SMTC  Semtech Corporation

Exchange

NASDAQ

Sector

Technology

Industry

Semiconductors

Market Cap.

2.54B

Vuru Grade

33.93/100

Current Price

$38.35
+0.00 (+0.00%)

Growth Price

$18.38
Overvalued by 52.08%

Stability Price

$5.82
Overvalued by 84.83%

Company Metrics

  • P/E 40.54
  • P/S 4.42
  • P/B 3.95
  • EPS 0.95
  • Cash ROIC 9.92%
  • Cash Ratio 2.42
  • Dividend 0.00 / 0.00 %
  • Avg. Vol. 466,106.00
  • Shares 66.23M
  • Market Cap. 2.54B

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

Ofo Adopts Semtech's LoRa Technology to Expand Bicycle Tracking Coverage
GlobeNewswire (press release) - Oct 18, 2017
CAMARILLO, Calif., Oct. 18, 2017 (GLOBE NEWSWIRE) -- Semtech Corporation (Nasdaq:SMTC), a leading supplier of high performance analog and mixed-signal semiconductors and advanced algorithms, announced that ofo, a leading Chinese bike sharing ...
New LoRa spec simplifies use across multiple networks for worldwide tracking - FierceWireless
Semtech Expands TClamp Platform to Protect Telecom and Industrial Applications ...
GlobeNewswire (press release) - Sep 20, 2017
CAMARILLO, Calif., Sept. 20, 2017 (GLOBE NEWSWIRE) -- Semtech Corporation (Nasdaq:SMTC), a leading supplier of high performance analog and mixed-signal semiconductors and advanced algorithms, today announced the newest member of its ...
Thompson Siegel & Walmsley LLC Sells 75376 Shares of Semtech Corporation ... - The Ledger Gazette
Analyst Stock Ratings: Semtech Corporation (SMTC), NuVasive, Inc. (NUVA) - Analyst Journal
Smart Cities Solution Based on Semtech's LoRa Technology Reduces Traffic ...
GlobeNewswire (press release) - Sep 13, 2017
13, 2017 (GLOBE NEWSWIRE) -- Semtech Corporation (Nasdaq:SMTC), a leading supplier of high performance analog and mixed-signal semiconductors and advanced algorithms, announced that CivicSmart, a provider of parking solutions for smart cities, ...
Adveez and Semtech Track In-Motion Assets at Global Airports - Nasdaq
Semtech to Feature LoRa Technology at The Computing Conference 2017
GlobeNewswire (press release) - Oct 9, 2017
Semtech Corporation is a leading supplier of high performance analog and mixed-signal semiconductors and advanced algorithms for high-end consumer, enterprise computing, communications, and industrial equipment.
Semtech Corporation Given “Buy” Recommendation from B. Riley - Highland Mirror
Capital Research Global Investors Reduces Holdings in Semtech Corporation (SMTC) - Dispatch Tribunal
Advantech Delivers Innovative IoT Solutions Using Semtech's LoRa Technology
GlobeNewswire (press release) - Sep 28, 2017
CAMARILLO, Calif., Sept. 28, 2017 (GLOBE NEWSWIRE) -- Advantech, a leading supplier of industrial communication solutions, has collaborated with Semtech Corporation (Nasdaq:SMTC), a leading supplier of high performance analog and mixed-signal ...
Semtech Reveals New Current-Based Synchronous Rectifier Topology for Consumer ...
GlobeNewswire (press release) - Sep 21, 2017
CAMARILLO, Calif., Sept. 21, 2017 (GLOBE NEWSWIRE) -- Semtech Corporation (Nasdaq:SMTC), a leading supplier of high performance analog and mixed-signal semiconductors and advanced algorithms, announced the availability of its new synchronous ...
Semtech, Tata Communications, Hewlett Packard Enterprises Showcase IoT ...
GlobeNewswire (press release) - Sep 26, 2017
PRAGATI MAIDAN, New Delhi, India at India Mobile Congress, Sept. 26, 2017 (GLOBE NEWSWIRE) -- Semtech Corporation (Nasdaq:SMTC), a leading supplier of high performance analog and mixed-signal semiconductors and advanced algorithms, will join ...
Semtech Sponsors LoRa Alliance 9th All Members Meeting
GlobeNewswire (press release) - Oct 5, 2017
CAMARILLO, Calif., Oct. 05, 2017 (GLOBE NEWSWIRE) -- Semtech Corporation (Nasdaq:SMTC), a leading supplier of high performance analog and mixed-signal semiconductors and advanced algorithms, today announced its gold sponsorship of the LoRa ...
Analysts are on the Bearish side about Semtech Corporation (NASDAQ:SMTC) this ...
BZ Weekly - 23 hours ago
Investors sentiment decreased to 1.07 in 2017 Q2. Its down 0.32, from 1.39 in 2017Q1. It fall, as 32 investors sold Semtech Corporation shares while 62 reduced holdings. 29 funds opened positions while 72 raised stakes. 61.78 million shares or 0.65 ...
Semtech Corporation (NasdaqGS:SMTC) Valuation Review & Update - Concord Register
Semtech Corporation (SMTC) SVP Sells $94450.00 in Stock - Dispatch Tribunal
Chinese Bike Service Selects Semtech Technology
San Fernando Valley Business Journal - 13 hours ago
Ofo, a Chinese bicycle sharing company, will equip its bikes with technology manufactured by Semtech Corp., the company has announced.
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.

$38.35 Current Price

$18.38 Growth Price (DCF)

Overvalued by 52.08%


Growth Rate Assumed by Market: 30.73%


Future Free Cash Flow Growth Rate: 2.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$5.82 Stability Price (EPV)

Overvalued by 84.83%


Discount Rate: 15.0%

$0.49 NCA Price

Overvalued by 98.73%

$23.35 Book Price

Overvalued by 39.12%


Poor Cash Return on Invested Capital over the past 5 years

SMTC has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

SMTC has only created $9.92 of cash for every $100 invested.
Figures in USD. Fiscal year ends in January
20132014201520162017
Free Cash Flow 77.45M 77.29M 73.31M 89.05M 84.69M
divided by
Invested Capital 785.17M 594.86M 591.06M - 591.43M
Cash ROIC 9.86% 12.99% 12.40% - 14.32%

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 $2.11 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in January
20132014201520162017
Net Income 41.94M -164.47M 27.95M 11.50M 54.66M
divided by
Stockholders' Equity 694.83M 535.84M 551.36M - 605.26M
Return on Equity 6.04% -30.69% 5.07% - 9.03%

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
2008200920102011201220132014201520162017
Free Cash Flow 57.58M 68.92M 74.64M 68.26M 75.27M 77.45M 77.29M 73.31M 89.05M 84.69M

Strong Balance Sheet

SMTC is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Cash 209.03M 246.40M 136.06M 231.26M 310.14M 228.17M 243.19M 230.33M - 297.13M
Current Assets 292.22M 313.70M 218.81M 353.70M 427.31M 405.99M 393.60M 396.69M - 438.43M
Total Assets 396.05M 420.80M 514.29M 659.94M 726.32M 1.17B 948.94M 929.43M - 1.01B
Current Liabilities 36.66M 33.82M 75.03M 93.83M 66.98M 157.68M 110.89M 108.04M - 122.98M
Total Liabilities 47.34M 42.78M 108.55M 131.33M 96.13M 476.19M 413.10M 378.07M - 406.28M
Stockholder' Equity 348.71M 378.02M 405.74M 528.62M 630.19M 694.83M 535.84M 551.36M - 605.26M
Current Ratio 7.97 9.28 2.92 3.77 6.38 2.57 3.55 3.67 - 3.57
TL-to-TA 0.12 0.10 0.21 0.20 0.13 0.41 0.44 0.41 - 0.40

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
2008200920102011201220132014201520162017
Retained Earnings 296.23M 333.75M 334.70M 407.28M 496.36M 538.30M 373.84M 401.78M - 467.94M
Retained Earnings Growth - 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 $6.13 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Net Income 47.78M 37.52M 957,000.00 72.57M 89.09M 41.94M -164.47M 27.95M 11.50M 54.66M
divided by
Revenue 284.79M 294.82M 286.56M 454.50M 480.60M 578.83M 594.98M 557.89M 490.22M 544.27M
Net Profit Margin 16.78% 12.73% 0.33% 15.97% 18.54% 7.25% -27.64% 5.01% 2.35% 10.04%

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.

$59.48 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
2008200920102011201220132014201520162017
Gross Profit 156.28M 159.59M 156.05M 268.31M 400.02M 314.61M 335.21M 328.79M 293.11M 324.86M
divided by
Revenue 284.79M 294.82M 286.56M 454.50M 480.60M 578.83M 594.98M 557.89M 490.22M 544.27M
Gross Margin 54.87% 54.13% 54.45% 59.03% 83.23% 54.35% 56.34% 58.94% 59.79% 59.69%

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.

150.17% 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
2008200920102011201220132014201520162017
Capital Expenditure 3.77M 9.06M 8.68M 25.54M 24.56M 24.52M 40.69M 32.86M 13.03M 32.92M
divided by
Net Income 47.78M 37.52M 957,000.00 72.57M 89.09M 41.94M -164.47M 27.95M 11.50M 54.66M
Capital Expenditure Ratio 7.88% 24.14% 907.21% 35.19% 27.57% 58.46% -24.74% 117.56% 113.30% 60.23%

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
2008200920102011201220132014201520162017
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 67.71M 62.00M 61.68M 64.52M 67.35M 67.47M 67.47M 67.69M 65.96M 66.11M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 11.28 17.28 22.96 24.82 28.48 25.18 27.79 19.34 31.55 35.55
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
2008200920102011201220132014201520162017
Shares Outstanding 67.71M 62.00M 61.68M 64.52M 67.35M 67.47M 67.47M 67.69M 65.96M 66.11M
Stock Bought Back - 9.21% 0.52% -4.41% -4.20% -0.18% 0.00% -0.32% 2.61% -0.22%
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