Arteris Intrinsic Value Calculator – ARTERIS Reports Q2 Earnings for FY2023, Ending June 30 2023
August 22, 2023
🌥️Earnings Overview
On August 3 2023, ARTERIS ($NASDAQ:AIP) reported its earnings results for the second quarter of FY2023, concluding June 30 2023. Total revenue decreased by 0.6% from the same period in 2023, amounting to USD 14.7 million. The reported net income was a loss of USD 9.2 million, compared to the prior year’s second quarter loss of USD 5.7 million.
Market Price
On Thursday, ARTERIS reported its second quarter earnings for the fiscal year 2023 which ended on June 30. According to the report, the company’s stock opened at $7.2 and closed at $7.0, down by 3.3% from its previous closing price of 7.2. This was a slight decrease from the previous quarter’s earnings results. Overall, ARTERIS performed well during the quarter, although the company saw a small decline in its stock price, when compared to the previous quarter’s results.
This could be attributed to the overall market conditions. Despite this, ARTERIS is optimistic about its prospects for the rest of the fiscal year and is looking to grow its revenues further. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arteris. ARTERIS_Reports_Q2_Earnings_for_FY2023_Ending_June_30_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 51.69 | -33.07 | -64.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arteris. ARTERIS_Reports_Q2_Earnings_for_FY2023_Ending_June_30_2023″>More…
| Operations | Investing | Financing |
| -15.55 | -36.38 | -2.65 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arteris. ARTERIS_Reports_Q2_Earnings_for_FY2023_Ending_June_30_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 106.83 | 79.91 | 0.75 |
Key Ratios Snapshot
Some of the financial key ratios for Arteris are shown below. ARTERIS_Reports_Q2_Earnings_for_FY2023_Ending_June_30_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.9% | – | -60.3% |
| FCF Margin | ROE | ROA |
| -33.1% | -66.4% | -18.2% |
Analysis – Arteris Intrinsic Value Calculator
At GoodWhale, we recently conducted an analysis of ARTERIS‘s wellbeing. After a thorough review of all of the company’s financials and outlooks, we were able to determine the fair value of ARTERIS’s share. Our proprietary Valuation Line yielded a fair value of around $9.2, indicating that the stock is currently undervalued by 24.1%. Currently, ARTERIS stock is being traded at $7.0, which is notably lower than its fair value. We believe that this discrepancy presents a great opportunity for investors to purchase shares of ARTERIS at a discounted price and potentially reap the rewards of a market correction in the future. More…
Peers
The semiconductor industry is highly competitive, and Arteris Inc. is no exception. The company competes against Analog Integrations Corp, FocalTech Systems Co Ltd, and Skyworks Solutions Inc. for market share. While each company has its own strengths and weaknesses, Arteris Inc. has been able to gain a competitive edge by offering innovative products and services that appeal to customers.
– Analog Integrations Corp ($TPEX:6291)
As of 2022, Analog Integrations Corp has a market cap of 3.9B and a ROE of 11.46%. The company is a leading provider of high-performance analog and mixed-signal semiconductor solutions. Its products are used in a variety of end-markets, including automotive, consumer, industrial, medical, and aerospace and defense.
– FocalTech Systems Co Ltd ($TWSE:3545)
FocalTech Systems Co Ltd is a publicly traded company with a market capitalization of 15.89 billion as of 2022. The company has a return on equity of 25.79%. FocalTech is a global leader in the design and manufacture of touchscreen controllers and display drivers. The company’s products are used in a wide range of applications including smartphones, tablets, notebooks, automotive infotainment systems, and industrial and medical devices.
– Skyworks Solutions Inc ($NASDAQ:SWKS)
Skyworks Solutions Inc is a semiconductor company that designs, manufactures, and markets radio frequency and microwave semiconductor products. The company has a market cap of $13.13B as of 2022 and a return on equity of 25.56%. Skyworks’ products are used in a variety of wireless communications and electronic systems applications, including smartphones, tablets, notebooks, Wi-Fi, automotive, and industrial applications.
Summary
Investors reacted negatively to ARTERIS‘ earnings report for Q2 of FY2023, which revealed a 0.6% decrease in total revenue and a widening net loss of USD 9.2 million compared to the same quarter the previous year. This caused the stock price to drop on the same day. As a result, investors should exercise caution when considering investing in ARTERIS in the short-term, as the company appears to be struggling to increase revenues and reduce losses. Despite this, ARTERIS may be an attractive long-term investment option if the company is able to make meaningful improvements to its balance sheet and implement strategies that will drive revenue growth.
