CEVA Inc. Common Stock (CEVA)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business that earns consistent profits and sells at a sensible price. CEVA is a semiconductor IP licensor with 374 employees; it sells designs and software for 5G, baseband, and DSP workloads. The moat comes from engineering complexity, switching costs, and licensing relationships, but it is not producing owner earnings: trailing free cash flow was -$1.1 million and FCF yield -0.1% as a FairStock calculation. In fiscal 2025, the year ended 2025-12-31, revenue was $109.6 million and net income was -$10.6 million, or diluted EPS -$0.44. In fiscal 2024, revenue was $106.9 million and net income was -$8.8 million, EPS -$0.37, so the loss widened. More recent quarters show some improvement: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $29.0 million and net income was -$2.9 million, EPS -$0.10, versus fiscal Q2 2025 revenue $25.7 million and net loss -$3.7 million. Still, the company has lost money in each of the last four years, and FairStock's Lynch category is none for that reason. The balance sheet is conservative, with D/E 0.05 and Altman Z-Score 10.91, but Piotroski is 5/9. At the 2026-10-13 close of $30.86, P/B is 2.55 and the negative P/E makes earnings valuation meaningless. FairStock score 52/100 and beta 1.98 suggest an average-quality, volatile situation. I would want evidence of sustainable profits and positive cash generation before calling the price cheap.

In plain English: CEVA sells designs and software that help chipmakers build wireless and sensing products. The business is not yet making a profit: it lost $10.6 million in fiscal 2025 and $2.9 million in the quarter ended June 30, 2026, though sales have been rising. At the October 13, 2026 closing price of $30.86, the shares look expensive against accounting value and cash flow, so the price looks fair to expensive versus today's numbers, not clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer