OTCPK:NLST

Stock Analysis Report

Executive Summary

Netlist, Inc. designs, manufactures, and sells modular memory subsystems for the server, high-performance computing, and communications markets worldwide.

Rewards

Revenue is forecast to grow 38.06% per year

Earnings have grown 2% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

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

Does not have a meaningful market cap ($52M)



Snowflake Analysis

Limited growth with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NLST has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

NLST

1.7%

US Electronic

1.5%

US Market


1 Year Return

-8.5%

NLST

10.4%

US Electronic

20.1%

US Market

Return vs Industry: NLST underperformed the US Electronic industry which returned 10.4% over the past year.

Return vs Market: NLST underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

NLSTIndustryMarket
7 Day-2.1%1.7%1.5%
30 Day0.2%-4.7%1.4%
90 Day-8.2%2.4%8.7%
1 Year-8.5%-8.5%11.5%10.4%22.7%20.1%
3 Year-69.2%-69.2%37.4%33.6%50.1%40.5%
5 Year-79.0%-79.0%70.5%62.1%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether Netlist is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Netlist has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of NLST’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Netlist regulatory filings here.
  • Explore potentially undervalued companies in the Tech industry.

Future Growth

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

45.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NLST's revenue (38.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: NLST's revenue (38.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Netlist performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NLST is currently unprofitable.

Growing Profit Margin: NLST is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NLST is unprofitable, but has reduced losses over the past 5 years at a rate of 2% per year.

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

Earnings vs Industry: NLST is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (14.6%).


Return on Equity

High ROE: NLST's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Netlist's financial position?


Financial Position Analysis

Short Term Liabilities: NLST has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: NLST has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: NLST has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: NLST's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: NLST has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: NLST has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NLST has less than a year of cash runway if free cash flow continues to reduce at historical rates of -12.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if NLST'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 NLST'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?

2.4yrs

Average management tenure


CEO

Chuck Hong (58yo)

19.7yrs

Tenure

US$446,108

Compensation

Mr. Chun K. Hong, also known as Chuck, co-founded Netlist Inc. in 2000 and has been its Chief Executive Officer and President since 2000. Mr. Hong served as the President and Chief Operating Officer of Inf ...


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD446.11K) is about average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Chun Hong
Co-Founder19.7yrsUS$446.11k5.51% $2.9m
Gail Sasaki
VP, CFO & Secretary12.1yrsUS$220.33k0.061% $31.8k
Ki Paik
Vice President of Operations0yrsno datano data
Alex Tinsley
Vice President of Sales1.5yrsno datano data
Marc Frechette
Chief Licensing Officer0.6yrsno datano data
Jibum Kim
Executive Advisor of Asia Pacific Sales & Strategic Business Development2.4yrsno datano data

2.4yrs

Average Tenure

Experienced Management: NLST's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chun Hong
Co-Founder19.7yrsUS$446.11k5.51% $2.9m
Blake Welcher
Independent Director6.5yrsUS$40.99k0.077% $40.1k
Jun Cho
Lead Independent Director2.2yrsUS$41.99k0.18% $94.2k
Kiho Choi
Independent Director2.8yrsUS$44.99k0.059% $30.9k

4.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: NLST's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 56.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Netlist, Inc.
  • Ticker: NLST
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$52.291m
  • Shares outstanding: 169.50m
  • Website: https://www.netlist.com

Number of Employees


Location

  • Netlist, Inc.
  • 175 Technology Drive
  • Suite 150
  • Irvine
  • California
  • 92618
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NLSTOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2006
XABDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2006
0K6MLSE (London Stock Exchange)YesCommon StockGBUSDNov 2006

Biography

Netlist, Inc. designs, manufactures, and sells modular memory subsystems for the server, high-performance computing, and communications markets worldwide. It offers Hybri dual in-line memory module (DIMM), a storage class memory product, which unifies dynamic random access memory (DRAM) and NAND flash in a plug-and-play module delivering terabyte storage capacities operating at nanosecond memory speeds. The company also provides nonvolatile (NV) memory products, such as EXPRESSvault PCIe, a plug-and-play memory card, which offers data acceleration and data protection for server appliances; NVvault DDR4 NVDIMM that provides data acceleration and data protection in a JEDEC standard DDR4 interface; and specialty DIMMs and embedded flash products for use in data center and industrial applications. In addition, it resells NAND flash, DRAM products, and other component products to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products primarily to original equipment manufacturers through a direct sales force and a network of independent sales representatives. Netlist, Inc. was founded in 2000 and is headquartered in Irvine, 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 00:17
End of Day Share Price2020/02/14 00:00
Earnings2019/09/28
Annual Earnings2018/12/29


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.