SEMTECH CORP (SMTC) Stock Fundamental Analysis
NASDAQ:SMTC - Nasdaq - US8168501018 - Common Stock - Currency: USD
Overall SMTC gets a fundamental rating of 4 out of 10. We evaluated SMTC against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While SMTC seems to be doing ok healthwise, there are quite some concerns on its profitability. 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
The Return On Assets of SMTC (-8.34%) is worse than 70.91% of its industry peers.
SMTC's Return On Equity of -20.99% is on the low side compared to the rest of the industry. SMTC is outperformed by 75.45% of its industry peers.
SMTC's Return On Invested Capital of 5.64% is fine compared to the rest of the industry. SMTC outperforms 67.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.34% | ||
| ROE | -20.99% | ||
| ROIC | 5.64% |
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
Looking at the Operating Margin, with a value of 8.94%, SMTC is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SMTC has declined.
SMTC's Gross Margin of 51.16% is fine compared to the rest of the industry. SMTC outperforms 64.55% of its industry peers.
SMTC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.94% | ||
| PM (TTM) | N/A | ||
| GM | 51.16% |
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.
The number of shares outstanding for SMTC has been increased compared to 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 3.45. This indicates that SMTC is financially healthy and has little risk of bankruptcy at the moment.
SMTC has a Altman-Z score of 3.45. This is comparable to the rest of the industry: SMTC outperforms 50.91% of its industry peers.
SMTC has a debt to FCF ratio of 7.52. This is a slightly negative value and a sign of low solvency as SMTC would need 7.52 years to pay back of all of its debts.
SMTC has a Debt to FCF ratio (7.52) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.95 indicates that SMTC is somewhat dependend on debt financing.
SMTC has a worse Debt to Equity ratio (0.95) than 85.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.55
WACC10.18%
2.3 Liquidity
A Current Ratio of 2.53 indicates that SMTC has no problem at all paying its short term obligations.
SMTC has a worse Current ratio (2.53) than 60.91% of its industry peers.
A Quick Ratio of 1.81 indicates that SMTC should not have too much problems paying its short term obligations.
SMTC's Quick ratio of 1.81 is on the low side compared to the rest of the industry. SMTC is outperformed by 62.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
SMTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 784.62%, which is quite impressive.
SMTC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.51% yearly.
Looking at the last year, SMTC shows a quite strong growth in Revenue. The Revenue has grown by 13.82% in the last year.
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)784.62%
EPS 3Y-31.83%
EPS 5Y-11.51%
EPS Q2Q%533.33%
Revenue 1Y (TTM)13.82%
Revenue growth 3Y7.06%
Revenue growth 5Y10.68%
Sales Q2Q%21.83%
3.2 Future
The Earnings Per Share is expected to grow by 53.52% on average over the next years. This is a very strong growth
SMTC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.21% yearly.
EPS Next Y104%
EPS Next 2Y62.34%
EPS Next 3Y53.52%
EPS Next 5YN/A
Revenue Next Year13.76%
Revenue Next 2Y11.46%
Revenue Next 3Y10.21%
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
A Price/Earnings ratio of 38.99 indicates a quite expensive valuation of SMTC.
The rest of the industry has a similar Price/Earnings ratio as SMTC.
SMTC is valuated rather expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.50 indicates a rather expensive valuation of SMTC.
SMTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SMTC is cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SMTC to the average of the S&P500 Index (21.90), we can say SMTC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.99 | ||
| Fwd PE | 20.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SMTC.
Based on the Price/Free Cash Flow ratio, SMTC is valued a bit cheaper than 60.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.81 | ||
| EV/EBITDA | 30.71 |
4.3 Compensation for Growth
SMTC's 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 53.52% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y62.34%
EPS Next 3Y53.52%
5. Dividend
5.1 Amount
No dividends for SMTC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.84
+0.88 (+2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners113.7%
Inst Owner Change1.87%
Ins Owners0.49%
Ins Owner Change11.09%
Market Cap3.88B
Analysts80
Price Target56.61 (26.25%)
Short Float %9.47%
Short Ratio3.76
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)11.84%
Min EPS beat(2)0.48%
Max EPS beat(2)23.19%
EPS beat(4)4
Avg EPS beat(4)11.71%
Min EPS beat(4)0.48%
Max EPS beat(4)23.19%
EPS beat(8)7
Avg EPS beat(8)426.64%
EPS beat(12)9
Avg EPS beat(12)294.6%
EPS beat(16)12
Avg EPS beat(16)221.3%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-1.25%
Revenue beat(4)0
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.56%
Max Revenue beat(4)-0.32%
Revenue beat(8)1
Avg Revenue beat(8)-1.46%
Revenue beat(12)2
Avg Revenue beat(12)-0.49%
Revenue beat(16)2
Avg Revenue beat(16)-0.71%
PT rev (1m)3.58%
PT rev (3m)-4.16%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)2.74%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.99 | ||
| Fwd PE | 20.5 | ||
| P/S | 4.07 | ||
| P/FCF | 53.81 | ||
| P/OCF | 45.22 | ||
| P/B | 6.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.71 |
EPS(TTM)1.15
EY2.56%
EPS(NY)2.19
Fwd EY4.88%
FCF(TTM)0.83
FCFY1.86%
OCF(TTM)0.99
OCFY2.21%
SpS11.02
BVpS6.57
TBVpS-0.02
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.34% | ||
| ROE | -20.99% | ||
| ROCE | 7.14% | ||
| ROIC | 5.64% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 14.77% | ||
| OM | 8.94% | ||
| PM (TTM) | N/A | ||
| GM | 51.16% | ||
| FCFM | 7.56% |
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
ROICexcg growth 3Y-29.49%
ROICexcg 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-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 7.52 | ||
| Debt/EBITDA | 4 | ||
| Cap/Depr | 27.22% | ||
| Cap/Sales | 1.44% | ||
| Interest Coverage | 1.45 | ||
| Cash Conversion | 63.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 3.45 |
F-Score7
WACC10.18%
ROIC/WACC0.55
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)784.62%
EPS 3Y-31.83%
EPS 5Y-11.51%
EPS Q2Q%533.33%
EPS Next Y104%
EPS Next 2Y62.34%
EPS Next 3Y53.52%
EPS Next 5YN/A
Revenue 1Y (TTM)13.82%
Revenue growth 3Y7.06%
Revenue growth 5Y10.68%
Sales Q2Q%21.83%
Revenue Next Year13.76%
Revenue Next 2Y11.46%
Revenue Next 3Y10.21%
Revenue Next 5YN/A
EBIT growth 1Y473.49%
EBIT growth 3Y-26.96%
EBIT growth 5Y-0.2%
EBIT Next Year37.89%
EBIT Next 3Y25.33%
EBIT Next 5YN/A
FCF growth 1Y252.56%
FCF growth 3Y-37.21%
FCF growth 5Y-14.44%
OCF growth 1Y744.56%
OCF growth 3Y-34.15%
OCF growth 5Y-13.33%