Navitas Semiconductor Corporati(NVTS) - Stock detail

Navitas Semiconductor Corporati

US
NVTS
Navitas Semiconductor Corporation(Listing date: 10/20/2021)

Navitas Semiconductor Corporation was incorporated in Delaware on August 12, 2020. Founded in 2014, the company is an industry leader in GaN power ICs. Navitas has a strong and growing team of power semiconductor industry experts with 300 years of experience in materials, equipment, applications, systems and marketing, combined with a proven track record of innovation by its founders with over 200 patents. GaN power ICs integrate GaN power with drive, control and protection to enable faster charging, higher power density and greater energy savings for mobile, consumer, enterprise, electric vehicle and new energy markets.

AI Value AnalystSell
Overall Rating1.7/10
Generated at:2026-03-06 16:41:15
Analysis based on 5 financial reports covering periods: 2025-09-30, 2025-06-30, 2025-03-31, 2024-12-31, and 2024-09-30. Data completeness includes quarterly financial metrics, valuation ratios, and profitability indicators for comprehensive fundamental assessment.
Overview

Navitas Semiconductor Corporation demonstrates severe fundamental deterioration across all key metrics, with accelerating revenue declines, rapidly expanding losses exceeding 200% negative margins, and unsustainable valuation multiples despite deteriorating fundamentals. The company faces significant operational challenges with no visible catalysts for near-term turnaround.

Valuation
1/10
Profitability
1/10
Financial health
3/10
Operation Advice
  • Sell position with price target of $5.50-$6.00 representing 25-33% downside from current $8.20 level.
  • Time horizon of 3-6 months for fundamental deterioration to become more apparent to market participants.
  • Consider stop-loss implementation given the 66.67% historical stop-loss rate for sell recommendations.

Valuation

P/E TTM
-17.44
P/E LYR
-25.77
P/B MRQ
5.48
P/S TTM
--
AI Analysis
  • Current valuation metrics suggest significant overvaluation with extremely elevated Price/Sales of 33.52x and Price/Book of 5.48x, which are unsustainable for a company with declining revenue and mounting losses. Negative P/E ratios reflect ongoing losses without near-term earnings potential.
  • Price/Sales (PS-TTM) of 33.52x is extremely elevated compared to semiconductor industry norms of typically 5-10x for growth companies
  • Price/Book (PB) of 5.48x is high for a company with negative returns and declining prospects
  • Negative P/E ratios (dynamic -25.77, TTM -17.44) reflect ongoing losses without near-term earnings potential
  • Valuation multiples are unsustainable for a company with declining revenue and mounting losses
  • Current price of $8.20 appears significantly overvalued given fundamental deterioration and lack of visible catalysts for improvement
Valuation trend

Profitability

ROE TTM
-29.55%
Net margin
-254.71%
Gross margin
31.03%
Total revenue
45.92M
AI Analysis
  • Severe operational challenges with gross margin deterioration from 39.98% to 29.69%, consistent substantial losses with net margin of -220.45%, and deeply negative return metrics indicating poor capital allocation and operational efficiency.
  • Gross margin of 29.69% in Q3 2025 has deteriorated from 39.98% a year earlier, indicating pricing pressure and/or cost inefficiencies
  • Consistent and substantial losses with net margin of -220.45% in Q3 2025, worsening from -68.49% in Q3 2024
  • Deeply negative ROE (-35.15% TTM) and ROA (-30.20% TTM) indicate poor capital allocation and operational efficiency
  • All profitability metrics show accelerating deterioration over the past year with losses widening significantly despite cost-cutting efforts
  • Dramatic decline in both revenue and profitability suggests fundamental challenges in market positioning and competitive differentiation
  • Company is experiencing severe profitability crisis with no near-term path to breakeven evident from financial trends
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM---4.88%-17.89%-23.68%-29.55%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue83.30M14.02M28.51M38.62M45.92M

Financial health

Debt/Asset
11.35%
Current ratio
4.99
Quick ratio
4.73
Cash ratio
4.73
AI Analysis
  • Concerning financial health despite strong liquidity position, with excellent short-term flexibility but severe revenue contraction of -40.88% year-over-year and consistent negative earnings and cash flow patterns indicating ongoing cash consumption.
  • Excellent short-term financial flexibility with current ratio of 7.94 and quick ratio of 7.28, indicating substantial ability to meet immediate obligations
  • Low debt levels with 13.77% leverage, suggesting minimal financial risk from debt obligations
  • Strong balance sheet with significant cash reserves relative to operations
  • Severe revenue contraction visible across recent quarters with Q3 2025 revenue of $38.62M representing -40.88% year-over-year decline
  • Consistent negative earnings and cash flow patterns indicate ongoing cash consumption
  • Financial condition shows company with strong liquidity but fundamentally challenged operations facing significant revenue headwinds in competitive market
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset10.76%7.82%13.48%13.77%11.35%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio5.695.618.237.944.99