One-glance verdict
Overvalued
$1.47 our estimate vs market $6.73
Wall Street consensus: $14.33 (876.1% higher than our fair-value estimate)
358% above our estimate, beyond the bull case
Fundamentals snapshot
Silvaco Group, Inc.
SVCO · NMS · Technology · Software - Application
Current price
$6.73
52-week range
$3.07 - $14.39
Market cap
$228.05M
Balance sheet
Healthy
-47.10x Concerning
Net cash $7.93M. 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 11.2% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -27.0% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -2.8% to -17.3% over 3 years.
What this company does
Silvaco Group, Inc.
Silvaco Group, Inc. sells specialized computer software that helps companies design and manufacture computer chips. Their main income comes from selling these software tools and also licenses for designs that chips use, which matters because it helps make more advanced electronics possible. The company's recurring revenue (money that comes in regularly from subscriptions or ongoing services) is a key part of its financial stability.
How the company got here
Silvaco Group, Inc. was founded in 1984 by Dr. Ivan Pesic. For decades, it operated as a privately held company, focusing on developing software for the semiconductor industry. A significant turning point was its initial public offering (IPO) in May 2024, when it began trading on the Nasdaq stock exchange under the ticker SVCO. This transition to a public company marked a new phase of growth and visibility. Over the years, Silvaco has grown through strategic acquisitions, integrating companies that expanded its technological capabilities and product offerings in areas like logic simulation and power integrity analysis.
What it actually does
Silvaco provides specialized software and intellectual property (IP) solutions that help engineers design and manufacture semiconductor chips. Think of it like providing the advanced blueprints and simulation tools for building the tiny, complex brains inside electronic devices. Their technology is used by companies that make everything from smartphones and cars to high-performance computers and the infrastructure for 5G mobile networks. Essentially, Silvaco's tools help ensure that chip designs work correctly and can be manufactured efficiently.
AI-Driven Manufacturing
This part of Silvaco's business focuses on the "how" of making chips. It includes Technology Computer-Aided Design (TCAD) software, which is used to model and optimize the complex manufacturing processes involved in creating semiconductor devices. This helps companies predict how changes in manufacturing will affect the final chip's performance before they even produce a physical chip. It's like a virtual factory that lets engineers test and refine their production methods to get the best possible results, reducing waste and speeding up development.
AI-Driven Design
This segment of Silvaco's business is all about the "what" of chip design. It encompasses Electronic Design Automation (EDA) software, which engineers use to design and simulate the actual circuits within a chip. This includes tools for circuit simulation, analog and custom integrated circuit (IC) design. Additionally, this unit offers Semiconductor Intellectual Property (SIP) – pre-designed, verified blocks of circuitry that companies can license and integrate into their own chip designs, saving them time and resources. This is akin to using pre-fabricated components in construction instead of building everything from scratch.
What management is betting on now
Silvaco's management is focused on leveraging artificial intelligence (AI) to enhance its software offerings and drive innovation in semiconductor design and manufacturing. They are investing in strategic partnerships and acquisitions to expand their technological reach and market presence. A key priority is integrating AI into their tools to accelerate design cycles and improve the accuracy of simulations, helping customers develop more advanced chips faster. The company is also emphasizing its role in enabling "digital twin" workflows, which create virtual replicas of physical processes for better analysis and optimization.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-9.27M
FY2025 Q1
$-1.23M
FY2025 Q2
$-15.60M
FY2025 Q3
$-8.18M
FY2025 Q4
$-9.51M
FY2026 Q1
$-11.02M
FY2026 Q2
$-5.52M
FY2026 Q3
$-781.00K
Revenue
$16.29M
Net income
$-4.59M
Diluted EPS
-0.14
Operating cash flow
$-774.00K
Free cash flow
$-781.00K
Fetching…
Sources
Revenue
$17.81M
Net income
$-3.68M
Diluted EPS
-0.11
Operating cash flow
$-5.50M
Free cash flow
$-5.52M
Fetching…
Sources
Revenue
$17.75M
Net income
$-5.86M
Diluted EPS
-0.19
Operating cash flow
$-11.02M
Free cash flow
$-11.02M
Fetching…
Sources
Revenue
$18.25M
Net income
$-7.22M
Diluted EPS
-0.22
Operating cash flow
$-9.48M
Free cash flow
$-9.51M
Fetching…
Sources
Revenue
$18.67M
Net income
$-5.30M
Diluted EPS
-0.18
Operating cash flow
$-7.82M
Free cash flow
$-8.18M
Fetching…
Sources
Revenue
$12.05M
Net income
$-9.41M
Diluted EPS
-0.32
Operating cash flow
$-15.48M
Free cash flow
$-15.60M
Fetching…
Sources
Revenue
$14.09M
Net income
$-19.27M
Diluted EPS
-0.67
Operating cash flow
$-1.14M
Free cash flow
$-1.23M
Fetching…
Sources
Revenue
$17.86M
Net income
$4.16M
Diluted EPS
0.18
Operating cash flow
$-9.11M
Free cash flow
$-9.27M
Fetching…
Sources
Is it cheap or expensive?
Fair value $1.47 vs current price $6.73
Wall Street consensus is the average analyst price target: $14.33 (876.1% higher than our fair-value estimate).
Our most-likely fair value is $1.47 a share — about 78.2% below today's price of $6.73, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $7.9M - more cash than debt. Interest coverage -47.1x.
Net debt
$-7.93M
Interest coverage
-47.10x
Silvaco Group, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SVCO
BASELINE
Silvaco Group, Inc.
Total debt $5.07M Interest coverage -47.10x This is the baseline the peer rows are being compared against.
Total debt $17.42M Interest coverage -28.58x Neither company has much profit cushion over interest right now.
Total debt $8.69M Interest coverage -171.69x Neither company has much profit cushion over interest right now.
Total debt $71.56M Interest coverage 1.48x This peer still has a real interest-payment cushion, while SVCO does not.
What you should know
The case for and against SVCO
2 Rewards
2 Risks
Rewards
-
Revenue grew 11.2% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -27.0% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -2.8% to -17.3% over 3 years.
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
33.65x
P/B
2.78x
P/S
3.15x
EV/EBITDA
-13.61x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
83.2%
Operating margin
-17.3%
Net margin
-30.4%
ROE
-27.0%
ROA
-9.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.06x
Current ratio
1.72x
Quick ratio
1.60x
Total debt
$5.07M
Total cash
$13.00M
Growth
How the business has been compounding
Revenue TTM
$70.11M
Revenue 5Y CAGR
5.7%
EPS TTM
-0.82
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-26.77M
Free CF TTM
$-34.52M
FCF margin
-49.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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