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Pixelworks (PXLW)
NASDAQ:PXLW
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Pixelworks
(NASDAQ:PXLW)
42Neutral
Positive Factors
Cost Management
Operational expenses are being cut further, which will lower the break-even level.
New Partnerships
TrueCut is in active discussions with three major device brands, indicating potential new partnerships.
Strategic Decision
The Shanghai subsidiary's strategic process has multiple interested parties, and management believes a strategic decision can be made within 90 days.
Negative Factors
Gross Margin Challenges
The new projector SoC is experiencing growing pains; packaging yields are challenged, lowering GM estimates by approximately 600bps.
Pricing Impact
GMs will be further challenged as Mobile mixes higher with aggressive pricing.
Revenue Guidance
Pixelworks delivered results at the low end of the range and guided the topline lower as Mobile recovers more slowly.
Pixelworks (PXLW) vs. S&P 500 (SPY)
Market Cap
$35.92M
Dividend YieldN/A
Average Volume (3M)155.34K
Price to Earnings (P/E)―
Beta (1Y)1.67
Revenue Growth-47.93%
EPS Growth-37.77%
CountryUS
Employees196
SectorTechnology
Sector Strength77
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.11
Shares Outstanding62,943,542
10 Day Avg. Volume105,363
30 Day Avg. Volume155,344
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)-3.55
Price to Sales (P/S)0.00
P/FCF Ratio-1.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.25Price Target Upside123.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Pixelworks Business Overview & Revenue Model
Company DescriptionPixelworks, Inc. (PXLW) is a technology company that specializes in the development of video and pixel processing technology solutions. The company is primarily focused on enhancing visual display quality for digital devices, including smartphones, tablets, projectors, and other consumer electronics. Pixelworks provides innovative solutions that improve the quality of the user experience by enhancing the sharpness, color accuracy, and visual clarity of digital displays. The company's products are utilized by original equipment manufacturers (OEMs) and integrated into a wide range of devices across various industries.
How the Company Makes MoneyPixelworks generates revenue through the sale of its semiconductor products and licensing of its visual processing solutions to OEMs and other technology companies. The company's key revenue streams include the sale of its integrated circuits and chips that are embedded in consumer electronics to enhance display quality. Additionally, Pixelworks licenses its proprietary software and algorithms, which enable advanced video processing capabilities, to manufacturers of smartphones, tablets, and projectors. The company also benefits from strategic partnerships with leading technology firms, which help to drive the adoption of its solutions across various platforms and enhance its market presence. Moreover, Pixelworks may engage in collaborative projects and joint ventures to further expand its technology applications and revenue opportunities.
Pixelworks Financial Statement Overview
Summary
Pixelworks is experiencing significant financial challenges with declining revenues, persistent net losses, and a strained balance sheet marked by negative equity. Despite some efficiency in cost management, the overall financial indicators suggest a need for strategic improvements.Income Statement
Pixelworks has shown a declining trend in revenue over recent years, with a significant drop from $59.68M in 2023 to $43.21M in 2024. The gross profit margin has decreased from 43.09% in 2023 to 51.58% in 2024, indicating some efficiency in cost management despite revenue losses. However, consistent net losses and negative EBIT margins suggest ongoing profitability challenges. The net profit margin has worsened, reflecting deeper losses relative to revenue.45
Neutral
Balance Sheet
The balance sheet reveals financial strain, with stockholders' equity turning negative in 2024. The debt-to-equity ratio is not meaningful due to negative equity, and there's a high level of liabilities compared to assets. The declining equity ratio, from 32.88% in 2023 to negative, underlines financial instability and risk. While total debt has decreased, the overall financial position remains weak.30
Negative
Cash Flow
Operating cash flows have consistently been negative, with a slight increase in cash flow deficit in 2024. Free cash flow has deteriorated, driven by declining revenues and continued capital expenditures. The operating cash flow to net income ratio remains unfavorable, indicating cash flow challenges despite smaller capital investments.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 43.21M | 59.68M | 70.15M | 55.10M | 40.85M | Gross Profit |
| 22.29M | 25.71M | 35.88M | 27.69M | 20.18M | EBIT |
| -31.36M | -28.64M | -16.82M | -20.00M | -24.70M | EBITDA |
| -25.21M | -22.27M | -11.32M | -15.24M | -20.46M | Net Income Common Stockholders |
| -28.72M | -26.18M | -15.23M | -19.41M | -26.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 23.65M | 47.54M | 56.82M | 61.59M | 31.51M | Total Assets |
| 64.07M | 95.97M | 102.32M | 106.60M | 72.04M | Total Debt |
| 1.45M | 4.95M | 3.54M | 2.85M | 5.09M | Net Debt |
| -22.20M | -42.60M | -53.28M | -58.73M | -26.17M | Total Liabilities |
| 24.19M | 30.96M | 30.07M | 35.47M | 19.17M | Stockholders Equity |
| -10.57M | 12.54M | 32.42M | 40.22M | 52.87M |
| Cash Flow | Free Cash Flow | |||
| -23.57M | -22.80M | -15.84M | -12.63M | -6.50M | Operating Cash Flow |
| -19.81M | -18.81M | -12.83M | -9.16M | -3.71M | Investing Cash Flow |
| -3.12M | -3.99M | -3.01M | -3.23M | 3.94M | Financing Cash Flow |
| -971.00K | 13.53M | 11.07M | 42.71M | 23.77M |
Pixelworks Technical Analysis
Negative
0.56
Price Trends
0.60
Negative
0.69
Negative
0.73
Negative
Market Momentum
-0.01
Negative
49.47
Neutral
74.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PXLW, the sentiment is Negative. The current price of 0.56 is above the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.60, and below the 200-day MA of 0.73, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 74.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PXLW.
Pixelworks Risk Analysis
Pixelworks disclosed 59 risk factors in its most recent earnings report. Pixelworks 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
Pixelworks Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $11.60B | 10.64 | -6.04% | 2.94% | 7.87% | -11.74% | |
53 Neutral | $40.11M | ― | 378.21% | ― | 39.81% | ― | |
51 Neutral | $48.01M | 40.38 | -47.90% | ― | -16.52% | -46.13% | |
48 Neutral | $67.03M | ― | -9.50% | ― | 21.44% | -8.24% | |
45 Neutral | $18.62M | ― | -31.27% | ― | 160.76% | 74.71% | |
44 Neutral | $54.02M | ― | -51.84% | ― | -61.52% | 35.64% | |
42 Neutral | $35.92M | ― | -2911.20% | ― | -47.93% | -37.77% |
* Technology Sector Average
Performance Comparison
PXLW
Pixelworks
0.56
-0.65
-53.72%
ASYS
Amtech Systems
3.48
-1.87
-34.95%
AXTI
AXT
1.44
-2.10
-59.32%
LEDS
SemiLEDs
2.32
0.86
58.90%
SQNS
Sequans Communications S A
1.78
0.56
45.90%
WKEY
WISeKey International Holding
5.01
3.11
163.68%
Pixelworks Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -5.08%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Negative
The earnings call presented a mixed picture with notable achievements in cost reduction and strategic partnerships, particularly with the TrueCut Motion platform. However, these were overshadowed by significant declines in revenue, gross profit margin, and cash reserves, along with an increased net loss.Q1-2025 Updates
Positive Updates
Cost Reduction Success
First quarter operating expenses decreased by over $2 million year-over-year, with further reductions expected to lead to a total decrease of approximately $10 million for the full year of 2025.
TrueCut Motion Platform Expansion
Pixelworks is targeting to double the number of TrueCut Motion titles year-over-year from 5 in 2024 to 10 in 2025 and has secured strategic partnerships to enhance the platform's adoption.
Mobile Revenue Growth
Sequential growth in mobile revenue was reported, driven by shipments of visual processors for previously launched smartphone models.
Strategic Partnerships and Ecosystem Growth
Pixelworks entered a strategic partnership with a market-leading post-production company to expand the TrueCut Motion ecosystem and started deeper engagements with leading device companies for certification.
Negative Updates
Significant Revenue Decline
Total revenue for the first quarter of 2025 was $7.1 million, down from $9.1 million in the previous quarter and $16.1 million in the first quarter of 2024.
Negative Gross Profit Margin Trend
Non-GAAP gross profit margin decreased to 49.9% in the first quarter from 54.8% in the previous quarter, primarily due to a shift in product mix and lower overhead absorption.
Increased Net Loss
First quarter net loss was $6.5 million, compared to a net loss of $4.3 million in the prior quarter and $4 million in the first quarter of 2024.
Cash and Cash Equivalents Decrease
Cash and cash equivalents decreased to $18.5 million at the end of the first quarter, down from $23.6 million at the end of the fourth quarter.
Company Guidance
During the Pixelworks, Inc. First Quarter 2025 Earnings Conference Call held on May 13, 2025, the company provided guidance for the second quarter of 2025. Revenue is expected to be between $8 million and $9 million, with a non-GAAP gross profit margin anticipated to range from 41% to 43%. The company also projects second-quarter operating expenses to be between $9 million and $10 million on a non-GAAP basis. Additionally, the non-GAAP EPS is expected to range between a loss of $0.11 per share and a loss of $0.08 per share. Pixelworks aims to continue reducing its cost structure, with a total year-over-year decrease in operating expenses anticipated to be approximately $10 million for the full year of 2025. The company is also targeting profitability for its Pixelworks Shanghai subsidiary in the second half of 2025.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.