Transphorm, Inc. (TGAN) | Investment Case

1. Company Snapshot

1.a. Company Description

Transphorm, Inc., a semiconductor company, develops, manufactures, and sells gallium nitride (GaN) semiconductor components for use in power conversion in Mainland China, Hong Kong, Taiwan, the United States, Japan, South Korea, and Europe.The company's products include GaN field effect transistors in various packages.Its GaN devices allows customers to design power systems creating functional value in various end products, including smartphone power adapters/fast-chargers, power supplies for datacenter servers/communication, industrial power converters, chargers/converters/inverters for electric vehicles, and other applications.

The company offers its products through regional distributors and sales representatives.Transphorm, Inc.was founded in 2007 and is headquartered in Goleta, California.

Show Full description

1.b. Last Insights on TGAN

Transphorm Inc. (TGAN) has experienced a 0.0% performance over the past three months, driven by the proposed acquisition by Renesas Electronics Corporation. The company's financial performance has been stable, with no significant changes in its business condition, new products, or legal issues impacting its stock price.

1.c. Company Highlights

Last Price	5.1
Change Percentage	7.14%
Open	5.09
Previous Close	4.76
Market Cap ( Millions)	323
Volume	1568778
Year High	5.1
Year Low	1.94
M A 50	4.84
M A 200	3.91

FCF Yield	-10.35%
Dividend Yield	0.00%
ROE	-124.33%
Debt / Equity	76.85%
Net Debt / EBIDTA	1.60%
Price To Book	14.62
Price Earnings Ratio	-9.05
Price To FCF	-9.66
Price To sales	19.57
EV / EBITDA	-11.39

2. Transcript Summary

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3. NewsRoom

Renesas Completes Acquisition of Transphorm

Jun -20

Source: businesswire.com

Transphorm Demonstrates a Bidirectional SuperGaN Power Supply with New Reference Design for E-Mobility and Energy/Industrial Markets

Jun -11

Source: businesswire.com

St. Charles County Dermatologic Surgery Joins Epiphany Dermatology

May -20

Source: businesswire.com

トランスフォーム、PCIM 2024にて「SuperGaN」を披露：高出力システムにおいて、SiCとeモードGaNの機能を凌駕

May -20

Source: https://www.businesswire.com

Transphorm's SuperGaN at PCIM 2024: Surpassing SiC and e-mode GaN Capabilities in High Power Systems

May -20

Source: businesswire.com

Transphorm and Weltrend Semiconductor Release New Integrated GaN System-in-Packages

Apr -24

Source: headlinesoftoday.com

Transphorm and Weltrend Semiconductor Release New Integrated GaN System-in-Packages

Apr -24

Source: businesswire.com

URGENT: The M&A Class Action Firm Encourages Shareholders of Transphorm, Inc. to Take Action Before the Merger Vote on April 9, 2024 - TGAN

Mar -26

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.24%)

6. Segments

Commercial Product and Service

Expected Growth: 10%

Transphorm's commercial product and service growth is driven by increasing adoption of GaN-based power electronics in electric vehicles, renewable energy systems, and data centers. Rising demand for energy efficiency, government incentives for clean energy, and partnerships with industry leaders like Tesla and Google are key contributors to this 10% growth.

Government

Expected Growth: 12%

Government segment growth of 12% driven by increasing adoption of GaN-based power electronics in military and aerospace applications, rising demand for energy-efficient solutions, and growing investments in renewable energy and electrification of transportation infrastructure.

7. Detailed Products

GaN FETs

Transphorm's GaN FETs are high-performance, high-reliability power transistors designed for high-power applications such as electric vehicles, renewable energy systems, and data center power supplies.

GaN Diodes

Transphorm's GaN diodes are high-speed, low-loss rectifiers designed for high-power applications such as power supplies, motor drives, and renewable energy systems.

GaN Modules

Transphorm's GaN modules are high-performance, high-reliability power modules designed for high-power applications such as electric vehicles, renewable energy systems, and data center power supplies.

GaN Evaluation Kits

Transphorm's GaN evaluation kits are designed to help engineers quickly evaluate and develop GaN-based power systems.

GaN Reference Designs

Transphorm's GaN reference designs are pre-tested, pre-validated designs that help engineers quickly develop GaN-based power systems.

8. Transphorm, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Transphorm, Inc. has a moderate threat of substitutes due to the availability of alternative power conversion solutions.

Bargaining Power Of Customers

Transphorm, Inc. has a low bargaining power of customers due to its strong relationships with key customers and limited customer concentration.

Bargaining Power Of Suppliers

Transphorm, Inc. has a moderate bargaining power of suppliers due to the availability of multiple suppliers for its components and materials.

Threat Of New Entrants

Transphorm, Inc. has a high threat of new entrants due to the growing demand for power conversion solutions and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

Transphorm, Inc. operates in a highly competitive industry with intense rivalry among existing players, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	43.45%
Debt Cost	4.68%
Equity Weight	56.55%
Equity Cost	6.15%
WACC	5.51%
Leverage	76.85%

11. Quality Control: Transphorm, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 4.1/10

Value: 6.7

Growth: 4.6

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

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A-Score: 3.2/10

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Growth: 3.3

Quality: 3.0

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

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Volatility: 2.0

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Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

16.42%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.51%

Transphorm, Inc. - US89386L1008

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TGAN

1.c. Company Highlights

Strong Momentum

Average Quality

Average Growth

Lower Growth

Medium Volatility

Fairly Valued

Earnings Miss

Stable Momentum

Lower Quality

Revenues Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.24%)

6. Segments

Commercial Product and Service

Expected Growth: 10%

Government

Expected Growth: 12%

7. Detailed Products

GaN FETs

GaN Diodes

GaN Modules

GaN Evaluation Kits

GaN Reference Designs

8. Transphorm, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Transphorm, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.1$

Current Price

5.1$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA