The firm's liquidity is under structural pressure, with capital expenditures consuming 75.8% of revenue and contributing to a negative free cash flow margin of -2.8% in 2024Q2.
| Cash from Operations | -106.17M | -38.06M | 36.5M | -20.96M | -3.42M |
| Operating CF Margin % | - | -115.9% | 35.63% | -16.62% | -3.51% |
| Operating CF Growth % | 62.78% | -204.28% | 274.14% | -512.12% | - |
| Net Income | -79.33M | -50.03M | 15.02M | -30.51M | -23.84M |
| Depreciation & Amortization | 29.54M | 24.4M | 24.8M | 36.92M | 31.18M |
| Stock-Based Compensation | 2.29M | 0 | 0 | 0 | 0 |
| Deferred Taxes | -970K | 1.02M | 6.43M | -974K | 0 |
| Other Non-Cash Items | -17.07M | -13.24M | 1.02M | 0 | -12.02M |
| Working Capital Changes | -40.95M | -209K | -10.78M | -26.4M | 1.26M |
| Change in Receivables | 9.51M | 1.15M | 16.73M | -7.13M | -1.16M |
| Change in Inventory | 21.3M | -10.98M | -9.44M | -8.67M | 4.13M |
| Change in Payables | -3.53M | -1.57M | 0 | 0 | 0 |
| Cash from Investing | 24.82M | -23.57M | -29.1M | -19.42M | -52.56M |
| Capital Expenditures | 24.32M | -23.66M | -28.42M | -19.43M | -3.01M |
| CapEx % of Revenue | 50.64% | 72.04% | 27.74% | 15.4% | 3.09% |
| Acquisitions | -1K | 0 | -1.51M | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 481K | 93K | 825K | 10K | -49.54M |
| Cash from Financing | -24.15M | -67.82M | 24.64M | 67.97M | 82.33M |
| Debt Issued (Net) | -449K | -36.66M | 24.64M | 67.97M | 12.96M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -23.7M | -31.15M | 0 | 0 | 69.37M |
| Net Change in Cash | -347.73M | -129.44M | 32.03M | 27.27M | 287.94M |
| Free Cash Flow | -81.86M | -61.72M | 8.08M | -40.38M | -6.44M |
| FCF Margin % | -170.48% | -187.94% | 7.89% | -32.02% | -6.6% |
| FCF Growth % | - | -863.65% | 120.01% | -527.49% | - |
| FCF per Share | -2.91 | -7.78 | 1.02 | -5.09 | -0.23 |
| FCF Conversion (FCF/Net Income) | 1.03x | 0.76x | 2.46x | 1.83x | 0.14x |
| Interest Paid | 3.12M | 3.02M | 2.69M | 1.69M | 1.27M |
| Taxes Paid | 2.71M | 1.44M | 2.41M | 458K | 0 |
Unsustainable cash burn rate
According to recent financial disclosures, Semilux exhibits a persistent disconnect between net income and operating cash flow, with an OCF/NI ratio of 0.91 in 2024Q2, suggesting that the company's reported losses are closely mirrored by actual cash outflows rather than non-cash accounting adjustments.
The tight correlation between net income and operating cash flow indicates that the company lacks significant non-cash expenses to buffer its bottom-line losses. Investors should monitor this relationship, as it confirms that the current business model is consuming cash at a rate nearly identical to its accounting losses.
As reported in quarterly filings, Semilux's free cash flow remains consistently negative, with a 2024Q2 FCF margin of -2.8%, highlighting the company's inability to generate self-sustaining cash flow while transitioning its product portfolio toward unproven AI-driven sensing modules and automotive lighting systems.
The persistent negative FCF trajectory suggests that the company is currently in a capital-intensive phase with no immediate path to operational self-sufficiency. This trend warrants further investigation into whether the current cash reserves are being deployed effectively to reach commercial scale before the runway is exhausted.
Based on the most recent quarterly data, Semilux's capital expenditure reached 75.8% of revenue, a figure that underscores the extreme capital intensity required to maintain its Taichung manufacturing facilities despite the sharp contraction in top-line transactional volume observed over the last several periods.
The high ratio of CapEx to revenue suggests that the company is heavily investing in infrastructure that is not yet yielding commensurate commercial output. This level of capital intensity appears unsustainable without a significant and immediate improvement in design-win conversion rates for its new product lines.
Data from recent SEC filings reveals significant volatility in working capital, including a $5.0 million outflow in 2024Q2, which suggests that the company is struggling to manage its inventory and collection cycles effectively during this period of severe revenue contraction and operational transition.
The erratic nature of working capital changes may indicate difficulties in aligning production schedules with actual customer demand for legacy components. This instability appears to be a primary contributor to the company's ongoing cash burn, necessitating a closer look at inventory management practices.
While the company maintains a substantial cash position of $202 million, analysis of the cash flow statement suggests that this balance is being depleted by persistent operating losses, potentially obscuring the underlying urgency of the company's need to achieve commercial viability for its new technologies.
The large cash pile may provide a false sense of security, as it currently serves as the primary funding source for ongoing R&D and overhead rather than growth-oriented investment. Investors should monitor whether this capital is being preserved or if it is being rapidly eroded by the current negative margin profile.
Quick answers to the most common questions about buying SELX stock.
Semilux International Ltd. Ordinary Shares (SELX) generated $-38.1M in net cash from operating activities in 2023. This reflects the cash generated directly from core business operations.
Semilux International Ltd. Ordinary Shares (SELX) reported negative free cash flow of $61.7M in 2023, indicating capital requirements exceeded cash from operations.
Semilux International Ltd. Ordinary Shares (SELX) spent $23.7M on capital expenditures in 2023. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.