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Emcore Corporation (EMKR)
NASDAQ:EMKR
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Emcore
(NASDAQ:EMKR)
50Neutral
Emcore (EMKR) vs. S&P 500 (SPY)
Market Cap
$28.11M
Dividend YieldN/A
Average Volume (3M)145.07K
Price to Earnings (P/E)―
Beta (1Y)2.26
Revenue Growth-22.35%
EPS Growth73.24%
CountryUS
Employees191
SectorTechnology
Sector Strength65
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)-3.44
Shares Outstanding9,081,000
10 Day Avg. Volume153,152
30 Day Avg. Volume145,070
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.30
Price to Cash Flow (P/CF)0.80
P/FCF Ratio0.80
Enterprise Value/Market Cap1.09
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.63
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Emcore Business Overview & Revenue Model
Company DescriptionEmcore Corporation (EMKR) is a leading provider of advanced mixed-signal optics products. The company operates primarily in the aerospace and defense, broadband communications, and navigation markets. Emcore designs and manufactures high-performance optical components, subsystems, and systems that are utilized in a wide range of applications, including fiber optics, inertial navigation, and satellite communications.
How the Company Makes MoneyEmcore Corporation generates revenue through the sale of its optical components and systems across various sectors. The company's primary revenue streams include its Fiber Optics segment, which supplies products for broadband communication networks, and its Aerospace & Defense segment, which provides navigation systems and components for military and commercial applications. Emcore's revenue is driven by long-term contracts and partnerships with major defense contractors and telecommunications companies. Additionally, the company benefits from ongoing research and development efforts to enhance product offerings and maintain competitive advantage in its markets.
Emcore Financial Statement Overview
Summary
Emcore is currently facing considerable financial difficulties, with declining revenues, profitability issues, and cash flow challenges. High leverage and reduced equity levels further compound the risks, necessitating strategic adjustments to stabilize operations and improve financial health.Income Statement
The income statement reveals a declining revenue trend with a significant drop from $158.4M in 2021 to $81.1M TTM, highlighting a challenging market environment. Gross profit margin has decreased, indicating cost control issues. The company is experiencing negative EBIT and net profit margins, suggesting operational inefficiencies and potential risks in profitability.35
Negative
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, reflecting some leverage, but equity has decreased significantly, reducing financial flexibility. The equity ratio has also declined, indicating a shrinking asset base funded by equity. These factors present potential risks in terms of solvency and financial stability.40
Negative
Cash Flow
Cash flow analysis indicates negative operating cash flow and free cash flow TTM, highlighting liquidity challenges. The free cash flow to net income ratio is unfavorable, suggesting poor cash generation relative to losses. Overall, cash management remains a concern, impacting the company's ability to invest and grow.30
Negative
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 85.90M | 97.72M | 124.13M | 158.44M | 110.13M | Gross Profit |
| 18.82M | 23.39M | 29.72M | 61.49M | 35.58M | EBIT |
| -26.85M | -48.74M | -22.53M | 9.18M | -9.32M | EBITDA |
| -26.85M | -22.40M | -39.14M | 30.28M | -1.35M | Net Income Common Stockholders |
| -31.24M | -76.41M | -24.33M | 25.64M | -7.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 10.29M | 26.71M | 25.63M | 71.62M | 30.39M | Total Assets |
| 93.91M | 143.91M | 189.08M | 180.81M | 126.24M | Total Debt |
| 20.91M | 34.52M | 39.33M | 13.88M | 21.21M | Net Debt |
| 10.62M | 8.30M | 13.71M | -57.74M | -9.18M | Total Liabilities |
| 43.75M | 63.62M | 70.25M | 43.35M | 52.09M | Stockholders Equity |
| 50.17M | 80.29M | 118.83M | 137.47M | 74.15M |
| Cash Flow | Free Cash Flow | |||
| -5.31M | -35.49M | -3.61M | 5.79M | -8.41M | Operating Cash Flow |
| -5.31M | -33.64M | 2.96M | 11.15M | -3.89M | Investing Cash Flow |
| 31.00K | 9.47M | -62.70M | -3.84M | 10.89M | Financing Cash Flow |
| -10.64M | 24.40M | 14.35M | 33.73M | 1.50M |
Emcore Technical Analysis
Positive
3.10
Price Trends
3.04
Positive
2.84
Positive
2.00
Positive
Market Momentum
0.02
Positive
61.44
Neutral
48.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMKR, the sentiment is Positive. The current price of 3.1 is above the 20-day moving average (MA) of 3.08, above the 50-day MA of 3.04, and above the 200-day MA of 2.00, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 61.44 is Neutral, neither overbought nor oversold. The STOCH value of 48.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EMKR.
Emcore Risk Analysis
Emcore disclosed 52 risk factors in its most recent earnings report. Emcore reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Emcore Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Performance Comparison
EMKR
Emcore
3.10
0.20
6.90%
AAOI
Applied Optoelectronics
13.98
3.15
29.09%
LITE
Lumentum Holdings
66.24
23.65
55.53%
Emcore Earnings Call Summary
Earnings Call Date:Feb 13, 2025
(Q3-2024)
| % Change Since: 0.32%|
Next Earnings Date:Apr 30, 2025
Earnings Call Sentiment Neutral
EMCORE's earnings call highlighted strong cost-saving measures, revenue growth, and improved gross margins, alongside a significant headcount reduction and debt payoff. However, these positives were tempered by restructuring charges, decreased cash balance, and continued negative EBITDA and net loss.Q3-2024 Updates
Positive Updates
Significant Headcount Reductions and Cost Savings
Headcount reductions enacted beginning in May are estimated to result in approximately $17 million of annualized payroll savings.
Revenue Growth
Revenue for fiscal Q3 was $20.4 million, a 4% increase compared to the $19.6 million in fiscal Q2.
Improved Gross Margin
Gross margin was 24% for the June quarter, significantly better compared to 15% the quarter before.
Strong Book-to-Bill Ratio
The book-to-bill ratio was well over 1 at 1.24, with important orders including 2 armored vehicle orders above $2 million.
Debt Payoff
EMCORE paid off all outstanding obligations under their credit agreement with Hale Capital, freeing them to explore new alternatives for liquidity.
Negative Updates
Restructuring and Related Charges
Restructuring-related charges included a $1.86 million charge for employee severance and $4.3 million related to the Alhambra shutdown.
Cash Decrease
Cash balance was $9 million at June 30 compared to $12 million at March 31, with a cash decrease of $3 million.
Negative EBITDA and Net Loss
Negative adjusted EBITDA was reduced but still at $3.6 million compared to $5.8 million the previous quarter, with a net loss of $4.4 million or $0.49 per share.
Company Guidance
During the EMCORE Corporation's fiscal Q3 2024 earnings call, guidance was provided for the upcoming quarter, with revenue expected to be in the range of $20 million to $22 million. The company is focused on operational efficiencies, with specific efforts on overlaying common operating systems across its three remaining production sites. A key strategic goal is to achieve sustained improvement in gross margin, particularly at the Concord site, which saw a significant increase in gross margin to 24% in the June quarter from 15% in the previous quarter. EMCORE is also targeting adjusted operating cash flow breakeven by fiscal Q4 2024 and has made substantial progress with a book-to-bill ratio at 1.24, bolstered by $60 million in backlog. These efforts are supported by a restructuring plan that includes significant cost savings of approximately $17 million annually from headcount reductions, and the full closure of the Alhambra site is expected to be completed by the end of August.Emcore Corporate Events
Delistings and Listing ChangesExecutive/Board ChangesM&A Transactions
Emcore Completes Merger and Delists from Nasdaq
Neutral
Feb 28, 2025
On February 28, 2025, Emcore completed a merger, resulting in the cancellation and conversion of its common stock into cash payments for shareholders, with specific conditions for restricted stock units and stock options. Following the merger, Emcore requested the delisting of its common stock from Nasdaq and plans to terminate its SEC registration, leading to significant changes in its corporate structure, including the resignation of its board members and amendments to its certificate of incorporation and bylaws.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.