Navitas Semiconductor Corp (NASDAQ: NVTS)

Sector: Technology Industry: Semiconductors CIK: 0001821769
Market Cap 1.61 Bn
P/B 4.33
P/E -12.84
P/S 28.37
ROIC (Qtr) -27.19
Div Yield % 0.00
Rev 1y % (Qtr) -53.36
Total Debt (Qtr) 6.94 Mn
Debt/Equity (Qtr) 0.02
Add ratio to table...

About

Investment thesis

Bull case

  • Healthy cash reserves of 151.22M provide 70.80x coverage of short-term debt 2.14M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (44.97M) provides exceptional 99.28x coverage of interest expenses (453000), showing strong debt service capability.
  • Strong tangible asset base of 209M provides 30.12x coverage of total debt 6.94M, indicating robust asset backing and low credit risk.
  • Free cash flow of (46.92M) provides exceptional 103.57x coverage of interest expense (453000), showing strong debt service ability.
  • Cash reserves of 151.22M provide robust 6.71x coverage of current liabilities 22.54M, indicating strong short-term solvency.

Bear case

  • Investment activities of (1.95M) provide weak support for R&D spending of 56.42M, which is -0.03x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (44.97M) shows concerning coverage of stock compensation expenses of 11.55M, with a -3.90 ratio indicating potential earnings quality issues.
  • Free cash flow of (46.92M) provides weak coverage of capital expenditures of 1.95M, with a -24.11 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (125.94M) show weak coverage of depreciation charges of 23.70M, with a -5.31 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (44.97M) barely covers operating expenses of 21.56M with a -2.09 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,081.81 Bn 2,078.31 541.21 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,887.11 Bn 425.89 133.83 31.18 Bn
3 AVGO Broadcom Inc. 1,662.70 Bn -332,540.00 1,106.25 65.14 Bn
4 MU Micron Technology Inc 426.40 Bn 109.53 25.16 12.43 Bn
5 AMD Advanced Micro Devices Inc 329.72 Bn 76.06 9.52 3.85 Bn
6 TXN Texas Instruments Inc 224.64 Bn 55.45 14.64 14.05 Bn
7 INTC Intel Corp 205.50 Bn -769.67 3.89 46.59 Bn
8 QCOM Qualcomm Inc/De 153.04 Bn 28.53 3.41 14.82 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.37 4.34
EV to Cash from Ops. EV/CFO -32.28 -208.66
EV to Debt EV to Debt 209.19 79.86
EV to EBIT EV/EBIT -11.53 709.44
EV to EBITDA EV/EBITDA -17.77 250.41
EV to Free Cash Flow [EV/FCF] EV/FCF -30.94 403.96
EV to Market Cap EV to Market Cap 0.90 0.75
EV to Revenue EV/Rev 25.65 61.40
Price to Book Value [P/B] P/B 4.33 52.11
Price to Earnings [P/E] P/E -12.84 -5,067.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.41
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -3.82
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 20.71
Interest Coverage Int. cover (Qtr) 278.01 8.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 74.33 -164.54
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 53.35 64.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.42
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -62.45 60.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 13.43 86.38
EBIT Growth (1y) % EBIT 1y % (Qtr) -62.56 52.71
EBT Growth (1y) % EBT 1y % (Qtr) -61.78 57.92
EPS Growth (1y) % EPS 1y % (Qtr) -52.38 65.33
FCF Growth (1y) % FCF 1y % (Qtr) 41.46 109.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -63.11 27.07
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.13 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 6.71 2.55
Current Ratio Curr Ratio (Qtr) 7.94 5.58
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.30
Interest Cover Ratio Int Coverage (Qtr) 278.01 8.87
Times Interest Earned Times Interest Earned (Qtr) 278.01 8.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -180.60 -115.40
EBIT Margin % EBIT Margin % (Qtr) -222.51 -94.51
EBT Margin % EBT Margin % (Qtr) -221.71 -136.09
Gross Margin % Gross Margin % (Qtr) 24.20 47.45
Net Profit Margin % Net Margin % (Qtr) -220.90 -137.24