Market Cap
US$3.3b
Last Updated
2020/09/28 04:53 UTC
Data Sources
Company Financials +
Executive Summary
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with high growth potential.
Similar Companies
Share Price & News
How has Semtech's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SMTC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.1%
SMTC
1.8%
US Semiconductor
-0.8%
US Market
1 Year Return
5.4%
SMTC
41.5%
US Semiconductor
13.8%
US Market
Return vs Industry: SMTC underperformed the US Semiconductor industry which returned 41.5% over the past year.
Return vs Market: SMTC underperformed the US Market which returned 13.8% over the past year.
Shareholder returns
| SMTC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.1% | 1.8% | -0.8% |
| 30 Day | -14.2% | -3.2% | -5.7% |
| 90 Day | -1.9% | 12.4% | 8.6% |
| 1 Year | 5.4%5.4% | 44.2%41.5% | 16.4%13.8% |
| 3 Year | 34.1%34.1% | 80.9%71.4% | 36.9%27.8% |
| 5 Year | 226.5%226.5% | 240.4%206.9% | 85.0%64.2% |
Price Volatility Vs. Market
How volatile is Semtech's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Market Participants Recognise Semtech Corporation's (NASDAQ:SMTC) Earnings3 weeks ago | Simply Wall St
This Insider Has Just Sold Shares In Semtech Corporation (NASDAQ:SMTC)3 weeks ago | Simply Wall St
Is Semtech (NASDAQ:SMTC) A Risky Investment?Valuation
Is Semtech undervalued compared to its fair value and its price relative to the market?
78.92x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SMTC ($51.23) is trading above our estimate of fair value ($43.37)
Significantly Below Fair Value: SMTC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SMTC is poor value based on its PE Ratio (78.9x) compared to the US Semiconductor industry average (34.2x).
PE vs Market: SMTC is poor value based on its PE Ratio (78.9x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
PEG Ratio: SMTC is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: SMTC is overvalued based on its PB Ratio (4.9x) compared to the US Semiconductor industry average (3.1x).
Next Steps
Future Growth
How is Semtech forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
36.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SMTC's forecast earnings growth (36.3% per year) is above the savings rate (2.2%).
Earnings vs Market: SMTC's earnings (36.3% per year) are forecast to grow faster than the US market (22.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SMTC's revenue (10.8% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: SMTC's revenue (10.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SMTC's Return on Equity is forecast to be high in 3 years time (21.9%)
Next Steps
Past Performance
How has Semtech performed over the past 5 years?
17.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SMTC has high quality earnings.
Growing Profit Margin: SMTC's current net profit margins (7.7%) are lower than last year (7.8%).
Past Earnings Growth Analysis
Earnings Trend: SMTC's earnings have grown by 17.2% per year over the past 5 years.
Accelerating Growth: SMTC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SMTC had negative earnings growth (-9.7%) over the past year, making it difficult to compare to the Semiconductor industry average (7.5%).
Return on Equity
High ROE: SMTC's Return on Equity (6.3%) is considered low.
Next Steps
Financial Health
How is Semtech's financial position?
Financial Position Analysis
Short Term Liabilities: SMTC's short term assets ($453.9M) exceed its short term liabilities ($102.1M).
Long Term Liabilities: SMTC's short term assets ($453.9M) exceed its long term liabilities ($274.2M).
Debt to Equity History and Analysis
Debt Level: SMTC's debt to equity ratio (27.9%) is considered satisfactory.
Reducing Debt: SMTC's debt to equity ratio has reduced from 54.5% to 27.9% over the past 5 years.
Debt Coverage: SMTC's debt is well covered by operating cash flow (75.1%).
Interest Coverage: SMTC's interest payments on its debt are well covered by EBIT (9.1x coverage).
Balance Sheet
Next Steps
Dividend
What is Semtech current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SMTC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SMTC'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 SMTC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SMTC'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 SMTC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.7yrs
Average management tenure
CEO
Mohan Maheswaran (56 yo)
14.42yrs
Tenure
US$26,095,955
Compensation
Mr. Mohan R. Maheswaran has been the Chief Executive Officer and President of Semtech Corporation since joining on April 3, 2006. Mr. Maheswaran served as General Manager of Analog Signal Processing Produc ...
CEO Compensation Analysis
Compensation vs Market: Mohan's total compensation ($USD26.10M) is above average for companies of similar size in the US market ($USD5.75M).
Compensation vs Earnings: Mohan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 14.42yrs | US$26.10m | 0.21% $ 7.1m | |
| Executive VP & CFO | 13.83yrs | US$2.41m | 0.16% $ 5.3m | |
| Executive Vice President of Worldwide Operations & Information Technology | 3.83yrs | US$2.28m | 0.082% $ 2.7m | |
| Executive VP | 6.67yrs | US$1.84m | 0% $ 0 | |
| Executive VP & GM of Signal Integrity Products Group | 8.5yrs | US$1.92m | 0.015% $ 493.3k | |
| CTO & VP of Architect | 1.67yrs | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| Senior Vice President of Human Resources | 6.58yrs | no data | 0.048% $ 1.6m | |
| Executive VP & Chief Quality Officer | 13.25yrs | US$675.84k | 0.13% $ 4.4m | |
| Senior Vice President of Corporate Marketing & Asia Pacific Sales | 2.67yrs | US$1.76m | 0.0097% $ 324.4k |
6.7yrs
Average Tenure
58.5yo
Average Age
Experienced Management: SMTC's management team is seasoned and experienced (6.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 14.42yrs | US$26.10m | 0.21% $ 7.1m | |
| Independent Director | 13.92yrs | US$214.93k | 0.095% $ 3.2m | |
| Independent Chairman of the Board | 14.08yrs | US$254.93k | 0.21% $ 7.0m | |
| Independent Vice Chairman | 13.25yrs | US$209.93k | 0.10% $ 3.4m | |
| Independent Director | 17.75yrs | US$214.93k | 0.035% $ 1.2m | |
| Independent Director | 2yrs | US$204.93k | 0.0035% $ 118.2k | |
| Independent Director | 2yrs | US$204.93k | 0.0035% $ 118.2k | |
| Independent Director | 4.58yrs | US$204.93k | 0.0080% $ 266.4k | |
| Independent Director | 7.42yrs | US$209.93k | 0.056% $ 1.9m |
13.3yrs
Average Tenure
66yo
Average Age
Experienced Board: SMTC's board of directors are seasoned and experienced ( 13.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SMTC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Semtech Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Semtech Corporation
- Ticker: SMTC
- Exchange: NasdaqGS
- Founded: 1960
- Industry: Semiconductors
- Sector: Semiconductors
- Market Cap: US$3.338b
- Shares outstanding: 65.16m
- Website: https://www.semtech.com
Number of Employees
Location
- Semtech Corporation
- 200 Flynn Road
- Camarillo
- California
- 93012-8790
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SMTC | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Aug 1972 |
| SM2 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 1972 |
| SMTC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Aug 1972 |
Biography
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. The company provides signal integrity products, including a portfoli ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/28 04:53 |
| End of Day Share Price | 2020/09/25 00:00 |
| Earnings | 2020/07/26 |
| Annual Earnings | 2020/01/26 |
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.