DB:3FS

Stock Analysis Report

Executive Summary

Kalray S.A. provides low-power and time-critical processor solutions in France.

Rewards

Revenue is forecast to grow 76.5% per year

Revenue grew by 31.6% over the past year

Risk Analysis

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

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.4%

3FS

0.2%

DE Semiconductor

0.5%

DE Market


1 Year Return

26.1%

3FS

24.3%

DE Semiconductor

15.5%

DE Market

Return vs Industry: 3FS exceeded the German Semiconductor industry which returned 24.3% over the past year.

Return vs Market: 3FS exceeded the German Market which returned 15.5% over the past year.


Shareholder returns

3FSIndustryMarket
7 Day2.4%0.2%0.5%
30 Day18.3%4.1%1.4%
90 Day40.5%20.5%5.3%
1 Year26.1%26.1%26.3%24.3%19.2%15.5%
3 Yearn/a36.3%31.7%15.7%5.5%
5 Yearn/a110.8%99.5%27.3%10.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

3.04x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 3FS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 3FS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 3FS is unprofitable, so we can't compare its PE Ratio to the Semiconductor industry average.

PE vs Market: 3FS is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3FS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3FS is overvalued based on its PB Ratio (3.1x) compared to the DE Semiconductor industry average (2.5x).


Next Steps

Future Growth

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

45.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: 3FS's revenue (76.5% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 3FS's revenue (76.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3FS is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Kalray performed over the past 5 years?

5.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 3FS is currently unprofitable.

Growing Profit Margin: 3FS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 3FS's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare 3FS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3FS is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-17.8%).


Return on Equity

High ROE: 3FS has a negative Return on Equity (-24.98%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kalray's financial position?


Financial Position Analysis

Short Term Liabilities: 3FS's short term assets (€28.3M) exceed its short term liabilities (€6.3M).

Long Term Liabilities: 3FS's short term assets (€28.3M) exceed its long term liabilities (€8.5M).


Debt to Equity History and Analysis

Debt Level: 3FS's debt to equity ratio (22.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 3FS's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 3FS has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3FS's debt is covered by short term assets (assets are 4.1x debt).


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: 3FS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 3FS has sufficient cash runway for 2.7 years if free cash flow continues to reduce at historical rates of -38.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 3FS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3FS'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 3FS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3FS'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 3FS's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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


CEO

Eric Baissus 0

6yrs

Tenure

0

Mr. Eric Baissus co-founded Open-Plug SA in 2002 and served as its President, Chief Executive Officer and Chief Technology Officer. Mr. Baissus has been Chief Executive Officer of Kalray S.A. since 2014. H ...


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30.9%.


Management Team

  • Eric Baissus

    Chief Executive Officer

    • Tenure: 6yrs
  • Anne Gabrot

    Chief Financial Officer

    • Loïc Hamon

      Vice President of Corporate Development & Strategic Marketing

      • Benoît de Dinechin

        Chief Technical Officer

        • Olivier Lauvray

          Executive Vice President Worldwide Sales & Data Center Business Unit

          • Tenure: 1.2yrs

        Board Members

        • Eric Bantégnie

          Vice Chairman of Supervisory Board

          • Tenure: 2yrs
        • Gilles Delfassy (63yo)

          Chairman of the Board

          • Erwan Menard (45yo)

            Independent Board Member

            • Gilles Defassy

              President of Supervisory Board

              Company Information

              Kalray S.A.'s company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: Kalray S.A.
              • Ticker: 3FS
              • Exchange: DB
              • Founded:
              • Industry: Semiconductors
              • Sector: Semiconductors
              • Market Cap: €95.087m
              • Shares outstanding: 4.53m
              • Website: https://www.kalrayinc.com

              Number of Employees


              Location

              • Kalray S.A.
              • 180 avenue de l’Europe
              • Montbonnot Saint Martin
              • Rhône-Alpes
              • 38330
              • France

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              ALKALENXTPA (Euronext Paris)YesCommon SharesFREURJun 2018
              3FSDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2018

              Biography

              Kalray S.A. provides low-power and time-critical processor solutions in France. It offers massively parallel manycore array processors. The company also provides data center solutions, including Kalray Target Controller, a family of storage solutions offering an all-in-one system to build optimized NVMe-of just a bunch of flash; and TurboBoost, a solution to offload the encryption/decryption operations involved in secure communications. In addition, it offers software development kits, such as AccessCore that allows customers to program the massively parallel processor array using standard languages comprising C/C++/OpenCL, programming models, APIs, and tools; and Kalray Neural Network, a tool for implementing deep learning networks on the massively parallel processor array, as well as other software and tools. Further, the company provides PCIe and PCIe acceleration boards for storage, networking, cryptography applications; and development platforms. It serves autonomous vehicle, aerospace/avionic, artificial intelligence, data storage, data networking, and computer vision markets. The company is headquartered in Montbonnot Saint Martin, France. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/23 23:05
              End of Day Share Price2020/01/23 00:00
              Earnings2019/06/30
              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.