MicroVision (MVIS) Stock

2023 Update

About MicroVision

MicroVision, Inc. is an engineering solutions company based in Redmond, Washington in the United States. Its core technology is based on micro-electrical mechanical systems (MEMS), laser diodes, opto-mechanics, electronics, algorithms and software. MicroVision, Inc. is at the forefront of developing solutions in laser beam scanning and interactive display solutions for the automotive safety and autonomous driving applications.

The company boasts a broad portfolio of products including Consumer Lidar and MEMS module for head-mounted augmented reality (AR) headset, 1st Generation LRL module and interactive displays for the smart speaker market. It also offers a range of expertise in micro-display concepts, designs and software.

MicroVision, Inc. has been around since 1993 and currently have 350 full-time employees. The company mainly sells its products to original equipment manufacturers and original design manufacturers. It’s also active in the Research & Design fields, developing pioneering solutions for the afore-mentioned markets.

If you’re interested in learning more about MicroVision, Inc.’s products and solutions, feel free to visit their website at https://www.microvision.com or call their headquarters at 425 936 6847.

MicroVision's Performance

MicroVision, Inc. is a technology and product development company focused on creating miniature laser beam scanning (laser-based image capture, LBS) and related products for display and sensing applications. The company produces small, low-power, and highly efficient scanning solutions for consumer and commercial applications.

MicroVision’s financial performance has been mixed in recent years. As of 2021, the company’s total cash per share stood at $0.38, operating cash flow totaled -$40.59 million, and its current ratio was 3.47. Its annual gross profit was $564k, while its total revenue was $1.1 million. Additionally, MicroVision’s debt to equity ratio was 18.44, total debt was $15.95 million, and its free cash flow was -$19.22 million.

Regarding the company’s earnings growth, it has seen a steady positive trend in recent years, with an average annual growth rate of 123.40%. Meanwhile, its profit margins were 0.00%, and its operating margins were -55.98%. Additionally, its return on assets was -31.82%, and its return on equity (ROE) was -62.05%.

Despite its mixed financial performance, the current market experts’ consensus on MicroVision stock is ‘Hold’, and the average analyst price target stands at $4.00. As of 2021, the company’s stock is trading at $4.04.

Overall, MicroVision is performing below its full potential and is in need of changes to its operations and strategy to boost its financial performance.

How does MicroVision Perform During a Recession?

When it comes to managing through an economic recession, MicroVision, Inc. has been consistently ahead of the curve. The company developed the world’s first disruptive MEMS laser scanning display, and continues to leverage its expertise in the development of innovative MEMS based solutions and interactive display. To stay ahead of market needs, the company’s leaders actively seek out new opportunities and market opportunities that add value to the portfolio of solutions while also protecting the company’s balance sheet.

Having diversified markets while emphasizing on the advancement of its core business helps in reducing any negative impacts of decreased demand in any one individual segment or targeting a new technology or application. This is made possible through an effective pricing and marketing strategy and an efficient procurement and sourcing process.

In addition, the company has made great progress in optimizing its cost structure and cash flow, managing costs and preserving liquidity. Its renowned Executive Leadership Team has worked diligently to develop a long-term strategy which manages in the development, sales & marketing, human resources and customer service areas to the best of their capabilities.

To this end, the team also implemented a stock buyback program for the fiscal year 2020. This enabled the company to both reduce the outstanding share count and return capital to small- and mid-size market investors, allowing them to benefit from its ongoing profitable performance.

In addition, to ensure fiscal agility for the future, the Executive Leadership Team also implemented a stock split in 2020. This allowed MicroVision, Inc. to grant access to risk-tolerant investors and increase its marketability to mid-cap and small-cap investors which in turn helps to create a more diverse investor base and realize potential future industry growth opportunities.

Overall, MicroVision, Inc. has responded to volatile market conditions and industry uncertainty with forward-thinking and calculated initiatives such as operational efficiency, cost and cash flow optimization, the implementation of a stock buyback program and a stock split which is consistent with the company’s long-term objectives and forward-looking statements.

How does MicroVision Perform During High Inflation Economy?

When it comes to high inflation, MicroVision, Inc. has a several strategies in place to combat its effects:

1. Price Hedging: MicroVision, Inc. has implemented a risk management strategy to minimize the impacts of inflation by hedging its price. Through the use of various derivatives and contracts, the company is able to minimize its price volatility.

2. Cost-control: MicroVision, Inc. is actively controlling its costs across the value chain to reduce its exposure to inflation. This includes measures such as reducing idle inventory, optimizing purchasing practices and shifting from high-cost materials or process.

3. Innovation: The company has been aggressively innovating and refining its product designs, manufacturing processes, and delivery models to remain competitive in the marketplace. These changes allow the company to leverage its efficiencies and drive down its costs.

4. Diversifying Markets: MicroVision, Inc. is broadening its focus by diversifying its markets and targeting new customer bases across different regions. This way, the company will be able to benefit from the growth in regions with lower inflation rates.

These measures are expected to help MicroVision, Inc. to mitigate the effects of high inflation, allowing the company to remain competitive and remain profitable.

What Are the Risks Associated to MicroVision (MVIS)?

Risks that investors should consider before investing in MicroVision, Inc. include:

1. Uncertainty in markets: The company’s laser beam scanning and interactive display solutions depend on the success of the markets they target. If the markets decline or if customers reduce purchases due to market uncertainty, then this could result in decreased revenue and lower profits for the company.

2. Competition: MicroVision, Inc. is reliant on its current customers for revenue. If its customers decide to shift away from its products and services due to the emergence of new competitors or existing ones offering better solutions, then the company could witness an erosion of its customer base.

3. Financial Performance: Although the company has been achieving consistent positive growth, there is no guarantee that this trend will continue. A sharp decline in the company’s financial performance or profitability could result in a drop in the stock’s value.

4. Legal and Regulatory Liabilities: There is a risk that the company could potentially become subject to legal or regulatory proceedings, which could adversely affect its operations.

These risks should be considered before investing in MicroVision, Inc.