NasdaqGS:DSPG

Stock Analysis Report

Executive Summary

DSP Group, Inc., a fabless semiconductor company, provides wireless and audio chipset solutions for converged communications.

Rewards

Earnings are forecast to grow 166.7% per year

Risk Analysis

No risks detected for DSPG from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DSPG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

DSPG

3.4%

US Semiconductor

0.6%

US Market


1 Year Return

29.2%

DSPG

52.7%

US Semiconductor

24.6%

US Market

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

Return vs Market: DSPG exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

DSPGIndustryMarket
7 Day-0.2%3.4%0.6%
30 Day1.8%4.3%3.0%
90 Day6.9%19.2%10.6%
1 Year29.2%29.2%55.8%52.7%27.3%24.6%
3 Year45.7%45.7%92.4%81.7%50.5%40.8%
5 Year44.1%44.1%163.0%137.3%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DSPG ($15.69) is trading above our estimate of fair value ($0.98)

Significantly Below Fair Value: DSPG is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: DSPG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DSPG is good value based on its PB Ratio (2.4x) compared to the US Semiconductor industry average (3.3x).


Next Steps

Future Growth

How is DSP Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

166.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSPG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: DSPG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DSPG's is expected to become profitable in the next 3 years.

Revenue vs Market: DSPG's revenue (9% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: DSPG's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has DSP Group performed over the past 5 years?

-46.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DSPG is currently unprofitable.

Growing Profit Margin: DSPG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DSPG is unprofitable, and losses have increased over the past 5 years at a rate of -46% per year.

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

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


Return on Equity

High ROE: DSPG has a negative Return on Equity (-0.94%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DSP Group's financial position?


Financial Position Analysis

Short Term Liabilities: DSPG's short term assets ($83.7M) exceed its short term liabilities ($24.1M).

Long Term Liabilities: DSPG's short term assets ($83.7M) exceed its long term liabilities ($27.1M).


Debt to Equity History and Analysis

Debt Level: DSPG is debt free.

Reducing Debt: DSPG has not had any debt for past 5 years.

Debt Coverage: DSPG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DSPG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if DSPG's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

Ofer Elyakim (49yo)

10.5yrs

Tenure

US$1,369,988

Compensation

Mr. Ofer Elyakim has been the Chief Executive Officer at DSP Group Inc. since July 2009. Mr. Elyakim served as President of South East Asia Operations and Senior Vice President at DSP Group Inc. from May 1 ...


CEO Compensation Analysis

Compensation vs Market: Ofer's total compensation ($USD1.37M) is about average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Ofer's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

8.0yrs

Average Tenure

49yo

Average Age

Experienced Management: DSPG's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

55yo

Average Age

Experienced Board: DSPG's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$540,51312 Nov 19
Dror Levy
EntityIndividual
Role
Chief Financial Officer
CFO & Secretary
Shares35,000
Max PriceUS$15.50
SellUS$252,21407 Aug 19
Dror Levy
EntityIndividual
Role
Chief Financial Officer
CFO & Secretary
Shares17,171
Max PriceUS$14.70
SellUS$277,42505 Aug 19
Dror Levy
EntityIndividual
Role
Chief Financial Officer
CFO & Secretary
Shares17,829
Max PriceUS$15.60
SellUS$8,068,60601 Jul 19
Raging Capital Management, LLC
EntityCompany
Shares562,906
Max PriceUS$14.41
SellUS$4,789,65925 Jun 19
Raging Capital Management, LLC
EntityCompany
Shares333,565
Max PriceUS$14.65
SellUS$4,834,29111 Jun 19
Raging Capital Management, LLC
EntityCompany
Shares336,679
Max PriceUS$14.85

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Daniel Amir

    Corporate Vice President of Business Development

    • Dror Levy (46yo)

      CFO & Secretary

      • Tenure: 13.5yrs
      • Compensation: US$729.14k
    • Ofer Elyakim (49yo)

      CEO & Director

      • Tenure: 10.5yrs
      • Compensation: US$1.37m
    • Lior Blanka (59yo)

      CTO & Corporate VP

      • Tenure: 9.5yrs
      • Compensation: US$410.61k
    • Tali Chen

      Chief Marketing Officer

      • Tenure: 1yrs
    • Dima Friedman

      Corporate Vice President of Operations

      • Alex Sin

        Corporate Vice President of Sales

        • Ran Klier

          Corporate Vice President of Sales

          • Tenure: 8yrs
        • Eric Stauffer

          Chief Revenue Officer

          • Tenure: 1.2yrs
        • Naama Luquer-Hareli

          Corporate Vice President of Human Resources

          • Tenure: 2yrs

        Board Members

        • Ken Traub (57yo)

          Independent Chairman of the Board

          • Tenure: 2.7yrs
          • Compensation: US$149.57k
        • Yair Seroussi (64yo)

          Independent Director

          • Tenure: 17.9yrs
          • Compensation: US$143.50k
        • Tom Lacey (60yo)

          Independent Director

          • Tenure: 7.7yrs
          • Compensation: US$144.57k
        • Norm Taffe (53yo)

          Independent Director

          • Tenure: 6.7yrs
          • Compensation: US$136.07k
        • Gabi Seligsohn (53yo)

          Independent Director

          • Tenure: 6.7yrs
          • Compensation: US$133.50k
        • Cynthia Paul

          Independent Director

          • Tenure: 1.8yrs
          • Compensation: US$93.07k
        • Ofer Elyakim (49yo)

          CEO & Director

          • Tenure: 10.5yrs
          • Compensation: US$1.37m

        Company Information

        DSP Group, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: DSP Group, Inc.
        • Ticker: DSPG
        • Exchange: NasdaqGS
        • Founded: 1979
        • Industry: Semiconductors
        • Sector: Semiconductors
        • Market Cap: US$365.306m
        • Shares outstanding: 23.00m
        • Website: https://www.dspg.com

        Number of Employees


        Location

        • DSP Group, Inc.
        • 2055 Gateway Place
        • Suite 480
        • San Jose
        • California
        • 95110
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        DSPGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1994
        DP3DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1994

        Biography

        DSP Group, Inc., a fabless semiconductor company, provides wireless and audio chipset solutions for converged communications. It operates through three segments: Home, Office, and SmartVoice. The company provides a portfolio of wireless chipsets that integrate DECT/CAT-iq, ULE, Wi-Fi, PSTN, HDClear, video, and VoIP technologies. It also enables converged voice, audio, video, and data connectivity across various mobile, consumer, and enterprise products, including mobile phones, Internet of Things and wearable devices, connected multimedia screens, home automation and security, cordless phones, VoIP systems, and home gateways. The company operates in the United States, Hong Kong, Japan, Europe, China, Taiwan, Korea, and internationally. It sells its products primarily through distributors, as well as directly to original equipment manufacturers and original design manufacturers. DSP Group, Inc. was founded in 1979 and 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 Analysis2020/01/23 23:42
        End of Day Share Price2020/01/23 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.