TSX:SEV

Stock Analysis Report

Spectra7 Microsystems

Executive Summary

Spectra7 Microsystems Inc. operates as an analog semiconductor company in Canada and China.

Rewards

Revenue is forecast to grow 80.3% per year

Risk Analysis

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$10M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Limited growth with weak fundamentals.

Share Price & News

How has Spectra7 Microsystems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SEV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-20.0%

SEV

2.1%

CA Semiconductor

-0.3%

CA Market


1 Year Return

-78.9%

SEV

46.6%

CA Semiconductor

9.2%

CA Market

Return vs Industry: SEV underperformed the Canadian Semiconductor industry which returned 48.5% over the past year.

Return vs Market: SEV underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

SEVIndustryMarket
7 Day-20.0%2.1%-0.3%
30 Day100.0%5.0%1.7%
90 Day-33.3%17.2%6.0%
1 Year-78.9%-78.9%49.5%46.6%12.7%9.2%
3 Year-95.3%-95.3%93.4%82.9%17.0%6.4%
5 Year-95.7%-95.7%173.8%147.7%37.1%17.0%

Price Volatility Vs. Market

How volatile is Spectra7 Microsystems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Spectra7 Microsystems undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Spectra7 Microsystems is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Spectra7 Microsystems has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of SEV’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Spectra7 Microsystems regulatory filings.
  • Explore potentially undervalued companies in the Semiconductors industry.

Future Growth

How is Spectra7 Microsystems forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

46.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEV is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SEV is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SEV is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SEV's revenue (80.3% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: SEV's revenue (80.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SEV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Spectra7 Microsystems performed over the past 5 years?

-4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEV is currently unprofitable.

Growing Profit Margin: SEV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SEV is unprofitable, and losses have increased over the past 5 years at a rate of -4.1% per year.

Accelerating Growth: Unable to compare SEV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SEV is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-15.8%).


Return on Equity

High ROE: SEV's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Spectra7 Microsystems's financial position?


Financial Position Analysis

Short Term Liabilities: SEV has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SEV has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SEV has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SEV's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: SEV has a high level of physical assets or inventory.

Debt Coverage by Assets: SEV has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SEV has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SEV has less than a year of cash runway if free cash flow continues to grow at historical rates of 7.5% each year.


Next Steps

Dividend

What is Spectra7 Microsystems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.5%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SEV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SEV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SEV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SEV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SEV's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Spectra7 Microsystems's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Raouf Halim (59yo)

3.3yrs

Tenure

US$1,789,067

Compensation

Mr. Raouf Y. Halim is a Co-Founder of icClarity, Inc., and served as its Chief Executive Officer since December 2013 until November 14, 2016. Mr. Halim has been Chief Executive Officer and President of Spe ...


CEO Compensation Analysis

Compensation vs Market: Raouf's total compensation ($USD1.37M) is above average for companies of similar size in the Canadian market ($USD165.67K).

Compensation vs Earnings: Raouf's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

59yo

Average Age

Experienced Management: SEV's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SEV's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: SEV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$1,89113 Dec 19
Darren Ma
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares126,048
Max PriceCA$0.015
SellCA$1,06813 Dec 19
Gerald Hamilton
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales
Shares71,208
Max PriceCA$0.015
SellCA$15,51713 Dec 19
Raouf Halim
EntityIndividual
Role
Chief Executive Officer
President
Shares1,034,498
Max PriceCA$0.015
SellCA$2209 Dec 19
Robert Dobkin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,444
Max PriceCA$0.015
SellCA$51209 Dec 19
Andrew Kim
EntityIndividual
Role
Chief Technology Officer
VP of Engineering & CTO
Shares33,898
Max PriceCA$0.015
SellCA$1,88309 Dec 19
John Vettese
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares124,701
Max PriceCA$0.015
SellCA$1,96909 Dec 19
Brian Antonen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares130,398
Max PriceCA$0.015
BuyCA$160,77423 Aug 19
Robert Dobkin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,215,501
Max PriceCA$0.05
BuyCA$62,21123 Aug 19
Darren Ma
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,244,229
Max PriceCA$0.05
BuyCA$516,19023 Aug 19
Ronald Pasek
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,323,888
Max PriceCA$0.05
BuyCA$98,47323 Aug 19
John Vettese
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,969,480
Max PriceCA$0.05
BuyCA$92,99523 Aug 19
Roger Maggs
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,859,916
Max PriceCA$0.05
BuyCA$197,21823 Aug 19
Raouf Halim
EntityIndividual
Role
Chief Executive Officer
President
Shares3,944,400
Max PriceCA$0.05
BuyCA$25,66123 Aug 19
Brian Antonen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares513,219
Max PriceCA$0.05
SellCA$5,17222 Feb 19
Darren Ma
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares50,860
Max PriceCA$0.10
SellCA$1,91722 Feb 19
Ebrahim Abunasrah
EntityIndividual
Shares18,854
Max PriceCA$0.10
SellCA$3322 Feb 19
Robert Dobkin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares328
Max PriceCA$0.10
SellCA$1,56722 Feb 19
Brian Antonen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,405
Max PriceCA$0.10
SellCA$1,29022 Feb 19
John Vettese
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,686
Max PriceCA$0.10
SellCA$7,74222 Feb 19
Raouf Halim
EntityIndividual
Role
Chief Executive Officer
President
Shares76,126
Max PriceCA$0.10
SellCA$3322 Feb 19
Ronald Pasek
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares328
Max PriceCA$0.10
SellCA$1,85822 Feb 19
Andrew Kim
EntityIndividual
Role
Chief Technology Officer
VP of Engineering & CTO
Shares18,273
Max PriceCA$0.10
SellCA$3322 Feb 19
Roger Maggs
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares328
Max PriceCA$0.10

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 49.6%.


Management Team

  • Raouf Halim (59yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$1.79m
  • Jerry Hamilton (65yo)

    Senior Vice President of Worldwide Sales

    • Tenure: 2.7yrs
    • Compensation: US$363.27k
  • John Mitchell

    Chief Marketing Officer

    • Tenure: 4.7yrs
    • Compensation: US$277.53k
  • Andrew Kim

    VP of Engineering & CTO

    • Tenure: 6.9yrs
    • Compensation: US$263.88k
  • Darren Ma (40yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
    • Compensation: US$518.09k

Board Members

  • Bob Dobkin (75yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$101.32k
  • Raouf Halim (59yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$1.79m
  • Roger Maggs (73yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$97.73k
  • Brian Antonen (54yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$101.25k
  • John Vettese (50yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$104.67k
  • Ron Pasek (58yo)

    Independent Chairman of the Board

    • Tenure: 4.1yrs
    • Compensation: US$122.51k

Company Information

Spectra7 Microsystems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spectra7 Microsystems Inc.
  • Ticker: SEV
  • Exchange: TSX
  • Founded:
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: CA$8.037m
  • Shares outstanding: 401.84m
  • Website: https://www.spectra7.com

Number of Employees


Location

  • Spectra7 Microsystems Inc.
  • 2550 North First Street
  • Suite 500
  • San Jose
  • California
  • 95131
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEVTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 2013
SPVN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2013
7M0DB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2013
7M0BST (Boerse-Stuttgart)YesCommon SharesDEEURFeb 2013

Biography

Spectra7 Microsystems Inc. operates as an analog semiconductor company in Canada and China. The company offers virtual reality (VR) products, including VR7050 to enable lightweight and ultra-thin active interconnects for gesture recognition and motion control backhaul; augmented reality (AR) -Connect, an integrated cable, connector, and embedded chipset product line for AR vision systems and wearable computing devices; and DreamWeVR to support high-bandwidth, near-zero latency VR head-mounted displays, and AR glasses. It also provides data center interconnects; GaugeChanger; and USB 3.1 consumer interconnects for use in ultra-thin laptops, tablets, mobile devices, solid state disks, and wearable computing devices. Spectra7 Microsystems Inc. is headquartered in San Jose, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/25 00:43
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.