GSIT  Gsi Technology Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Semiconductors

Market Cap.

159.80M

Vuru Grade

43.44/100

Current Price

$7.84
+0.11 (+1.42%)

Growth Price

$5.19
Overvalued by 33.83%

Stability Price

$5.09
Overvalued by 35.12%

Company Metrics

  • P/E 157.55
  • P/S 3.27
  • P/B 1.82
  • EPS -0.01
  • Cash ROIC 11.63%
  • Cash Ratio 5.96
  • Dividend 0 / N/A %
  • Avg. Vol. 167,288.00
  • Shares 20.38M
  • Market Cap. 159.80M

Company Description

GSI Technology, Inc. designs, develops, and markets static random access memory (SRAM) products for the networking and telecommunications markets primarily in the United States, China, Malaysia, and Singapore. Its SRAM products are incorporated in a range of equipment, such as multi-service access routers, universal gateways, enterprise edge routers, service provider edge routers, optical edge rou... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

7.84
MarketWatch - Dec 21, 2009
GSI Technology Inc. Watchlist CreateGSITAlert. Closed. Last Updated: May 26, 2017 4:00 p.m. EDT. $ 7.84. 0.11 1.42%.
Exclusive Interview With GSI Technology Management
Seeking Alpha - Sep 28, 2016
Company Description: Founded in 1995, GSI Technology (NASDAQ:GSIT) is a provider of high-performance semiconductor memory solutions to networking, industrial, medical, aerospace and military customers.
GSI Technology Inc. GSIT (US: Nasdaq)
Wall Street Journal (subscription) - Feb 12, 2011
News GSI Technology Inc.GSIT. Significant News Only. 23 hours ago; Press Release. GSI Technology, Inc. to Present at B. Riley & Co.
GSI Technology, Inc. (GSIT) Issues Earnings Results
The Cerbat Gem - May 28, 2017
GSI Technology logo GSI Technology, Inc. (NASDAQ:GSIT) issued its quarterly earnings results on Thursday. The semiconductor company reported ($0.07) earnings per share for the quarter, missing the Thomson Reuters' consensus estimate of ($0.02) by ...
GSI Technology (GSIT) Earns Daily Media Sentiment Score of -0.39 - Sports Perspectives
GSI Technology Inc Stock Downgraded (GSIT)
TheStreet.com - Jun 26, 2014
This is a clear sign of weakness within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, GSI TECHNOLOGY INC's return on equity significantly trails that of both the industry ...
GSI Technology's $1M Trade Secrets Trial Award Tossed
Law360 (subscription) - Jun 1, 2016
Law360, Los Angeles (June 1, 2016, 12:04 AM EDT) -- A California federal magistrate judge has tossed a nearly $1 million jury verdict against chip design company United Memories Inc, saying chipmaker GSI Technology was not entitled to damages on a ...
Stock Returns: GSI Technology Inc (NASDAQ:GSIT) versus Kopin Corporation ...
CML News - May 7, 2017
This is a snapshot to compare the stock returns for GSI Technology Inc (NASDAQ:GSIT) versus Kopin Corporation (NASDAQ:KOPN) .
GSI Technology Acquires MikaMonu
Marketwired (press release) - Nov 23, 2015
SUNNYVALE, CA--(Marketwired - Nov 23, 2015) - GSI Technology, Inc. ( NASDAQ : GSIT), a provider of high performance semiconductor devices, today announced that it has acquired all of the outstanding capital stock of privately held MikaMonu Group Ltd.
GSI Technology, Inc. to Present at the RE*WORK Deep Learning Summit
Marketwired (press release) - Jan 16, 2017
SUNNYVALE, CA--(Marketwired - Jan 16, 2017) - GSI Technology, Inc. ( NASDAQ : GSIT) today announced that Dr. Avidan Akerib, VP of Associative Computing BU, will present at the RE*WORK Deep Learning Summit in San Francisco.
GSI Technology (GSIT) Rejects GigOptix's (GIG) Unsolicited Offer
StreetInsider.com - Sep 17, 2015
GSI Technology (NASDAQ: GSIT) announced that its Board of Directors, in consultation with its financial and legal advisors, unanimously determined to reject GigOptix, Inc.'s (NYSE: GIG) unsolicited, non-binding and conditional proposal to acquire the ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for GSIT to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate GSIT's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$7.84 Current Price

$5.19 Growth Price (DCF)

Overvalued by 33.83%


Growth Rate Assumed by Market: 35.16%


Future Free Cash Flow Growth Rate: -0.8%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$5.09 Stability Price (EPV)

Overvalued by 35.12%


Discount Rate: 15.0%

$2.71 NCA Price

Overvalued by 65.39%

$5.92 Book Price

Overvalued by 24.53%


Shrinking Cash Return on Invested Capital over the past 5 years

GSIT has less efficiently invested its financial resources in buildings, projects, and equipment, resulting in increasingly weaker returns. Look at its Annual Reports to determine whether this decrease has been caused by one-time events or a more general decrease in investment returns.

GSIT has created $11.63 of cash for every $100 invested.
Figures in USD. Fiscal year ends in March
20122013201420152016
Free Cash Flow 15.28M 14.33M 7.69M 640,000.00 -698,000.00
divided by
Invested Capital 71.94M 67.73M 48.91M 38.20M 42.18M
Cash ROIC 21.24% 21.15% 15.72% 1.68% -1.65%

Very Poor Return on Equity over the past 5 years

GSIT has shown an inability to deliver results for shareholders. This could be due to poor management, GSIT operating in a highly competitive industry, or having a weak business in general.

GSIT has generated a $0.85 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in March
20122013201420152016
Net Income 6.76M 3.85M -6.19M -4.98M -2.17M
divided by
Stockholders' Equity 128.78M 132.18M 128.38M 96.40M 89.87M
Return on Equity 5.25% 2.91% -4.82% -5.16% -2.41%

Good Business Performance over the past 10 years

It's likely GSIT has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is GSIT has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

GSIT has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Free Cash Flow -6.77M 15.49M 15.52M 7.68M 9.05M 15.28M 14.33M 7.69M 640,000.00 -698,000.00

Very Strong Balance Sheet

GSIT has more Cash than its Total Liabilities, resulting in $1.89 Net Cash per share. In other words, if you buy GSIT today, the price you're paying for shares is actually $5.95 because $1.89 of Cash is included in the current share price. This much Cash is very healthy. It can help GSIT sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Cash 8.28M 39.57M 47.34M 46.78M 51.99M 58.68M 67.26M 80.93M 58.98M 55.11M
Current Assets 44.17M 65.88M 67.37M 76.62M 95.71M 95.19M 97.48M 102.51M 77.94M 71.96M
Total Assets 49.91M 88.32M 92.67M 113.13M 141.92M 143.12M 145.85M 141.68M 108.89M 106.53M
Current Liabilities 11.17M 10.81M 7.62M 13.57M 15.68M 12.50M 10.86M 11.84M 11.71M 9.24M
Total Liabilities 20.18M 11.18M 7.97M 14.41M 17.24M 14.34M 13.66M 13.30M 12.49M 16.66M
Stockholder' Equity 29.73M 77.14M 84.71M 98.72M 124.68M 128.78M 132.18M 128.38M 96.40M 89.87M
Current Ratio 3.95 6.09 8.84 5.65 6.11 7.61 8.98 8.66 6.65 7.79
TL-to-TA 0.40 0.13 0.09 0.13 0.12 0.10 0.09 0.09 0.11 0.16

Consistent Reinvestment of Profits over the past 10 years

GSIT has consistently retained profits. This may put GSIT in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, GSIT can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Retained Earnings 22.18M 28.96M 38.25M 48.63M 67.51M 74.26M 78.11M 71.92M 66.94M 64.77M
Retained Earnings Growth - 30.53% 32.08% 27.15% 38.82% 10.01% 5.18% -7.92% -6.92% -3.24%

Competitive Industry over the past 10 years

GSIT is likely operating in an industry with medium to low barriers to entry. This may mean that GSIT doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that GSIT invests heavily in R&D and Sales, General & Administrative expenses.

Only $6.52 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Net Income 7.43M 6.77M 9.29M 10.38M 18.88M 6.76M 3.85M -6.19M -4.98M -2.17M
divided by
Revenue 58.16M 53.17M 62.11M 67.56M 97.76M 82.54M 66.01M 58.58M 53.50M 52.74M
Net Profit Margin 12.78% 12.74% 14.96% 15.37% 19.31% 8.19% 5.83% -10.57% -9.31% -4.11%

Strong Pricing Power over the past 10 years

GSIT has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$48.26 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Gross Profit 22.12M 21.32M 26.56M 29.22M 44.75M 71.90M 28.59M 26.11M 25.12M 26.74M
divided by
Revenue 58.16M 53.17M 62.11M 67.56M 97.76M 82.54M 66.01M 58.58M 53.50M 52.74M
Gross Margin 38.03% 40.10% 42.76% 43.25% 45.78% 87.11% 43.31% 44.57% 46.96% 50.70%

Medium Capital Intensity over the past 10 years

GSIT has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

28.51% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Capital Expenditure 2.03M 3.34M 674,000.00 6.02M 4.30M 1.68M 385,000.00 761,000.00 481,000.00 1.16M
divided by
Net Income 7.43M 6.77M 9.29M 10.38M 18.88M 6.76M 3.85M -6.19M -4.98M -2.17M
Capital Expenditure Ratio 27.35% 49.30% 7.26% 58.00% 22.78% 24.85% 10.01% -12.30% -9.66% -53.36%

No Dividend History over the past 10 years

GSIT has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 22.84M 28.62M 28.39M 27.69M 29.69M 29.50M 28.08M 27.51M 25.03M 22.59M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 2.56 2.83 4.70 8.19 4.68 6.28 6.65 4.97 3.75 6.20
Dividend Yield - - - - - - - - - -

Strong History of Stock Buybacks over the past 10 years

GSIT has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Shares Outstanding 22.84M 28.62M 28.39M 27.69M 29.69M 29.50M 28.08M 27.51M 25.03M 22.59M
Stock Bought Back - -20.22% 0.84% 2.52% -6.73% 0.64% 5.05% 2.08% 9.89% 10.78%
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