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SMTC

Semtech NasdaqGS:SMTC Stock Report

Last Price

US$29.46

Market Cap

US$1.9b

7D

-7.1%

1Y

-63.9%

Updated

26 Sep, 2022

Data

Company Financials +
SMTC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends0/6

SMTC Stock Overview

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

Semtech Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Semtech
Historical stock prices
Current Share PriceUS$29.46
52 Week HighUS$94.92
52 Week LowUS$29.19
Beta1.59
1 Month Change-39.87%
3 Month Change-46.99%
1 Year Change-63.94%
3 Year Change-39.40%
5 Year Change-22.88%
Change since IPO12,469.60%

Recent News & Updates

Shareholder Returns

SMTCUS SemiconductorUS Market
7D-7.1%-6.0%-5.2%
1Y-63.9%-29.7%-23.0%

Return vs Industry: SMTC underperformed the US Semiconductor industry which returned -29.7% over the past year.

Return vs Market: SMTC underperformed the US Market which returned -23% over the past year.

Price Volatility

Is SMTC's price volatile compared to industry and market?
SMTC volatility
SMTC Average Weekly Movement9.7%
Semiconductor Industry Average Movement8.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: SMTC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SMTC's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19601,439Mohan Maheswaranhttps://www.semtech.com

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company also offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and wireless and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products used in industrial and consumer applications.

Semtech Fundamentals Summary

How do Semtech's earnings and revenue compare to its market cap?
SMTC fundamental statistics
Market CapUS$1.87b
Earnings (TTM)US$158.88m
Revenue (TTM)US$796.89m

11.8x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMTC income statement (TTM)
RevenueUS$796.89m
Cost of RevenueUS$285.03m
Gross ProfitUS$511.86m
Other ExpensesUS$352.98m
EarningsUS$158.88m

Last Reported Earnings

Jul 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.50
Gross Margin64.23%
Net Profit Margin19.94%
Debt/Equity Ratio21.5%

How did SMTC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SMTC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SMTC?

Other financial metrics that can be useful for relative valuation.

SMTC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA8.3x
PEG Ratio-27.3x

Price to Earnings Ratio vs Peers

How does SMTC's PE Ratio compare to its peers?

SMTC PE Ratio vs Peers
The above table shows the PE ratio for SMTC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.4x
CSIQ Canadian Solar
16.2x40.6%US$2.3b
DIOD Diodes
10x3.8%US$2.9b
SIMO Silicon Motion Technology
10.4x15.2%US$2.3b
MTSI MACOM Technology Solutions Holdings
16.8x-33.5%US$3.7b
SMTC Semtech
11.8x-0.4%US$1.9b

Price-To-Earnings vs Peers: SMTC is good value based on its Price-To-Earnings Ratio (11.8x) compared to the peer average (13.4x).


Price to Earnings Ratio vs Industry

How does SMTC's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Earnings vs Industry: SMTC is good value based on its Price-To-Earnings Ratio (11.8x) compared to the US Semiconductor industry average (15.5x)


Price to Earnings Ratio vs Fair Ratio

What is SMTC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SMTC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.8x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: SMTC is good value based on its Price-To-Earnings Ratio (11.8x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).


Share Price vs Fair Value

What is the Fair Price of SMTC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SMTC ($29.46) is trading below our estimate of fair value ($114.36)

Significantly Below Fair Value: SMTC is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Semtech forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-0.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMTC's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: SMTC's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: SMTC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SMTC's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: SMTC's revenue is forecast to decline over the next 3 years (-0.7% 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


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Past Performance

How has Semtech performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


25.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SMTC has high quality earnings.

Growing Profit Margin: SMTC's current net profit margins (19.9%) are higher than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: SMTC's earnings have grown significantly by 25% per year over the past 5 years.

Accelerating Growth: SMTC's earnings growth over the past year (75.8%) exceeds its 5-year average (25% per year).

Earnings vs Industry: SMTC earnings growth over the past year (75.8%) exceeded the Semiconductor industry 54.4%.


Return on Equity

High ROE: SMTC's Return on Equity (19.9%) is considered low.


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Financial Health

How is Semtech's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SMTC's short term assets ($577.1M) exceed its short term liabilities ($140.1M).

Long Term Liabilities: SMTC's short term assets ($577.1M) exceed its long term liabilities ($260.7M).


Debt to Equity History and Analysis

Debt Level: SMTC has more cash than its total debt.

Reducing Debt: SMTC's debt to equity ratio has reduced from 36.5% to 21.5% over the past 5 years.

Debt Coverage: SMTC's debt is well covered by operating cash flow (142.4%).

Interest Coverage: SMTC's interest payments on its debt are well covered by EBIT (33.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SMTC has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Mohan Maheswaran (58 yo)

16.42yrs

Tenure

US$1,667,178

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 Maheswaran's Compensation vs Semtech Earnings
How has Mohan Maheswaran's remuneration changed compared to Semtech's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 31 2022n/an/a

US$159m

May 01 2022n/an/a

US$140m

Jan 30 2022US$2mUS$676k

US$126m

Oct 31 2021n/an/a

US$107m

Aug 01 2021n/an/a

US$91m

May 02 2021n/an/a

US$74m

Jan 31 2021US$2mUS$647k

US$60m

Oct 25 2020n/an/a

US$47m

Jul 26 2020n/an/a

US$43m

Apr 26 2020n/an/a

US$29m

Jan 26 2020US$26mUS$620k

US$32m

Oct 27 2019n/an/a

US$49m

Jul 28 2019n/an/a

US$47m

Apr 28 2019n/an/a

US$70m

Jan 27 2019US$6mUS$618k

US$70m

Oct 28 2018n/an/a

US$48m

Jul 29 2018n/an/a

US$50m

Apr 29 2018n/an/a

US$37m

Jan 28 2018US$6mUS$600k

US$35m

Oct 29 2017n/an/a

US$46m

Jul 30 2017n/an/a

US$63m

Apr 30 2017n/an/a

US$60m

Jan 29 2017US$5mUS$599k

US$55m

Oct 30 2016n/an/a

US$48m

Jul 31 2016n/an/a

US$28m

May 01 2016n/an/a

US$19m

Jan 31 2016US$4mUS$599k

US$11m

Compensation vs Market: Mohan's total compensation ($USD1.67M) is below average for companies of similar size in the US market ($USD5.62M).

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 (5.8 years average tenure).


Board Members

Experienced Board: SMTC's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqGS:SMTC Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
07 Jun 22SellUS$123,385Asaf SilbersteinIndividual1,971US$62.60
07 Apr 22SellUS$560,521J. WilsonIndividual9,000US$62.28
28 Mar 22SellUS$137,642Christopher ChangIndividual1,950US$70.59
24 Mar 22SellUS$1,753,367Mohan MaheswaranIndividual25,000US$70.63
14 Jan 22SellUS$80,500Asaf SilbersteinIndividual1,000US$80.50
13 Jan 22SellUS$98,200Alistair FultonIndividual1,200US$81.83
21 Dec 21SellUS$102,000Alistair FultonIndividual1,200US$85.00
15 Dec 21SellUS$88,000Asaf SilbersteinIndividual1,000US$88.00
08 Dec 21SellUS$3,579,390Mohan MaheswaranIndividual40,000US$90.35
06 Dec 21SellUS$369,706Norris PowellIndividual4,291US$86.16
13 Oct 21SellUS$102,078Alistair FultonIndividual1,350US$75.61
08 Oct 21SellUS$69,892Emeka ChukwuIndividual890US$78.53

Ownership Breakdown

What is the ownership structure of SMTC?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders881,6701.4%
Institutions63,015,40298.6%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 64.97% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.66%
BlackRock, Inc.
7,404,657$218.1m3.41%0.01%
10.11%
The Vanguard Group, Inc.
6,424,285$189.3m-0.87%no data
4.01%
BNY Mellon Asset Management
2,549,639$75.1m-10.73%0.02%
3.97%
State Street Global Advisors, Inc.
2,519,127$74.2m-2.63%no data
2.68%
FMR LLC
1,703,828$50.2m-24.43%no data
2.47%
Millennium Management LLC
1,570,223$46.3m-0.38%0.06%
2.06%
Fisher Asset Management, LLC
1,305,814$38.5m2.25%0.03%
2.04%
T. Rowe Price Group, Inc.
1,297,181$38.2m-0.71%no data
2.02%
Geode Capital Management, LLC
1,280,776$37.7m7.12%no data
1.97%
Macquarie Investment Management Business Trust
1,251,537$36.9m27.14%0.04%
1.94%
Franklin Resources, Inc.
1,232,544$36.3m-0.06%0.02%
1.88%
AllianceBernstein L.P.
1,194,157$35.2m-13.6%0.01%
1.84%
Invesco Ltd.
1,170,385$34.5m-43.67%0.01%
1.75%
Dimensional Fund Advisors LP
1,111,286$32.7m0.27%0.01%
1.73%
J.P. Morgan Asset Management, Inc.
1,095,706$32.3m1.72%0.01%
1.66%
Schroder Investment Management North America Inc.
1,052,270$31.0m1.53%0.11%
1.61%
Lord, Abbett & Co. LLC
1,020,484$30.1m-11.42%0.11%
1.48%
Stephens Investment Management Group, LLC
939,595$27.7m-14.03%0.53%
1.32%
Northern Trust Global Investments
841,135$24.8m-4.17%0.01%
1.25%
Silvercrest Asset Management Group LLC
791,123$23.3m28.25%0.18%
1.17%
Rice Hall James & Associates, LLC
743,203$21.9m-4.94%1.1%
1.17%
Assenagon Asset Management S.A.
740,378$21.8m32.52%0.08%
1.1%
Capital Research and Management Company
700,000$20.6m0%no data
1.1%
Fuller & Thaler Asset Management, Inc.
699,235$20.6m0%0.15%
0.99%
Palisade Capital Management LLC
630,187$18.6m1.1%0.65%

Company Information

Semtech Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Semtech Corporation
  • Ticker: SMTC
  • Exchange: NasdaqGS
  • Founded: 1960
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: US$1.871b
  • Shares outstanding: 63.52m
  • Website: https://www.semtech.com

Number of Employees


Location

  • Semtech Corporation
  • 200 Flynn Road
  • Camarillo
  • California
  • 93012-8790
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMTCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1972
SM2DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1972
SMTC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 1972

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/26 00:00
End of Day Share Price2022/09/26 00:00
Earnings2022/07/31
Annual Earnings2022/01/30


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.