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MRAM

Everspin Technologies NasdaqGM:MRAM Stock Report

Last Price

US$5.79

Market Cap

US$116.7m

7D

-5.7%

1Y

-9.0%

Updated

30 Sep, 2022

Data

Company Financials +
MRAM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Everspin Technologies
Historical stock prices
Current Share PriceUS$5.79
52 Week HighUS$14.36
52 Week LowUS$4.71
Beta1.21
1 Month Change-20.69%
3 Month Change14.65%
1 Year Change-8.96%
3 Year Change-2.20%
5 Year Change-56.69%
Change since IPO-27.81%

Recent News & Updates

Sep 14

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.

Sep 02
Is Now The Time To Look At Buying Everspin Technologies, Inc. (NASDAQ:MRAM)?

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...

Aug 15
Investors Should Be Encouraged By Everspin Technologies' (NASDAQ:MRAM) Returns On Capital

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...

Shareholder Returns

MRAMUS SemiconductorUS Market
7D-5.7%-3.9%-2.5%
1Y-9.0%-28.9%-23.2%

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.

Price Volatility

Is MRAM's price volatile compared to industry and market?
MRAM volatility
MRAM Average Weekly Movement15.7%
Semiconductor Industry Average Movement7.8%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
200875Sanjeev Aggarwalhttps://www.everspin.com

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

How do Everspin Technologies's earnings and revenue compare to its market cap?
MRAM fundamental statistics
Market CapUS$116.75m
Earnings (TTM)US$8.15m
Revenue (TTM)US$62.07m

14.3x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRAM income statement (TTM)
RevenueUS$62.07m
Cost of RevenueUS$25.27m
Gross ProfitUS$36.81m
Other ExpensesUS$28.65m
EarningsUS$8.15m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.40
Gross Margin59.29%
Net Profit Margin13.13%
Debt/Equity Ratio11.3%

How did MRAM perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MRAM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

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

  • Analyst Forecast

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.

MRAM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA10.3x
PEG Ratio-0.7x

Price to Earnings Ratio vs Peers

How does MRAM's PE Ratio compare to its peers?

MRAM PE Ratio vs Peers
The above table shows the PE ratio for MRAM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.2x
OIIM O2Micro International
15.5x-56.4%US$123.3m
15xn/aUS$225.4m
EMAN eMagin
51.9xn/aUS$45.3m
MX Magnachip Semiconductor
6.5x-12.9%US$459.8m
MRAM Everspin Technologies
14.3x-19.8%US$116.7m

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.

MRAM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.3x
Fair PE Ratio9.6x

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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Future Growth

How is Everspin Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-19.8%

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


Discover growth companies

Past Performance

How has Everspin Technologies performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


42.0%

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.


Discover strong past performing companies

Financial Health

How is Everspin Technologies's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Everspin Technologies Dividend Yield vs Market
How does Everspin Technologies dividend yield compare to the market?
SegmentDividend Yield
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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Sanjeev Aggarwal (55 yo)

0.50yr

Tenure

US$911,138

Compensation

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
How has Sanjeev Aggarwal's remuneration changed compared to Everspin Technologies's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$8m

Mar 31 2022n/an/a

US$7m

Dec 31 2021US$911kUS$269k

US$4m

Sep 30 2021n/an/a

-US$915k

Jun 30 2021n/an/a

-US$6m

Mar 31 2021n/an/a

-US$7m

Dec 31 2020US$416kUS$251k

-US$9m

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.


Leadership Team

Experienced Management: MRAM's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: MRAM's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

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

NasdaqGM:MRAM Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
01 Sep 22SellUS$24,280Darin BillerbeckIndividual3,524US$6.89
18 Aug 22SellUS$161,770Michael GustafsonIndividual21,603US$8.41
02 Aug 22SellUS$21,075Darin BillerbeckIndividual3,566US$5.91
05 Jul 22SellUS$17,723Darin BillerbeckIndividual3,595US$4.93
01 Jul 22SellUS$18,253Troy WinslowIndividual3,586US$5.09
01 Jun 22SellUS$21,535Darin BillerbeckIndividual3,513US$6.13
15 Mar 22SellUS$84,630Troy WinslowIndividual10,000US$8.50
14 Mar 22SellUS$1,834Sanjeev AggarwalIndividual216US$8.49
17 Dec 21SellUS$203,744Darin BillerbeckIndividual19,497US$10.45
02 Dec 21SellUS$17,682Darin BillerbeckIndividual1,547US$11.43
23 Nov 21SellUS$2,468Sanjeev AggarwalIndividual218US$11.32
23 Nov 21SellUS$5,837,384New Venture Partners LLCCompany510,975US$12.41
19 Nov 21SellUS$471,078Darin BillerbeckIndividual38,740US$12.16
17 Nov 21SellUS$181,432Michael GustafsonIndividual14,286US$12.70
17 Nov 21SellUS$160,694Troy WinslowIndividual12,000US$13.71
17 Nov 21SellUS$115,617Sanjeev AggarwalIndividual8,846US$13.07

Ownership Breakdown

What is the ownership structure of MRAM?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders689,0923.4%
Hedge Funds1,958,7419.7%
VC/PE Firms3,874,33219.2%
Institutions4,189,26020.8%
General Public9,451,98546.9%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Top 25 shareholders own 50.96% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.71%
AWM Investment Company Inc
1,958,741$11.3m2.62%1.85%
7.53%
New Venture Partners LLC
1,517,558$8.8m0%no data
6.37%
Aigh Capital Management, LLC
1,284,249$7.4m0%3.35%
5.32%
Sigma Partners
1,072,525$6.2m0%100%
3.65%
The Vanguard Group, Inc.
736,232$4.3m0%no data
3.54%
D. E. Shaw & Co., L.P.
713,654$4.1m-1.66%0.01%
1.92%
Royal Bank of Canada, Banking & Securities Investments
386,570$2.2m89.03%no data
1.85%
Lawrence Finch
372,868$2.2m1.65%no data
1.62%
Acadian Asset Management LLC
326,098$1.9m18.99%0.01%
1.52%
Renaissance Technologies LLC
305,906$1.8m13.38%no data
1.4%
BlackRock, Inc.
282,579$1.6m1.54%no data
1.36%
Herald Investment Management Limited
275,000$1.6m11%0.17%
0.75%
UBS Asset Management
151,115$875.0k-3.73%no data
0.73%
Geode Capital Management, LLC
147,306$852.9k9.36%no data
0.61%
Bridgeway Capital Management, LLC
122,100$707.0k69.82%0.02%
0.54%
Darin Billerbeck
108,017$625.4k123.34%no data
0.53%
Two Sigma Advisers, LP
107,100$620.1k-8.38%no data
0.36%
Dimensional Fund Advisors LP
72,556$420.1k52.12%no data
0.34%
BNY Mellon Asset Management
68,597$397.2k20.52%no data
0.27%
Two Sigma Investments, LP
54,844$317.5k-10.97%no data
0.27%
Geoffrey Ribar
54,123$313.4k51.54%no data
0.23%
Gslp International S.à R.L.
46,175$267.4k0%0.47%
0.22%
State Street Global Advisors, Inc.
45,088$261.1k0%no data
0.18%
Michael Gustafson
36,748$212.8k-8%no data
0.15%
GSA Capital Partners LLP
29,304$169.7k0%0.03%

Company Information

Everspin Technologies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Everspin Technologies, Inc.
  • 5670 West Chandler Boulevard
  • Suite 100
  • Chandler
  • Arizona
  • 85226
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRAMNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 2016
E5NDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2016
0IJ3LSE (London Stock Exchange)YesCommon StockGBUSDOct 2016

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.