Netlist (NLST) AI Stock Analysis

495 Followers

Top Page

Netlist

(OTC:NLST)

47Neutral

Netlist's overall stock score is primarily influenced by its financial performance challenges, including significant profitability and cash flow issues. The company's technical indicators suggest a bearish trend, further weighing down the score. However, the earnings call provided a more positive outlook with strong revenue growth and strategic advancements, slightly elevating the overall score.

Netlist (NLST) vs. S&P 500 (SPY)

Market Cap

$206.10M

Dividend YieldN/A

Average Volume (3M)387.06K

Price to Earnings (P/E)―

Beta (1Y)1.04

Revenue Growth112.56%

EPS Growth16.18%

CountryUS

Employees60

SectorTechnology

Sector Strength82

IndustrySemiconductors

Share Statistics

EPS (TTM)-0.03

Shares Outstanding274,803,500

10 Day Avg. Volume545,108

30 Day Avg. Volume387,056

Financial Highlights & Ratios

PEG Ratio-0.30

Price to Book (P/B)-31.35

Price to Sales (P/S)0.00

P/FCF Ratio-10.26

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$2.00

Price Target Upside170.27% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Netlist Business Overview & Revenue Model

Company DescriptionNetlist, Inc. designs, manufactures, and markets memory subsystems for the server, high-performance computing, and communications markets in the United States and internationally. It offers HybriDIMM, a storage class memory product, which unifies dynamic random-access memory (DRAM) and NAND flash in a plug-and-play module delivering terabyte storage capacities operating at nanosecond memory speeds. The company also provides nonvolatile (NV) memory products, such as NVvault DDR4 NVDIMM that provides data acceleration and protection in a joint electron device engineering council standard DDR4 interface; and specialty DIMMs and embedded flash products for use in data center and industrial applications. It resells component products, including solid state drive (SSDs), NAND flash, and DRAM products to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products through a direct sales force and a network of independent sales representatives. Netlist, Inc. was incorporated in 2000 and is headquartered in Irvine, California.

How the Company Makes MoneyNetlist generates revenue through the sale of its advanced memory subsystem products, which include a variety of high-performance memory modules designed for servers, workstations, and other computing systems. The company's business model is centered around leveraging its intellectual property and proprietary technologies to create differentiated products that meet the needs of its customers. Key revenue streams include direct sales of memory products to original equipment manufacturers (OEMs) and other technology companies. Additionally, Netlist engages in licensing agreements for its patented technologies, which can provide a significant source of income through royalty payments. The company may also benefit from strategic partnerships and collaborations that help expand its market reach and enhance its product offerings.

Netlist Financial Statement Overview

Summary

Netlist faces significant financial challenges, including consistent negative income and cash flows, high leverage, and operational inefficiencies. The financial instability is primarily due to negative net profit margins, low gross profit margins, and negative equity. Strategic initiatives are needed to improve revenue, reduce costs, and strengthen equity.

Income Statement

Negative

Netlist's financial performance shows challenges with consistent losses over the years. The TTM data shows a negative net profit margin and declining revenue, indicating financial struggles. The gross profit margin is very low, suggesting high cost of goods sold relative to revenue. The company needs to improve its revenue growth and cost management to enhance profitability.

Balance Sheet

Negative

The balance sheet reveals high leverage, as shown by negative stockholders' equity in the TTM period, indicating financial distress. The debt-to-equity ratio cannot be calculated due to negative equity, but liabilities exceed assets, which is concerning. Improving the equity position is crucial for better financial stability.

Cash Flow

Negative

Netlist exhibits negative operating and free cash flows, highlighting cash burn issues. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating operational inefficiencies. The company needs to address cash flow management for future sustainability.

TTM	Dec 2023	Dec 2022	Mar 2022	Mar 2021	Dec 2019
Breakdown
Income Statement		Total Revenue
146.26M	69.20M	161.64M	142.35M	47.23M	26.10M
	Gross Profit
3.78M	2.39M	11.89M	48.90M	6.73M	2.57M
	EBIT
-23.14M	-61.76M	-33.50M	11.38M	-6.84M	-11.49M
	EBITDA
-55.21M	-60.03M	-32.39M	12.03M	-6.84M	-11.49M
	Net Income Common Stockholders
-54.39M	-60.40M	-33.37M	4.83M	-7.27M	-12.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.15M	40.45M	25.01M	47.68M	13.33M	8.97M
	Total Assets
35.82M	72.80M	67.32M	91.18M	25.27M	22.14M
	Total Debt
1.72M	5.06M	7.13M	9.15M	20.88M	19.69M
	Net Debt
-13.00M	-35.39M	-17.89M	-38.52M	7.55M	10.73M
	Total Liabilities
10.99M	49.04M	40.09M	37.13M	27.89M	30.50M
	Stockholders Equity
24.83M	23.76M	27.24M	54.04M	-2.62M	-8.36M
Cash Flow		Free Cash Flow
-27.03M	-41.60M	-15.46M	5.49M	-8.18M	-11.57M
	Operating Cash Flow
-27.03M	-41.60M	-14.99M	6.01M	-8.13M	-11.48M
	Investing Cash Flow
-64.00K	0.00	-467.00K	-520.00K	-43.00K	-83.00K
	Financing Cash Flow
6.29M	50.84M	594.00K	36.47M	12.99M	6.63M

Netlist Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.74

Price Trends

50DMA

0.94

Negative

100DMA

0.84

Negative

200DMA

0.98

Negative

Market Momentum

MACD

-0.04

Positive

RSI

32.84

Neutral

STOCH

25.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NLST, the sentiment is Negative. The current price of 0.74 is below the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.94, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 32.84 is Neutral, neither overbought nor oversold. The STOCH value of 25.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NLST.

Netlist Risk Analysis

Netlist disclosed 46 risk factors in its most recent earnings report. Netlist 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

Netlist Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEC	70 Outperform	$341.75M	22.70	23.57%	5.71%	-13.18%	-12.06%
AEHR	67 Neutral	$279.55M	11.97	21.69%	―	-14.48%	46.79%
XPER	61 Neutral	$378.75M	―	-4.71%	―	-4.77%	84.82%
Sector *	60 Neutral	$11.64B	10.63	-6.94%	2.93%	7.63%	-11.15%
AIP	52 Neutral	$315.25M	―	-1369.57%	―	14.68%	20.20%
NLST	47 Neutral	$206.10M	―	-608.27%	―	112.56%	16.18%
BZAI	41 Neutral	$282.68M	―	-375.37%	―	―	-1005.33%

* Technology Sector Average

Performance Comparison

NLST

Netlist

0.74

-0.68

-47.89%

AEHR

Aehr Test Systems

9.29

-2.25

-19.50%

NVEC

NVE

71.03

-2.88

-3.90%

AIP

Arteris

7.61

-0.53

-6.51%

BZAI

Blaize Holdings

2.17

-8.92

-80.43%

XPER

Xperi Inc

8.29

-1.49

-15.24%

Netlist Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: -14.94%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Neutral

Netlist reported stable financial performance and significant progress in patent litigation, positioning itself for growth in the AI memory market. However, challenges from tariff uncertainties and consumer demand softness present ongoing risks.

Q1-2025 Updates

Positive Updates

Revenue in Line with Expectations

Netlist's revenue for Q1 2025 was $29 million, in line with expectations despite short-term softness in consumer demand.

Operating Expense Reduction

Operating expenses for Q1 2025 declined by 44% compared to the prior year's quarter, mainly due to reductions in IT legal fees.

Significant Financial Flexibility

Netlist ended Q1 2025 with $25.6 million in cash and cash equivalents and a $10 million working capital line of credit, maintaining significant financial flexibility and liquidity.

Patent Litigation Progress

Netlist is progressing through appeals in multiple patent cases, with significant damages awarded in previous judgments, including $303 million and $118 million against Samsung, and $445 million against Micron.

Growth in AI Memory Market

Netlist is positioned to capitalize on the growing demand for AI memory, with plans to introduce high-capacity, high-performance MRDIMM products later in the year.

Negative Updates

Tariff Uncertainty

U.S. tariffs have created disruptions in the memory market, with expected adjustments as tariffs impact the supply chain.

Consumer Demand Softness

There is short-term softness in the consumer demand environment, which affected Q1 2025 revenue.

Pending Legal Uncertainties

Samsung has lost multiple times in court, but the potential for appeal processes to extend up to a year creates ongoing legal uncertainties.

Company Guidance

In the first quarter of 2025, Netlist reported revenue of $29 million, aligning with expectations amidst a challenging consumer demand environment. Operating expenses decreased by 44% from the previous year's quarter, largely due to reduced legal fees. The company ended the quarter with $25.6 million in cash and equivalents, down from $34.6 million at the end of 2024, but maintained financial flexibility with a $10 million working capital line of credit and $74 million available on an equity line of credit. Despite tariff uncertainties impacting the memory market, Netlist remains optimistic about the growing demand for high bandwidth memory (HBM) and DDR5, including MRDIMM products, with plans to launch a new product line later this year. The legal landscape continues to be active, with ongoing litigation involving Samsung and Micron, including a $303 million damages award and multiple appeals in progress.

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.