MRAM Stock Overview
Everspin Technologies, Inc. manufactures and sells magnetoresistive random access memory (MRAM) products in the United States, Hong Kong, Japan, China, Canada, and internationally.
Everspin Technologies Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$5.79|
|52 Week High||US$14.36|
|52 Week Low||US$4.71|
|1 Month Change||-20.69%|
|3 Month Change||14.65%|
|1 Year Change||-8.96%|
|3 Year Change||-2.20%|
|5 Year Change||-56.69%|
|Change since IPO||-27.81%|
Recent News & Updates
Everspin: A Differentiated Semiconductor Memory Play To Invest In
Summary In an industry dominated by giants, tiny Everspin managed to grow revenues at an accelerated pace of 24% during its last reported quarter. The reason for this is its differentiated MRAM technology and the semiconductor play has better profitability metrics too. In addition to large memory plays like Micron, it also faces competition from other smaller companies. This stock is a buy, but, first wait for the dust to settle. Everspin (NASDAQ:MRAM) has developed products based on an innovative memory technology which is termed MRAM or Magnetoresistive Random Access Memory which I will elaborate on later. After having seen the rapid adoption of its disruptive memory chips which include toggle MRAM and STT-MRAM in applications like 5G, industrial automation, and AI, sales have progressed rapidly, but as shown in the chart below, appear to have peaked in the final quarter of 2021 which ended in December last year. MRAM Revenue (Quarterly) data by YCharts It is important to investigate the reasons for this by diving into the quarterly revenues, namely for the last reported quarter (Q2-2022), but, first, I provide the reasons why a small semiconductor play valued at only $148 million is able to sell products in a market dominated by behemoths like Micron (NASDAQ:MU), Samsung (OTCPK:SSNLF), Toshiba (OTCPK:TOSYY) and others. The MRAM differentiator These three giant memory chip manufacturers produce advanced DRAMs (dynamic random access memory) which are used in computers together with processors from Intel (NASDAQ:INTC) or Advanced Micro Devices (NASDAQ:AMD) to process data. Now, one main difference between MRAM and DRAM is that the latter is volatile, so when the computer is powered off, all the data gets flushed out. Hence, to prevent data loss, DRAMs have to be bundled with backup power supply modules to make them non-volatile or persistent. It is precisely here that Everspin’s STT-MRAM (Spin-transfer Torque MRAM) becomes useful for product manufacturers in the industrial, medical, automotive, aerospace, and data center sectors. Its advantage is its availability as a single module instead of manufacturers having to purchase DRAM and power supply units separately before combining them together in the circuit board. This is the reason for which its quarterly revenues have grown rapidly, even faster than giant competitor Micron when compared on a 5-year basis as shown in the blue chart below. These charts also show that both companies witnessed steep rises in sales from 2021 when demand was strong. This has changed in 2022 with growth slowing down, most probably because of large inventories built up by customers. The revenue drop in the first quarter of 2022 was more drastic for Everspin since its earlier growth was steeper. MRAM Revenue (Quarterly) data by YCharts Furthermore, Everspin also faces competition from smaller MRAM developers like Avalanche and Spin Transfer Technologies, with Samsung also venturing into magnetoresistive-based memory. Higher competition could also explain why for STT-RAM, revenues were “slightly down from before”. However, boasting a pioneering role in the successful commercialization of MRAM, Everspin has more than ten years of manufacturing experience which is proving crucial to navigate through the competition. Competition, Profitability, and Cash At the same time, it has broadened its product pipeline with new innovations like the xSPI low-density STT-MRAM products which are currently being qualified by customers. Additionally, its FPGA, which is a field-programmable chip constitutes a valid alternative to conventional NOR Flash technology. Therefore, growth has not yet peaked as the ingredients to drive further revenues are present. Continuing on a positive note, Toggle MRAM, the company’s other MRAM “is doing great”, according to the executives. Here, the company faces competition from manufacturers of non-volatile SRAM and ferroelectric RAM suppliers like Cypress, and Fujitsu (OTCPK:FJTSY) as well as the big three semiconductor memory plays I mentioned in the introduction. In this area, there is a backlog (unfulfilled demand) which should last into 2022 with the company working with foundry partners to boost capacity. Therefore, strength in Toggle-SRAM should offset weakness in STT-MRAM. Shifting to profitability, often companies that are able to grow rapidly amid a supply chain crunch do so at the expense of margins after bearing higher costs from items like expedited shipping and other additional inflation-related expenses. This was the case with Everspin too, but, it was able to offset part of the incremental cost attributed to supply chain constraints and high inflation through cost reductions and improved production efficiency. In this way, despite seeing a year-on-year decrease, margins of 58.5% still increased on a sequential basis when compared to Q1. This trend should increase as, according to the management, they are "alleviating some of the supply chain constraints" and gross margins to be sustained around the mid-50s. Quarterly revenues (www.seekingalpha.com) As for operating income, it fell to 11.6% due to higher expenses related primarily to supporting a new STT-MRAM industrial product. Looking forward to Q3, operating income should continue to be under pressure due to higher raw materials and R&D costs. On the other hand, cash flow from operations rose to $4.3 million in Q2 compared to -$1 million in Q1 and -$0.6 million for Q2 of last year. Hence, the total available cash has been increased by $3.2 million to $23.1 million. This is higher than the $7.5 million of debt, which means that Everspin's business model is financially sustainable, especially in light of a tightening in monetary conditions. My optimism also stems from the fact that both its trailing gross, operating, and free cash flow margins are above the sector median's average as shown in the table below. Profitability Grade (www.seekingalpha.com) Valuations and Key takeaways Still, as I touched upon in the previous section, margins may come under some pressure in Q3 due to higher input costs as the company has not meaningfully increased its inventory levels to mitigate supply fluctuations. This may be the reason why the expectation is for the net income per share in Q3 to be lower than for the first two quarters of this year. Moreover, the stock could be volatile if one of the larger industry plays were to acquire a smaller one, thereby posing a more direct threat to Everspin's competitive positioning. Also, the fact that its chips are used as components and embedded in the circuit boards of clients implies less visibility as to demand from end customers. This is likely the reason that some companies in the sector do not provide quarterly guidance, but the fact that Everspin did so for its third quarter shows management confidence.
Is Now The Time To Look At Buying Everspin Technologies, Inc. (NASDAQ:MRAM)?
Everspin Technologies, Inc. ( NASDAQ:MRAM ), is not the largest company out there, but it led the NASDAQGM gainers with...
Investors Should Be Encouraged By Everspin Technologies' (NASDAQ:MRAM) Returns On Capital
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want...
|MRAM||US Semiconductor||US Market|
Return vs Industry: MRAM exceeded the US Semiconductor industry which returned -27.7% over the past year.
Return vs Market: MRAM exceeded the US Market which returned -21.5% over the past year.
|MRAM Average Weekly Movement||15.7%|
|Semiconductor Industry Average Movement||7.8%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: MRAM is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 16% a week.
Volatility Over Time: MRAM's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
Everspin Technologies, Inc. manufactures and sells magnetoresistive random access memory (MRAM) products in the United States, Hong Kong, Japan, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for embedded MRAM. The company provides its products for applications, including data center, industrial, medical, automotive/transportation, and aerospace markets.
Everspin Technologies Fundamentals Summary
|MRAM fundamental statistics|
Is MRAM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MRAM income statement (TTM)|
|Cost of Revenue||US$25.27m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.40|
|Net Profit Margin||13.13%|
How did MRAM perform over the long term?See historical performance and comparison
Is MRAM undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for MRAM?
Other financial metrics that can be useful for relative valuation.
|What is MRAM's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does MRAM's PE Ratio compare to its peers?
|MRAM PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
OIIM O2Micro International
MX Magnachip Semiconductor
MRAM Everspin Technologies
Price-To-Earnings vs Peers: MRAM is good value based on its Price-To-Earnings Ratio (14.3x) compared to the peer average (22.2x).
Price to Earnings Ratio vs Industry
How does MRAM's PE Ratio compare vs other companies in the US Semiconductor Industry?
Price-To-Earnings vs Industry: MRAM is good value based on its Price-To-Earnings Ratio (14.3x) compared to the US Semiconductor industry average (15.3x)
Price to Earnings Ratio vs Fair Ratio
What is MRAM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||14.3x|
|Fair PE Ratio||9.6x|
Price-To-Earnings vs Fair Ratio: MRAM is expensive based on its Price-To-Earnings Ratio (14.3x) compared to the estimated Fair Price-To-Earnings Ratio (9.6x).
Share Price vs Fair Value
What is the Fair Price of MRAM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MRAM ($5.79) is trading below our estimate of fair value ($96.97)
Significantly Below Fair Value: MRAM is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.
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How is Everspin Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MRAM's earnings are forecast to decline over the next 3 years (-19.8% per year).
Earnings vs Market: MRAM's earnings are forecast to decline over the next 3 years (-19.8% per year).
High Growth Earnings: MRAM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MRAM's revenue (10.5% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: MRAM's revenue (10.5% 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 MRAM's Return on Equity is forecast to be high in 3 years time
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How has Everspin Technologies performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MRAM has high quality earnings.
Growing Profit Margin: MRAM became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MRAM has become profitable over the past 5 years, growing earnings by 42% per year.
Accelerating Growth: MRAM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MRAM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (54.4%).
Return on Equity
High ROE: MRAM's Return on Equity (24.5%) is considered high.
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How is Everspin Technologies's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: MRAM's short term assets ($39.5M) exceed its short term liabilities ($9.6M).
Long Term Liabilities: MRAM's short term assets ($39.5M) exceed its long term liabilities ($3.0M).
Debt to Equity History and Analysis
Debt Level: MRAM has more cash than its total debt.
Reducing Debt: MRAM's debt to equity ratio has reduced from 66.7% to 11.3% over the past 5 years.
Debt Coverage: MRAM's debt is well covered by operating cash flow (309.2%).
Interest Coverage: MRAM's interest payments on its debt are well covered by EBIT (21.8x coverage).
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What is Everspin Technologies's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Everspin Technologies Dividend Yield vs Market|
|Company (Everspin Technologies)||n/a|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Semiconductor)||2.1%|
|Analyst forecast in 3 Years (Everspin Technologies)||n/a|
Notable Dividend: Unable to evaluate MRAM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MRAM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MRAM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MRAM's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as MRAM has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sanjeev Aggarwal (55 yo)
Dr. Sanjeev Aggarwal, Ph D., serves as President & Chief Executive Officer of Everspin Technologies, Inc. since March 14, 2022 and serves as Director since March 2022 and served as its Director from March...
CEO Compensation Analysis
|Sanjeev Aggarwal's Compensation vs Everspin Technologies Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$911k||US$269k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$416k||US$251k|
Compensation vs Market: Sanjeev's total compensation ($USD911.14K) is about average for companies of similar size in the US market ($USD772.00K).
Compensation vs Earnings: Sanjeev's compensation has been consistent with company performance over the past year.
Experienced Management: MRAM's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.
Experienced Board: MRAM's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MRAM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
|01 Sep 22||SellUS$24,280||Darin Billerbeck||Individual||3,524||US$6.89|
|18 Aug 22||SellUS$161,770||Michael Gustafson||Individual||21,603||US$8.41|
|02 Aug 22||SellUS$21,075||Darin Billerbeck||Individual||3,566||US$5.91|
|05 Jul 22||SellUS$17,723||Darin Billerbeck||Individual||3,595||US$4.93|
|01 Jul 22||SellUS$18,253||Troy Winslow||Individual||3,586||US$5.09|
|01 Jun 22||SellUS$21,535||Darin Billerbeck||Individual||3,513||US$6.13|
|15 Mar 22||SellUS$84,630||Troy Winslow||Individual||10,000||US$8.50|
|14 Mar 22||SellUS$1,834||Sanjeev Aggarwal||Individual||216||US$8.49|
|17 Dec 21||SellUS$203,744||Darin Billerbeck||Individual||19,497||US$10.45|
|02 Dec 21||SellUS$17,682||Darin Billerbeck||Individual||1,547||US$11.43|
|23 Nov 21||SellUS$2,468||Sanjeev Aggarwal||Individual||218||US$11.32|
|23 Nov 21||SellUS$5,837,384||New Venture Partners LLC||Company||510,975||US$12.41|
|19 Nov 21||SellUS$471,078||Darin Billerbeck||Individual||38,740||US$12.16|
|17 Nov 21||SellUS$181,432||Michael Gustafson||Individual||14,286||US$12.70|
|17 Nov 21||SellUS$160,694||Troy Winslow||Individual||12,000||US$13.71|
|17 Nov 21||SellUS$115,617||Sanjeev Aggarwal||Individual||8,846||US$13.07|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Everspin Technologies, Inc.'s employee growth, exchange listings and data sources
- Name: Everspin Technologies, Inc.
- Ticker: MRAM
- Exchange: NasdaqGM
- Founded: 2008
- Industry: Semiconductors
- Sector: Semiconductors
- Implied Market Cap: US$116.746m
- Shares outstanding: 20.16m
- Website: https://www.everspin.com
Number of Employees
- Everspin Technologies, Inc.
- 5670 West Chandler Boulevard
- Suite 100
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MRAM||NasdaqGM (Nasdaq Global Market)||Yes||Common Stock||US||USD||Oct 2016|
|E5N||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 2016|
|0IJ3||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Oct 2016|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/30 00:00|
|End of Day Share Price||2022/09/30 00:00|
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.