Siltronic (WAF) AI Stock Analysis

• Market Cap: €1.56B
• Dividend Yield: 0.43%
• Average Volume (3M): 125.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -5.17%
• EPS Growth: -128.32%
• Country: DE
• Employees: 4,400
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -1.48
• Shares Outstanding: 30,000,000
• 10 Day Avg. Volume: 114,113
• 30 Day Avg. Volume: 125,470
• PEG Ratio: 0.10
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.09
• P/FCF Ratio: -9.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €60.00
• Price Target Upside: 15.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -6.88
• Revenue Forecast (FY): €1.29B

• Rating: 52 Neutral
• Price Target: €53.00 ▲(1.73% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held down primarily by weak financial performance (losses, sharp margin compression, rising leverage, and persistently negative free cash flow). Technicals provide a meaningful offset with a clear uptrend and supportive momentum, while valuation is only modestly supportive due to a negative P/E despite a high dividend yield.

Positive Factors

Advanced product mix & market position

Siltronic supplies hyperpure wafers across key segments and 300mm capacity, which ties it to advanced-node fabs. 300mm capability and multi-diameter offerings support long qualification cycles, recurring multi-period shipments and durable customer relationships across logic, memory and analog markets.

Underlying operational profitability (EBITDA)

Despite accounting-level losses, a ~23% EBITDA margin indicates core manufacturing economics remain positive before depreciation and one-offs. This shows the business can generate operating cash at scale when utilization improves, supporting longer-term margin recovery if demand or pricing normalizes.

Balance sheet equity buffer

Material equity on the balance sheet provides a solvency cushion and headroom to absorb cyclical shocks. That sizable equity base supports continued operations, investment in capacity or R&D and provides negotiating leverage with creditors while the cycle normalizes over the coming quarters.

Negative Factors

Severe gross margin compression

A collapse in gross margin signals structural pressure on pricing, mix or utilization. Sustained low gross margins erode the firm's ability to cover fixed costs and invest in technology, making margin recovery necessary for durable profitability and reducing resilience to future demand downturns.

Rising leverage and reduced flexibility

The sharp increase in leverage materially reduces financial flexibility in a cyclical industry. Higher debt amplifies interest expense and covenant risk, constraining the company's ability to invest or absorb revenue shocks, and could force deleveraging measures that impair long-term growth plans.

Persistent negative free cash flow

Consistently negative FCF and declining operating cash generation necessitate external funding or asset adjustments to cover capex and working capital. Over multiple quarters this limits reinvestment, raises refinancing risk, and may restrict strategic initiatives that underpin future competitiveness.

Siltronic Business Overview & Revenue Model

Company Description

Siltronic AG, together with its subsidiaries, manufactures and sells hyperpure semiconductor silicon wafers with diameters of up to 300 mm worldwide. It offers polished and epitaxial wafers. The company also provides special products, such as Ultimate Silicon, an optimal crystal for polished wafers; PowerFZ, a wafer product based on the float zone method; and HIREF, a high reflective non-polished wafer product. Its silicon wafers are used in computers, smartphones, flat screens, sensors, industrial equipment, navigation systems, electric cars, wind turbines, and other applications. The company was formerly known as Wacker Siltronic AG and changed its name to Siltronic AG in 2004. Siltronic AG was founded in 1953 and is headquartered in Munich, Germany.

How the Company Makes Money

Siltronic makes money primarily by selling hyperpure silicon wafers to semiconductor manufacturers. Revenue is generated through (1) volume sales of wafers differentiated by diameter (notably 300 mm and 200 mm), crystal quality, and customer-specific specifications; (2) pricing that reflects product mix (e.g., advanced 300 mm wafers typically command higher pricing than smaller diameters), contracted volumes, and market supply-demand conditions; and (3) long-term supply arrangements and customer qualification cycles that can support recurring, multi-period shipments once a wafer type is qualified in a customer’s production line. The company’s earnings are influenced by industry cycle factors such as global semiconductor demand, customers’ fab utilization and inventory levels, and the supply balance in the silicon wafer market, as well as by capacity utilization at Siltronic’s own production sites, which affects cost absorption and margins. Information on specific partnerships beyond customer-supplier relationships: null.

Siltronic Financial Statement Overview

Summary

Fundamentals are weak: revenue has been declining versus 2022 levels and profitability deteriorated to a net loss with negative operating profit. Gross margin compression (from ~34% in 2022 to ~8% in 2025) and consistently negative free cash flow (including -150.0M in 2025) are major negatives. The balance sheet is still supportable due to meaningful equity, but leverage has risen materially (debt-to-equity ~0.76–0.81 in 2024–2025), increasing risk while earnings are pressured.

Income Statement

Profitability has deteriorated sharply: 2025 revenue declined to 1.35B (vs. 1.41B in 2024 and 1.81B in 2022) and the company swung to a net loss (-69.2M) with negative operating profit, despite still posting a solid EBITDA margin (~23%). Margins have compressed materially since 2022 (gross margin ~34% then vs. ~8% in 2025), signaling weaker pricing/power or underutilization. A key positive is the return to strong reported top-line growth in 2025 (+81.6% per the provided growth figure), but it has not translated into earnings yet.

Balance Sheet

Leverage has moved up meaningfully: debt-to-equity increased from ~0.07–0.09 (2020–2021) to ~0.76–0.81 (2024–2025), reducing financial flexibility in a downcycle. Equity remains sizable (1.84B in 2025) against a 4.80B asset base, but returns have weakened, with return on equity turning negative in 2025 after modestly positive levels in 2024. Overall, the balance sheet is still supportable, but the rising debt load and negative profitability are clear risks.

Cash Flow

Cash generation has weakened versus prior years: operating cash flow fell to 230.1M in 2025 from 344.5M in 2024 and 804.5M in 2022. Free cash flow is consistently negative in recent years (2022–2025), including -150.0M in 2025, pointing to heavy investment requirements and/or reduced cash earnings. While operating cash flow remains positive, coverage is relatively low in 2025 (operating cash flow coverage ratio ~0.45), reinforcing that cash conversion is strained.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.35B	1.41B	1.51B	1.81B	1.41B
Gross Profit	111.20M	275.40M	372.20M	615.30M	441.20M
EBITDA	306.40M	348.60M	455.90M	690.70M	480.00M
Net Income	-69.20M	63.00M	184.40M	390.60M	253.30M
Balance Sheet
Total Assets	4.80B	5.08B	4.50B	4.05B	2.46B
Cash, Cash Equivalents and Short-Term Investments	531.30M	663.70M	456.90M	1.04B	555.40M
Total Debt	1.49B	1.52B	904.60M	770.50M	105.80M
Total Liabilities	2.77B	2.87B	2.41B	1.98B	1.14B
Stockholders Equity	1.84B	2.01B	1.90B	1.89B	1.19B
Cash Flow
Free Cash Flow	-150.00M	-355.40M	-710.90M	-118.20M	108.40M
Operating Cash Flow	230.10M	344.50M	487.90M	804.50M	501.10M
Investing Cash Flow	-177.70M	-959.80M	-628.90M	-1.33B	-322.20M
Financing Cash Flow	-16.20M	525.60M	42.80M	577.10M	-64.50M

Siltronic Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WAF, the sentiment is Negative. The current price of 52.1 is below the 20-day moving average (MA) of 54.47, below the 50-day MA of 53.65, and above the 200-day MA of 46.66, indicating a neutral trend. The MACD of 0.64 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 54.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:WAF.

Siltronic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELG	75 Outperform	€2.39B	16.50	22.08%	1.08%	-5.55%	21.30%
SMHN	70 Outperform	€1.11B	15.83	18.05%	0.78%	34.77%	52.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IFX	57 Neutral	$48.99B	47.97	6.06%	0.95%	-1.96%	-21.55%
WAF	52 Neutral	€1.56B	-21.20	-1.40%	0.43%	-5.17%	-128.32%
WCH	52 Neutral	€3.47B	-4.20	―	3.75%	-10.63%	-23.15%