SemiLEDs has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
SemiLEDs Corp displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
SemiLEDs did not have earnings to cover the interest expense.
SemiLEDs's debt to revenue ratio for the quarter that ended in Feb. 2026 was 0.59.
As of today, SemiLEDs's Altman Z-Score is -14.34.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
SemiLEDs has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
SemiLEDs Financial Strength Related Terms
LEDS vs PRSO, PRKR, GUER: Financial Strength Comparison
For the Semiconductors subindustry, SemiLEDs's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SemiLEDs Financial Strength vs Semiconductors Industry
For the Semiconductors industry and Technology sector, SemiLEDs's Financial Strength distribution charts can be found below:
* The bar in red indicates where SemiLEDs's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
SemiLEDs has a Z-score of -14.34, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -14.34 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SemiLEDs (LEDS) has a Financial Strength of 3 as of Feb. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on SemiLEDs and its competitors. This is near median its historical median of 3.00. Over the past decade, SemiLEDs' Financial Strength has ranged from 1.00 to 5.00.
Is SemiLEDs' Financial Strength too high?
SemiLEDs' current Financial Strength of 3 is near median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 5.00. Overall, SemiLEDs has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SemiLEDs' Financial Strength compare to PRSO and PRKR?
SemiLEDs' Financial Strength of 3 can be compared against companies in the Semiconductors industry. Historically, SemiLEDs' own Financial Strength has ranged from 1.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Semiconductors company?
A good Financial Strength depends on the Semiconductors industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on SemiLEDs and its competitors. SemiLEDs's current Financial Strength is 3, which is near median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SemiLEDs stock overvalued right now?
Based on GuruFocus' analysis, SemiLEDs (LEDS) is currently considered Possible Value Trap. The stock's GF Value™ is $6.04, compared to a current price of $1.61 — trading 73.3% below its estimated fair value. The current Financial Strength is 3, which is near median its 10-year median of 3.00. SemiLEDs' overall GF Score™ is 50/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For SemiLEDs (LEDS), the current Financial Strength is 3 as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SemiLEDs (LEDS) Overvalued in 2026?
Based on GuruFocus' analysis, SemiLEDs stock appears to be undervalued.
The current stock price of $1.61 is trading 73.3% below its estimated GF Value™ of $6.04.
GuruFocus considers SemiLEDs to be Possible Value Trap.
Key valuation signals for LEDS:
Financial Strength: 3 (near median its 10-year median of 3.00)
GF Value™: $6.04 vs. price of $1.61 (73.3% below fair value)
No single metric tells the full story. See the LEDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SemiLEDs Corp develops, manufactures, and sells light-emitting diode chips and LED components. The company's products include LED Chips, LED Components, and Lighting Products. Its products are used for general lighting applications, including street lights and commercial, industrial, system, and residential lighting; specialty industrial applications, such as ultraviolet, or Ultraviolet, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, LED lighting for horticulture applications, architectural lighting and entertainment lighting. Substantial revenue is generated from the sale of LED components products. Geographically, it derives a majority of its revenue from Japan.
50GF Score
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