Ceva Inc (CEVA) Stock Analysis and Metrics

Sector: Technology Industry: Semiconductors CIK: 0001173489

P/B 1.99

P/E -47.46

P/S 4.98

Market Cap 535.12 Mn

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...

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 5G mobile and infrastructure, wireless IoT, sense and inference processors and platforms, sensing and audio software, and system platforms and solutions. The company's wireless communications IPs, such as RivieraWaves Bluetooth 5 dual mode and low energy platforms, RivieraWaves Wi-Fi (6 and 7 up to 4x4) platforms, UWB platform, and cellular IoT and RedCap platforms, enable smart edge devices to connect and communicate wirelessly. Moreover, CEVA's sensing and audio software, including RealSpace Spatial Audio software package, WhisPro speech recognition, ClearVox, and CDNN: deep neural network graph compiler, allow smart edge devices to sense and perceive their environment and deliver high-quality audio experiences.

Furthermore, CEVA has established itself as a leader in the industry, thanks to its advanced processor technologies, connectivity IPs, and sensor fusion software. The company's competitive advantages include its broad portfolio of IPs, expertise in developing complete solutions for various markets, and strong relationships with customers and partners. CEVA's customer base includes leading semiconductor and OEM companies worldwide, such as Intel, Samsung, STMicroelectronics, and Toshiba, underscoring its strong position in the industry.

CEVA's wireless communications IPs cater to the growing demand for wireless connectivity in various industries, including consumer electronics, automotive, and industrial automation. Meanwhile, the company's sensing and audio software addresses the increasing demand for advanced sensing and audio capabilities in various industries, such as consumer electronics, automotive, and healthcare. Additionally, CEVA's 5G and IoT solutions enable smart edge devices to connect and communicate wirelessly over 5G networks and the Internet of Things (IoT), making it an ideal partner for companies looking to capitalize on the growing demand for 5G and IoT connectivity.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

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
EV to Assets	1.67	3.95
EV to Cash from Ops.	-126.40	-331.60
EV to Debt	135.10	86.14
EV to EBIT	-88.86	-55.96
EV to EBITDA	-77.24	20.88
EV to Free Cash Flow [EV/FCF]	-78.58	-4.09
EV to Market Cap	0.95	0.80
EV to Revenue	4.75	18.79
Price to Book Value [P/B]	1.99	5.23
Price to Earnings [P/E]	-47.46	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	0.00	8.19

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	8.56	-155.77
Cash and Equivalents Growth (1y) %	30.56	44.44
Dividend Growth (1y) %	0.00	5.30
EBIAT Growth (1y) %	-243.68	34.22
EBITDA Growth (1y) %	-2.51	47.50
EBIT Growth (1y) %	-170.33	30.14
EBT Growth (1y) %	-170.33	47.04
EPS Growth (1y) %	-228.57	36.18
FCF Growth (1y) %	-165.64	252.76
Gross Profit Growth (1y) %	3.89	43.92

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.35	0.49
Cash Payout Ratio	0.00	0.09
Cash Ratio	0.70	2.23
Current Ratio	8.68	5.43
Debt to Equity Ratio	0.01	0.34
Interest Cover Ratio	0.00	8.19
Times Interest Earned	0.00	8.19

Profitability

Metric	Value	Industry
EBITDA Margin %	-1.40	-112.44
EBIT Margin %	-5.34	-92.10
EBT Margin %	-5.34	-132.39
Gross Margin %	87.20	47.63
Net Profit Margin %	-10.50	-133.41

Ceva Inc (NASDAQ: CEVA)