One-glance verdict
Overvalued
$27.68 our estimate vs market $136.73
Wall Street consensus: $217.07 (684.2% higher than our fair-value estimate)
394% above our estimate, beyond the bull case
Fundamentals snapshot
Semtech Corporation
SMTC · NMS · Technology · Semiconductors
Current price
$136.73
52-week range
$60.28 - $201.99
Market cap
$12.76B
Balance sheet
Watch
8.60x Adequate
Net debt $320.94M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.8% last year.
- Reward Returns 23.7% on equity, ahead of 66% of its peers.
- Risk Stock trades 163.2% above its 5-year average P/E.
- Risk Insider ownership is only 0.8% (peer median: 3.6%).
What this company does
Semtech Corporation
Semtech Corporation makes tiny electronic parts, called semiconductors, and also systems that connect devices for things like the internet of things (IoT) and cloud services. Their money comes from selling these high-tech components and systems to other companies that build electronics, with a big focus on areas like data centers and industrial applications. This matters because these are the building blocks for many modern technologies we use every day.
How the company got here
Semtech Corporation, founded in 1960, has evolved over decades to become a key player in the semiconductor industry. Its journey has been marked by strategic development and adaptation to technological advancements. The company's long history has allowed it to build expertise in creating specialized chips that power various electronic devices and systems. Headquartered in Camarillo, California, Semtech has established a global presence, serving markets across Asia-Pacific, North America, and Europe.
What it actually does
Semtech designs and manufactures a wide range of semiconductor products. These are essentially tiny electronic components, or "chips," that perform specific functions within larger electronic systems. Think of them as the brains or specialized workers inside devices like your smartphone, computer, or even industrial equipment. Semtech's chips are crucial for enabling functions such as data transmission, power management, and connectivity, making everyday technology work seamlessly.
Signal Integrity, Analog Mixed Signal and Wireless
This segment is Semtech's largest, focusing on chips that manage and enhance the quality of electronic signals. These products are vital for high-speed data communication, ensuring that information travels accurately and without errors. They are used in critical infrastructure like data centers and enterprise networks, as well as in wireless base stations. This part of the business is essential for keeping the flow of digital information robust and reliable.
IoT Systems and Connectivity
This segment provides solutions for the "Internet of Things" (IoT), which refers to everyday objects equipped with sensors and software to connect and exchange data over the internet. Semtech offers modules, gateways, and routers that enable these devices to communicate, along with cloud-based services for managing this connectivity. These products are used in industrial, medical, and communication applications, helping to make devices smarter and more interconnected.
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 Q2
$-8.41M
FY2025 Q3
$29.09M
FY2025 Q4
$30.86M
FY2026 Q1
$26.17M
FY2026 Q2
$41.51M
FY2026 Q3
$44.64M
FY2026 Q4
$59.06M
FY2027 Q1
$28.01M
Revenue
$291.02M
Net income
$26.56M
Diluted EPS
0.27
Operating cash flow
$36.18M
Free cash flow
$28.01M
Fetching…
Sources
Revenue
$274.36M
Net income
$-29.80M
Diluted EPS
-0.34
Operating cash flow
$61.49M
Free cash flow
$59.06M
Fetching…
Sources
Revenue
$266.97M
Net income
$-2.86M
Diluted EPS
-0.03
Operating cash flow
$47.46M
Free cash flow
$44.64M
Fetching…
Sources
Revenue
$257.59M
Net income
$-27.06M
Diluted EPS
-0.31
Operating cash flow
$44.40M
Free cash flow
$41.51M
Fetching…
Sources
Revenue
$251.06M
Net income
$19.34M
Diluted EPS
0.22
Operating cash flow
$27.82M
Free cash flow
$26.17M
Fetching…
Sources
Revenue
$251.00M
Net income
$39.14M
Diluted EPS
0.81
Operating cash flow
$33.50M
Free cash flow
$30.86M
Fetching…
Sources
Revenue
$236.82M
Net income
$-7.59M
Diluted EPS
-0.10
Operating cash flow
$29.57M
Free cash flow
$29.09M
Fetching…
Sources
Revenue
$215.35M
Net income
$-170.29M
Diluted EPS
-2.61
Operating cash flow
$-5.00M
Free cash flow
$-8.41M
Fetching…
Sources
Is it cheap or expensive?
Fair value $27.68 vs current price $136.73
Wall Street consensus is the average analyst price target: $217.07 (684.2% higher than our fair-value estimate).
Our most-likely fair value is $27.68 a share — about 79.8% below today's price of $136.73, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $320.9M. Interest coverage 8.6x.
Net debt
$320.94M
Interest coverage
8.60x
Semtech Corporation's profit covers its interest bill about 8.6 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
SMTC
BASELINE
Semtech Corporation
Total debt $524.99M Interest coverage 8.60x This is the baseline the peer rows are being compared against.
Total debt $5.29B Interest coverage 6.61x -23% vs SMTC Carries about 1.3x less debt cushion than SMTC.
Total debt $5.40B Interest coverage 2.46x -71% vs SMTC Carries about 3.5x less debt cushion than SMTC.
Total debt $18.93M Interest coverage 25.00x +191% vs SMTC Carries about 2.9x more debt cushion than SMTC.
Total debt $414.05M Interest coverage 23.50x +173% vs SMTC Carries about 2.7x more debt cushion than SMTC.
What you should know
The case for and against SMTC
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.8% last year.
-
Returns 23.7% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 163.2% above its 5-year average P/E.
-
Insider ownership is only 0.8% (peer median: 3.6%).
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)
90.55x
Forward P/E
20.49x
P/B
17.04x
P/S
10.87x
EV/EBITDA
72.94x
PEG ratio
1.21x
Profitability
How much profit each dollar creates
Gross margin
52.9%
Operating margin
16.2%
Net margin
13.1%
ROE
23.7%
ROA
5.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.70x
Current ratio
1.70x
Quick ratio
0.85x
Total debt
$524.99M
Total cash
$204.05M
Growth
How the business has been compounding
Revenue TTM
$1.09B
Revenue 5Y CAGR
9.1%
EPS TTM
1.51
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$189.53M
Free CF TTM
$171.38M
FCF margin
15.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
1980-09-05