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Ensilica PLC (GB:ENSI)
:ENSI
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Ensilica PLC (ENSI) AI Stock Analysis

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GB:ENSI

Ensilica PLC

(LSE:ENSI)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
43.00p
▲(3.61% Upside)
Ensilica PLC shows promising growth potential, driven by strategic corporate developments and improving cash flow. However, the company's current lack of profitability and negative P/E ratio weigh down its valuation. While technical indicators show moderate positive momentum, the strong corporate events contribute significantly to the overall score, highlighting future growth prospects.

Ensilica PLC (ENSI) vs. iShares MSCI United Kingdom ETF (EWC)

Ensilica PLC Business Overview & Revenue Model

Company DescriptionEnsilica PLC (ENSI) is a leading provider of custom analog, mixed-signal, and digital design services. Operating primarily in the semiconductor industry, Ensilica offers comprehensive design solutions for a wide range of applications including automotive, industrial, healthcare, and consumer electronics. The company's core services include ASIC design and supply, FPGA design, and IP licensing, catering to clients seeking advanced, innovative semiconductor solutions.
How the Company Makes MoneyEnsilica PLC generates revenue primarily through its design and supply of custom ASICs (Application Specific Integrated Circuits) and semiconductors tailored to client specifications. The company earns income by engaging in contracts for design services and by licensing its IP (Intellectual Property) to other companies. Significant revenue streams include long-term contracts with clients in diverse sectors like automotive and industrial, which require specialized semiconductor solutions. Additionally, Ensilica has partnerships with various technology firms to co-develop and supply integrated circuit solutions, further contributing to its earnings.

Ensilica PLC Financial Statement Overview

Summary
Ensilica PLC demonstrates strong revenue growth and improving operational profitability. Despite a net loss affecting net margins and ROE, the company maintains a solid balance sheet with controlled leverage. Cash flow has improved, reflecting better cash management. The company is on a positive trajectory but needs to address profitability challenges.
Income Statement
72
Positive
The company has shown consistent revenue growth, with a 23.4% increase in the latest year. Gross profit margin is strong at 35.6%, but the net profit margin is negative due to a net loss. The EBIT and EBITDA margins are positive, indicating operational profitability, though the net loss is a concern.
Balance Sheet
68
Positive
The debt-to-equity ratio is 0.27, suggesting reasonable leverage. The equity ratio is 60.2%, reflecting a solid equity position. However, return on equity is negative due to the net loss, indicating challenges in generating shareholder returns.
Cash Flow
75
Positive
Free cash flow has improved significantly, with the latest year's free cash flow positive. The operating cash flow to net income ratio is strong at -18.4, indicating efficient cash generation relative to net income. Despite past challenges, the cash flow position is improving.
BreakdownTTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue24.98M25.27M20.48M15.29M8.61M6.45M
Gross Profit8.25M9.00M8.17M5.05M2.06M2.94M
EBITDA452.00K1.69M1.56M362.00K-1.95M89.00K
Net Income-1.90M-182.00K1.79M149.00K-2.08M161.00K
Balance Sheet
Total Assets38.72M37.21M27.49M19.84M13.36M12.04M
Cash, Cash Equivalents and Short-Term Investments2.79M5.16M3.10M5.74M1.40M2.18M
Total Debt7.74M6.12M6.44M5.16M6.09M4.18M
Total Liabilities16.27M14.81M11.52M7.69M10.52M7.38M
Stockholders Equity22.45M22.40M15.96M12.15M2.84M4.65M
Cash Flow
Free Cash Flow-2.19M3.34M-3.50M-1.67M-2.33M-1.37M
Operating Cash Flow-1.59M4.27M1.02M851.00K-612.00K1.98M
Investing Cash Flow-6.58M-7.35M-4.53M-2.49M-1.72M-3.33M
Financing Cash Flow9.46M5.23M72.00K5.40M1.39M3.11M

Ensilica PLC Technical Analysis

Technical Analysis Sentiment
Negative
Last Price41.50
Price Trends
50DMA
44.11
Negative
100DMA
41.74
Negative
200DMA
40.69
Positive
Market Momentum
MACD
0.22
Positive
RSI
38.14
Neutral
STOCH
21.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ENSI, the sentiment is Negative. The current price of 41.5 is below the 20-day moving average (MA) of 45.93, below the 50-day MA of 44.11, and above the 200-day MA of 40.69, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 38.14 is Neutral, neither overbought nor oversold. The STOCH value of 21.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ENSI.

Ensilica PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
£189.81M39.3412.29%0.96%22.72%-8.82%
68
Neutral
-9.74%16.54%-189.58%
68
Neutral
$1.03B40.557.03%1.22%6.42%-48.89%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
53
Neutral
£48.93M29.30-0.04%3.73%0.03%-100.84%
47
Neutral
£49.76M-37.55%-24.75%-110.79%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ENSI
Ensilica PLC
41.50
-7.00
-14.43%
GB:OXIG
Oxford Instruments
1,840.00
-246.69
-11.82%
GB:CML
CML Microsystems
295.00
52.52
21.66%
GB:CNC
Concurrent Technologies
219.50
103.15
88.65%
GB:ING
Ingenta
75.00
-4.53
-5.70%
GB:IQE
IQE plc
5.93
-9.63
-61.89%

Ensilica PLC Corporate Events

Business Operations and Strategy
EnSilica Secures $28M Royalty Agreement with Satellite Provider
Positive
Jun 12, 2025

EnSilica has announced the initiation of its first royalty payments and an extended royalty agreement with a satellite service provider, estimated to be worth approximately US$28 million over the next decade. This development marks a significant financial milestone for the company, with five chips now in the supply phase generating recurring revenues and twelve in the design phase, reinforcing EnSilica’s confidence in its business prospects both in the short and long term.

Business Operations and Strategy
EnSilica Expands with New Cambridge Engineering Hub
Positive
May 28, 2025

EnSilica has announced the establishment of a new engineering hub in Cambridge, UK, enhancing its capabilities in mmWave and RF integrated circuit design. This expansion is supported by a UK Space Agency award and increased contract momentum, positioning the company to capitalize on growth opportunities in the satellite and communications market. The new facility, which includes a team of highly skilled engineers, strengthens EnSilica’s presence in the UK’s semiconductor ecosystem and supports its strategic growth initiatives.

Product-Related AnnouncementsBusiness Operations and Strategy
EnSilica Unveils New Ku-band Beamformer ICs for Satellite Terminals
Positive
May 21, 2025

EnSilica plc has announced the release of two new Ku-band beamformer ICs designed for use in satellite user terminals, particularly for Eutelsat OneWeb and other European constellations. These ICs provide a low-power, low-cost solution, crucial for the high demand of beamformer ICs in each terminal, and are fabricated and tested in Europe, ensuring a sovereign supply chain. Supported by the European Space Agency and the UK Space Agency, these new products are expected to enhance satellite broadband connectivity and strengthen EnSilica’s position in the fast-growing satellite communications market.

Business Operations and Strategy
EnSilica to Showcase at Mello 2025 Investor Conference
Neutral
May 8, 2025

EnSilica, a prominent chip maker of mixed signal ASICs, has announced its participation in the Mello 2025 investor conference in London. The event, scheduled for June 3-4, 2025, will feature presentations by EnSilica’s senior team and offer opportunities for investors to engage directly with the company. This participation underscores EnSilica’s commitment to engaging with investors and maintaining its position in the competitive semiconductor industry.

Business Operations and Strategy
EnSilica Announces Change in Investment Manager for Major Shareholder
Neutral
May 7, 2025

EnSilica announced that Amati AIM VCT plc has rebranded to Maven Renovar VCT plc, with Maven Capital Partners UK LLP taking over as the new Investment Manager. Although the VCT’s shareholding in EnSilica remains unchanged, it holds 4,900,000 ordinary shares, representing about 5.07% of the company’s issued share capital. This change in management of voting rights could influence EnSilica’s strategic decisions and stakeholder dynamics.

Private Placements and FinancingBusiness Operations and Strategy
EnSilica Strengthens Position in Booming Space Industry
Positive
Apr 14, 2025

EnSilica PLC is capitalizing on the growing demand for silicon chips in the space industry, driven by geopolitical factors and the expansion of satellite communications. The company has secured significant contracts and funding, including a £10.4 million grant from the UK Space Agency and a €2.1 million contract from the European Space Agency, to enhance its capabilities in satellite technology. These developments position EnSilica as a key player in the space sector, with its advanced ASICs optimizing satellite performance and connectivity. The company’s strategic moves are expected to bolster its market presence and offer substantial revenue opportunities, particularly in the rapidly expanding LEO satellite market.

Business Operations and Strategy
EnSilica Partners with European Satellite Operator for ASIC Development
Positive
Apr 10, 2025

EnSilica has signed a Memorandum of Understanding with a major European satellite operator to conduct a feasibility study for a satellite payload ASIC, which could lead to significant development in satellite communications technology. This agreement positions EnSilica to capitalize on the growing demand for specialized chips in the satellite communications sector, driven by increased investments and geopolitical tensions, enhancing its market presence and opportunities.

Business Operations and StrategyFinancial Disclosures
EnSilica Announces Trading Update Amid Customer Project Delays
Neutral
Apr 7, 2025

EnSilica plc, a prominent player in the mixed signal ASIC industry, has announced a trading update for the year ending May 31, 2025. The company has secured six new design and supply contracts, expected to generate over $40 million in NRE revenues over the next two years and over $250 million in chip supply revenues. However, delays in two major customer projects will reduce NRE revenues for FY 2025, impacting anticipated revenues and EBITDA. Despite these setbacks, EnSilica remains confident in its growth trajectory, with a strong order book and plans to achieve positive cash generation by the end of FY 2026.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 05, 2025