SEMTECH CORP(NASDAQ:SMTC) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to SMTC. SMTC was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. SMTC may be in some trouble as it scores bad on both profitability and health. SMTC is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

SMTC had positive earnings in the past year.

SMTC had a positive operating cash flow in the past year.

Of the past 5 years SMTC 4 years were profitable.

SMTC had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

The Return On Assets of SMTC (-61.16%) is worse than 88.89% of its industry peers.

SMTC's Return On Invested Capital of 1.51% is in line compared to the rest of the industry. SMTC outperforms 50.00% of its industry peers.

		Industry Rank	Sector Rank
ROA	-61.16%
ROE	N/A
ROIC	1.51%

ROA(3y)-22%

ROA(5y)-11.48%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Operating Margin of SMTC (2.61%) is comparable to the rest of the industry.

SMTC's Gross Margin of 49.03% is fine compared to the rest of the industry. SMTC outperforms 62.96% of its industry peers.

SMTC's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	2.61%
PM (TTM)	N/A
GM	49.03%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-9.2%

GM growth 5Y-5.72%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

SMTC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.

Compared to 1 year ago, SMTC has more shares outstanding

The number of shares outstanding for SMTC has been reduced compared to 5 years ago.

SMTC has a worse debt/assets ratio than last year.

2.2 Solvency

The Debt to FCF ratio of SMTC is 48.83, which is on the high side as it means it would take SMTC, 48.83 years of fcf income to pay off all of its debts.

SMTC has a Debt to FCF ratio (48.83) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	48.83
Altman-Z	N/A

ROIC/WACC0.11

WACC13.36%

2.3 Liquidity

A Current Ratio of 2.37 indicates that SMTC has no problem at all paying its short term obligations.

SMTC has a worse Current ratio (2.37) than 62.96% of its industry peers.

SMTC has a Quick Ratio of 1.67. This is a normal value and indicates that SMTC is financially healthy and should not expect problems in meeting its short term obligations.

The Quick ratio of SMTC (1.67) is worse than 65.74% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.37
Quick Ratio	1.67

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for SMTC have decreased strongly by -40.32% in the last year.

Measured over the past years, SMTC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -47.23% on average per year.

Looking at the last year, SMTC shows a small growth in Revenue. The Revenue has grown by 0.94% in the last year.

The Revenue has been growing slightly by 6.73% on average over the past years.

EPS 1Y (TTM)-40.32%

EPS 3Y-62.88%

EPS 5Y-47.23%

EPS Q2Q%1200%

Revenue 1Y (TTM)0.94%

Revenue growth 3Y13.44%

Revenue growth 5Y6.73%

Sales Q2Q%17.87%

3.2 Future

SMTC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 208.47% yearly.

Based on estimates for the next years, SMTC will show a quite strong growth in Revenue. The Revenue will grow by 12.93% on average per year.

EPS Next Y773.8%

EPS Next 2Y353.96%

EPS Next 3Y208.47%

EPS Next 5YN/A

Revenue Next Year3.73%

Revenue Next 2Y11.9%

Revenue Next 3Y12.93%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 147.32 indicates a quite expensive valuation of SMTC.

SMTC's Price/Earnings is on the same level as the industry average.

When comparing the Price/Earnings ratio of SMTC to the average of the S&P500 Index (28.12), we can say SMTC is valued expensively.

SMTC is valuated quite expensively with a Price/Forward Earnings ratio of 29.39.

The rest of the industry has a similar Price/Forward Earnings ratio as SMTC.

SMTC is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.77, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	147.32
Fwd PE	29.39

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as SMTC.

SMTC's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	192.08
EV/EBITDA	97.23

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

SMTC's earnings are expected to grow with 208.47% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.19

PEG (5Y)N/A

EPS Next 2Y353.96%

EPS Next 3Y208.47%

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5. Dividend

5.1 Amount

No dividends for SMTC!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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SEMTECH CORP

NASDAQ:SMTC (2/7/2025, 8:00:02 PM)

After market: 39.85 -14.66 (-26.89%)

54.51

-5.99 (-9.9%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSemiconductors & Semiconductor Equipment

GICS IndustrySemiconductors & Semiconductor Equipment

Earnings (Last)11-25 2024-11-25/amc

Earnings (Next)N/A N/A

Inst Owners110.53%

Inst Owner Change0.13%

Ins Owners0.61%

Ins Owner Change1.07%

Market Cap4.68B

Analysts81

Price Target78.54 (44.08%)

Short Float %8.35%

Short Ratio3.34

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)11.58%

Min EPS beat(2)9.53%

Max EPS beat(2)13.63%

EPS beat(4)3

Avg EPS beat(4)718.62%

Min EPS beat(4)-128.44%

Max EPS beat(4)2979.77%

EPS beat(8)6

Avg EPS beat(8)438.85%

EPS beat(12)8

Avg EPS beat(12)292.81%

EPS beat(16)11

Avg EPS beat(16)220.06%

Revenue beat(2)0

Avg Revenue beat(2)-0.42%

Min Revenue beat(2)-0.53%

Max Revenue beat(2)-0.32%

Revenue beat(4)1

Avg Revenue beat(4)-0.9%

Min Revenue beat(4)-3.71%

Max Revenue beat(4)0.95%

Revenue beat(8)2

Avg Revenue beat(8)-0.09%

Revenue beat(12)2

Avg Revenue beat(12)-0.55%

Revenue beat(16)3

Avg Revenue beat(16)-0.44%

PT rev (1m)3.77%

PT rev (3m)38.49%

EPS NQ rev (1m)6.85%

EPS NQ rev (3m)11.85%

EPS NY rev (1m)-0.46%

EPS NY rev (3m)12.78%

Revenue NQ rev (1m)0.78%

Revenue NQ rev (3m)4.37%

Revenue NY rev (1m)0.04%

Revenue NY rev (3m)1.38%

Valuation

		Industry Rank	Sector Rank
PE	147.32
Fwd PE	29.39
P/S	5.5
P/FCF	192.08
P/OCF	121.91
P/B	N/A
P/tB	N/A
EV/EBITDA	97.23

EPS(TTM)0.37

EY0.68%

EPS(NY)1.85

Fwd EY3.4%

FCF(TTM)0.28

FCFY0.52%

OCF(TTM)0.45

OCFY0.82%

SpS9.91

BVpS-1.63

TBVpS-8.36

PEG (NY)0.19

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-61.16%
ROE	N/A
ROCE	1.94%
ROIC	1.51%
ROICexc	1.72%
ROICexgc	4.04%
OM	2.61%
PM (TTM)	N/A
GM	49.03%
FCFM	2.86%

ROA(3y)-22%

ROA(5y)-11.48%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-9.2%

GM growth 5Y-5.72%

F-Score4

Asset Turnover0.62

Health

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	48.83
Debt/EBITDA	18.52
Cap/Depr	33.35%
Cap/Sales	1.65%
Interest Coverage	0.28
Cash Conversion	59.75%
Profit Quality	N/A
Current Ratio	2.37
Quick Ratio	1.67
Altman-Z	N/A

F-Score4

WACC13.36%

ROIC/WACC0.11

Cap/Depr(3y)70.86%

Cap/Depr(5y)74.68%

Cap/Sales(3y)3.62%

Cap/Sales(5y)4.11%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-40.32%

EPS 3Y-62.88%

EPS 5Y-47.23%

EPS Q2Q%1200%

EPS Next Y773.8%

EPS Next 2Y353.96%

EPS Next 3Y208.47%

EPS Next 5YN/A

Revenue 1Y (TTM)0.94%

Revenue growth 3Y13.44%

Revenue growth 5Y6.73%

Sales Q2Q%17.87%

Revenue Next Year3.73%

Revenue Next 2Y11.9%

Revenue Next 3Y12.93%

Revenue Next 5YN/A

EBIT growth 1Y130.38%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year104.79%

EBIT Next 3Y53.88%

EBIT Next 5YN/A

FCF growth 1Y-85.29%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-80.45%

OCF growth 3YN/A

OCF growth 5YN/A

SEMTECH CORP (SMTC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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