PDF Solutions, Inc.
PDF Solutions, Inc. Fundamental Analysis
PDF Solutions, Inc. (PDFS) shows moderate financial fundamentals with a PE ratio of -2143.56, profit margin of -0.29%, and ROE of -0.25%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 8.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PDFS's fundamental strength across five key dimensions:
Efficiency Score
WeakPDFS struggles to generate sufficient returns from assets.
Valuation Score
ModeratePDFS shows balanced valuation metrics.
Growth Score
ExcellentPDFS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentPDFS maintains a strong and stable balance sheet.
Profitability Score
WeakPDFS struggles to sustain strong margins.
Key Financial Metrics
Is PDFS Expensive or Cheap?
P/E Ratio
PDFS trades at -2143.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PDFS's PEG of 2.27 indicates potential overvaluation.
Price to Book
The market values PDF Solutions, Inc. at 5.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 81.81 times EBITDA. This signals the market has high growth expectations.
How Well Does PDFS Make Money?
Net Profit Margin
For every $100 in sales, PDF Solutions, Inc. keeps $-0.29 as profit after all expenses.
Operating Margin
Core operations generate 2.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.25 in profit for every $100 of shareholder equity.
ROA
PDF Solutions, Inc. generates $-0.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PDF Solutions, Inc. produces operating cash flow of $24.28M, showing steady but balanced cash generation.
Free Cash Flow
PDF Solutions, Inc. generates weak or negative free cash flow of $-8.89M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.22 in free cash annually.
FCF Yield
PDFS converts -0.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2143.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How PDFS Stacks Against Its Sector Peers
| Metric | PDFS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2143.56 | 33.94 | Better (Cheaper) |
| ROE | -0.25% | 1002.00% | Weak |
| Net Margin | -0.29% | -48794.00% (disorted) | Weak |
| Debt/Equity | 0.28 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 2.28 | 5.74 | Strong Liquidity |
| ROA | -0.15% | -288341.00% (disorted) | Weak |
PDFS outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PDF Solutions, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
76.06%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
162.87%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-66.87%
Industry Style: Growth, Innovation, High Beta
Declining