SEMTECH CORP (SMTC) Stock Fundamental Analysis
NASDAQ:SMTC - Nasdaq - US8168501018 - Common Stock - Currency: USD
Taking everything into account, SMTC scores 4 out of 10 in our fundamental rating. SMTC was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. The financial health of SMTC is average, but there are quite some concerns on its profitability. 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.
In multiple years SMTC reported negative net income over the last 5 years.
SMTC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SMTC has a worse Return On Assets (-8.34%) than 70.91% of its industry peers.
The Return On Equity of SMTC (-20.99%) is worse than 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
SMTC has a Operating Margin (8.94%) which is comparable to the rest of the industry.
SMTC's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 51.16%, SMTC is doing good in the industry, outperforming 64.55% of the companies in the same industry.
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.
Compared to 1 year ago, SMTC has more shares outstanding
Compared to 5 years ago, SMTC has more shares outstanding
Compared to 1 year ago, SMTC has an improved debt to assets ratio.
2.2 Solvency
SMTC has an Altman-Z score of 3.32. This indicates that SMTC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.32, SMTC is in line with its industry, outperforming 50.91% of the companies in the same industry.
The Debt to FCF ratio of SMTC is 7.52, which is on the high side as it means it would take SMTC, 7.52 years of fcf income to pay off all of its debts.
SMTC has a Debt to FCF ratio of 7.52. This is comparable to the rest of the industry: SMTC outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that SMTC is somewhat dependend on debt financing.
The Debt to Equity ratio of SMTC (0.95) is worse than 85.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 3.32 |
ROIC/WACC0.5
WACC11.22%
2.3 Liquidity
A Current Ratio of 2.53 indicates that SMTC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.53, SMTC is doing worse than 60.91% of the companies in the same industry.
A Quick Ratio of 1.81 indicates that SMTC should not have too much problems paying its short term obligations.
SMTC has a Quick ratio of 1.81. This is in the lower half of the industry: SMTC underperforms 62.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 784.62% 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 13.82% in the past year. This is quite good.
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
Based on estimates for the next years, SMTC will show a very strong growth in Earnings Per Share. The EPS will grow by 53.52% on average per year.
The Revenue is expected to grow by 10.21% on average over the next years. This is quite good.
EPS Next Y105.04%
EPS Next 2Y64.74%
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
With a Price/Earnings ratio of 36.43, SMTC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SMTC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SMTC to the average of the S&P500 Index (26.60), we can say SMTC is valued slightly more expensively.
With a Price/Forward Earnings ratio of 18.60, SMTC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SMTC is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
SMTC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.43 | ||
| Fwd PE | 18.6 |
4.2 Price Multiples
SMTC's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SMTC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.27 | ||
| EV/EBITDA | 29.39 |
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)0.35
PEG (5Y)N/A
EPS Next 2Y64.74%
EPS Next 3Y53.52%
5. Dividend
5.1 Amount
No dividends for SMTC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
41.89
-0.05 (-0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners114.8%
Inst Owner Change1.87%
Ins Owners0.37%
Ins Owner Change10.46%
Market Cap3.63B
Analysts80
Price Target56.61 (35.14%)
Short Float %8.48%
Short Ratio3.02
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)2.78%
PT rev (3m)-19.14%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)4.11%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-0.97%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.43 | ||
| Fwd PE | 18.6 | ||
| P/S | 3.8 | ||
| P/FCF | 50.27 | ||
| P/OCF | 42.24 | ||
| P/B | 6.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.39 |
EPS(TTM)1.15
EY2.75%
EPS(NY)2.25
Fwd EY5.38%
FCF(TTM)0.83
FCFY1.99%
OCF(TTM)0.99
OCFY2.37%
SpS11.02
BVpS6.57
TBVpS-0.02
PEG (NY)0.35
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 | 3.32 |
F-Score7
WACC11.22%
ROIC/WACC0.5
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 Y105.04%
EPS Next 2Y64.74%
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%