GSI TECHNOLOGY INC (GSIT) Stock Analysis
GSI TECHNOLOGY INC (GSIT) Stock Analysis
Overall Grade: F (Concerning)
View interactive company profile →
GSI TECHNOLOGY INC faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | -50.5% | Cash flow pressure |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is GSI TECHNOLOGY INC's Profitability and ROIC?
GSI TECHNOLOGY INC's return on invested capital of N/A is below the typical cost of capital. Gross margin of 55.4% with operating margin at -58.9% reflects the company's strong market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below cost of capital |
| Gross Margin | 55.4% | Excellent | Strong pricing power |
| Operating Margin | -58.9% | Warning | Moderate operational efficiency |
How Strong is GSI TECHNOLOGY INC's Cash Flow Quality?
GSI TECHNOLOGY INC generated $-12.5M in free cash flow over the trailing twelve months, representing a -50.5% margin. Cash earnings quality is strong, with operating cash flow exceeding net income by 1.1x.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -50.5% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-12.5M | Red flag | Cash burn |
| OCF/Net Income | 1.1x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is GSI TECHNOLOGY INC's Financial Health?
GSI TECHNOLOGY INC's debt-to-equity ratio of 0.0x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Is GSI TECHNOLOGY INC Stock Overvalued or Undervalued?
GSI TECHNOLOGY INC trades at a P/E of -16.8x, representing a premium to the sector median of N/A. Free cash flow yield of -6.9% reflects market expectations for growth.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | -16.8x | Red flag | Reasonable valuation |
| EV/Sales | 7.3x | Adequate | Growth premium priced in |
| FCF Yield | -6.9% | Warning | Lower cash yield |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | -50.5% | Bottom 10% | -5.0x below |
| Gross Margin | 55.4% | Top 50% | 1.0x above |
| Operating Margin | -58.9% | Top 5% | -9.3x below |
Rating Thresholds
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -50.5% (Red flag)
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 55.4% (Excellent - Top 50% of sector (median: 52.9%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 0.0% (Excellent)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: -6.9% (Red flag)
Frequently Asked Questions
Q: What is GSI TECHNOLOGY INC's Return on Invested Capital (ROIC)?
GSI TECHNOLOGY INC (GSIT) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 6.5%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is GSI TECHNOLOGY INC's Free Cash Flow Margin?
GSI TECHNOLOGY INC (GSIT) has a free cash flow margin of -50.5%, generating $-12.5 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is GSI TECHNOLOGY INC stock overvalued or undervalued?
GSI TECHNOLOGY INC (GSIT) trades at a P/E ratio of -16.8x, which is above the sector median of N/A. The EV/Sales multiple is 7.3x.
Q: What is GSI TECHNOLOGY INC's revenue and earnings growth?
GSI TECHNOLOGY INC (GSIT) grew revenue by 24.8% year-over-year. Earnings per share increased by 26.0% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: Is GSI TECHNOLOGY INC buying back stock?
GSI TECHNOLOGY INC (GSIT) repurchased $60.7 million of stock over the trailing twelve months. This represents a buyback yield of 117.3%.
Q: How does GSI TECHNOLOGY INC compare to competitors in Technology?
Compared to other companies in Technology, GSI TECHNOLOGY INC (GSIT) shows: ROIC of N/A is below the sector median of 6.5% (NaNx median). FCF margin of -50.5% trails the sector median of 10.0%. Gross margin at 55.4% is 2.5 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with GSI TECHNOLOGY INC?
Investors in GSI TECHNOLOGY INC (GSIT) should monitor these potential warning signs: 1) FCF margin is thin at -50.5%, leaving limited buffer for economic downturns. 2) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-07. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.