SEMTECH CORP (SMTC) Stock Fundamental Analysis
NASDAQ:SMTC - Nasdaq - US8168501018 - Common Stock - Currency: USD
SMTC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. SMTC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SMTC is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year SMTC was profitable.
In the past year SMTC had a positive cash flow from operations.
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
The Return On Assets of SMTC (-8.34%) is worse than 70.91% of its industry peers.
The Return On Equity of SMTC (-20.99%) is worse than 74.55% of its industry peers.
With a decent Return On Invested Capital value of 5.64%, SMTC is doing good in the industry, outperforming 66.36% of the companies in the same industry.
| 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
The Operating Margin of SMTC (8.94%) is better than 62.73% of its industry peers.
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 63.64% of the companies in the same industry.
In the last couple of years the Gross Margin of SMTC has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SMTC is destroying value.
The number of shares outstanding for SMTC has been increased compared to 1 year ago.
Compared to 5 years ago, SMTC has more shares outstanding
SMTC has a better debt/assets ratio than last year.
2.2 Solvency
SMTC has an Altman-Z score of 3.84. This indicates that SMTC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SMTC (3.84) is comparable to the rest of the 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 (7.52) which is in line with its industry peers.
A Debt/Equity ratio of 0.95 indicates that SMTC is somewhat dependend on debt financing.
SMTC has a Debt to Equity ratio of 0.95. This is amonst the worse of the industry: SMTC underperforms 87.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 3.84 |
ROIC/WACC0.49
WACC11.49%
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.
SMTC has a Current ratio of 2.53. This is in the lower half of the industry: SMTC underperforms 60.00% of its industry peers.
SMTC has a Quick Ratio of 1.81. This is a normal value and indicates that SMTC is financially healthy and should not expect problems in meeting its short term obligations.
SMTC has a Quick ratio of 1.81. This is in the lower half of the industry: SMTC underperforms 61.82% 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.
Measured over the past years, SMTC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.51% on average per year.
The Revenue has grown by 13.82% in the past year. This is quite good.
The Revenue has been growing by 10.68% on average over the past years. This is quite good.
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 53.53% 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 Y104%
EPS Next 2Y62.58%
EPS Next 3Y53.53%
EPS Next 5YN/A
Revenue Next Year13.76%
Revenue Next 2Y11.71%
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.
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 43.33, 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.
SMTC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.87.
A Price/Forward Earnings ratio of 22.71 indicates a rather expensive valuation of SMTC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SMTC indicates a somewhat cheap valuation: SMTC is cheaper than 66.36% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SMTC to the average of the S&P500 Index (35.34), we can say SMTC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.33 | ||
| Fwd PE | 22.71 |
4.2 Price Multiples
SMTC's Enterprise Value to EBITDA ratio is in line with the industry average.
SMTC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.81 | ||
| EV/EBITDA | 34.9 |
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 53.53% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y62.58%
EPS Next 3Y53.53%
5. Dividend
5.1 Amount
SMTC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
49.83
-0.69 (-1.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners114.34%
Inst Owner Change0.78%
Ins Owners0.51%
Ins Owner Change10.52%
Market Cap4.32B
Analysts80
Price Target58.74 (17.88%)
Short Float %10.94%
Short Ratio4.53
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)3.75%
PT rev (3m)7.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.33 | ||
| Fwd PE | 22.71 | ||
| P/S | 4.52 | ||
| P/FCF | 59.81 | ||
| P/OCF | 50.26 | ||
| P/B | 7.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.9 |
EPS(TTM)1.15
EY2.31%
EPS(NY)2.19
Fwd EY4.4%
FCF(TTM)0.83
FCFY1.67%
OCF(TTM)0.99
OCFY1.99%
SpS11.01
BVpS6.57
TBVpS-0.02
PEG (NY)0.42
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 | 3.84 |
F-Score7
WACC11.49%
ROIC/WACC0.49
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 2Y62.58%
EPS Next 3Y53.53%
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 2Y11.71%
Revenue Next 3Y10.21%
Revenue Next 5YN/A
EBIT growth 1Y473.49%
EBIT growth 3Y-26.96%
EBIT growth 5Y-0.2%
EBIT Next Year41.36%
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%