Navitas Semiconductor Stock To $7?

Navitas Semiconductor (NVTS) stock has jumped 22% during the past day, and is currently trading at $9.60. Our multi-factor assessment suggests that it may be time to sell NVTS stock. We have, overall, a pessimistic view of the stock, and a price of $7 may not be out of reach. We believe there are several things to fear in NVTS stock given its overall Weak operating performance and financial condition. But keeping in mind its Very High valuation, we think that the stock is Very Unattractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $2.0 Bil in market cap, Navitas Semiconductor provides gallium nitride (GaN) power integrated circuits, specializing in design, development, and sales since 2013, based in Dublin, Ireland.

[1] Valuation Looks Very High

This table highlights how NVTS is valued vs broader market. For more details see: NVTS Valuation Ratios

[2] Growth Is Weak

• Navitas Semiconductor has seen its top line grow at an average rate of 33.5% over the last 3 years
• Its revenues have fallen -38% from $91 Mil to $57 Mil in the last 12 months
• Also, its quarterly revenues declined -53.4% to $10 Mil in the most recent quarter from $22 Mil a year ago.

This table highlights how NVTS is growing vs broader market. For more details see: NVTS Revenue Comparison

[3] Profitability Appears Very Weak

• NVTS last 12 month operating income was $-103 Mil representing operating margin of -181.4%
• With cash flow margin of -79.5%, it generated nearly $-45 Mil in operating cash flow over this period
• For the same period, NVTS generated nearly $-125 Mil in net income, suggesting net margin of about -220.9%

This table highlights how NVTS profitability vs broader market. For more details see: NVTS Operating Income Comparison

[4] Financial Stability Looks Very Strong

• NVTS Debt was $6.9 Mil at the end of the most recent quarter, while its current Market Cap is $2.0 Bil. This implies Debt-to-Equity Ratio of 0.3%
• NVTS Cash (including cash equivalents) makes up $151 Mil of $430 Mil in total Assets. This yields a Cash-to-Assets Ratio of 35.0%

[5] Downturn Resilience Is Very Weak

NVTS has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• NVTS stock fell 84.0% from a high of $20.16 on 15 November 2021 to $3.22 on 27 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $17.10 on 20 October 2025 , and currently trades at $9.60

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read NVTS Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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