📊 LEDS Key Takeaways
Is SemiLEDs Corp (LEDS) a Good Investment?
SemiLEDs is a functionally insolvent semiconductor manufacturer with flat revenue, minimal gross margins (0.7%), and operating losses consuming half its revenue base. Despite positive free cash flow, the company's depleted equity base ($1.5M on $16.3M assets), working capital deficit, and complete absence of profitability recovery signals indicate existential financial distress.
Fundamentals are weak: near-zero gross margin and sizeable operating losses on flat revenue indicate an impaired business model. Liquidity is tight (sub-1 current and low quick ratio) with a thin equity cushion, elevating going‑concern and dilution risk despite low leverage and a period of positive FCF likely aided by working capital. Without clear, sustained gross margin recovery and consistent cash generation, downside fundamental risk dominates.
SemiLEDs Corp Key Strengths (LEDS)
- Positive free cash flow of $1.5M provides short-term runway
- Cash balance of $4.0M offers liquidity buffer for operations
- Low absolute debt burden ($193K long-term debt) limits creditor pressure
- Low leverage with minimal long-term debt (Debt/Equity 0.15x)
- Positive operating and free cash flow in the latest period
- Capital-light needs (very low capex)
LEDS Stock Risks: SemiLEDs Corp Investment Risks
- Revenue stagnation (0% YoY growth) in semiconductor sector indicates loss of market competitiveness
- Gross margin of 0.7% indicates fundamental business model failure - unable to generate profit on sales
- Stockholders' equity of only $1.5M represents 9% of assets; company is functionally insolvent with minimal equity cushion
- Operating losses of -$1.9M on $3.6M revenue signal unsustainable cost structure
- Current ratio of 0.91x indicates working capital deficit and near-term liquidity pressure
- Zero insider buying activity in 90 days suggests management lacks confidence in recovery
- Structural unprofitability: 0.7% gross margin and -39.4% operating margin
- Liquidity stress: current ratio 0.94x and quick ratio 0.58x may force financing
- Thin equity base and negative ROE (-35.9%) heighten going-concern/dilution risk
Key Metrics to Watch
- Revenue growth rate - any reversal of flat trend is critical for viability
- Gross margin expansion - must materially improve from 0.7% or business cannot survive
- Stockholders' equity trend - critical given existing 9% asset coverage
- Operating cash flow sustainability - validate if positive FCF is structural or working capital timing
- Insider transactions - any buying would signal management conviction in turnaround
- Gross margin trajectory
- Operating cash flow sustainability
SemiLEDs Corp (LEDS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 41.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
LEDS Profit Margin, ROE & Profitability Analysis
LEDS vs Technology Sector: How SemiLEDs Corp Compares
How SemiLEDs Corp compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is SemiLEDs Corp Stock Overvalued? LEDS Valuation Analysis 2026
Based on fundamental analysis, SemiLEDs Corp has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
SemiLEDs Corp Balance Sheet: LEDS Debt, Cash & Liquidity
LEDS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: SemiLEDs Corp's revenue has grown significantly by 609% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.32 indicates the company is currently unprofitable.
LEDS Revenue Growth, EPS Growth & YoY Performance
LEDS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.1M | N/A | $-0.02 |
| Q1 2026 | $1.3M | N/A | $-0.08 |
| Q3 2025 | $1.3M | $64.0K | $0.01 |
| Q2 2025 | $886.0K | -$159.0K | $-0.02 |
| Q1 2025 | $1.3M | -$547.0K | $-0.08 |
| Q3 2024 | $1.3M | -$319.0K | $-0.04 |
| Q2 2024 | $886.0K | -$541.0K | $-0.11 |
| Q1 2024 | $1.7M | -$512.0K | $-0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
SemiLEDs Corp Dividends, Buybacks & Capital Allocation
LEDS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for SemiLEDs Corp (CIK: 0001333822)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LEDS
What is the AI rating for LEDS?
SemiLEDs Corp (LEDS) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 85% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LEDS's key strengths?
Claude: Positive free cash flow of $1.5M provides short-term runway. Cash balance of $4.0M offers liquidity buffer for operations. ChatGPT: Low leverage with minimal long-term debt (Debt/Equity 0.15x). Positive operating and free cash flow in the latest period.
What are the risks of investing in LEDS?
Claude: Revenue stagnation (0% YoY growth) in semiconductor sector indicates loss of market competitiveness. Gross margin of 0.7% indicates fundamental business model failure - unable to generate profit on sales. ChatGPT: Structural unprofitability: 0.7% gross margin and -39.4% operating margin. Liquidity stress: current ratio 0.94x and quick ratio 0.58x may force financing.
What is LEDS's revenue and growth?
SemiLEDs Corp reported revenue of $3.6M.
Does LEDS pay dividends?
SemiLEDs Corp does not currently pay dividends.
Where can I find LEDS SEC filings?
Official SEC filings for SemiLEDs Corp (CIK: 0001333822) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LEDS's EPS?
SemiLEDs Corp has a diluted EPS of $-0.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LEDS's fundamental grade?
Based on our AI fundamental analysis in June 2026, SemiLEDs Corp has a D grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LEDS stock overvalued or undervalued?
Valuation metrics for LEDS: ROE of -89.4% (sector avg: 22%), net margin of -37.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is LEDS's AI grade for 2026?
Our dual AI analysis gives SemiLEDs Corp a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LEDS's free cash flow?
SemiLEDs Corp's operating cash flow is $1.6M, with capital expenditures of $44.0K. FCF margin is 41.8%.
How does LEDS compare to other Technology stocks?
Vs Technology sector averages: Net margin -37.0% (avg: 18%), ROE -89.4% (avg: 22%), current ratio 0.91 (avg: 2.5).