NasdaqCM:IOTS

Stock Analysis Report

Executive Summary

Adesto Technologies Corporation provides application-specific semiconductors and embedded systems that comprise essential building blocks of Internet of Things (IoT) edge devices operating on networks worldwide.

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.6%

IOTS

0.4%

US Semiconductor

0.9%

US Market


1 Year Return

44.0%

IOTS

40.8%

US Semiconductor

15.5%

US Market

Return vs Industry: IOTS exceeded the US Semiconductor industry which returned 40.8% over the past year.

Return vs Market: IOTS exceeded the US Market which returned 15.5% over the past year.


Shareholder returns

IOTSIndustryMarket
7 Day2.6%0.4%0.9%
30 Day-16.2%9.2%4.7%
90 Day-30.5%14.6%6.6%
1 Year44.0%44.0%43.7%40.8%18.1%15.5%
3 Year289.2%289.2%86.3%75.8%48.0%38.5%
5 Yearn/a137.5%113.5%62.1%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

47.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IOTS ($7.2) is trading below our estimate of fair value ($13.74)

Significantly Below Fair Value: IOTS is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: IOTS 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 IOTS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IOTS is overvalued based on its PB Ratio (3.4x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

How is Adesto Technologies forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

37.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: IOTS's revenue (17.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: IOTS's revenue (17.8% 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 IOTS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Adesto Technologies performed over the past 5 years?

-26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IOTS has a high level of non-cash earnings.

Growing Profit Margin: IOTS's current net profit margins (-21.8%) are lower than last year (-20.6%).


Past Earnings Growth Analysis

Earnings Trend: IOTS is unprofitable, and losses have increased over the past 5 years at a rate of -26.3% per year.

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

Earnings vs Industry: IOTS is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-14.2%).


Return on Equity

High ROE: IOTS has a negative Return on Equity (-40.02%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Adesto Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: IOTS's short term assets ($90.0M) exceeds its short term liabilities ($47.3M)

Long Term Liabilities: IOTS's short term assets ($90.0M) exceeds its long term liabilities (62.5M)


Debt to Equity History and Analysis

Debt Level: IOTS's debt to equity ratio (85.7%) is considered high.

Reducing Debt: IOTS's debt to equity ratio has reduced from 112.1% to 85.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: IOTS's debt is covered by short term assets (assets are 1.6x 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: IOTS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if IOTS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if IOTS'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 IOTS'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 Adesto Technologies's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Narbeh Derhacobian (56yo)

13.8yrs

Tenure

US$1,497,215

Compensation

Mr. Narbeh Derhacobian, Ph.D., Co-founded Adesto Technologies Corporation in January 2006 and has been its Chief Executive Officer and President since January 2006. Mr. Derhacobian has served technical and ...


CEO Compensation Analysis

Compensation vs Market: Narbeh's total compensation ($USD1.50M) is about average for companies of similar size in the US market ($USD1.15M).

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


Management Age and Tenure

4.2yrs

Average Tenure

57yo

Average Age

Experienced Management: IOTS's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: IOTS's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$42,60127 Aug 19
Dermot Barry
EntityIndividual
Shares4,000
Max PriceUS$10.65
SellUS$17,02520 Aug 19
Raphael Mehrbians
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares1,661
Max PriceUS$10.25
SellUS$80,77515 Aug 19
Gideon Intrater
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares7,500
Max PriceUS$10.77
SellUS$17,92714 Aug 19
Raphael Mehrbians
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares1,694
Max PriceUS$10.58
SellUS$91,34013 Aug 19
Thomas Spade
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares9,217
Max PriceUS$9.91
SellUS$150,22813 Aug 19
Ronald Shelton
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares15,000
Max PriceUS$10.02
SellUS$7,18013 Aug 19
David Aaron
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares718
Max PriceUS$10.00
SellUS$151,95631 May 19
Ronald Shelton
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares20,000
Max PriceUS$7.86
SellUS$19,64529 May 19
Gideon Intrater
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares2,500
Max PriceUS$7.86

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28.5%.


Management Team

  • Ron Shelton (57yo)

    Chief Financial Officer

    • Tenure: 7.9yrs
    • Compensation: US$757.89k
  • Tom Spade (53yo)

    Vice President of Worldwide Sales

    • Tenure: 4.9yrs
    • Compensation: US$603.39k
  • Nachumovsky Naveh (61yo)

    Co-Founder & VP of Business Development

    • Tenure: 13.8yrs
    • Compensation: US$810.54k
  • Raphael Mehrbians (59yo)

    Vice President of Marketing

    • Tenure: 2.8yrs
  • David Aaron (52yo)

    VP, General Counsel & Secretary

    • Tenure: 1.8yrs
  • Narbeh Derhacobian (56yo)

    Co-Founder

    • Tenure: 13.8yrs
    • Compensation: US$1.50m
  • Gideon Intrater (58yo)

    Chief Technology Officer

    • Tenure: 4.2yrs
    • Compensation: US$718.03k
  • Sohrab Modi (58yo)

    Chief Strategy Officer

    • Tenure: 0.6yrs
  • Seyed Attaran (48yo)

    Vice President of Worldwide Operations

    • Tenure: 0.6yrs

Board Members

  • Keith Crandell (59yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$76.00k
  • Nelson Chan (58yo)

    Chairman of the Board & Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$114.00k
  • Francis Lee (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$79.00k
  • Kevin Palatnik (61yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$92.00k
  • Narbeh Derhacobian (56yo)

    Co-Founder

    • Tenure: 13.8yrs
    • Compensation: US$1.50m
  • Hervé Fages

    Independent Director

    • Tenure: 0.3yrs
  • Susan Uthayakumar (47yo)

    Board of Director

    • Tenure: 0.3yrs

Company Information

Adesto Technologies Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adesto Technologies Corporation
  • Ticker: IOTS
  • Exchange: NasdaqCM
  • Founded: 2006
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$217.874m
  • Shares outstanding: 30.26m
  • Website: https://www.adestotech.com

Number of Employees


Location

  • Adesto Technologies Corporation
  • 3600 Peterson Way
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IOTSNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 2015
A9YDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2015

Biography

Adesto Technologies Corporation provides application-specific semiconductors and embedded systems that comprise essential building blocks of Internet of Things (IoT) edge devices operating on networks worl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 00:57
End of Day Share Price2019/11/15 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.