Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Power Integrations' latest financial results presented a nuanced picture of their business standing and future outlook.</li><li>In the third quarter, the company reported revenues amounting to $116 million, reflecting a 9% sequential rise.</li><li>However, the forecast for the fourth quarter paints a less optimistic picture, with an anticipated revenue drop to $105 million.</li></ul>

Power Integrations' latest financial results presented a nuanced picture of their business standing and future outlook.In the third quarter, the company reported revenues amounting to $116 million, reflecting a 9% sequential rise.However, the forecast for the fourth quarter paints a less optimistic picture, with an anticipated revenue drop to $105 million.

Power Integrations Inc.: GaN Technology Advancements & Adoption A Vital Tool For Growth! - Major Drivers

<ul><li>Power Integrations presented its Q2 2024 financial results, reflecting a phase of cautious optimism as the company inches towards recovery amid uncertain macro conditions.</li><li>This period has been characterized by improved revenue streams, particularly within its consumer category, and a tightening of inventory levels, which are seen as positive developments for the semi-conductor manufacturing firm.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Power Integrations presented its Q2 2024 financial results, reflecting a phase of cautious optimism as the company inches towards recovery amid uncertain macro conditions.This period has been characterized by improved revenue streams, particularly within its consumer category, and a tightening of inventory levels, which are seen as positive developments for the semi-conductor manufacturing firm.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Power Integrations Inc.: An Insight Into Its Market Position & Share Gains in Consumer Electronics! - Major Drivers

Asia and Global Semiconductor and Tech Research

Andrew Lu

Thematic (Sector/Industry)

<ul>
<li>Like other automotive/industrial semi vendors, Diodes guides 4Q23 sales of 20% q/q and 35% y/y decline (miss by 21%) and weaker gross margin/operating margin of 35%/7% (miss by 5ppts).</li>
<li>The company sees 4Q23 sales decline of 20% mainly from 19% of automotive and 26% of industrial customers due to customer inventory cut coupled with year-end distributor inventory management. </li>
<li>We expect this adjustment for automotive/industrial IDMs to last for at least 6 months and suggest our clients to avoid these names unless valuation becoming attractive.  </li>
</ul>


Like other automotive/industrial semi vendors, Diodes guides 4Q23 sales of 20% q/q and 35% y/y decline (miss by 21%) and weaker gross margin/operating margin of 35%/7% (miss by 5ppts).
The company sees 4Q23 sales decline of 20% mainly from 19% of automotive and 26% of industrial customers due to customer inventory cut coupled with year-end distributor inventory management. 
We expect this adjustment for automotive/industrial IDMs to last for at least 6 months and suggest our clients to avoid these names unless valuation becoming attractive.  


With No Surprise, Diodes Guides Automotive/Industrial Semi Demand to Fall over 20% Q/Q

<ul><li>Power Integrations reported a robust set of financial results for the first quarter, demonstrating resilience and strategic foresight in the face of fluctuating market conditions.</li><li>The company's revenue for the quarter amounted to $92 million, with a non-GAAP gross margin of 53% and non-GAAP earnings standing at $0.18 per share.</li><li>These figures reflect a stable financial status, attuned to Power Integrations' strategic market maneuvers and operational efficiency.</li></ul>

Power Integrations reported a robust set of financial results for the first quarter, demonstrating resilience and strategic foresight in the face of fluctuating market conditions.The company's revenue for the quarter amounted to $92 million, with a non-GAAP gross margin of 53% and non-GAAP earnings standing at $0.18 per share.These figures reflect a stable financial status, attuned to Power Integrations' strategic market maneuvers and operational efficiency.

Power Integrations Inc.: Can The Acquisition of Odyssey Semiconductor Technologies Be A Game Changer? - Major Drivers

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

<ul><li>Power Integrations (POWI) is facing persistently low earnings quality over the past five quarters due to a channel inventory adjustment, which they claim is almost complete</li><li>Revenues have dropped by 37% since 2021, casting doubt on whether the adjustment fully explains the decline</li><li>Financial performance in 2024 could lead to a shift in the investment narrative towards normalized revenues below recent peaks and increased competition from Chinese semiconductor vendors, potentially affecting earnings and forward multiples</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Power Integrations (POWI) is facing persistently low earnings quality over the past five quarters due to a channel inventory adjustment, which they claim is almost completeRevenues have dropped by 37% since 2021, casting doubt on whether the adjustment fully explains the declineFinancial performance in 2024 could lead to a shift in the investment narrative towards normalized revenues below recent peaks and increased competition from Chinese semiconductor vendors, potentially affecting earnings and forward multiplesThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Power Integrations Inc (POWI) - Wednesday, Mar 20, 2024

United States

Power Integrations, Inc. designs, develops, and markets analog integrated circuits for use in alternating current (AC) to direct current (DC) power conversion.  The Company sells its products to original equipment manufacturers in the cellular telephone, consumer electronics, personal computer, and industrial electronics industries.

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Power Integrations (POWI US)

Power Integrations Inc.: GaN Technology Advancements & Adoption A Vital Tool For Growth! - Major Drivers

Power Integrations' latest financial results presented a nuanced picture of their business standing and future outlook. In the third quarter, the...

Baptista Research

With No Surprise, Diodes Guides Automotive/Industrial Semi Demand to Fall over 20% Q/Q

With No Surprise, Diodes Guides Automotive/Industrial Semi Demand to Fall over 20% Q/Q, margin contraction, and rising months of inventory. We see...

Andrew Lu

Power Integrations Inc.: Can The Acquisition of Odyssey Semiconductor Technologies Be A Game Changer? - Major Drivers

Power Integrations reported a robust set of financial results for the first quarter, demonstrating resilience and strategic foresight in the face...

Baptista Research

Power Integrations Inc (POWI) - Wednesday, Mar 20, 2024

Power Integrations (POWI) is facing persistently low earnings quality over the past five quarters due to a channel inventory adjustment, which they...

Value Investors Club

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Power Integrations Inc.: GaN Technology Advancements & Adoption A Vital Tool For Growth! - Major Drivers

Power Integrations' latest financial results presented a nuanced picture of their business standing and future outlook. In the third quarter, the...

Baptista Research

Power Integrations Inc.: An Insight Into Its Market Position & Share Gains in Consumer Electronics! - Major Drivers

Power Integrations presented its Q2 2024 financial results, reflecting a phase of cautious optimism as the company inches towards recovery amid...

Baptista Research

With No Surprise, Diodes Guides Automotive/Industrial Semi Demand to Fall over 20% Q/Q

With No Surprise, Diodes Guides Automotive/Industrial Semi Demand to Fall over 20% Q/Q, margin contraction, and rising months of inventory. We see...

Andrew Lu

Power Integrations Inc.: Can The Acquisition of Odyssey Semiconductor Technologies Be A Game Changer? - Major Drivers

Power Integrations reported a robust set of financial results for the first quarter, demonstrating resilience and strategic foresight in the face...

Baptista Research

Power Integrations Inc (POWI) - Wednesday, Mar 20, 2024

Power Integrations (POWI) is facing persistently low earnings quality over the past five quarters due to a channel inventory adjustment, which they...

Value Investors Club