SEMTECH CORP (SMTC) Stock Fundamental Analysis
USA - NASDAQ:SMTC - US8168501018 - Common Stock
65.46 USD
-2.13 (-3.15%)
65.46 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SMTC. SMTC was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. SMTC has an average financial health and profitability rating. SMTC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
The reported net income has been mixed in the past 5 years: SMTC reported negative net income in multiple years.
Of the past 5 years SMTC 4 years had a positive operating cash flow.
1.2 Ratios
SMTC has a Return On Assets (1.69%) which is comparable to the rest of the industry.
With a Return On Equity value of 4.31%, SMTC perfoms like the industry average, outperforming 59.82% of the companies in the same industry.
SMTC has a Return On Invested Capital of 7.02%. This is in the better half of the industry: SMTC outperforms 73.21% of its industry peers.
| 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's Operating Margin of 10.37% is fine compared to the rest 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 Gross Margin of 51.86%. This is in the better half of the industry: SMTC outperforms 66.07% of its industry peers.
In the last couple of years the Gross Margin of SMTC has declined.
| 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
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
Compared to 5 years ago, SMTC has more shares outstanding
SMTC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.86 indicates that SMTC is not in any danger for bankruptcy at the moment.
The Altman-Z score of SMTC (4.86) is comparable to the rest of the 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 (4.20) which is in line with its industry peers.
SMTC has a Debt/Equity ratio of 0.94. This is a neutral value indicating SMTC is somewhat dependend on debt financing.
SMTC has a Debt to Equity ratio of 0.94. This is amonst the worse of the industry: SMTC underperforms 84.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 4.86 |
ROIC/WACC0.65
WACC10.84%
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.
With a Current ratio value of 2.53, SMTC perfoms like the industry average, outperforming 44.64% of the companies in the same industry.
SMTC has a Quick Ratio of 1.78. This is a normal value and indicates that SMTC is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.78, SMTC is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
| 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.
The earnings per share for SMTC have been decreasing by -11.51% on average. This is quite bad
Looking at the last year, SMTC shows a very strong growth in Revenue. The Revenue has grown by 22.22%.
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
Based on estimates for the next years, SMTC will show a very strong growth in Earnings Per Share. The EPS will grow by 50.89% on average per year.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SMTC is valuated quite expensively with a Price/Earnings ratio of 45.14.
63.39% of the companies in the same industry are more expensive than SMTC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, SMTC is valued quite expensively.
The Price/Forward Earnings ratio is 29.96, which means the current valuation is very expensive for SMTC.
SMTC's Price/Forward Earnings ratio is in line with the industry average.
SMTC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.14 | ||
| Fwd PE | 29.96 |
4.2 Price Multiples
SMTC's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SMTC is valued a bit cheaper than the industry average as 66.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.98 | ||
| EV/EBITDA | 41.63 |
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 50.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
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 |
65.46
-2.13 (-3.15%)
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 Cap5.68B
Revenue(TTM)996.45M
Net Income(TTM)23.82M
Analysts81.82
Price Target73.29 (11.96%)
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)0.81%
EPS NQ rev (3m)1.67%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.14 | ||
| Fwd PE | 29.96 | ||
| P/S | 5.7 | ||
| P/FCF | 45.98 | ||
| P/OCF | 41.98 | ||
| P/B | 10.27 | ||
| P/tB | 218.08 | ||
| EV/EBITDA | 41.63 |
EPS(TTM)1.45
EY2.22%
EPS(NY)2.18
Fwd EY3.34%
FCF(TTM)1.42
FCFY2.17%
OCF(TTM)1.56
OCFY2.38%
SpS11.48
BVpS6.37
TBVpS0.3
PEG (NY)0.43
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 | 3.6 | ||
| Cap/Depr | 28.71% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 93.79% | ||
| Profit Quality | 518.52% | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 4.86 |
F-Score8
WACC10.84%
ROIC/WACC0.65
Cap/Depr(3y)52.45%
Cap/Depr(5y)68.93%
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.