.28 14.82 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.72 4.15
EV to Cash from Ops. EV/CFO -130.71 -405.91
EV to Debt EV to Debt 139.71 81.67
EV to EBIT EV/EBIT -91.89 -94.01
EV to EBITDA EV/EBITDA -79.87 112.02
EV to Free Cash Flow [EV/FCF] EV/FCF -81.26 103.01
EV to Market Cap EV to Market Cap 0.96 0.77
EV to Revenue EV/Rev 4.91 36.18
Price to Book Value [P/B] P/B 2.06 24.05
Price to Earnings [P/E] P/E -49.00 97.65
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.38
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.97
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 21.06
Interest Coverage Interest Coverage 0.00 8.98
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 8.56 -149.31
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 30.56 70.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.42
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -243.68 51.85
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -2.51 91.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -170.33 36.72
EBT Growth (1y) % EBT 1y % (Qtr) -170.33 30.25
EPS Growth (1y) % EPS 1y % (Qtr) -228.57 49.61
FCF Growth (1y) % FCF 1y % (Qtr) -165.64 281.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.89 37.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.35 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 0.70 2.35
Current Ratio Curr Ratio (Qtr) 8.68 5.61
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 -0.02
Interest Cover Ratio Interest Cover Ratio 0.00 8.98
Times Interest Earned Times Interest Earned 0.00 8.98
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1.40 -113.04
EBIT Margin % EBIT Margin % (Qtr) -5.34 -92.05
EBT Margin % EBT Margin % (Qtr) -5.34 -132.99
Gross Margin % Gross Margin % (Qtr) 87.20 47.72
Net Profit Margin % Net Margin % (Qtr) -10.50 -133.93