NasdaqGS:SMTC

Stock Analysis Report

Executive Summary

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms.

Snowflake

Fundamentals

Flawless balance sheet with reasonable 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


Market Performance


7 Day Return

-2.9%

SMTC

-0.8%

US Semiconductor

-0.2%

US Market


1 Year Return

-17.2%

SMTC

9.4%

US Semiconductor

1.1%

US Market

SMTC underperformed the Semiconductor industry which returned 10.2% over the past year.

SMTC underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

SMTCIndustryMarket
7 Day-2.9%-0.8%-0.2%
30 Day4.8%4.9%2.5%
90 Day2.5%12.0%1.6%
1 Year-17.2%-17.2%11.5%9.4%3.4%1.1%
3 Year72.1%72.1%83.0%72.2%45.2%35.8%
5 Year72.5%72.5%123.0%100.4%62.6%44.8%

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

4 weeks ago | Simply Wall St

Should You Buy Semtech Corporation (NASDAQ:SMTC) When Prices Drop?

Valuation

Is Semtech undervalued based on future cash flows and its price relative to the stock market?

70.97x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Semtech's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Semtech's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Semtech is overvalued based on earnings compared to the US Semiconductor industry average.

Semtech is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Semtech is poor value based on expected growth next year.


Price Based on Value of Assets

Semtech is overvalued based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is Semtech expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

43.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Semtech's revenue is expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

Semtech's earnings are expected to grow significantly at over 20% yearly.

Semtech's revenue growth is expected to exceed the United States of America market average.

Semtech's earnings growth is expected to exceed the United States of America market average.

Semtech's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Semtech is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Semtech performed over the past 5 years?

56.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Semtech has delivered over 20% year on year earnings growth in the past 5 years.

Semtech's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Semtech's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.


Return on Equity

Semtech has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Semtech used its assets less efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Semtech has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Semtech's financial position?


Financial Position Analysis

Semtech is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Semtech's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Semtech's level of debt (29.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (46.3% vs 29.3% today).

Debt is well covered by operating cash flow (69%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.2x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Semtech's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Semtech's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Semtech has not reported any payouts.

Unable to verify if Semtech's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Semtech has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Mohan Maheswaran (55yo)

13.4yrs

Tenure

US$6,170,479

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

Mohan's remuneration is about average for companies of similar size in United States of America.

Mohan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.7yrs

Average Tenure

59yo

Average Age

The average tenure for the Semtech management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.3yrs

Average Tenure

65.5yo

Average Age

The tenure for the Semtech board of directors is about average.


Insider Trading

Semtech individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$300,41012 Sep 19
Sylvia D. Couder
EntityIndividual
Shares6,487
Max PriceUS$46.31
SellUS$418,93312 Sep 19
Mark Costello
EntityIndividual
Shares8,951
Max PriceUS$46.80
SellUS$195,34612 Jul 19
Sharon Faltemier
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares4,000
Max PriceUS$48.84
SellUS$74,07012 Jul 19
Alistair Fulton
EntityIndividual
Shares1,500
Max PriceUS$49.38
SellUS$240,00210 Jul 19
J. Wilson
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Quality Officer
Shares5,000
Max PriceUS$48.00
SellUS$75,20002 Jul 19
Rockell Hankin
EntityIndividual
Role
Chairman of the Board
Chairman of The Board
Shares1,487
Max PriceUS$50.57
SellUS$970,40228 Jun 19
Charles Ammann
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares20,000
Max PriceUS$48.52
SellUS$1,001,28225 Jun 19
Emeka Chukwu
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares22,000
Max PriceUS$45.51
SellUS$547,65919 Jun 19
Mark Costello
EntityIndividual
Shares12,046
Max PriceUS$45.46
SellUS$106,50512 Apr 19
Mark Costello
EntityIndividual
Shares2,000
Max PriceUS$53.25
SellUS$531,34912 Apr 19
James Kim
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales
Shares10,000
Max PriceUS$53.13
SellUS$53,19012 Apr 19
Asaf Silberstein
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Worldwide Operations & Information Technology
Shares1,000
Max PriceUS$53.19
SellUS$26,39211 Apr 19
Alistair Fulton
EntityIndividual
Shares500
Max PriceUS$52.78
SellUS$368,70008 Apr 19
J. Wilson
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Quality Officer
Shares7,000
Max PriceUS$52.67
SellUS$2,641,49526 Mar 19
Mohan Maheswaran
EntityIndividual
Role
Chief Executive Officer
President
Shares50,000
Max PriceUS$52.83
SellUS$1,312,07325 Mar 19
Mohan Maheswaran
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceUS$52.48
SellUS$278,87522 Mar 19
Asaf Silberstein
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Worldwide Operations & Information Technology
Shares5,000
Max PriceUS$56.00
SellUS$126,06722 Mar 19
Sylvia D. Couder
EntityIndividual
Shares2,257
Max PriceUS$55.86
SellUS$137,50021 Mar 19
Asaf Silberstein
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Worldwide Operations & Information Technology
Shares2,500
Max PriceUS$55.00
SellUS$2,094,10919 Mar 19
Gary Beauchamp
EntityIndividual
Shares38,367
Max PriceUS$54.88
SellUS$263,06819 Mar 19
Christopher Chang
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Corporate Marketing & Business Development
Shares4,838
Max PriceUS$54.38
SellUS$1,006,67119 Mar 19
Mark Costello
EntityIndividual
Shares18,609
Max PriceUS$54.10
SellUS$208,77111 Jan 19
Asaf Silberstein
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Worldwide Operations & Information Technology
Shares4,000
Max PriceUS$52.75
SellUS$201,70010 Jan 19
Asaf Silberstein
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Worldwide Operations & Information Technology
Shares4,000
Max PriceUS$50.43
SellUS$500,36710 Jan 19
Rockell Hankin
EntityIndividual
Role
Chairman of the Board
Chairman of The Board
Shares10,000
Max PriceUS$50.04
SellUS$227,61102 Jan 19
J. Wilson
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Quality Officer
Shares5,000
Max PriceUS$45.52
SellUS$157,46104 Dec 18
Ye Li
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$52.49

Ownership Breakdown


Management Team

  • Mohan Maheswaran (55yo)

    President

    • Tenure: 13.4yrs
    • Compensation: US$6.17m
  • Chuck Ammann (64yo)

    Executive VP

    • Tenure: 5.7yrs
    • Compensation: US$1.48m
  • Mike Wilson (63yo)

    Executive VP & Chief Quality Officer

    • Tenure: 12.3yrs
    • Compensation: US$675.84k
  • Sandy Harrison

    Director of Investor Relations

    • Tenure: 0yrs
  • Sharon Faltemier (63yo)

    Senior Vice President of Human Resources

    • Tenure: 5.6yrs
  • Emeka Chukwu (56yo)

    Executive VP & CFO

    • Tenure: 12.8yrs
    • Compensation: US$2.06m
  • James Kim (62yo)

    Executive Vice President of Worldwide Sales

    • Tenure: 9.8yrs
    • Compensation: US$1.79m
  • Asaf Silberstein (49yo)

    Executive Vice President of Worldwide Operations & Information Technology

    • Tenure: 2.8yrs
    • Compensation: US$1.62m
  • Chris Chang (51yo)

    Senior Vice President of Corporate Marketing & Business Development

    • Tenure: 1.7yrs
    • Compensation: US$1.76m
  • Nicolas Sornin

    CTO & VP of Architect

    • Tenure: 0.7yrs

Board Members

  • Bruce Edwards (65yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$214.95k
  • Rockell Hankin (72yo)

    Chairman of The Board

    • Tenure: 13.1yrs
    • Compensation: US$254.95k
  • James Burra (76yo)

    Vice Chairman

    • Tenure: 12.3yrs
    • Compensation: US$209.95k
  • Carm Santoro (77yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$204.95k
  • Mohan Maheswaran (55yo)

    President

    • Tenure: 13.4yrs
    • Compensation: US$6.17m
  • Jim Lindstrom (73yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$214.95k
  • Saar Gillai (53yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$139.78k
  • Rodolpho Cardenuto (59yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$139.78k
  • Jane Li (51yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$204.95k
  • Sylvia Summers (66yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$209.95k

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$3.158b
  • Shares outstanding: 66.53m
  • Website: https://www.semtech.com

Number of Employees


Location

  • Semtech Corporation
  • 200 Flynn Road
  • Camarillo
  • California
  • 93012
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMTCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1972
SM2DB (Deutsche Boerse AG)YesCommon StockDEEURAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:18
End of Day Share Price2019/09/19 00:00
Earnings2019/07/28
Annual Earnings2019/01/27


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.