(AIP) Arteris - Overview
Sector: Technology | Industry: Semiconductors | Exchange: NASDAQ (USA) | Market Cap: 1.534m USD | Total Return: 343.3% in 12m
Industry Rotation: +5.2
Avg Turnover: 27.3M
EPS Trend: 57.7%
Qual. Beats: 2
Rev. Trend: 82.3%
Qual. Beats: 3
Warnings
Negative Equity with losses - insolvent profile
Interest Coverage Ratio -133.8 is critical
Altman Z'' -8.02 < 1.0 - financial distress zone
Tailwinds
Supp Ema8, Supp Ema20, Leader, Pead, Tailwind, Pullback 52w
Arteris, Inc. (AIP) specializes in the development of semiconductor system intellectual property (IP), specifically focusing on Network-on-Chip (NoC) interconnect solutions and SoC integration automation software. The company’s technology manages the complex data communication between various functional blocks within a single chip or a system of chiplets. Its product portfolio includes cache-coherent and non-coherent NoC IP, hardware security verification tools, and connectivity automation software.
The company operates within the semiconductor IP sector, a high-margin business model where revenue is typically generated through upfront licensing fees and recurring royalty payments based on end-market chip shipments. As modern chip designs shift toward modular chiplet architectures to combat rising manufacturing costs, Arteris provides the essential communication fabric that links these disparate components. The firm serves diverse end-markets, including automotive, enterprise computing, and consumer electronics.
Investors looking for deeper fundamental analysis of the semiconductor IP space may find ValueRay a useful tool for further research. Arteris is headquartered in Campbell, California, and maintains a global presence across Asia, Europe, and the Middle East.
- Automotive sector adoption of Network-on-Chip IP drives long-term royalty revenue
- Growing demand for AI-optimized chiplet architectures accelerates licensing growth
- Geopolitical trade restrictions on high-end semiconductor IP limit China market revenue
- Expansion of hardware security software portfolio improves high-margin recurring revenue mix
- Research and development spending levels impact path toward sustained GAAP profitability
| Net Income: -34.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA -4.73 > 1.0 |
| NWC/Revenue: -29.86% < 20% (prev 1.41%; Δ -31.27% < -1%) |
| CFO/TA -0.02 > 3% & CFO -3.19m > Net Income -34.6m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 0.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (45.5m) vs 12m ago 11.48% < -2% |
| Gross Margin: 88.80% > 18% (prev 0.90%; Δ 8.79k% > 0.5%) |
| Asset Turnover: 64.64% > 50% (prev 62.36%; Δ 2.28% > 0%) |
| Interest Coverage Ratio: -133.8 > 6 (EBITDA TTM -31.3m / Interest Expense TTM 183k) |
| A: -0.16 (Total Current Assets 61.5m - Total Current Liabilities 84.5m) / Total Assets 139.9m |
| B: -1.28 (Retained Earnings -179.6m / Total Assets 139.9m) |
| C: -0.21 (EBIT TTM -24.5m / Avg Total Assets 119.1m) |
| D: -1.31 (Book Value of Equity -179.4m / Total Liabilities 137.3m) |
| Altman-Z'' Score: -8.02 = D |
| DSRI: 1.14 (Receivables 14.7m/10.3m, Revenue 77.0m/61.3m) |
| GMI: 1.02 (GM 88.80% / 90.18%) |
| AQI: 1.48 (AQ_t 0.50 / AQ_t-1 0.34) |
| SGI: 1.26 (Revenue 77.0m / 61.3m) |
| TATA: -0.22 (NI -34.6m - CFO -3.19m) / TA 139.9m) |
| Beneish M-Score: -2.66 (Cap -4..+1) = A |
Over the past week, the price has changed by +0.48%, over one month by +47.11%, over three months by +131.34% and over the past year by +343.28%.
- StrongBuy: 3
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 37.8 | 13.4% |
P/B = 56.0391
Revenue TTM = 77.0m USD
EBIT TTM = -24.5m USD
EBITDA TTM = -31.3m USD
Long Term Debt = 452k USD (from longTermDebt, last fiscal year)
Short Term Debt = 1.37m USD (from shortTermDebt, last quarter)
Debt = 5.46m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -32.6m USD (recalculated: Debt 5.46m - CCE 38.1m)
Enterprise Value = 1.50b USD (1.53b + Debt 5.46m - CCE 38.1m)
Interest Coverage Ratio = -133.8 (Ebit TTM -24.5m / Interest Expense TTM 183k)
EV/FCF = -320.2x (Enterprise Value 1.50b / FCF TTM -4.69m)
FCF Yield = -0.31% (FCF TTM -4.69m / Enterprise Value 1.50b)
FCF Margin = -6.09% (FCF TTM -4.69m / Revenue TTM 77.0m)
Net Margin = -44.92% (Net Income TTM -34.6m / Revenue TTM 77.0m)
Gross Margin = 88.80% ((Revenue TTM 77.0m - Cost of Revenue TTM 8.62m) / Revenue TTM)
Gross Margin QoQ = 85.83% (prev 90.76%)
Tobins Q-Ratio = 10.74 (Enterprise Value 1.50b / Total Assets 139.9m)
Interest Expense / Debt = 0.70% (Interest Expense 38.0k / Debt 5.46m)
Taxrate = 21.0% (US default 21%)
NOPAT = -19.3m (EBIT -24.5m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.73 (Total Current Assets 61.5m / Total Current Liabilities 84.5m)
Debt / Equity = 2.11 (Debt 5.46m / totalStockholderEquity, last quarter 2.59m)
Debt / EBITDA = 1.04 (negative EBITDA) (Net Debt -32.6m / EBITDA -31.3m)
Debt / FCF = 6.96 (negative FCF - burning cash) (Net Debt -32.6m / FCF TTM -4.69m)
Total Stockholder Equity = -7.75m (last 4 quarters mean from totalStockholderEquity)
RoA = -29.04% (Net Income -34.6m / Total Assets 139.9m)
RoE = 446.0% (negative equity) (Net Income TTM -34.6m / Total Stockholder Equity -7.75m)
RoCE = 335.4% (negative capital employed) (EBIT -24.5m / Capital Employed (Equity -7.75m + L.T.Debt 452k))
RoIC = 213.1% (negative operating profit) (NOPAT -19.3m / Invested Capital -9.08m)
WACC = 14.68% (E(1.53b)/V(1.54b) * Re(14.73%) + D(5.46m)/V(1.54b) * Rd(0.70%) * (1-Tc(0.21)))
Discount Rate = 14.73% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 11.23%
[DCF] Fair Price = unknown (Cash Flow -4.69m)
EPS Correlation: 57.67 | EPS CAGR: 12.94% | SUE: 3.46 | # QB: 2
Revenue Correlation: 82.26 | Revenue CAGR: 12.35% | SUE: 3.56 | # QB: 3
EPS current Quarter (2026-06-30): EPS=-0.04 | Chg30d=N/A | Revisions=-14% | Analysts=4
EPS current Year (2026-12-31): EPS=-0.09 | Chg30d=N/A | Revisions=-14% | GrowthEPS=+73.5% | GrowthRev=+33.2%
EPS next Year (2027-12-31): EPS=0.16 | Chg30d=N/A | Revisions=+14% | GrowthEPS=+282.9% | GrowthRev=+20.3%
[Analyst] Revisions Ratio: -14%