MRAM Stock Risk & Deep Value Analysis
Everspin Technologies Inc
DVR Score
out of 10
What You Need to Know About MRAM Stock
We analyzed Everspin Technologies Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran MRAM through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
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Weekly adjusted close · Quarterly revenue & EPS · DVR score history
MRAM Risk Analysis & Red Flags
What Could Go Wrong
The Kerrisdale Capital short report, coupled with ongoing litigation expenses of approximately $1.6M per quarter, poses a significant risk. If these factors lead to a sustained erosion of investor confidence or if litigation costs escalate further, Everspin's path to consistent profitability and its ability to achieve its growth ambitions could be severely hampered, potentially reducing its valuation to short-seller targets like $14/share within the next 12-18 months.
Risk Matrix
Overall
Moderate
Financial
Medium
Market
Medium
Competitive
Medium
Execution
Medium
Regulatory
Low
Red Flags
- ⚠
Kerrisdale Capital short report directly challenging Everspin's valuation and 'AI-related hype', impacting market sentiment.
- ⚠
Ongoing litigation expenses of ~$1.6M in Q1 2026, expected to continue, significantly impacting net income and cash flow.
- ⚠
Approval of an amended equity incentive plan adding 1.8M shares for future awards, representing potential future dilution of ~7.5% based on current outstanding shares.
- ⚠
William Cooper's Form 144 filing for proposed/recent sales of 10,000 shares in early May/April 2026, indicating some minor insider selling interest.
Upcoming Risk Events
- 📅
Negative Q2 2026 EPS surprise or significantly lowered FY2026 guidance (estimated late July 2026): Could trigger a sharp sell-off, validating the Kerrisdale short report and pushing the stock below $20.
- 📅
Escalation or prolonged unfavorable resolution of ongoing litigation expenses (ongoing 2026-2027): If quarterly litigation costs consistently exceed $2M, it would severely impede net profitability and cash flow, making GAAP profitability elusive.
When to Reconsider
- 🚪
Exit if quarterly revenue growth falls below 5% YoY for two consecutive quarters, signaling a significant loss of market momentum.
- 🚪
Sell if GAAP gross margin declines below 50% for two consecutive quarters, indicating sustained pricing pressure or manufacturing inefficiencies.
- 🚪
Exit if total quarterly litigation expenses exceed $2.5M without a clear path to resolution, severely impacting bottom line and cash flow.
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Investment Thesis
If Everspin secures additional large-scale defense/industrial contracts (e.g., another $50M+ IDIQ by late 2027) and successfully expands MRAM into AI/edge computing applications via strategic partners like Microchip and UNISYST, then its revenue could exceed $150M by FY2028 with improving margins. This would justify a market re-rating to over $2B (3x current market cap) and position it for the 10x target over 3-5 years as MRAM becomes critical infrastructure.
Is MRAM Stock Undervalued?
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MRAM Price Targets & Strategy
12-Month Target
$40.00
Bull Case
$65.00
Bear Case
$18.00
Valuation Basis
12x P/S multiple on projected FY2027 revenue of $80M, reflecting niche growth potential and cautious re-rating post-short report ($80M * 12 = $960M MC / 24M shares).
Entry Strategy
Dollar-cost average between $22-$27, leveraging potential short-term volatility related to the Kerrisdale report and buying near recent support levels. Consider adding on any significant dips towards the $20 mark.
Exit Strategy
Take 30% profit at $40, another 30% at $55. Implement a trailing stop-loss at 15% below the 50-day SMA to protect capital.
Portfolio Allocation
5% for aggressive risk tolerance, given the small-cap nature, specialized technology, and recent short report.
Price Targets & Strategy
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Is MRAM Financially Healthy?
Valuation
P/E Ratio
2169.72
Forward P/E
2642.42
EV/EBITDA
-99.33
PEG Ratio
4.88
Price/Book
9.06
Price/Sales
10.57
Profitability
Gross Margin
51.52%
Operating Margin
-12.81%
Net Margin
0.50%
Return on Equity
0.42%
Revenue Growth
15.94%
EPS
$0.01
Balance Sheet
Current Ratio
4.84
Quick Ratio
3.91
Cash Flow
Operating Cash Flow
$11.00M
Free Cash Flow
$4.17M
EBITDA
$6.03M
Other
Beta (Volatility)
1.92
Does MRAM Have a Competitive Moat?
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🛡️ Narrow
Moat Trend
Expanding
Moat Sources
3 Identified
The moat is durable in its specialized niche due to the high performance, reliability, and data retention requirements of its target applications, making switching costs high for customers. Its extensive IP provides a strong barrier to entry.
Moat Erosion Risks
- •Emergence of alternative persistent memory technologies (e.g., FeRAM, ReRAM) that could offer comparable performance or cost advantages.
- •Larger semiconductor players investing heavily to develop their own MRAM capabilities, potentially eroding Everspin's market share or pricing power.
- •Challenges in effectively scaling manufacturing and securing sufficient foundry capacity for broader market adoption.
MRAM Competitive Moat Analysis
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MRAM Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral to Bearish, primarily due to the recent Kerrisdale Capital short report which has likely influenced retail investor sentiment negatively.
Institutional Sentiment
Mixed, with long-term growth investors holding steady but new cautiousness or short interest emerging following the Kerrisdale report.
Insider Activity (Form 4)
Sanjeev Aggarwal (President and CEO) exercised 51,024 employee stock options on May 20, 2026 (not a sale). Tara Long (Director) received 3,852 RSUs on May 21, 2026. A Form 144 by William Cooper mentions proposed/recent sales of 10,000 shares in early May/April 2026.
Options Flow
Normal options activity; no specific data provided to indicate unusual institutional positioning.
Earnings Intelligence
Next Earnings
Estimated late July 2026 (for Q2 2026 results)
Surprise Probability
Medium (Q1 beat revenue but missed GAAP EPS, and Q2 guidance was previously noted as negative for EPS, increasing unpredictability).
Historical Earnings Pattern
Stock price reaction to earnings reports tends to be volatile, often moving significantly on guidance and specific contract announcements rather than just headline numbers.
Key Metrics to Watch
Competitive Position
Top Competitor
N/A (Everspin is a niche leader in MRAM, direct competitors are few and often private or part of larger entities' memory divisions)
Market Share Trend
Maintaining or slowly gaining ground in its niche MRAM market, but overall memory market share remains small.
Valuation vs Peers
Trading at a premium on P/S due to its specialized technology and growth potential, though the Kerrisdale report argues it's overvalued.
Competitive Advantages
- •Proprietary MRAM technology and extensive IP portfolio.
- •Established market leadership in specialized, high-reliability MRAM applications (e.g., defense, industrial).
- •Strategic partnerships with major players like Microchip and validated government contracts (U.S. Navy IDIQ).
Market Intelligence
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What Could Drive MRAM Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings Release (estimated late July 2026): Key focus on revenue growth, gross margin trends, updated litigation expense outlook, and Q3 revenue/EPS guidance to counteract negative short report sentiment.
- •Increased task orders under the U.S. Navy $40M IDIQ contract (ongoing 0-6 months): Signals continued defense sector demand, potentially securing $5-10M in incremental revenue over the next 12 months, validating long-term strategic value.
Medium-Term (6-18 months)
- •Announcement of next-generation MRAM product resulting from Microchip Technology 10-year foundry agreement (Q4 2026 - Q2 2027): Confirms ongoing collaboration and potential for significant new design wins in industrial/automotive, targeting $15-25M in annual revenue by late 2027.
- •First major design wins for MRAM in specific AI/Edge computing applications via UNISYST (Q1-Q3 2027): Validation of MRAM's role in high-growth AI segments, potentially unlocking $10-20M in new revenue streams by mid-2028.
Long-Term (18+ months)
- •MRAM becomes standard for high-reliability persistent memory in emerging AI infrastructure and data centers (beyond 2028): If this trend materializes, Everspin could achieve $200M+ in annual revenue by 2030, justifying a $4B+ market capitalization.
- •Strategic acquisition by a larger semiconductor company (2029-2031): As MRAM's strategic importance in next-gen computing grows, Everspin could become an attractive acquisition target at a significant premium (e.g., 20x+ EV/EBITDA on peak earnings).
Catalysts & Growth Drivers
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What's the Bull Case for MRAM?
- ✓
Watch quarterly revenue growth — sustained acceleration above 20% YoY for two consecutive quarters signals strong MRAM adoption.
- ✓
Watch GAAP gross margin — consistent expansion above 55% would indicate improving profitability and pricing power, counteracting litigation impacts.
- ✓
Monitor announcements of specific design wins or new product rollouts with strategic partners (e.g., Microchip, UNISYST), quantifying potential revenue impact.
Bull Case Analysis
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How Everspin Technologies Inc Makes Money
Everspin Technologies designs, manufactures, and sells Magnetoresistive Random Access Memory (MRAM) products. MRAM is a non-volatile memory technology that offers high speed, high endurance, and excellent data retention, making it ideal for mission-critical applications where data integrity and rapid access are essential. The company primarily generates revenue by selling discrete MRAM chips and licensing its embedded MRAM intellectual property to customers in sectors such as defense, industrial automation, automotive, and enterprise storage. Their business model thrives on providing high-performance, specialized memory solutions where traditional memory technologies fall short.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Everspin Technologies Inc (MRAM)?
As of June 18, 2026, Everspin Technologies Inc has a DVR Score of 7.9 out of 10, placing it in the "Solid Pick" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Everspin Technologies Inc?
Everspin Technologies Inc's market capitalization is approximately $616.2M..
What is the risk level for MRAM stock?
Our analysis rates Everspin Technologies Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of MRAM?
Everspin Technologies Inc currently has a price-to-earnings (P/E) ratio of 2169.7. This is above the market average, suggesting the stock may be priced for high growth expectations.
Is Everspin Technologies Inc's revenue growing?
Everspin Technologies Inc has reported revenue growth of 15.9%. The company is showing strong top-line momentum.
Is MRAM stock profitable?
Everspin Technologies Inc has a profit margin of 0.5%. The company is profitable but margins are modest.
How often is the MRAM DVR analysis updated?
Our AI-powered analysis of Everspin Technologies Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on June 18, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for MRAM (Everspin Technologies Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.