Semtech CorporationSMTC
NASDAQ • Technology
$140.04
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+9.3% YoY
Gross Margin
50.3%
Health Score
6/10
D/E Ratio
0.89
Confidence
LOW
Business Snapshot
Semtech Corporation designs and manufactures analog and mixed-signal semiconductors, primarily serving the communications, industrial, and consumer end markets. The company operates in the semiconductor industry, a highly competitive space where it competes with larger players like Texas Instruments and Analog Devices, but holds a niche position in signal integrity and protection products. With trailing twelve-month revenue of $1.05 billion, Semtech is a mid-cap player by revenue scale, though the exact market capitalisation is unavailable in the provided data. The company's defining characteristic is its positive free cash flow generation despite recent net losses, a rare combination that suggests underlying cash conversion from operations remains viable even while GAAP profitability is under pressure.
Financial Health
Gross margin stands at 50.3% for the trailing twelve months, slightly down from 51.7% in the prior year, indicating mild margin compression. Net margin is not reported due to a data distortion flagged as a source error — the reported figure of -385% is unreliable and should not be used for analysis...
Risk Assessment
- VALUATION — EV/EBITDA of 74.35x and price-to-sales of 11.43x are extreme multiples, while the FMP DCF fair value of $12.7 implies the current price of $140.04 is over 10 times that estimate, suggesting substantial downside risk if fundamentals do not catch up.
- EARNINGS QUALITY — TTM net income of -$40.38 million reflects losses in three of the last four quarters, and earnings growth of -176.2% indicates deteriorating profitability, raising concerns about the sustainability of the business model.
- REVENUE DECELERATION — QoQ revenue growth of 2.8% is below the YoY growth of 9.3%, implying a slowdown in the most recent quarter's revenue momentum.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....