One-glance verdict
Overvalued
$59.81 our estimate vs market $221.00
Wall Street consensus: $222.86 (272.6% higher than our fair-value estimate)
270% above our estimate, beyond the bull case
Fundamentals snapshot
Silicon Laboratories Inc.
SLAB · NMS · Technology · Semiconductors
Current price
$221.00
52-week range
$115.51 - $223.50
Market cap
$7.37B
Balance sheet
Healthy
-72.35x Concerning
Net cash $397.24M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 9.1% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Operating margin compressed from 11.6% to -4.7% over 3 years.
- Risk Return on equity was -3.6% last year — the company lost money on shareholders' equity.
What this company does
Silicon Laboratories Inc.
Silicon Labs designs the specialized computer chips that allow everyday devices, from smart home gadgets to factory equipment, to connect to the internet. The company makes its money selling these chips for the growing "Internet of Things" market, meaning it benefits as more physical products become "smart" and connected. Because it is a fabless company (a business that designs chips but pays other factories to build them), it can focus on creating new technology rather than on costly manufacturing.
How the company got here
Founded in 1996, Silicon Labs started by creating smaller, more efficient components for modems and mobile phones. A key turning point was the decision in 2012 to focus heavily on the growing "Internet of Things" (IoT) market, which refers to connecting everyday objects to the internet. To sharpen this focus, the company sold its division that made parts for infrastructure and automobiles in 2021 for $2.75 billion. This move established Silicon Labs as a company purely dedicated to wireless technology for connected devices.
What it actually does
Silicon Labs designs and sells tiny, powerful chips and the software that makes them work. Think of them as the brains and communication tools inside smart devices like home security cameras, smart lightbulbs, medical monitors, and factory sensors. They are a "fabless" semiconductor company, which means they design the chips but hire other companies, called foundries, to do the actual manufacturing. Their products are designed to be very low-power, allowing devices to run for a long time on small batteries.
Industrial & Commercial
This is the company's largest business area, making up more than half of its sales. It provides the wireless technology for smart devices used in businesses and public spaces. For example, their chips are in smart electric meters that report usage automatically, electronic price tags in stores, and systems that control lighting and climate in large commercial buildings. Companies in manufacturing, retail, and energy pay Silicon Labs for these components to make their own operations smarter and more efficient.
Home & Life
This segment provides the wireless chips for the growing number of smart devices you might use in your daily life. This includes products for smart homes, such as connected security systems, smart speakers, and automated lighting, as well as wearable health and fitness trackers. For instance, a company making a smart door lock or a glucose monitor would buy chips from Silicon Labs to enable that device to communicate wirelessly. This part of the business is a significant contributor to the company's overall revenue.
What management is betting on now
The company is focused on being the leader in wireless technology for the Internet of Things (IoT). They are investing heavily in creating a single, integrated platform of hardware and software that makes it easier and faster for developers to create new connected devices. A key part of this strategy is supporting a wide range of wireless communication methods, like Wi-Fi, Bluetooth, and others, so their chips can be used in almost any smart device. In early 2026, it was announced that Texas Instruments intends to acquire Silicon Labs, a move aimed at combining strengths to become a global leader in wireless connectivity.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$29.42M
FY2025 Q4
$6.17M
FY2026 Q1
$43.28M
FY2026 Q2
$-3.79M
FY2026 Q3
$27.93M
FY2026 Q4
$-1.63M
FY2027 Q1
$-4.90M
FY2027 Q2
$-26.83M
Revenue
$228.19M
Net income
$-10.59M
Diluted EPS
-0.32
Operating cash flow
$-14.51M
Free cash flow
$-26.83M
Fetching…
Sources
Revenue
$213.50M
Net income
$-15.90M
Diluted EPS
-0.48
Operating cash flow
$4.93M
Free cash flow
$-4.90M
Fetching…
Sources
Revenue
$208.21M
Net income
$-2.68M
Diluted EPS
-0.07
Operating cash flow
$8.35M
Free cash flow
$-1.63M
Fetching…
Sources
Revenue
$206.00M
Net income
$-9.94M
Diluted EPS
-0.30
Operating cash flow
$34.32M
Free cash flow
$27.93M
Fetching…
Sources
Revenue
$192.84M
Net income
$-21.82M
Diluted EPS
-0.67
Operating cash flow
$4.91M
Free cash flow
$-3.79M
Fetching…
Sources
Revenue
$177.71M
Net income
$-30.47M
Diluted EPS
-0.94
Operating cash flow
$48.13M
Free cash flow
$43.28M
Fetching…
Sources
Revenue
$166.25M
Net income
$-191.01M
Diluted EPS
-0.72
Operating cash flow
$10.13M
Free cash flow
$6.17M
Fetching…
Sources
Revenue
$166.40M
Net income
$-28.50M
Diluted EPS
-0.88
Operating cash flow
$31.63M
Free cash flow
$29.42M
Fetching…
Sources
Is it cheap or expensive?
Fair value $59.81 vs current price $221.00
Wall Street consensus is the average analyst price target: $222.86 (272.6% higher than our fair-value estimate).
Our most-likely fair value is $59.81 a share — about 72.9% below today's price of $221.00, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $397.2M - more cash than debt. Interest coverage -72.3x.
Net debt
$-397.24M
Interest coverage
-72.35x
Silicon Laboratories Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
SLAB
BASELINE
Silicon Laboratories Inc.
Total debt $0.00 Interest coverage -72.35x This is the baseline the peer rows are being compared against.
Total debt $10.98B Interest coverage 6.51x This peer still has a real interest-payment cushion, while SLAB does not.
Total debt $5.40B Interest coverage 2.46x This peer still has a real interest-payment cushion, while SLAB does not.
Total debt $681.10M Interest coverage 19.34x This peer still has a real interest-payment cushion, while SLAB does not.
Total debt $1.55B Interest coverage 6.75x This peer still has a real interest-payment cushion, while SLAB does not.
Total debt $130.46M Interest coverage 512.67x This peer still has a real interest-payment cushion, while SLAB does not.
What you should know
The case for and against SLAB
2 Rewards
2 Risks
Rewards
-
Revenue grew 9.1% last year.
-
Free cash flow was positive in 8/10 years.
Risks
-
Operating margin compressed from 11.6% to -4.7% over 3 years.
-
Return on equity was -3.6% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
50.67x
P/B
6.74x
P/S
8.62x
EV/EBITDA
-699.22x
PEG ratio
3.12x
Profitability
How much profit each dollar creates
Gross margin
60.6%
Operating margin
-4.7%
Net margin
-4.6%
ROE
-3.6%
ROA
-2.2%
Health
Liquidity and balance-sheet strength
Debt / equity
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Current ratio
5.41x
Quick ratio
3.84x
Total debt
$0.00
Total cash
$397.24M
Growth
How the business has been compounding
Revenue TTM
$855.89M
Revenue 5Y CAGR
2.1%
EPS TTM
-1.17
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$33.09M
Free CF TTM
$65.79M
FCF margin
7.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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