SEMTECH CORP (SMTC) Stock Fundamental Analysis
USA - NASDAQ:SMTC - US8168501018 - Common Stock
67.59 USD
-4.11 (-5.73%)
67 USD
-0.59 (-0.87%)
Overall SMTC gets a fundamental rating of 4 out of 10. We evaluated SMTC against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of SMTC get a neutral evaluation. Nothing too spectacular is happening here. SMTC is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year SMTC was profitable.
SMTC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SMTC reported negative net income in multiple years.
SMTC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SMTC has a Return On Assets (1.69%) which is comparable to the rest of the industry.
SMTC has a Return On Equity (4.31%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.02%, SMTC is in the better half of the industry, outperforming 72.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 4.31% | ||
| ROIC | 7.02% |
ROA(3y)-29.5%
ROA(5y)-14.37%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SMTC has a Profit Margin of 2.39%. This is comparable to the rest of the industry: SMTC outperforms 55.36% of its industry peers.
SMTC has a Operating Margin of 10.37%. This is in the better half of the industry: SMTC outperforms 66.07% of its industry peers.
In the last couple of years the Operating Margin of SMTC has declined.
SMTC has a better Gross Margin (51.86%) than 66.07% of its industry peers.
SMTC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.37% | ||
| PM (TTM) | 2.39% | ||
| GM | 51.86% |
OM growth 3Y-31.78%
OM growth 5Y-9.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.91%
GM growth 5Y-3.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SMTC is destroying value.
SMTC has more shares outstanding than it did 1 year ago.
SMTC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SMTC has an improved debt to assets ratio.
2.2 Solvency
SMTC has an Altman-Z score of 4.99. This indicates that SMTC is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 4.99, SMTC perfoms like the industry average, outperforming 59.82% of the companies in the same industry.
SMTC has a debt to FCF ratio of 4.20. This is a neutral value as SMTC would need 4.20 years to pay back of all of its debts.
SMTC has a Debt to FCF ratio of 4.20. This is comparable to the rest of the industry: SMTC outperforms 58.93% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that SMTC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.94, SMTC is not doing good in the industry: 84.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 4.99 |
ROIC/WACC0.65
WACC10.79%
2.3 Liquidity
SMTC has a Current Ratio of 2.53. This indicates that SMTC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.53, SMTC is in line with its industry, outperforming 44.64% of the companies in the same industry.
A Quick Ratio of 1.78 indicates that SMTC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.78, SMTC is doing worse than 61.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1015.38% over the past year.
SMTC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.51% yearly.
The Revenue has grown by 22.22% in the past year. This is a very strong growth!
Measured over the past years, SMTC shows a quite strong growth in Revenue. The Revenue has been growing by 10.68% on average per year.
EPS 1Y (TTM)1015.38%
EPS 3Y-31.83%
EPS 5Y-11.51%
EPS Q2Q%272.73%
Revenue 1Y (TTM)22.22%
Revenue growth 3Y7.06%
Revenue growth 5Y10.68%
Sales Q2Q%19.59%
3.2 Future
SMTC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.89% yearly.
The Revenue is expected to grow by 11.24% on average over the next years. This is quite good.
EPS Next Y104.09%
EPS Next 2Y62.25%
EPS Next 3Y50.89%
EPS Next 5YN/A
Revenue Next Year13.87%
Revenue Next 2Y11.8%
Revenue Next 3Y11.24%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 46.61, SMTC can be considered very expensive at the moment.
SMTC's Price/Earnings ratio is a bit cheaper when compared to the industry. SMTC is cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, SMTC is valued quite expensively.
Based on the Price/Forward Earnings ratio of 30.93, the valuation of SMTC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SMTC is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, SMTC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.61 | ||
| Fwd PE | 30.93 |
4.2 Price Multiples
SMTC's Enterprise Value to EBITDA is on the same level as the industry average.
SMTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SMTC is cheaper than 66.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.47 | ||
| EV/EBITDA | 40.5 |
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.
A more expensive valuation may be justified as SMTC's earnings are expected to grow with 50.89% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y62.25%
EPS Next 3Y50.89%
5. Dividend
5.1 Amount
SMTC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
67.59
-4.11 (-5.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners121.3%
Inst Owner Change0.2%
Ins Owners0.5%
Ins Owner Change3.58%
Market Cap5.86B
Revenue(TTM)996.45M
Net Income(TTM)23.82M
Analysts81.82
Price Target73.29 (8.43%)
Short Float %7.67%
Short Ratio3.64
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)0.29%
Min EPS beat(2)0.1%
Max EPS beat(2)0.48%
EPS beat(4)4
Avg EPS beat(4)8.33%
Min EPS beat(4)0.1%
Max EPS beat(4)23.19%
EPS beat(8)7
Avg EPS beat(8)376.68%
EPS beat(12)10
Avg EPS beat(12)294.61%
EPS beat(16)12
Avg EPS beat(16)221.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.47%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-1.39%
Revenue beat(4)0
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-1.56%
Max Revenue beat(4)-0.32%
Revenue beat(8)1
Avg Revenue beat(8)-1.44%
Revenue beat(12)2
Avg Revenue beat(12)-0.47%
Revenue beat(16)2
Avg Revenue beat(16)-0.75%
PT rev (1m)12.42%
PT rev (3m)24.79%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)1.67%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.61 | ||
| Fwd PE | 30.93 | ||
| P/S | 5.89 | ||
| P/FCF | 47.47 | ||
| P/OCF | 43.35 | ||
| P/B | 10.61 | ||
| P/tB | 225.18 | ||
| EV/EBITDA | 40.5 |
EPS(TTM)1.45
EY2.15%
EPS(NY)2.18
Fwd EY3.23%
FCF(TTM)1.42
FCFY2.11%
OCF(TTM)1.56
OCFY2.31%
SpS11.48
BVpS6.37
TBVpS0.3
PEG (NY)0.45
PEG (5Y)N/A
Graham Number14.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 4.31% | ||
| ROCE | 8.89% | ||
| ROIC | 7.02% | ||
| ROICexc | 8.32% | ||
| ROICexgc | 17.95% | ||
| OM | 10.37% | ||
| PM (TTM) | 2.39% | ||
| GM | 51.86% | ||
| FCFM | 12.4% |
ROA(3y)-29.5%
ROA(5y)-14.37%
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
ROICexgc growth 3Y-29.49%
ROICexgc growth 5Y-6.71%
ROICexc growth 3Y-33.82%
ROICexc growth 5Y-7.62%
OM growth 3Y-31.78%
OM growth 5Y-9.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.91%
GM growth 5Y-3.98%
F-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 4.2 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 23.74% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 88.52% | ||
| Profit Quality | 518.52% | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 4.99 |
F-Score8
WACC10.79%
ROIC/WACC0.65
Cap/Depr(3y)51.16%
Cap/Depr(5y)68.16%
Cap/Sales(3y)2.96%
Cap/Sales(5y)3.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1015.38%
EPS 3Y-31.83%
EPS 5Y-11.51%
EPS Q2Q%272.73%
EPS Next Y104.09%
EPS Next 2Y62.25%
EPS Next 3Y50.89%
EPS Next 5YN/A
Revenue 1Y (TTM)22.22%
Revenue growth 3Y7.06%
Revenue growth 5Y10.68%
Sales Q2Q%19.59%
Revenue Next Year13.87%
Revenue Next 2Y11.8%
Revenue Next 3Y11.24%
Revenue Next 5YN/A
EBIT growth 1Y3859.93%
EBIT growth 3Y-26.96%
EBIT growth 5Y-0.2%
EBIT Next Year46%
EBIT Next 3Y21.17%
EBIT Next 5YN/A
FCF growth 1Y190.48%
FCF growth 3Y-37.21%
FCF growth 5Y-14.44%
OCF growth 1Y231.85%
OCF growth 3Y-34.15%
OCF growth 5Y-13.33%
SEMTECH CORP / SMTC FAQ
What is the fundamental rating for SMTC stock?
ChartMill assigns a fundamental rating of 4 / 10 to SMTC.
Can you provide the valuation status for SEMTECH CORP?
ChartMill assigns a valuation rating of 4 / 10 to SEMTECH CORP (SMTC). This can be considered as Fairly Valued.
What is the profitability of SMTC stock?
SEMTECH CORP (SMTC) has a profitability rating of 4 / 10.
What is the expected EPS growth for SEMTECH CORP (SMTC) stock?
The Earnings per Share (EPS) of SEMTECH CORP (SMTC) is expected to grow by 104.09% in the next year.