Deep Value: cash covers more than 100% of the stock price

This company holds roughly $53M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Pixelworks

PXLW

Semiconductors · Technology

Price

$6.84

-0.03 (-0.44%)

Market Cap

$43.5M

Exchange

NASDAQ

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Weak

Stability

Data not available

Valuation

Good

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Share count rising — dilution

+23.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 4.5M (2021) → 5.5M (2025)

Winston Score History

The full picture

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.

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

-99.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+65.4% 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

20.4%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Runway

~8 years

$53M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

$53M 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

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

60.9%

Premium pricing power — 60.9% gross margin

Profit after running costs

Operating Margin

-5256.3%

Losing money on operations — -5256.3%

Return on the money invested

ROCE

-6.3%

Weak — -6.3% return on capital

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

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Growth

Sales growth

Sales YoY

-141.6%

Shrinking sales (-141.6% YoY)

Profit growth

EPS YoY

N/A

—

Data not available

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

-22%

Weak — only -22% of profit becomes cash

Spare cash per sale

FCF Margin

N/A

Data not available

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

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.

Cheaper or dearer next year

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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