SMTCSMTC
US • —
$161.85
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+14.2% YoY
Gross Margin
51.6%
Health Score
4/10
D/E Ratio
0.89
Confidence
LOW
Business Snapshot
Semtech Corporation is a supplier of analog and mixed-signal semiconductors and advanced algorithms, with products primarily used in infrastructure, industrial, and consumer end-markets. The company's key product areas include signal integrity solutions for data centers, protection devices, and wireless sensing products. It operates in the competitive semiconductor industry, holding positions in niche segments such as high-speed data transport and IoT connectivity. The defining characteristic shaping Semtech is its high gross margin profile, indicating differentiated product technology, though recent net margin losses suggest pressure from operating costs or non-cash charges.
Financial Health
The company shows a gross margin of 51.6%, which is strong for a semiconductor company and suggests pricing power, though a year-over-year comparison is unavailable to assess trend direction. Net margin stands at -3.0%, indicating the company is operating at a slight net loss, which erodes the benefit of the solid gross margin...
Risk Assessment
- EARNINGS QUALITY — The company reports a negative net margin of -3.0%, indicating it is unprofitable at the bottom line, which raises a caution flag on earnings quality.
- VALUATION — Price/Sales of 13.18x and Price/Book of 13.66x are exceptionally high, suggesting the market is pricing in significant future growth that has not yet materialized in earnings.
- PROFITABILITY — Return on equity of -5.9% shows the company is destroying shareholder value at the operating level relative to equity base.
- DATA COMPLETENESS — Core fundamental metrics including P/E ratio, revenue, and free cash flow are unavailable, creating a 'fundamental data vacuum' that significantly increases analysis uncertainty.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER — Over the last 90 days, there have been 0 insider buys versus 3 insider sells, a net selling pattern that can signal a lack of confidence from company management....
The company shows a gross margin of 51.6%, which is strong for a semiconductor company and suggests pricing power, though a year-over-year comparison is unavailable to assess trend direction. Net margin stands at -3.0%, indicating the company is operating at a slight net loss, which erodes the benefit of the solid gross margin. The balance sheet is moderately leveraged with a debt/equity ratio of 0.89x, which is manageable, and a healthy current ratio of 2.37x, providing ample short-term liquidity. A return on equity of -5.9% further underscores the challenge in generating profitable returns for shareholders. Free cash flow figures are unavailable, preventing a full assessment of cash generation vs. cash burn, which is a significant gap in evaluating financial health. Overall, the company maintains adequate short-term liquidity but faces profitability headwinds, and the absence of free cash flow data makes it difficult to assess the sustainability of its operations or capacity for reinvestment.
- EARNINGS QUALITY — The company reports a negative net margin of -3.0%, indicating it is unprofitable at the bottom line, which raises a caution flag on earnings quality. - VALUATION — Price/Sales of 13.18x and Price/Book of 13.66x are exceptionally high, suggesting the market is pricing in significant future growth that has not yet materialized in earnings. - PROFITABILITY — Return on equity of -5.9% shows the company is destroying shareholder value at the operating level relative to equity base. - DATA COMPLETENESS — Core fundamental metrics including P/E ratio, revenue, and free cash flow are unavailable, creating a 'fundamental data vacuum' that significantly increases analysis uncertainty. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER — Over the last 90 days, there have been 0 insider buys versus 3 insider sells, a net selling pattern that can signal a lack of confidence from company management.
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