Arteris, Inc. (AIP) stock analysis

AIPNasdaqSemiconductors & Related DevicesFiscal year ends December 31

Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 5, 2026Score 8/30124% above fair value

$20.32+1.23 (+6.44%)

Close on Nov 11, 2026Market cap $998.77MP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Weak8 of 30 checks passed

Arteris passes 8 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 0/6
Growth: 3/6
Past performance: 1/6
Financial health: 4/6
Dividend: 0/6

What stands out

No debt
Arteris has no borrowings on its latest balance sheet.
Revenue growing 10%+ a year
Revenue grew 11.9% a year over the last three fiscal years.
Debt covered by cash flow
There is no debt to cover.
Guidance raised
Arteris raised its FY 2026 Revenue outlook on Aug 6, 2026.

What to watch

Margin of safety under 20%
The price is 124% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $20.32 is above our fair value estimate of $9.08.
Return on equity under 15%
Return on equity was -153% over the last twelve months and averaged -200% over five years; we look for 15% on both.
Interest not well covered
Operating income covers interest expense -207.7 times; we look for at least 5.

Valuation0/6

P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
Arteris's price-to-book of 15.16 is above the Electronic Components and Accessories median of 3.49.
Trading above fair value
The share price of $20.32 is above our fair value estimate of $9.08.
Margin of safety under 20%
The price is 124% above fair value, so there is no margin of safety.

Growth3/6

Revenue growing 10%+ a year
Revenue grew 11.9% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 41.0% over the last twelve months; the Electronic Components and Accessories median is 17.3%.
Guidance raised
Arteris raised its FY 2026 Revenue outlook on Aug 6, 2026.
Gross margin slipping
Gross margin was 86.9% over the last twelve months, against 90.0% a year earlier.

Past performance1/6

Return on equity under 15%
Return on equity was -153% over the last twelve months and averaged -200% over five years; we look for 15% on both.
Return on invested capital
Needs operating income and invested capital.
Return on equity below the industry
Arteris's return on equity of -153% is below the Electronic Components and Accessories median of 4.8%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was -44.8% over the last twelve months, against a 5-year average of -58.5%.
Net margin below the industry
Arteris's net margin of -44.8% is below the Electronic Components and Accessories median of 2.9%.

Financial health4/6

No debt
Arteris has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest not well covered
Operating income covers interest expense -207.7 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.35 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.41; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

No dividend
Arteris has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$9.08

The share price is 124% above this estimate.

20%+ below

Near fair value

20%+ above

$20.32Price$9.08Fair value

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
P/B	6.0×	8.5×	3.5×	$8.09	50%
P/S	5.3×	5.8×	4.8×	$10.08	50%
Fair value				$9.08	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

P/B at month end
Own 5-year median 8.5
Electronic Components and Accessories median 3.5

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day: $12.92M
Value traded per 1% price move: $3.88M

Downside

High risk

Typical loss in a bad month: 33.5%
Volatility (annualized): 77%
Sharpe ratio, 1 year: 0.41
Beta to the S&P 500 (5Y): 1.85

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2019 to 2025

Gross margin

90.2%−5.1 pts over 5 years

Operating margin

-47.0%−35.1 pts over 5 years

Net margin

-49.2%−39.0 pts over 5 years

Per year	1 year	3 years	5 years	10 years
Revenue	+22.3%	+11.9%	+17.3%	–
Gross profit	+23.0%	+11.4%	+16.0%	–
Free cash flow	–	–	+28.8%	–

Returns and balance sheet

7 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2019	FY2020	FY2025
Return on equity	–	30.4%	439.3%
Return on assets	–	–	-31.4%
Current ratio	–	1.03	1.13
Interest coverage	–	-37.8×	-171.7×
Capex to revenue	–	2.1%	2.0%
Diluted shares	–	18M	42M

DuPont analysis

Return on equity split into margin, efficiency and leverage

Net margin-49.2%

Asset turnover0.64×

Equity multiplier-13.98×

Return on equity, FY2025439.3%

Fiscal year	Net margin	Asset turnover	Equity multiplier	Return on equity
FY2025	-49.2%	0.64×	-13.98×	439.3%
FY2024	-58.3%	0.55×	15.02×	-483.5%
FY2023	-68.7%	0.49×	4.15×	-140.1%
FY2022	-54.4%	0.43×	2.61×	-60.6%
FY2021	-61.8%	0.46×	3.99×	-114.4%