$MRAM has gone totally unnoticed
Not sure why this U.S. semiconductor company has gone so unnoticed.
To summarize:
Everspin Technologies Inc. specializes in Magnetoresistive Random Access Memory (MRAM) products, including Toggle MRAM and Spin-Transfer Torque MRAM (STT-MRAM).
These innovative technologies offer superior performance, exceptional data retention, and unmatched reliability. MRAM safeguards critical data against power loss, making it ideal for mission-critical applications.
Everspin generates revenue through the sale of MRAM products, licensing agreements, and providing foundry and design services to other companies.
MRAM technology leverages magnetism to store data persistently, eliminating the need for constant power to maintain data integrity. This advantage positions Everspin as a leader in advancing memory technology across various industries, including data centers, cloud computing, and industrial automation.
Current price: around $6,50.
Analysts’ recommendations suggest target price ranges from $8 to $10.
Analyst performance over the past 12 months, in my opinion, has been fine:
- Quinn Bolton, from Needham: 54% success rate and +19,20% average return per rating during last year.
- Richard Shannon, from Craig-Hallum: 48% success rate and +16,80% average return per rating during last year.
There are 4 reasons why I like the company:
1. Great customers and global operations
On slide 13 of their investors presentation, they show key customers in 6 different sectors, of which I found the most interesting:
- Enterprise: IBM and DELL.
- Industrial Automation: SIEMENS and Mitsubishi.
- Medical: Canon Medical.
- Network & Infrastructure: NXP.
- Aero & Transportation: Airbus and Honeywell.
Diversification seems to be one of its priorities, offering its products in important sectors such as data centers, industrial and radioactive (in my opinion, these will perform well during the Trump era) to more than 2,000 customers (slide 3 of the same investors presentation).
2. Their relation with the US Department of Defense
The text of this image speaks for itself, the news is from last summer.
Granted, $14.5 million over the next 2 years may not seem like a lot, but this is not a contract, but some sort of award, and the words Trump spoke on January 20, 2025 make me very bullish on the sector.
Our armed forces will be free to focus on their sole mission — defeating America’s enemies.
Like in 2017, we will again build the strongest military the world has ever seen.
One of the main reasons why I believe the company is undervalued is because, as they stated in their Q3 2024 Earnings Call, the money they get for this “award” has not been reflected in a fully “true” way in their revenue so far because it did not meet the requirements set by accounting standards to recognize revenue immediately.
I take this to mean that there is a chance that the Q4 2024 Earnings Report will reflect some of that money, and in such a hypothetical case, investors would react considerably well.
3. Recent bullish news
This cool guy has recently joined the $MRAM team (full article here):
Barclays and Jane Street Group have bought some shares a few days ago:
4. Financials and technical analysis
What I like is that they have no debt and have experienced some growth over the years, albeit quite slowly (check investors presentation, slide 20).
Having seen the company’s Finviz, the only thing I didn’t like was the P/E and PEG, because they are somewhat high.
I have marked the lines of what I believe to be support ($5,76, $6.05 and $6.25) and resistance ($6.65, $6.75 and $7) levels in orange and blue, respectively.
Both the RSI (53) and MACD indicators seem to indicate upward trends.
The candlestick of January 13, 2025 already suggested an uptrend, the question now is whether it will last from current levels or not.
