Soitec (ENXTPA:SOI) - Share price, News & Analysis

Q: What is the Fair Price of SOI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SOI (€158.2) is trading below our estimate of [[fair value]] (€279.48)

SOI fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	5/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

SOI Stock Overview

Soitec S.A. designs and manufactures semiconductor materials worldwide.

Rewards

Trading at 43.4% below our estimate of its fair value

Earnings are forecast to grow 24.97% per year

Earnings grew by 173% over the past year

Risk Analysis

High level of non-cash earnings

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Soitec Competitors

Riber

ENXTPA:ALRIB

€37.2m

STMicroelectronics

ENXTPA:STM

€33.2b

X-FAB Silicon Foundries

ENXTPA:XFAB

€862.8m

Amkor Technology

NasdaqGS:AMKR

US$5.3b

Price History & Performance

Summary of all time highs, changes and price drops for Soitec
Historical stock prices
Current Share Price	€158.20
52 Week High	€243.00
52 Week Low	€119.40
Beta	1.6
1 Month Change	17.27%
3 Month Change	-2.35%
1 Year Change	-20.62%
3 Year Change	83.10%
5 Year Change	208.98%
Change since IPO	192.96%

Recent News & Updates

Aug 07

Is Soitec S.A. (EPA:SOI) Trading At A 42% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Soitec S.A. ( EPA:SOI...

Jun 14

Does Soitec (EPA:SOI) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

	SOI	FR Semiconductor	FR Market
7D	-1.7%	-4.2%	0.7%
1Y	-20.6%	-3.5%	-6.3%

Return vs Industry: SOI underperformed the French Semiconductor industry which returned -7.1% over the past year.

Return vs Market: SOI underperformed the French Market which returned -6.6% over the past year.

Price Volatility

Is SOI's price volatile compared to industry and market?
SOI volatility
SOI Average Weekly Movement	6.6%
Semiconductor Industry Average Movement	6.6%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.0%
10% least volatile stocks in FR Market	2.9%

Stable Share Price: SOI is more volatile than 75% of French stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SOI's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of French stocks.

About the Company

Founded	Employees	CEO	Website
1992	1,870	Pierre Barnabe	https://www.soitec.com

Soitec S.A. designs and manufactures semiconductor materials worldwide. Its products are used to manufacture chips that are used in smart phones, tablets, computers, IT servers, and data centers, as well as electronic components in cars, connected devices, and industrial and medical equipment. It offers Fully Depleted Silicon-On-Insulator (FD-SOI) for automotive radar and processors, and PD-SOI and FinFET-SOI products for high-performance computing markets.

Soitec Fundamentals Summary

How do Soitec's earnings and revenue compare to its market cap?
SOI fundamental statistics
Market Cap	€5.52b
Earnings (TTM)	€202.23m
Revenue (TTM)	€862.74m

27.3x

P/E Ratio

6.4x

P/S Ratio

Is SOI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOI income statement (TTM)
Revenue	€862.74m
Cost of Revenue	€547.17m
Gross Profit	€315.58m
Other Expenses	€113.35m
Earnings	€202.23m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.80
Gross Margin	36.58%
Net Profit Margin	23.44%
Debt/Equity Ratio	50.5%

How did SOI perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SOI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SOI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SOI. This is calculated by dividing SOI's market cap by their current preferred multiple.
What is SOI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€5.52b

SOI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	6.2x
Enterprise Value/EBITDA	21.7x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does SOI's PE Ratio compare to its peers?

SOI PE Ratio vs Peers

The above table shows the PE ratio for SOI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.4x
ALRIB Riber	25.4x	23.1%	€37.2m
STM STMicroelectronics	12.1x	6.9%	€33.2b
XFAB X-FAB Silicon Foundries	12.7x	20.4%	€862.8m
AMKR Amkor Technology	7.7x	8.1%	US$5.3b
SOI Soitec	27.3x	25.0%	€5.5b

Price-To-Earnings vs Peers: SOI is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the peer average (14.4x).

Price to Earnings Ratio vs Industry

How does SOI's PE Ratio compare vs other companies in the European Semiconductor Industry?

Price-To-Earnings vs Industry: SOI is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the French Semiconductor industry average (25.6x)

Price to Earnings Ratio vs Fair Ratio

What is SOI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SOI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	27.3x
Fair PE Ratio	28.1x

Price-To-Earnings vs Fair Ratio: SOI is good value based on its Price-To-Earnings Ratio (27.3x) compared to the estimated Fair Price-To-Earnings Ratio (28.1x).

Share Price vs Fair Value

What is the Fair Price of SOI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SOI (€158.2) is trading below our estimate of fair value (€279.48)

Significantly Below Fair Value: SOI is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is Soitec forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

25.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOI's forecast earnings growth (25% per year) is above the savings rate (0.3%).

Earnings vs Market: SOI's earnings (25% per year) are forecast to grow faster than the French market (11.5% per year).

High Growth Earnings: SOI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SOI's revenue (19.5% per year) is forecast to grow faster than the French market (5.2% per year).

High Growth Revenue: SOI's revenue (19.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SOI's Return on Equity is forecast to be high in 3 years time (21.2%)

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Past Performance

How has Soitec performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

23.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SOI has a high level of non-cash earnings.

Growing Profit Margin: SOI's current net profit margins (23.4%) are higher than last year (12.7%).

Past Earnings Growth Analysis

Earnings Trend: SOI's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: SOI's earnings growth over the past year (173%) exceeds its 5-year average (23.3% per year).

Earnings vs Industry: SOI earnings growth over the past year (173%) exceeded the Semiconductor industry 59.9%.

Return on Equity

High ROE: SOI's Return on Equity (19.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Soitec's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SOI's short term assets (€1.2B) exceed its short term liabilities (€345.7M).

Long Term Liabilities: SOI's short term assets (€1.2B) exceed its long term liabilities (€596.7M).

Debt to Equity History and Analysis

Debt Level: SOI has more cash than its total debt.

Reducing Debt: SOI's debt to equity ratio has reduced from 75.5% to 50.5% over the past 5 years.

Debt Coverage: SOI's debt is well covered by operating cash flow (48.2%).

Interest Coverage: SOI's interest payments on its debt are well covered by EBIT (15.5x coverage).

Balance Sheet

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Dividend

What is Soitec current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SOI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SOI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SOI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOI's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SOI has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure

CEO

Pierre Barnabe (51 yo)

0.083

Tenure

Mr. Pierre Barnabe had been an Interim Co-Chief Executive Officer of Atos SE since October 25, 2021. He serves as Director and Chief Executive Officer at Soitec S.A. since July 26, 2022. He served as Membe...

Leadership Team

Experienced Management: SOI's management team is not considered experienced ( 2 years average tenure), which suggests a new team.

Board Members

Experienced Board: SOI's board of directors are considered experienced (3.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.1%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31