GSIT  Gsi Technology Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Semiconductors

Market Cap.

148.23M

Vuru Grade

45.41/100

Current Price

$7.06
-0.105 (-1.466%)

Growth Price

$4.43
Overvalued by 37.26%

Stability Price

$3.30
Overvalued by 53.24%

Company Metrics

  • P/E 157.55
  • P/S 3.276
  • P/B 1.737
  • EPS -0.092
  • Cash ROIC 8.25%
  • Cash Ratio 4.77
  • Dividend 0 / 0%
  • Avg. Vol. 52,734.00
  • Shares 21.01M
  • Market Cap. 148.23M

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

GSI Technology, Inc. to Present at the In-Memory Computing Summit
Marketwired (press release) - 11 hours ago
SUNNYVALE, CA--(Marketwired - Oct 23, 2017) - GSI Technology, Inc. ( NASDAQ : GSIT) today announced that Dr. Avidan Akerib, VP of Associative Computing BU, will present at the In-Memory Computing Summit in South San Francisco on October 24, 2017 ...
7.16
MarketWatch - Dec 21, 2009
GSI Technology Inc. GSI Technology, Inc. designs, develops and markets high performance memory products for networking, military, medical, automotive and other applications.
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) to Release Quarterly Earnings on Wednesday
The Ledger Gazette - 10 hours ago
GSI Technology logo GSI Technology, Inc. (NASDAQ:GSIT) is scheduled to be issuing its quarterly earnings data on Wednesday, October 25th.
GSI Technology, Inc. (NasdaqGS:GSIT) Earnings According to Quant - Lenox Ledger
GSI Technology, Inc. (NasdaqGS:GSIT) Valuation & Technicals Update - Ozark Times
GSI Technology's (GSIT) CEO Lee-Lean Shu on Q1 2018 Results - Earnings Call ...
Seeking Alpha - Jul 29, 2017
Ladies and gentlemen, thank you for standing by. Welcome to the GSI Technology's First Quarter Fiscal 2018 Results Conference.
SA author: Intel AI purchase adds to bull case for GSI Technology
Seeking Alpha - Sep 16, 2016
Intel in August agreed to purchase deep-learning startup Nervana Systems for more than $400M, with Intel VP Jason Waxman at the time saying the shift to artificial intelligence could dwarf the move to cloud computing, says SA Pro author Jim Roumell, ...
GSI Technology Announces Industry's Highest Density RadHard SigmaQuad-II+™ SRAM
Marketwired (press release) - Jan 10, 2017
SUNNYVALE, CA--(Marketwired - Jan 10, 2017) - GSI Technology, Inc. ( NASDAQ : GSIT), a provider of high performance semiconductor devices, today announced a services engagement with Silicon Turnkey Solutions (STS), a Micross Company, targeted at ...
GSI Technology's (GSIT) CEO Lee-Lean Shu on Q3 2017 Results - Earnings Call ...
Seeking Alpha - Jan 27, 2017
Additionally, I have been asked to advise you that this conference call is being recorded today, January 26, 2017 at the request of GSI Technology. Hosting the call today, Lee-Lean Shu, the company's Chairman, President and Chief Executive Officer.
GSI Technology, Inc. (GSIT) Scheduled to Post Earnings on Wednesday
TrueBlueTribune - Oct 20, 2017
GSI Technology logo GSI Technology, Inc. (NASDAQ:GSIT) will be posting its quarterly earnings results on Wednesday, October 25th.
Somewhat Positive Press Coverage Somewhat Unlikely to Impact GSI Technology ... - The Ledger Gazette
GSI Technology, Inc. (NASDAQ:GSIT) Closed Over Its 50 Day Moving Average - First News 24
Stock Returns: GSI Technology Inc (NASDAQ:GSIT) is Beating Intermolecular Inc ...
CML News - Feb 17, 2017
This is a snapshot to compare the stock returns for GSI Technology Inc (NASDAQ:GSIT) versus Intermolecular Inc (NASDAQ:IMI) .
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.

$7.06 Current Price

$4.43 Growth Price (DCF)

Overvalued by 37.26%


Growth Rate Assumed by Market: 39.92%


Future Free Cash Flow Growth Rate: -15.8%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$3.30 Stability Price (EPV)

Overvalued by 53.24%


Discount Rate: 15.0%

$2.48 NCA Price

Overvalued by 64.84%

$5.66 Book Price

Overvalued by 19.77%


Poor Cash Return on Invested Capital over the past 5 years

GSIT has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

GSIT has only created $8.25 of cash for every $100 invested.
Figures in USD. Fiscal year ends in March
20132014201520162017
Free Cash Flow 14.33M 7.69M 640,000.00 -698,000.00 1.83M
divided by
Invested Capital 67.73M 48.91M 38.20M 42.18M 42.19M
Cash ROIC 21.15% 15.72% 1.68% -1.65% 4.35%

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 $1.92 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in March
20132014201520162017
Net Income 3.85M -6.19M -4.98M -2.17M -115,000.00
divided by
Stockholders' Equity 132.18M 128.38M 96.40M 89.87M 86.44M
Return on Equity 2.91% -4.82% -5.16% -2.41% -0.13%

Excellent Business Performance over the past 10 years

GSIT has been able to maintain profitability in good times and bad. This could mean GSIT has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

GSIT has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Free Cash Flow 15.49M 15.52M 7.68M 9.05M 15.28M 14.33M 7.69M 640,000.00 -698,000.00 1.83M

Very Strong Balance Sheet

GSIT has more Cash than its Total Liabilities, resulting in $1.61 Net Cash per share. In other words, if you buy GSIT today, the price you're paying for shares is actually $5.45 because $1.61 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
2008200920102011201220132014201520162017
Cash 39.57M 47.34M 46.78M 51.99M 58.68M 67.26M 80.93M 58.98M 55.11M 49.94M
Current Assets 65.88M 67.37M 76.62M 95.71M 95.19M 97.48M 102.51M 77.94M 71.96M 68.27M
Total Assets 88.32M 92.67M 113.13M 141.92M 143.12M 145.85M 141.68M 108.89M 106.53M 102.60M
Current Liabilities 10.81M 7.62M 13.57M 15.68M 12.50M 10.86M 11.84M 11.71M 9.24M 10.47M
Total Liabilities 11.18M 7.97M 14.41M 17.24M 14.34M 13.66M 13.30M 12.49M 16.66M 16.15M
Stockholder' Equity 77.14M 84.71M 98.72M 124.68M 128.78M 132.18M 128.38M 96.40M 89.87M 86.44M
Current Ratio 6.09 8.84 5.65 6.11 7.61 8.98 8.66 6.65 7.79 6.52
TL-to-TA 0.13 0.09 0.13 0.12 0.10 0.09 0.09 0.11 0.16 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
2008200920102011201220132014201520162017
Retained Earnings 28.96M 38.25M 48.63M 67.51M 74.26M 78.11M 71.92M 66.94M 64.77M 64.66M
Retained Earnings Growth - 32.08% 27.15% 38.82% 10.01% 5.18% -7.92% -6.92% -3.24% -0.18%

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 $5.22 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Net Income 6.77M 9.29M 10.38M 18.88M 6.76M 3.85M -6.19M -4.98M -2.17M -115,000.00
divided by
Revenue 53.17M 62.11M 67.56M 97.76M 82.54M 66.01M 58.58M 53.50M 52.74M 48.18M
Net Profit Margin 12.74% 14.96% 15.37% 19.31% 8.19% 5.83% -10.57% -9.31% -4.11% -0.24%

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.

$49.94 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
2008200920102011201220132014201520162017
Gross Profit 21.32M 26.56M 29.22M 44.75M 71.90M 28.59M 26.11M 25.12M 26.74M 26.42M
divided by
Revenue 53.17M 62.11M 67.56M 97.76M 82.54M 66.01M 58.58M 53.50M 52.74M 48.18M
Gross Margin 40.10% 42.76% 43.25% 45.78% 87.11% 43.31% 44.57% 46.96% 50.70% 54.83%

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.

28.70% 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
2008200920102011201220132014201520162017
Capital Expenditure 3.34M 674,000.00 6.02M 4.30M 1.68M 385,000.00 761,000.00 481,000.00 1.16M 219,000.00
divided by
Net Income 6.77M 9.29M 10.38M 18.88M 6.76M 3.85M -6.19M -4.98M -2.17M -115,000.00
Capital Expenditure Ratio 49.30% 7.26% 58.00% 22.78% 24.85% 10.01% -12.30% -9.66% -53.36% -190.43%

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
2008200920102011201220132014201520162017
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 28.62M 28.39M 27.69M 29.69M 29.50M 28.08M 27.51M 25.03M 22.59M 20.65M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 2.83 4.70 8.19 4.68 6.28 6.65 4.97 3.75 6.20 8.60
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
2008200920102011201220132014201520162017
Shares Outstanding 28.62M 28.39M 27.69M 29.69M 29.50M 28.08M 27.51M 25.03M 22.59M 20.65M
Stock Bought Back - 0.84% 2.52% -6.73% 0.64% 5.05% 2.08% 9.89% 10.78% 9.40%
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