Pixelworks

PXLW

Semiconductors · Technology

Price

$5.60

-0.10 (-1.75%)

Market Cap

$29.0M

Exchange

NASDAQ

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

−89.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 53.5M (2021) → 5.5M (2025)

Pixelworks makes computer chips that improve how images and video look on screens. Its chips are used in smartphones, projectors, and other display devices, helping make motion smoother and colors more accurate. The company sells mainly to device makers in Asia, particularly smartphone brands in China.

Pixelworks earns money by selling its semiconductor chips and licensing its display processing technology to hardware manufacturers. The company is small, with most of its revenue coming from the Chinese smartphone market, which makes it heavily dependent on a handful of customers. Its main growth opportunity is expanding into more premium Android devices and the mobile gaming market, but its heavy reliance on China exposes it to risks from slowing smartphone demand, geopolitical tensions, and intense competition from larger chipmakers like Qualcomm and MediaTek.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-93.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+924.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$4M/ year

↓ Declining (-88% vs prior year)

533.2% of revenue

35.5x the sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

11.6%ownership

Insiders own a meaningful stake in the company

Cash Runway

~3 years

$58M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

$58M cash & investments at current burn rate

Revenue declining

Pixelworks's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

56.7%

Premium pricing power — 56.7% gross margin

Operating Margin

-653.6%

Losing money on operations — -653.6%

ROCE

-5.1%

Weak — -5.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-117.4%

Shrinking sales (-117.4% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

-28%

Weak — only -28% of profit becomes cash

FCF Margin

N/A

Data not available

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Stability

Debt / Equity

0.01

Conservative — low debt load (0.01)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

0.6x

Attractive valuation — P/E 0.6

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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