AGM update puts POET Technologies production ramp and spending plans in focus

POET Technologies (POET) used its June 26 virtual Annual General Meeting to reaffirm that its optical engine production ramp is on schedule, with volume shipments targeted for the second half of 2026.

For investors tracking the stock, the company also outlined plans to expand capacity to as many as 1 million units per month by the end of 2027, supported by recently raised equity capital and planned equipment spending.

Against this AGM backdrop, POET Technologies’ share price has been volatile, with a 1 day share price gain of 4.37% but a 30 day share price decline of 25.99%. At the same time, the 1 year total shareholder return of 78.16% and 3 year total shareholder return of 129.46% point to stronger momentum over a longer horizon.

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With POET Technologies still early in commercialization, modest current revenue, recent share price swings and a large discount to analyst targets, investors now face a key question: is there genuine upside left or is future growth already priced in?

Preferred price to book multiple of 4x for POET Technologies: is it justified?

On a simple yardstick, POET Technologies trades on a price to book ratio of 4x, which sits below both its US Semiconductor peers at 6.4x and the broader peer group at 6.6x, despite all the volatility baked into the current $10.28 share price.

The P/B multiple compares the company’s market value to the accounting value of its net assets. This is often a common reference point for early stage or loss making semiconductor businesses where earnings based ratios are less meaningful. For POET Technologies, this means investors are currently paying 4 times its book value while the company is still reporting modest revenue of $1.4m and a net loss of $81.6m.

Given POET is currently unprofitable, has a negative return on equity and is forecast to remain loss making over the next 3 years, a lower P/B than the industry suggests the market is already factoring in execution and funding risks around the production ramp and future profitability. At the same time, forecasts for very high revenue growth and the AGM plan to scale optical engine volumes may be why the ratio is not materially lower, as some investors appear willing to assign a premium to the underlying technology platform despite current losses.

Compared with the US Semiconductor industry average P/B of 6.4x and a broader peer average of 6.6x, POET Technologies’ 4x multiple stands at a clear discount and underlines that the stock is not being priced as aggressively as many profitable chip companies with stronger earnings records.

Result: Price to book ratio of 4x (UNDERVALUED)

However, POET Technologies still carries clear risks, including ongoing losses of $81.6m on revenue of $1.4m, as well as heavy reliance on future execution in Asia-focused markets.

Next Steps

With both risks and rewards on the table for POET Technologies, it makes sense to move quickly and review the full picture for yourself with 1 key reward and 5 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.