PDF Solutions, Inc. Fundamental Analysis
PDF Solutions, Inc. (PDFS) shows weak financial fundamentals with a PE ratio of 372.57, profit margin of 3.10%, and ROE of 2.68%. The company generates $0.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.7/100 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
WeakPDFS trades at a premium to fair value.
Growth Score
ModeratePDFS shows steady but slowing expansion.
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 372.57 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PDFS's PEG of 6.56 indicates potential overvaluation.
Price to Book
The market values PDF Solutions, Inc. at 9.58 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 106.04 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 $3.10 as profit after all expenses.
Operating Margin
Core operations generate 6.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.68 in profit for every $100 of shareholder equity.
ROA
PDF Solutions, Inc. generates $1.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PDF Solutions, Inc. generates limited operating cash flow of $17.66M, signaling weaker underlying cash strength.
Free Cash Flow
PDF Solutions, Inc. generates weak or negative free cash flow of $-18.65M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.45 in free cash annually.
FCF Yield
PDFS converts -0.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
372.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How PDFS Stacks Against Its Sector Peers
| Metric | PDFS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 372.57 | 34.68 | Worse (Expensive) |
| ROE | 2.68% | 672.00% | Weak |
| Net Margin | 3.10% | 10024586197.00% | Weak |
| Debt/Equity | 0.26 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 2.34 | 4.91 | Strong Liquidity |
| ROA | 1.67% | 151.00% | Weak |
PDFS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
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
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta