X-FAB (ENXTPA:XFAB): Examining Valuation Following Leadership Transition and Fresh Earnings Guidance

X-FAB Silicon Foundries (ENXTPA:XFAB) is drawing investor focus after announcing CEO Rudi De Winter will step down in February 2026, with COO Damien Macq set to take the helm. The news comes alongside fresh quarterly earnings and revised guidance.

See our latest analysis for X-FAB Silicon Foundries.

X-FAB Silicon Foundries’ latest earnings and leadership shakeup have certainly caught the market's eye, but momentum has turned sharply negative, with a 30-day share price return of -33.4%. Still, over the past year, shareholders have seen a total return of 6.8%. This shows that despite recent volatility, longer-term performance has remained positive.

If the combination of leadership change and shifting momentum has you thinking about what else is out there, it could be the perfect time to broaden your search and discover fast growing stocks with high insider ownership.

With shares still well below analyst targets and a mix of growth and margin questions facing the company, is this pullback an overlooked buying opportunity, or is the market simply factoring in the challenges ahead?

Most Popular Narrative: 35.1% Undervalued

With X-FAB Silicon Foundries last closing at €4.77 and the narrative fair value set at €7.36, the stage is set for bold growth forecasts to be validated. This price gap reflects profound expectations for future expansion and margin improvement.

Robust expansion of silicon carbide (SiC) manufacturing, with wafer production in the first half of 2025 exceeding all of 2024, is capturing emerging demand from data center power management (linked to sustainability and energy transition themes) and positioning the company for future growth in both revenue and gross margin as these trends accelerate.

Read the complete narrative.

Want to decode why analysts see major upside here? It comes down to ambitious targets for revenue growth and radical margin expansion. These factors could potentially redefine the company's market position. Curious what expectations really power that valuation? See the full breakdown to uncover the assumptions driving this bold fair value.

Result: Fair Value of €7.36 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, customer order uncertainty and heightened competition, especially from Asian foundries, could quickly undermine revenue stability and threaten these optimistic margin forecasts.

Find out about the key risks to this X-FAB Silicon Foundries narrative.

Build Your Own X-FAB Silicon Foundries Narrative

If you have your own perspective or want to dig deeper into the numbers, it only takes a few minutes to assemble your own view. Do it your way

A great starting point for your X-FAB Silicon Foundries research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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