Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Interested in the high growth prospects of the semiconductors industry? We ran a screen with this idea in mind.

We began by screening the semiconductors industry for stocks with high growth projections, with 5-year projected EPS growth rates above 15%.

We then screened for those stocks with strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables the healthier the company's revenue.

We screened for stocks seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

Do you think these companies will meet their high growth expectations? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. FSI International Inc. (FSII): Designs, manufactures, markets, and supports equipment used in the fabrication of microelectronics, such as advanced semiconductor devices. Market cap at $150.10M. Price at $3.83. 5-year projected EPS growth at 20.00%. Revenue grew by 98.28% during the most recent quarter ($50.76M vs. $25.6M y/y). Accounts receivable grew by 9.88% during the same time period ($22.35M vs. $20.34M y/y). Receivables, as a percentage of current assets, decreased from 21.3% to 19.73% during the most recent quarter (comparing 3 months ending 2012-05-26 to 3 months ending 2011-05-28).

2. Mellanox Technologies, Ltd. (MLNX): Engages in the design, development, marketing, and sale of interconnect products primarily in North America, Israel, Europe, and Asia. Market cap at $3.04B. Price at $75.02. 5-year projected EPS growth at 20.00%. Revenue grew by 61.17% during the most recent quarter ($88.74M vs. $55.06M y/y). Accounts receivable grew by 22.55% during the same time period ($47.11M vs. $38.44M y/y). Receivables, as a percentage of current assets, decreased from 25.17% to 13.41% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

3. Ramtron International Corp. (RMTR): Designs, develops, and markets specialized semiconductor memory, microcontroller, and integrated semiconductor solutions. Market cap at $106.34M.Price at $3.01. 5-year projected EPS growth at 20.00%. Revenue grew by 40.6% during the most recent quarter ($14.96M vs. $10.64M y/y). Accounts receivable grew by -17.2% during the same time period ($6.26M vs. $7.56M y/y). Receivables, as a percentage of current assets, decreased from 30.04% to 18.38% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

4. OSI Systems, Inc. (OSIS): Designs, manufactures, and sells specialized electronic systems and components for applications in homeland security, healthcare, defense, and aerospace markets worldwide. Market cap at $1.29B. Price at $65.00. 5-year projected EPS growth at 37.00%. Revenue grew by 19.16% during the most recent quarter ($208.44M vs. $174.93M y/y). Accounts receivable grew by 12.41% during the same time period ($157.83M vs. $140.4M y/y). Receivables, as a percentage of current assets, decreased from 37.75% to 32.48% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

5. NeoPhotonics Corporation (NPTN): Engages in the design and manufacture of photonic integrated circuit based modules and subsystems for bandwidth-intensive, high-speed communications networks. Market cap at $149.25M. Price at $5.00. 5-year projected EPS growth at 15.75%. Revenue grew by 8.4% during the most recent quarter ($54.22M vs. $50.02M y/y). Accounts receivable grew by -8.34% during the same time period ($59.66M vs. $65.09M y/y). Receivables, as a percentage of current assets, decreased from 34.28% to 30.98% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 5 High-Growth Semiconductors With Strong Revenue Trends