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OIIM

O2Micro International NasdaqGS:OIIM Stock Report

Last Price

US$4.23

Market Cap

US$123.3m

7D

25.1%

1Y

-30.7%

Updated

30 Sep, 2022

Data

Company Financials +
OIIM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends0/6

OIIM Stock Overview

O2Micro International Limited, together with its subsidiaries, designs, develops, and markets integrated circuits and solutions for power management components and systems in China, Singapore, Taiwan, Malaysia, Korea, the Philippines, Japan, the United States, and internationally.

O2Micro International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for O2Micro International
Historical stock prices
Current Share PriceUS$4.23
52 Week HighUS$6.75
52 Week LowUS$2.85
Beta0.86
1 Month Change26.27%
3 Month Change15.26%
1 Year Change-30.66%
3 Year Change213.33%
5 Year Change148.82%
Change since IPO-79.63%

Recent News & Updates

Sep 19

O2Micro stock gains 17% postmarket on revised bid from consortium

O2Micro International (NASDAQ:OIIM) stock gained 17% postmarket on Monday after a consortium reduced its non-binding offer to acquire its outstanding shares not already owned by the group to $4.90 per ADS (or $0.098 per ordinary share). The group is comprised of FNOF Precious Honour, OIIM CEO Sterling Du, OIIM CFO Perry Kuo and a director of the firm. There can be no assurance that the consortium will make a definitive offer to OIIM or that the proposed deal will be approved. The consortium's earlier offer was $5.50/ADS (or $0.11/ordinary share in cash).

Aug 25

O2Micro International: The Status Quo Continues

Summary OIIM has gotten rocked by several hits in the last six months, including downbeat guidance, but the stock has managed to shrug it off. The outlook sees earnings go down in the near term due to an inventory problem, but the problem is not expected to last into the new year. Multiples are not as nice as before due to revised earnings expectations, but they are still very fair for a company with a healthy balance sheet. Long OIIM is worth it in light of current valuations and an expected recovery in 2023, regardless of whether the proposed buyout succeeds or not. O2Micro International (OIIM) has not done much in recent months. The most recent quarterly report caused a small drop in the stock, but the response was relatively underwhelming in light of what the latest guidance called for. It's been mostly sideways for the last six months or so for the stock. Still, sales and profits are under pressure at OIIM due to headwinds popping up, but it appears there are other forces at work that are powerful enough to keep the status quo intact. Why will be covered next. The stock seems to be waiting for something The chart below shows how March was a pivotal month for OIIM. The stock had been declining up to that point, only to change direction in early March when news broke of a buyout proposal for OIIM. The non-binding proposal values OIIM at $5.50 per ADS, which is higher than what OIIM is going for, even to this day. Note that "the proposal constitutes only a preliminary indication of interest and does not constitute any funding commitment" as reiterated before by OIIM. OIIM has put together a committee to evaluate the proposal, but there’s been nothing of significance since then. The special committee continues to review the proposed transaction and no decisions have been made as to the proposal, except to stay tuned for further updates in the future. In a nutshell, the proposal is out there, but it is basically in limbo. It may go through, but it may not go through as well. Source: finviz.com Still, while the stock has yet to get anywhere near the proposed acquisition price, the proposal seems to have brought some semblance of stability to the stock, certainly in comparison to what it was doing beforehand. The stock was falling prior to the proposal, but it has since gone sideways more or less. The stock is still down 25% YTD, but it is also higher than where it was prior to the proposal being made. The fact that the stock trades below the proposed acquisition price suggests a fair amount of skepticism towards the proposal. It’s possible the proposal may not go through for a number of reasons. For instance, shareholders may not agree or financing may not be there. On the other hand, the proposal seems to have put a floor under the stock, keeping it from falling too much, unlike how it behaved prior to the proposal. In that sense, the proposal has been a positive for OIIM. It’s not as if there have been no forces exerting pressure on the stock. For instance, the stock market has seen lots of volatility in 2022 with many stocks suffering big declines. Yet OIIM has for the most part shrugged it off. Nothing has been able to change the trajectory of the stock in the last six months. This includes the most recent earnings report, which probably should have moved the stock more than it did as it contained a fair amount of bad news. If circumstances had been different and there was no pending buyout proposal, the stock may have reacted differently. Yet it passed almost unnoticed. OIIM has an inventory problem The most recent quarterly numbers were actually better than expected with revenue and gross margins near the high end of guidance. Q2 revenue still declined by 15.8% YoY, but it also increased by 2% QoQ to $22M. Net income was $0.56M or $0.02 per ADS in terms of GAAP, down QoQ and YoY. In terms of non-GAAP, net income was $2M or $0.06 per share, a decline of 50% YoY, but an increase of 20% QoQ. Note that the GAAP numbers were negatively impacted by a one-time expense of $0.8M. Stock-based compensation expense also lowered GAAP earnings by $586,000, but they are excluded in the non-GAAP numbers. OIIM ended Q2 with cash and equivalents of $49.5M, which translates to $1.70 per ADS. The table below shows the numbers for Q2 FY2022. (GAAP) Q2 FY2022 Q1 FY2022 Q2 FY2021 QoQ YoY Revenue $22.058M $21.625M $26.205M 2.00% (15.83%) Gross margin 52.6% 52.6% 51.5% - 110bps Operating margin 2.1% 3.9% 12.5% (180bps) (1040bps) Operating expenses $11.142M $10.535M $10.206M 5.76% 9.17% Income from operations $0.469M $0.833M $3.281M (43.70%) (85.71%) Net income (loss) $0.555M $0.915M $3.161M (39.34%) (82.44%) EPADS $0.02 $0.03 $0.10 (33.33%) (80.00%) (Non-GAAP) Net income $2.0M $1.6M $3.6M 25.00% (44.44%) EPADS $0.06 $0.05 $0.12 20.00% (50.00%) Source: OIIM Form 6-K However, although the Q2 numbers showed some improvement over the ones in Q1, that’s not expected to be the case in Q3. The outlook sees a significant deterioration in the quarterly numbers. Guidance calls for Q3 FY2022 revenue of $17-19M, a decline of 18.2% QoQ and 34% YoY at the midpoint. Gross margin is expected to fall by 100 basis points YoY. OIIM barely made it, but it managed to avoid ending up with losses in Q2. However, this is not expected to continue in Q3. The drop in the top line and a reduction in gross margin is expected to push OIIM into the red. Consensus estimates have been revised downwards in light of the worse-than-expected guidance and are now calling for a GAAP loss of $0.06 per share in Q3, the first loss for OIIM since Q1 FY2020 when COVID-19 showed up. Q3 FY2022 (guidance) Q2 FY2021 YoY (midpoint) Revenue $17.0-19.0M $27.3M (34.07%) Gross margin 50-52% 52% (100bps) OIIM added some color as to the reasoning behind the latest guidance. From the Q2 earnings call: “In Q3, we are facing an inventory correction due to weaker demand from some selected market by inflation. We will carefully be managing the inventory, while we also continue to qualify second sources for cost and additional supply chains as reported area.” A transcript of the Q2 FY2022 earnings call can be found here. Similar to a growing number of companies in the semiconductor space, OIIM is dealing with excess inventory at some of its customers, especially in the battery management segment. Some customers have enough inventory for Q3 and Q4 to a lesser degree, which means they will need less from OIIM in the coming quarters. “We expect to be through the majority of the inventory correction in Q3. We understand from the leaders list primarily in the power tool and vacuum cleaner area. We understand the magnitude of those inventories and we understand their ongoing run rates. In most cases we give direct forecasts from them for their ongoing run rate. So we do expect to have most of the inventory correction done in Q3 and some into Q4. We don't expect to have any issues of any significance as we move into next year.”

Shareholder Returns

OIIMUS SemiconductorUS Market
7D25.1%-3.8%-3.1%
1Y-30.7%-27.7%-21.5%

Return vs Industry: OIIM underperformed the US Semiconductor industry which returned -27.7% over the past year.

Return vs Market: OIIM underperformed the US Market which returned -21.5% over the past year.

Price Volatility

Is OIIM's price volatile compared to industry and market?
OIIM volatility
OIIM Average Weekly Movement6.2%
Semiconductor Industry Average Movement7.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: OIIM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: OIIM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1995324Sterling Duhttps://www.o2micro.com

O2Micro International Limited, together with its subsidiaries, designs, develops, and markets integrated circuits and solutions for power management components and systems in China, Singapore, Taiwan, Malaysia, Korea, the Philippines, Japan, the United States, and internationally. The company offers analog and mixed-signal integrated circuits that manages and provides power for LCD and LED lighting; controls and monitors battery charging and discharging in portable electronic devices and vehicles; performs DC/DC and AC/DC conversion; and provides select and switch functionality between power sources. Its products are primarily used in the consumer electronics, computer, industrial, communication, and automotive markets for applications, including LCD and LED monitors, LCD and LED televisions, notebook and tablet computers, low/zero emission vehicles, mobile phones, power tools, energy efficient technology relating to batteries, LED lighting, and portable electronics devices.

O2Micro International Fundamentals Summary

How do O2Micro International's earnings and revenue compare to its market cap?
OIIM fundamental statistics
Market CapUS$123.33m
Earnings (TTM)US$7.94m
Revenue (TTM)US$95.34m

15.5x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OIIM income statement (TTM)
RevenueUS$95.34m
Cost of RevenueUS$44.95m
Gross ProfitUS$50.39m
Other ExpensesUS$42.45m
EarningsUS$7.94m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.27
Gross Margin52.86%
Net Profit Margin8.33%
Debt/Equity Ratio0%

How did OIIM perform over the long term?

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

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 OIIM?

Other financial metrics that can be useful for relative valuation.

OIIM 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/Revenue0.8x
Enterprise Value/EBITDA7.6x
PEG Ratio-0.3x

Price to Earnings Ratio vs Peers

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

OIIM PE Ratio vs Peers
The above table shows the PE ratio for OIIM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22x
MRAM Everspin Technologies
14.3x-19.8%US$116.7m
EMAN eMagin
51.9xn/aUS$45.3m
15xn/aUS$225.4m
SODI Solitron Devices
6.7xn/aUS$21.9m
OIIM O2Micro International
15.5x-56.4%US$123.3m

Price-To-Earnings vs Peers: OIIM is good value based on its Price-To-Earnings Ratio (15.5x) compared to the peer average (22x).


Price to Earnings Ratio vs Industry

How does OIIM's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Earnings vs Industry: OIIM is expensive based on its Price-To-Earnings Ratio (15.5x) compared to the US Semiconductor industry average (15.3x)


Price to Earnings Ratio vs Fair Ratio

What is OIIM'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.

OIIM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.5x
Fair PE Ratio3.5x

Price-To-Earnings vs Fair Ratio: OIIM is expensive based on its Price-To-Earnings Ratio (15.5x) compared to the estimated Fair Price-To-Earnings Ratio (3.5x).


Share Price vs Fair Value

What is the Fair Price of OIIM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OIIM ($4.23) is trading above our estimate of fair value ($4.15)

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


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 analysts are not within a statistically confident range of agreement.


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Future Growth

How is O2Micro International forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-56.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OIIM's earnings are forecast to decline over the next 3 years (-56.4% per year).

Earnings vs Market: OIIM's earnings are forecast to decline over the next 3 years (-56.4% per year).

High Growth Earnings: OIIM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OIIM's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: OIIM's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

How has O2Micro International performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


47.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OIIM has high quality earnings.

Growing Profit Margin: OIIM's current net profit margins (8.3%) are lower than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: OIIM has become profitable over the past 5 years, growing earnings by 47.5% per year.

Accelerating Growth: OIIM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OIIM had negative earnings growth (-38.6%) over the past year, making it difficult to compare to the Semiconductor industry average (54.4%).


Return on Equity

High ROE: OIIM's Return on Equity (7.8%) is considered low.


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Financial Health

How is O2Micro International'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: OIIM's short term assets ($90.0M) exceed its short term liabilities ($14.5M).

Long Term Liabilities: OIIM's short term assets ($90.0M) exceed its long term liabilities ($2.5M).


Debt to Equity History and Analysis

Debt Level: OIIM is debt free.

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

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

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


Balance Sheet


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Dividend

What is O2Micro International 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

O2Micro International Dividend Yield vs Market
How does O2Micro International dividend yield compare to the market?
SegmentDividend Yield
Company (O2Micro International)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Semiconductor)2.1%
Analyst forecast in 3 Years (O2Micro International)n/a

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

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

Growing Dividend: Insufficient data to determine if OIIM'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 OIIM has not reported any payouts.


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Management

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

20.8yrs

Average management tenure


CEO

Sterling Du (62 yo)

25.5yrs

Tenure

Mr. Sterling Du Co-founded GreenLogic, Inc. Mr. Du has been the Chairman of the Board and Chief Executive Officer of O2Micro International Limited since March 1997. Mr. Du served as President at O2Micro In...


Leadership Team

Experienced Management: OIIM's management team is seasoned and experienced (20.8 years average tenure).


Board Members

Experienced Board: OIIM's board of directors are seasoned and experienced ( 19.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

What is the ownership structure of OIIM?
Owner TypeNumber of SharesOwnership Percentage
Hedge Funds1,581,1625.4%
Individual Insiders2,411,1958.3%
Institutions8,319,43728.5%
General Public16,843,22757.8%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Top 25 shareholders own 42.22% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
13.78%
Grandeur Peak Global Advisors, LLC
4,018,229$17.0m5.05%0.31%
7.77%
DNB Asset Management AS
2,265,370$9.6m4.58%0.03%
6.39%
Sterling Du
1,862,193$7.9m0%no data
5.42%
Renaissance Technologies LLC
1,581,162$6.7m-4.57%0.01%
2.8%
Viex Capital Advisors, LLC
815,449$3.4m-31.91%9.41%
1.88%
Chuan Kuo
549,002$2.3m0%no data
1.42%
White Pine Capital, LLC
414,893$1.8m151.38%0.56%
0.76%
Raymond James Financial Inc., Asset Management Arm
221,049$935.0k-0.94%no data
0.45%
AKRO Investicni Spolecnost A.S.
130,000$549.9k0%1.68%
0.43%
Bank of America Corporation, Asset Management Arm
124,560$526.9k0.82%no data
0.4%
PEH Wertpapier AG
117,188$495.7k0%0.04%
0.14%
Envestnet Asset Management, Inc.
41,270$174.6k-41.49%no data
0.11%
Morgan Stanley, Investment Banking and Brokerage Investments
31,076$131.5k-70.4%no data
0.11%
Mercer Global Advisors Inc.
30,923$130.8k1.03%no data
0.082%
Tower Research Capital LLC
23,763$100.5k1.77%no data
0.06%
Two Sigma Advisers, LP
17,600$74.4k-52.17%no data
0.056%
Geode Capital Management, LLC
16,202$68.5k0%no data
0.048%
Kennedy Capital Management, Inc.
13,928$58.9k0%no data
0.045%
Marshall Wace LLP
13,173$55.7k-37.39%no data
0.035%
Point72 Asset Management, L.P.
10,213$43.2k-19.63%no data
0.032%
Citigroup Inc.,Banking and Securities Investments
9,441$39.9k-10.04%no data
0.0034%
First Horizon National Corp.,Asset Management Arm
1,000$4.2k0%no data
0.0034%
SagePoint Financial Advisors, Inc., Securities Investments
1,000$4.2k0%no data
0.0028%
Wells Fargo & Company, Securities and Brokerage Investments
815$3.4k0%no data
0.0026%
Eaton Vance Management
759$3.2k0%no data

Company Information

O2Micro International Limited's employee growth, exchange listings and data sources


Key Information

  • Name: O2Micro International Limited
  • Ticker: OIIM
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: US$123.326m
  • Shares outstanding: 29.16m
  • Website: https://www.o2micro.com

Number of Employees


Location

  • O2Micro International Limited
  • Grand Pavilion Commercial Centre
  • West Bay Road
  • Grand Cayman
  • Grand Cayman
  • KY1-1209
  • Cayman Islands


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OIIMNasdaqGS (Nasdaq Global Select)YesSPONS ADR EACH REPR 50 COM USD0.00002USUSDAug 2000
OMXADB (Deutsche Boerse AG)YesSPONS ADR EACH REPR 50 COM USD0.00002DEEURAug 2000

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.