NasdaqGM:PXLW

Stock Analysis Report

Executive Summary

Pixelworks, Inc. designs, develops, and markets video processing semiconductors, intellectual property cores, software, and custom application specific integrated circuits (ICs) solutions for high-quality energy efficient video applications.

Rewards

Revenue is forecast to grow 11.99% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

10.2%

PXLW

3.0%

US Semiconductor

0.9%

US Market


1 Year Return

28.6%

PXLW

41.1%

US Semiconductor

20.0%

US Market

Return vs Industry: PXLW underperformed the US Semiconductor industry which returned 41.1% over the past year.

Return vs Market: PXLW exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

PXLWIndustryMarket
7 Day10.2%3.0%0.9%
30 Day14.4%4.3%1.4%
90 Day63.1%14.5%8.8%
1 Year28.6%28.6%43.8%41.1%22.5%20.0%
3 Year19.1%19.1%95.3%84.7%49.9%40.3%
5 Year-6.4%-6.4%159.7%134.9%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.92x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PXLW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PXLW's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PXLW is overvalued based on its PB Ratio (3.9x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Pixelworks forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

73.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PXLW's revenue (12% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: PXLW's revenue (12% 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 PXLW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pixelworks performed over the past 5 years?

17.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PXLW is currently unprofitable.

Growing Profit Margin: PXLW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PXLW is unprofitable, but has reduced losses over the past 5 years at a rate of 17.8% per year.

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

Earnings vs Industry: PXLW is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-27.7%).


Return on Equity

High ROE: PXLW has a negative Return on Equity (-19.1%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pixelworks's financial position?


Financial Position Analysis

Short Term Liabilities: PXLW's short term assets ($32.2M) exceed its short term liabilities ($9.7M).

Long Term Liabilities: PXLW's short term assets ($32.2M) exceed its long term liabilities ($7.5M).


Debt to Equity History and Analysis

Debt Level: PXLW is debt free.

Reducing Debt: PXLW has no debt compared to 5 years ago when its debt to equity ratio was 19.2%.


Balance Sheet

Inventory Level: PXLW has a high level of physical assets or inventory.

Debt Coverage by Assets: PXLW's debt is not covered by short term assets (assets are -18x 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: PXLW has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: PXLW has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 24.9% each year


Next Steps

Dividend

What is Pixelworks'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 PXLW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Todd DeBonis (54yo)

3.8yrs

Tenure

US$1,511,829

Compensation

Mr. Todd A. DeBonis has been the Chief Executive Officer and President of Pixelworks, Inc. since April 28, 2016. Mr. DeBonis is Strategic Advisor at POET Technologies Inc. (Opel International Inc) since Ja ...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD1.51M) is above average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Todd DeBonis
President3.8yrsUS$1.51m1.15% $2.2m
Elias Nader
CFO & VP0.4yrsno datano data
Reuben Aspacio
Senior Vice President of Operations11yrsno datano data
Hongmin Zhang
Chief Technical Officer & Senior VP13yrsUS$354.53kno data
Greg Zafiris
VP, General Counsel & Secretary1.3yrsno datano data
Ting Xiong
Senior Vice President of Worldwide Sales3.3yrsno datano data
Peter Carson
Vice President of Marketing1.3yrsno datano data
Tzoyao Chan
Executive Vice President of Engineering11.1yrsUS$632.14kno data
Neil Woodall
Chief Architect & VP of DSP Engineering13.1yrsno datano data
Richard Miller
Executive Vice President of Technology7.5yrsUS$563.38kno data

5.7yrs

Average Tenure

58yo

Average Age

Experienced Management: PXLW's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Todd DeBonis
President3.8yrsUS$1.51m1.15% $2.2m
Daniel Heneghan
Independent Director13.8yrsUS$130.27k0.55% $1.0m
Richard Sanquini
Independent Chairman9.6yrsUS$151.27k0.56% $1.0m
Charles Gibson
Independent Director17.8yrsUS$124.27k0.36% $675.8k
David Tupman
Independent Director5.8yrsUS$120.77k0.23% $431.8k
Amy Bunszel
Independent Director0.9yrsno datano data

7.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: PXLW's board of directors are considered experienced (7.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Pixelworks, Inc.
  • Ticker: PXLW
  • Exchange: NasdaqGM
  • Founded: 1997
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$186.243m
  • Shares outstanding: 38.32m
  • Website: https://www.pixelworks.com

Number of Employees


Location

  • Pixelworks, Inc.
  • 226 Airport Parkway
  • Suite 595
  • San Jose
  • California
  • 95110
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PXLWNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMay 2000
PXLXDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2000

Biography

Pixelworks, Inc. designs, develops, and markets video processing semiconductors, intellectual property cores, software, and custom application specific integrated circuits (ICs) solutions for high-quality energy efficient video applications. The company provides video display processor products, including image processor ICs, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; and video co-processor ICs that work with an image processor to post-process video signals to enhance the performance or feature set of the overall video solution, as well as transcoder ICs, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing for converting bitrates, resolutions, and codecs. As of December 31, 2018, it had an intellectual property portfolio of 361 patents related to the visual display of digital image data. The company’s products are used in digital projection systems, tablets, and smartphones, as well as over-the-air streaming devices. Pixelworks, Inc. sells its products through a direct sales force, as well as distributors and manufacturers’ representatives worldwide. The company was founded in 1997 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 Analysis2020/02/17 23:45
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.