SMTC  Semtech Corporation

Exchange

NASDAQ

Sector

Technology

Industry

Semiconductors

Market Cap.

2.33B

Vuru Grade

23.00/100

Current Price

$35.53
+0.125 (+0.353%)

Growth Price

$9.80
Overvalued by 72.42%

Stability Price

$10.73
Overvalued by 69.80%

Company Metrics

  • P/E 48.531
  • P/S 4.444
  • P/B 3.963
  • EPS 0.732
  • Cash ROIC 11.36%
  • Cash Ratio -
  • Dividend 0 / 0%
  • Avg. Vol. 458,862.00
  • Shares 65.59M
  • Market Cap. 2.33B

Company Description

Semtech Corporation, together with its subsidiaries, engages in the design, development, manufacture, and marketing of analog and mixed-signal semiconductor products. Its product lines include power management products comprising switching voltage regulators, combination switching and linear regulators, smart regulators, and charge pumps; protection devices consisting of filter and termination dev... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Why Semtech Corporation Stock Popped Today
Motley Fool - Dec 1, 2016
Shares of Semtech Corporation (NASDAQ:SMTC) jumped as much as 13.3% early Thursday, then settled to trade up 8.5% at noon after the analog and mixed-signal semiconductor specialist released stronger-than-expected fiscal-third-quarter 2017 results ...
A Beat And Raise Quarter From Semtech Earns It An Upgrade From Oppenheimer - Benzinga
Chip Designer Semtech Growth Story On Track; Stock Soars - Investor's Business Daily
Semtech Announces Fiscal Year 2017 Fourth Quarter Conference Call
Yahoo Finance - 10 hours ago
22, 2017 (GLOBE NEWSWIRE) -- Semtech Corporation (SMTC), a leading supplier of analog and mixed-signal semiconductors, today announced plans to release the financial results of its fourth quarter and fiscal year 2017 after the close of the market on ...
Semtech Corporation - Receive News & Ratings Daily - BBNS
Semtech Corporation (NASDAQ:SMTC) Price-to-Earnings-Growth Ratio At 5.53 - Equities Focus
Semtech Adds Ultra-Low RDS(on) Load Switch Family to FemtoSwitch Platform
GlobeNewswire (press release) - Feb 14, 2017
CAMARILLO, Calif., Feb. 14, 2017 (GLOBE NEWSWIRE) -- Semtech Corporation (Nasdaq:SMTC), a leading supplier of analog and mixed-signal semiconductors, today announced the latest family of load switches in its FemtoSwitch™ product platform.
Prudential PLC Raises Position in Semtech Corporation (SMTC) - Chaffey Breeze
Semtech to Showcase its Protection Platform for Automotive Applications at ...
Yahoo Finance - Feb 2, 2017
02, 2017 (GLOBE NEWSWIRE) -- Semtech Corporation (SMTC), a leading supplier of analog and mixed-signal semiconductors, today announced its portfolio of circuit protection solutions for automotive Ethernet and data communication applications will be ...
The Summit Redstone Reiterates “Buy” Rating for Semtech Corporation (SMTC) - DailyQuint
Option Trading: Semtech Corporation (NASDAQ:SMTC) Powerful Long Put Spreads to ...
CML News - 9 hours ago
We find a very powerful outcome examining long put spreads for Semtech Corporation when we use a clever earnings risk management approach.
Semtech Corporation's (SMTC) CEO Mohan Maheswaran on Q1 2017 Results ...
Seeking Alpha - Jun 2, 2016
Good afternoon. My name is Jesse and I will be your conference operator today. At this time, I would like to welcome everyone to the Semtech Corporation Q1 FY '17 Earnings Release. [Operator Instructions]. Thank you. Sandy Harrison, Director of ...
Semtech to Host Inaugural Analyst Day - GlobeNewswire (press release)
Semtech Expands LinkCharge™ Wireless Charging Platform to High-Power ...
GlobeNewswire (press release) - Dec 13, 2016
CAMARILLO, Calif., Dec. 13, 2016 (GLOBE NEWSWIRE) -- Semtech Corporation (Nasdaq:SMTC), a leading supplier of analog and mixed-signal semiconductors, today announced the availability of the new LinkCharge 20 Series, including two high-power ...
Semtech Corporation (SMTC) Breaks into New 52-Week High on January 27 Session
Equities.com - Jan 27, 2017
Shares of Semtech Corporation (SMTC) broke into a new 52-week high yesterday, hitting a peak of $33.90. Shares closed at $33.70 after opening at $33.40 for a move of 1.35%.
Semtech Corporation (SMTC) Breaks into New 52-Week High on February 02 Session
Equities.com - Feb 2, 2017
Shares of Semtech Corporation (SMTC) broke into a new 52-week high yesterday, hitting a peak of $33.95. Shares closed at $33.65 after opening at $33.45 for a move of 0.6%.
Semtech Corporation (SMTC) Breaks into New 52-Week High on January 18 Session
Equities.com - Jan 18, 2017
Shares of Semtech Corporation (SMTC) broke into a new 52-week high yesterday, hitting a peak of $33.30. Shares closed at $32.60 after opening at $32.90 for a move of 0%.
Semtech Corporation (SMTC) Sees Significant Decrease in Short Interest - The Cerbat Gem
State of Tennessee Treasury Department Has $1464000 Position in Semtech Corp ... - Community Financial News
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for SMTC to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate SMTC's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$35.53 Current Price

$9.80 Growth Price (DCF)

Overvalued by 72.42%


Growth Rate Assumed by Market: 33.92%


Future Free Cash Flow Growth Rate: 2.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$10.73 Stability Price (EPV)

Overvalued by 69.80%


Discount Rate: 15.0%

$- NCA Price

Overvalued by 100.00%


Shrinking Cash Return on Invested Capital over the past 5 years

SMTC has less efficiently invested its financial resources in buildings, projects, and equipment, resulting in increasingly weaker returns. Look at its Annual Reports to determine whether this decrease has been caused by one-time events or a more general decrease in investment returns.

SMTC has created $11.36 of cash for every $100 invested.
Figures in USD. Fiscal year ends in January
20122013201420152016
Free Cash Flow 75.27M 77.45M 77.29M 73.31M 89.05M
divided by
Invested Capital 349.20M 785.17M 594.86M 591.06M -
Cash ROIC 21.55% 9.86% 12.99% 12.40% -

Very Poor Return on Equity over the past 5 years

SMTC has shown an inability to deliver results for shareholders. This could be due to poor management, SMTC operating in a highly competitive industry, or having a weak business in general.

SMTC has generated a $1.09 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in January
20122013201420152016
Net Income 89.09M 41.94M -164.47M 27.95M 11.50M
divided by
Stockholders' Equity 630.19M 694.83M 535.84M 551.36M -
Return on Equity 14.14% 6.04% -30.69% 5.07% -

Excellent Business Performance over the past 10 years

SMTC has been able to maintain profitability in good times and bad. This could mean SMTC has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

SMTC has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Free Cash Flow 70.94M 57.58M 68.92M 74.64M 68.26M 75.27M 77.45M 77.29M 73.31M 89.05M

Very Weak Balance Sheet

SMTC is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of SMTC's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Cash 290.74M 209.03M 246.40M 136.06M 231.26M 310.14M 228.17M 243.19M 230.33M -
Current Assets 355.32M 292.22M 313.70M 218.81M 353.70M 427.31M 405.99M 393.60M 396.69M -
Total Assets 521.65M 396.05M 420.80M 514.29M 659.94M 726.32M 1.17B 948.94M 929.43M -
Current Liabilities 30.48M 36.66M 33.82M 75.03M 93.83M 66.98M 157.68M 110.89M 108.04M -
Total Liabilities 40.47M 47.34M 42.78M 108.55M 131.33M 96.13M 476.19M 413.10M 378.07M -
Stockholder' Equity 481.18M 348.71M 378.02M 405.74M 528.62M 630.19M 694.83M 535.84M 551.36M -
Current Ratio 11.66 7.97 9.28 2.92 3.77 6.38 2.57 3.55 3.67 -
TL-to-TA 0.08 0.12 0.10 0.21 0.20 0.13 0.41 0.44 0.41 -

Low or No Reinvestment of Profits over the past 10 years

SMTC has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to SMTC operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Retained Earnings 250.52M 296.23M 333.75M 334.70M 407.28M 496.36M 538.30M 373.84M 401.78M -
Retained Earnings Growth - 18.25% 12.67% 0.29% 21.68% 21.87% 8.45% -30.55% 7.48% -100.00%

Competitive Industry over the past 10 years

SMTC is likely operating in an industry with medium to low barriers to entry. This may mean that SMTC doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that SMTC invests heavily in R&D and Sales, General & Administrative expenses.

Only $6.36 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Net Income 31.13M 47.78M 37.52M 957,000.00 72.57M 89.09M 41.94M -164.47M 27.95M 11.50M
divided by
Revenue 252.54M 284.79M 294.82M 286.56M 454.50M 480.60M 578.83M 594.98M 557.89M 490.22M
Net Profit Margin 12.33% 16.78% 12.73% 0.33% 15.97% 18.54% 7.25% -27.64% 5.01% 2.35%

Strong Pricing Power over the past 10 years

SMTC has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$58.94 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Gross Profit 136.97M 156.28M 159.59M 156.05M 268.31M 400.02M 314.61M 335.21M 328.79M 293.11M
divided by
Revenue 252.54M 284.79M 294.82M 286.56M 454.50M 480.60M 578.83M 594.98M 557.89M 490.22M
Gross Margin 54.24% 54.87% 54.13% 54.45% 59.03% 83.23% 54.35% 56.34% 58.94% 59.79%

High Capital Intensity over the past 10 years

SMTC spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

144.64% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Capital Expenditure 3.25M 3.77M 9.06M 8.68M 25.54M 24.56M 24.52M 40.69M 32.86M 13.03M
divided by
Net Income 31.13M 47.78M 37.52M 957,000.00 72.57M 89.09M 41.94M -164.47M 27.95M 11.50M
Capital Expenditure Ratio 10.44% 7.88% 24.14% 907.21% 35.19% 27.57% 58.46% -24.74% 117.56% 113.30%

No Dividend History over the past 10 years

SMTC has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 74.02M 67.71M 62.00M 61.68M 64.52M 67.35M 67.47M 67.47M 67.69M 65.96M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 15.41 11.28 17.28 22.96 24.82 28.48 25.18 27.79 19.34 31.55
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

SMTC has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Shares Outstanding 74.02M 67.71M 62.00M 61.68M 64.52M 67.35M 67.47M 67.47M 67.69M 65.96M
Stock Bought Back - 9.32% 9.21% 0.52% -4.41% -4.20% -0.18% 0.00% -0.32% 2.61%
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