NasdaqGS:SLAB

Stock Analysis Report

Executive Summary

Silicon Laboratories Inc., a fabless semiconductor company, designs, develops, and markets mixed-signal integrated circuits (ICs) in the United States, China, and internationally.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Silicon Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SLAB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

SLAB

2.6%

US Semiconductor

2.0%

US Market


1 Year Return

35.4%

SLAB

46.5%

US Semiconductor

23.6%

US Market

Return vs Industry: SLAB underperformed the US Semiconductor industry which returned 48.5% over the past year.

Return vs Market: SLAB exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

SLABIndustryMarket
7 Day0.6%2.6%2.0%
30 Day3.6%4.4%3.9%
90 Day9.9%19.0%12.0%
1 Year35.4%35.4%49.4%46.5%26.2%23.6%
3 Year83.2%83.2%94.7%83.7%53.2%43.3%
5 Year163.7%163.7%152.2%127.3%75.7%56.3%

Price Volatility Vs. Market

How volatile is Silicon Laboratories's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Silicon Laboratories undervalued compared to its fair value and its price relative to the market?

209.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SLAB ($118.89) is trading above our estimate of fair value ($50.87)

Significantly Below Fair Value: SLAB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SLAB is poor value based on its PE Ratio (208.3x) compared to the Semiconductor industry average (34.5x).

PE vs Market: SLAB is poor value based on its PE Ratio (208.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SLAB is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: SLAB is overvalued based on its PB Ratio (4.8x) compared to the US Semiconductor industry average (3.3x).


Next Steps

Future Growth

How is Silicon Laboratories forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

67.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLAB's forecast earnings growth (67.2% per year) is above the savings rate (1.7%).

Earnings vs Market: SLAB's earnings (67.2% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: SLAB's revenue (8.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: SLAB's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SLAB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Silicon Laboratories performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLAB has high quality earnings.

Growing Profit Margin: SLAB's current net profit margins (3%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: SLAB's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: SLAB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SLAB had negative earnings growth (-61.1%) over the past year, making it difficult to compare to the Semiconductor industry average (-15.8%).


Return on Equity

High ROE: SLAB's Return on Equity (2.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Silicon Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: SLAB's short term assets ($895.2M) exceed its short term liabilities ($132.0M).

Long Term Liabilities: SLAB's short term assets ($895.2M) exceed its long term liabilities ($421.4M).


Debt to Equity History and Analysis

Debt Level: SLAB's debt to equity ratio (33.7%) is considered satisfactory.

Reducing Debt: SLAB's debt to equity ratio has increased from 12.2% to 33.7% over the past 5 years.

Debt Coverage: SLAB's debt is well covered by operating cash flow (44.8%).

Interest Coverage: SLAB's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

Inventory Level: SLAB has a low level of unsold assets or inventory.

Debt Coverage by Assets: SLAB's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

What is Silicon Laboratories's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SLAB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Silicon Laboratories's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

G. Tuttle (51yo)

7.8yrs

Tenure

US$6,077,879

Compensation

Mr. G. Tyson Tuttle has been the Chief Executive Officer of Silicon Laboratories Inc. since April 19, 2012 and its President since February 16, 2016. Mr. Tuttle previously served as the President of Silico ...


CEO Compensation Analysis

Compensation vs Market: G.'s total compensation ($USD6.08M) is about average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: G.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.4yrs

Average Tenure

51yo

Average Age

Experienced Management: SLAB's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

56yo

Average Age

Experienced Board: SLAB's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

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 not been meaningfully diluted in the past year.


Management Team

  • John Hollister (49yo)

    Senior VP & CFO

    • Tenure: 6.6yrs
    • Compensation: US$2.48m
  • G. Tuttle (51yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$6.08m
  • Mark Thompson

    Senior VP & GM of Infrastructure

    • Tenure: 4.4yrs
  • Brandon Tolany (45yo)

    Senior Vice President of Worldwide Sales & Marketing

    • Tenure: 4yrs
    • Compensation: US$2.33m
  • Megan Lueders

    Chief Marketing Officer

    • Tenure: 0.3yrs
  • Lori Knowlton

    Chief People Officer & Senior VP

    • Tenure: 3.4yrs
  • Sandeep Kumar (54yo)

    Senior Vice President of Worldwide Operations

    • Tenure: 6.5yrs
    • Compensation: US$1.80m
  • Alessandro Piovaccari (54yo)

    Senior VP & CTO

    • Tenure: 4.9yrs
    • Compensation: US$2.02m
  • Daniel Cooley

    Senior VP & Chief Strategy Officer

    • Tenure: 3.4yrs
  • Jalene Hoover

    Director of IR & International Finance


    Board Members

    • Jack Lazar (54yo)

      Independent Director

      • Tenure: 6.8yrs
      • Compensation: US$239.07k
    • Bill Bock (68yo)

      Director

      • Tenure: 8.5yrs
      • Compensation: US$224.07k
    • Bill Wood (63yo)

      Lead Director

      • Tenure: 14.1yrs
      • Compensation: US$253.07k
    • Nav Sooch (56yo)

      Chairman

      • Tenure: 23.4yrs
      • Compensation: US$287.11k
    • Gregg Lowe (56yo)

      Independent Director

      • Tenure: 2.8yrs
      • Compensation: US$228.07k
    • Sumit Sadana (50yo)

      Independent Director

      • Tenure: 4.8yrs
      • Compensation: US$244.07k
    • G. Tuttle (51yo)

      President

      • Tenure: 7.8yrs
      • Compensation: US$6.08m
    • Christy Wyatt (47yo)

      Independent Director

      • Tenure: 1yrs
    • Nina Richardson (60yo)

      Independent Director

      • Tenure: 4yrs
      • Compensation: US$237.07k

    Company Information

    Silicon Laboratories Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Silicon Laboratories Inc.
    • Ticker: SLAB
    • Exchange: NasdaqGS
    • Founded: 1996
    • Industry: Semiconductors
    • Sector: Semiconductors
    • Market Cap: US$5.181b
    • Shares outstanding: 43.37m
    • Website: https://www.silabs.com

    Number of Employees


    Location

    • Silicon Laboratories Inc.
    • 400 West Cesar Chavez
    • Austin
    • Texas
    • 78701
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    SLABNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2000
    LA5DB (Deutsche Boerse AG)YesCommon StockDEEURMar 2000
    SLAB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 2000

    Biography

    Silicon Laboratories Inc., a fabless semiconductor company, designs, develops, and markets mixed-signal integrated circuits (ICs) in the United States, China, and internationally. The company offers Internet of things products, including 8-bit mixed-signal, 32-bit wireless, and ultra-low-power 32-bit microcontrollers; wireless connectivity devices, such as multiprotocol wireless Gecko system-on-chip devices; real-time operating systems; sensor products comprising optical, relative humidity/temperature, and hall effect magnetic sensors. It also provides infrastructure products, such as timing devices; multi-channel isolators, isolated drivers, isolated power converters, and mixed-signal devices; broadcast products, which include single-chip hybrid TV tuners and analog TV demodulators, as well as AM/FM, HD radio, and DAB/DAB+ receivers; and radio ICs. In addition, the company provides access products comprising ProSLIC subscriber line interface circuits for voice over IP; ISOmodem embedded modems; and Power over Ethernet power source equipment and powered device ICs. It primarily markets its products to Internet of Things, Internet infrastructure, industrial automation, consumer, and automotive markets through direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 23:43
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/28
    Annual Earnings2018/12/29


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.