Pdf Solutions Inc

PDFS

Services-Prepackaged Software

Mkt Cap

$1.378B

PE

584.45

Debt

Cash

$85.26M

EV

FCF

$3.363M

Market Cap

$1.378B

P/E Ratio

584.45

Debt

Cash

$85.26M

EV

FCF

$3.363M

Charts data: {"Earnings":[{"time":"2014-12-30","value":18462000},{"time":"2015-12-30","value":12407000},{"time":"2016-12-30","value":9103000},{"time":"2017-12-30","value":-1337000},{"time":"2018-12-30","value":-7716000},{"time":"2019-12-30","value":-5418000},{"time":"2020-12-30","value":-40363000},{"time":"2021-12-30","value":-21488000},{"time":"2022-12-30","value":-3429000},{"time":"2023-12-30","value":3105000}],"Sales":[{"time":"2014-12-30","value":100163000},{"time":"2015-12-30","value":97977000},{"time":"2016-12-30","value":107461000},{"time":"2017-12-30","value":101871000},{"time":"2018-12-30","value":85794000},{"time":"2019-12-30","value":85585000},{"time":"2020-12-30","value":88046000},{"time":"2021-12-30","value":111060000},{"time":"2022-12-30","value":148549000},{"time":"2023-12-30","value":165835000}],"Net Margins":[{"time":"2014-12-30","value":0.18431955911863662},{"time":"2015-12-30","value":0.12663176051522296},{"time":"2016-12-30","value":0.08470980169549883},{"time":"2017-12-30","value":-0.013124441695870267},{"time":"2018-12-30","value":-0.08993635918595706},{"time":"2019-12-30","value":-0.06330548577437635},{"time":"2020-12-30","value":-0.45843082025304954},{"time":"2021-12-30","value":-0.19348100126057988},{"time":"2022-12-30","value":-0.023083292381638382},{"time":"2023-12-30","value":0.018723429915277232}],"Assets":[{"time":"2014-12-30","value":177438000},{"time":"2015-12-30","value":191769000},{"time":"2016-12-30","value":222329000},{"time":"2017-12-30","value":224176000},{"time":"2018-12-30","value":225905000},{"time":"2019-12-30","value":239544000},{"time":"2020-12-30","value":287580000},{"time":"2021-12-30","value":273768000},{"time":"2022-12-30","value":278671000},{"time":"2023-12-30","value":290136000}],"Stockholders Equity":[{"time":"2014-12-30","value":161823000},{"time":"2015-12-30","value":174307000},{"time":"2016-12-30","value":198803000},{"time":"2017-12-30","value":198368000},{"time":"2018-12-30","value":199795000},{"time":"2019-12-30","value":196157000},{"time":"2020-12-30","value":234506000},{"time":"2021-12-30","value":219585000},{"time":"2022-12-30","value":210012000},{"time":"2023-12-30","value":228946000}],"ROE":[{"time":"2014-12-30","value":0.11408761424519383},{"time":"2015-12-30","value":0.0711790117436477},{"time":"2016-12-30","value":0.045789047448982156},{"time":"2017-12-30","value":-0.006739998386836587},{"time":"2018-12-30","value":-0.03861958507470157},{"time":"2019-12-30","value":-0.027620732372538325},{"time":"2020-12-30","value":-0.17211926347300283},{"time":"2021-12-30","value":-0.0978573217660587},{"time":"2022-12-30","value":-0.016327638420661678},{"time":"2023-12-30","value":0.013562150026643837}],"ROA":[{"time":"2014-12-30","value":0.15689987488587562},{"time":"2015-12-30","value":0.10033425631880022},{"time":"2016-12-30","value":0.05831897773120016},{"time":"2017-12-30","value":0.0008475483548640355},{"time":"2018-12-30","value":-0.041871583187623115},{"time":"2019-12-30","value":-0.03072504425074308},{"time":"2020-12-30","value":-0.0627999165449614},{"time":"2021-12-30","value":-0.06690701615966804},{"time":"2022-12-30","value":0.0016865766441430934},{"time":"2023-12-30","value":0.016781785093887006}]}

PDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, China, Japan, and internationally. The company offers Exensio software products, such as Manufacturing Analytics that store collected data in a common environment with a consistent view for enabling product engineers to identify and analyze production yield, performance, reliability, and other issues; Process Control that provides failure detection and classification capabilities for monitoring, alarming, and controlling manufacturing tool sets; Test Operations that offer data collection and analysis capabilities; and Assembly Operations that provide device manufacturers with the capability to link assembly and packaging data, including fabrication and characterization data over the product life cycle. It also provides Design-For-Inspection (DFI) systems, such as Fire Feature Analysis Software; DFI On-Chip Instruments; eProbe Non-Contact E-Beam Tool; and Characterization Vehicle (CV) system, which includes CV Test Chips and pdFasTest Electrical Testers, as well as Exensio characterization software, designed to analyze the measurements collected using the eProbe tool. In addition, the company offers Cimetrix software products that enables equipment manufacturers to provide industry standard interfaces on their products; and software-as-a-service, software related services, and characterization services. It sells its technologies and services through direct sales force, service teams, and strategic alliances to integrated device manufacturers, fabless semiconductor companies, foundries, equipment manufacturers, electronics manufacturing suppliers, original device manufacturers, out-sourced semiconductor assembly and test, and system houses. The company was founded in 1991 and is headquartered in Santa Clara, California.

Sector

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9/30/23
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9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Pdf Solutions Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$3.363M	$3.415M	$3.467M	$3.52M	$3.574M	$3.629M	$3.685M	$3.741M	$3.799M	$3.857M	$3.916M	$39.16M
DCF		$2.969M	$2.622M	$2.315M	$2.044M	$1.804M	$1.593M	$1.407M	$1.242M	$1.096M	$968.1K	$9.681M
Value	$27.74M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -15%

Earnings Stability -15%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	13%	8.5%	-1.3%	-9%	-6.3%	-46%	-19%	-2.3%	1.9%	1.4%
ROA	10%	5.8%	0.085%	-4.2%	-3.1%	-6.3%	-6.7%	0.17%	1.7%	1.3%
ROE	7.1%	4.6%	-0.67%	-3.9%	-2.8%	-17%	-9.8%	-1.6%	1.4%	1%

What is the average Net Margin?

The average Net Margin over the past 5 years is -13.49%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +2.65%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -3.06%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.1%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -5.65%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.05%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	-	-	-	-	-	-	-	-
Debt Equity	-	-	-	-	-	-	-	-	-	-
MIN
Graham Stability	-	-	-10%	-110%	-33K%	-	-	-	-	-33K%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -.

What is the Graham’s Stability?

Graham’s Stability measure stands at -325.08.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	6.4%	14%	23%	12%	3.5%
Net Income	-14%	-	-	-	6.2%
Stockholders Equity	2%	2.8%	-0.8%	9%	-0.72%
FCF	-	72%	-40%	-86%	100%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +14.09%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +3.48%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +6.17%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +2.76%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.72%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +72.23%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +103.09%.