Market Cap
US$4.0b
Last Updated
2021/07/24 02:03 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 solid track record.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: SMTC's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.6%
SMTC
4.4%
US Semiconductor
2.0%
US Market
1 Year Return
18.6%
SMTC
58.0%
US Semiconductor
39.1%
US Market
Return vs Industry: SMTC underperformed the US Semiconductor industry which returned 53.1% over the past year.
Return vs Market: SMTC underperformed the US Market which returned 36.9% over the past year.
Shareholder returns
| SMTC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | 4.4% | 2.0% |
| 30 Day | -4.8% | 2.0% | 2.3% |
| 90 Day | -14.0% | 4.3% | 3.5% |
| 1 Year | 18.6%18.6% | 60.2%58.0% | 41.3%39.1% |
| 3 Year | 25.7%25.7% | 126.6%115.2% | 64.0%53.8% |
| 5 Year | 141.1%141.1% | 294.9%257.7% | 123.8%99.0% |
Long-Term 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
1 week ago | Simply Wall St
Semtech Corporation (NASDAQ:SMTC) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?3 weeks ago | Simply Wall St
Returns Are Gaining Momentum At Semtech (NASDAQ:SMTC)1 month ago | Simply Wall St
Calculating The Fair Value Of Semtech Corporation (NASDAQ:SMTC)Valuation
Is Semtech undervalued compared to its fair value and its price relative to the market?
22.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SMTC ($61.28) is trading below our estimate of fair value ($79.34)
Significantly Below Fair Value: SMTC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SMTC is poor value based on its PE Ratio (54.1x) compared to the US Semiconductor industry average (33.7x).
PE vs Market: SMTC is poor value based on its PE Ratio (54.1x) compared to the US market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: SMTC is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: SMTC is overvalued based on its PB Ratio (5.6x) compared to the US Semiconductor industry average (4.7x).
Future Growth
How is Semtech forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
21.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SMTC's forecast earnings growth (21.4% per year) is above the savings rate (2%).
Earnings vs Market: SMTC's earnings (21.4% per year) are forecast to grow faster than the US market (15.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SMTC's revenue (10.7% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: SMTC's revenue (10.7% 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 SMTC's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Semtech performed over the past 5 years?
5.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SMTC has high quality earnings.
Growing Profit Margin: SMTC's current net profit margins (11.7%) are higher than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: SMTC's earnings have grown by 5.9% per year over the past 5 years.
Accelerating Growth: SMTC's earnings growth over the past year (148.6%) exceeds its 5-year average (5.9% per year).
Earnings vs Industry: SMTC earnings growth over the past year (148.6%) exceeded the Semiconductor industry 51.1%.
Return on Equity
High ROE: SMTC's Return on Equity (10.5%) is considered low.
Financial Health
How is Semtech's financial position?
Financial Position Analysis
Short Term Liabilities: SMTC's short term assets ($461.4M) exceed its short term liabilities ($96.5M).
Long Term Liabilities: SMTC's short term assets ($461.4M) exceed its long term liabilities ($268.6M).
Debt to Equity History and Analysis
Debt Level: SMTC's debt to equity ratio (25.1%) is considered satisfactory.
Reducing Debt: SMTC's debt to equity ratio has reduced from 46.7% to 25.1% over the past 5 years.
Debt Coverage: SMTC's debt is well covered by operating cash flow (71%).
Interest Coverage: SMTC's interest payments on its debt are well covered by EBIT (17.5x coverage).
Balance Sheet
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?
7.5yrs
Average management tenure
CEO
Mohan Maheswaran (57 yo)
15.25yrs
Tenure
US$1,519,953
Compensation
Mr. Mohan R. Maheswaran has been the Chief Executive Officer and President of Semtech Corporation since joining on April 3, 2006. Mr. Maheswaran served as General Manager of Analog Signal Processing Produc...
CEO Compensation Analysis
Compensation vs Market: Mohan's total compensation ($USD1.52M) is below average for companies of similar size in the US market ($USD5.32M).
Compensation vs Earnings: Mohan's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: SMTC's management team is seasoned and experienced (7.5 years average tenure).
Board Members
Experienced Board: SMTC's board of directors are considered experienced (8.3 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$3.979b
- Shares outstanding: 64.93m
- Website: https://www.semtech.com
Number of Employees
Location
- Semtech Corporation
- 200 Flynn Road
- Camarillo
- California
- 93012-8790
- United States
Listings
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 | 2021/07/24 02:03 |
| End of Day Share Price | 2021/07/23 00:00 |
| Earnings | 2021/05/02 |
| Annual Earnings | 2021/01/31 |
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.