EVERSPIN TECHNOLOGIES INC (MRAM)
US30041T1043 - Common Stock
We assign a fundamental rating of 6 out of 10 to MRAM. MRAM was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. MRAM has an excellent financial health rating, but there are some minor concerns on its profitability. MRAM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MRAM had positive earnings in the past year.
MRAM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MRAM reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: MRAM reported negative operating cash flow in multiple years.
1.2 Ratios
MRAM's Return On Assets of 12.24% is fine compared to the rest of the industry. MRAM outperforms 79.44% of its industry peers.
MRAM has a better Return On Equity (14.51%) than 71.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.01%, MRAM is in the better half of the industry, outperforming 62.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MRAM is in line with the industry average of 10.93%.
The last Return On Invested Capital (6.01%) for MRAM is well below the 3 year average (10.91%), which needs to be investigated, but indicates that MRAM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.24% | ||
| ROE | 14.51% | ||
| ROIC | 6.01% |
ROA(3y)11.85%
ROA(5y)-6.42%
ROE(3y)16.19%
ROE(5y)-15.93%
ROIC(3y)10.91%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 12.78%, MRAM is doing good in the industry, outperforming 66.36% of the companies in the same industry.
The Operating Margin of MRAM (7.24%) is comparable to the rest of the industry.
MRAM has a better Gross Margin (58.36%) than 79.44% of its industry peers.
MRAM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.24% | ||
| PM (TTM) | 12.78% | ||
| GM | 58.36% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.71%
GM growth 5Y2.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MRAM is destroying value.
MRAM has more shares outstanding than it did 1 year ago.
MRAM has more shares outstanding than it did 5 years ago.
MRAM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
MRAM has an Altman-Z score of 6.71. This indicates that MRAM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.71, MRAM is in the better half of the industry, outperforming 67.29% of the companies in the same industry.
There is no outstanding debt for MRAM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.71 |
ROIC/WACC0.48
WACC12.43%
2.3 Liquidity
MRAM has a Current Ratio of 9.56. This indicates that MRAM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 9.56, MRAM belongs to the top of the industry, outperforming 92.52% of the companies in the same industry.
MRAM has a Quick Ratio of 8.20. This indicates that MRAM is financially healthy and has no problem in meeting its short term obligations.
MRAM has a better Quick ratio (8.20) than 95.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.56 | ||
| Quick Ratio | 8.2 |
3. Growth
3.1 Past
MRAM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.04%, which is quite good.
The Revenue has been growing slightly by 4.74% in the past year.
MRAM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.23% yearly.
EPS 1Y (TTM)13.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-22.22%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y14.91%
Revenue growth 5Y5.23%
Sales Q2Q%-2.87%
3.2 Future
Based on estimates for the next years, MRAM will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.46% on average per year.
The Revenue is expected to grow by 13.72% on average over the next years. This is quite good.
EPS Next Y-75.44%
EPS Next 2Y-16.4%
EPS Next 3Y18.46%
EPS Next 5YN/A
Revenue Next Year-17.62%
Revenue Next 2Y-4.7%
Revenue Next 3Y13.72%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
MRAM is valuated reasonably with a Price/Earnings ratio of 11.65.
94.39% of the companies in the same industry are more expensive than MRAM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MRAM to the average of the S&P500 Index (28.20), we can say MRAM is valued rather cheaply.
A Price/Forward Earnings ratio of 16.06 indicates a correct valuation of MRAM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRAM indicates a rather cheap valuation: MRAM is cheaper than 80.37% of the companies listed in the same industry.
MRAM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 16.06 |
4.2 Price Multiples
78.50% of the companies in the same industry are more expensive than MRAM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRAM indicates a rather cheap valuation: MRAM is cheaper than 94.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.43 | ||
| EV/EBITDA | 16.28 |
4.3 Compensation for Growth
MRAM's earnings are expected to grow with 18.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.4%
EPS Next 3Y18.46%
5. Dividend
5.1 Amount
MRAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EVERSPIN TECHNOLOGIES INC
NASDAQ:MRAM (5/28/2024, 7:00:01 PM)
6.06
+0.01 (+0.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap130.41M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 16.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.24% | ||
| ROE | 14.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.24% | ||
| PM (TTM) | 12.78% | ||
| GM | 58.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 9.56 | ||
| Quick Ratio | 8.2 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.04%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-75.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.74%
Revenue growth 3Y14.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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