CEVA, Inc. (CEVA)
Valuation Overview•Is CEVA, Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Fragile underlying quality score of 43/100; weak margins or elevated debt leverage warrant caution.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
CEVA struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($10M) and minimal debt risk.
The company is facing top-line contraction (-3.1% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-10.7%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $27.0M | +2.5% | -3.1% | +1.8% | +6.3% | |
| EBITDA | -$4.2M | — | — | — | — | |
| Net Income | -$4.5M | -21.1% | +22.9% | — | — | |
| EPS (Diluted) | $-0.16 | -18.9% | — | — | — | |
| Free Cash Flow | -$7.2M | +0.0% | -46.8% | -46.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 87.1% | 87.7% | 88.3% | 89.3% |
| Operating Margin | -10.7% | -10.4% | -4.4% | 1.2% |
| Net Margin | -10.5% | -10.0% | -9.8% | -1.3% |
| FCF Margin | -5.1% | -2.8% | 3.0% | 7.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.02 | $0.04 | +100.0% | ||
| Q1'26 | $0.18 | $0.18 | +0.0% | ||
| Q4'25 | $0.10 | $0.11 | +10.0% | ||
| Q3'25 | $0.05 | $0.07 | +40.0% | ||
| Q2'25 | $0.07 | $0.06 | -14.3% | ||
| Q1'25 | $0.11 | $0.11 | +0.0% | ||
| Q4'24 | $0.09 | $0.14 | +55.6% | ||
| Q3'24 | $0.02 | $0.17 | +628.7% |
Total return is +141.4% (1Y), outperforming the benchmark by +116.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +121.8% | +112.5% | — |
| 1Y | +141.4% | +116.4% | — |
| 3YCAGR | +26.0% | +2.3% | — |
| 5YCAGR | +2.7% | -12.7% | — |
| 10YCAGR | +6.3% | -8.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about CEVA, Inc. (CEVA) valuation, health, and returns.
CEVA, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -47.7% downside from DCF intrinsic value of $26.00)
CEVA, Inc. has multiple valuation anchors: DCF Intrinsic Value: $26.00 | Peer Relative Fair Value: $11.79 | Wall Street Analyst Target: $45.40 (implying -8.7% upside). A convergence of these signals offers higher conviction.
CEVA, Inc. displays fair financial health with a composite quality score of 43/100, supported by a Altman Z-Score of 17.0 (safe zone), Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of -2.9%.
CEVA, Inc. returns capital via buybacks instead of dividends, carrying a 0.5% buyback yield and reducing outstanding shares by +2.9% in the last 12 months.
CEVA, Inc.'s current growth trajectory is Accelerating. The company achieved +2.5% 1Y revenue growth and -18.9% 1Y EPS growth, compared to its 3Y revenue CAGR of -3.1%.
Wall Street consensus is Buy based on 25 analysts, beating EPS expectations in 50% of recent quarters with a 1-quarter streak. The consensus price target represents a -8.7% change from current levels.
Investment risks for CEVA, Inc. include: -43.9% 1-year max drawdown, high beta (3.23x market volatility). Volatility risk is characterized by a beta of 3.23x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.