Siltronic (WAF) AI Stock Analysis

• Market Cap: €1.08B
• Dividend Yield: 0.54%
• Average Volume (3M): 102.03K
• Price to Earnings (P/E): 36.6
• Beta (1Y): 1.21
• Revenue Growth: -0.55%
• EPS Growth: -73.49%
• Country: DE
• Employees: 4,400
• Sector: Technology
• Sector Strength: 92
• Industry: Semiconductors
• EPS (TTM): 0.38
• Shares Outstanding: 30,000,000
• 10 Day Avg. Volume: 149,651
• 30 Day Avg. Volume: 102,027
• PEG Ratio: -0.34
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -3.93
• 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: €46.00
• Price Target Upside: 28.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 46 Neutral
• Price Target: €35.00 ▼(-2.45% Downside)

Siltronic's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant financial challenges, including declining revenue and negative cash flow. The technical indicators suggest a bearish trend, with the stock trading below key moving averages and showing oversold conditions. The high P/E ratio and low dividend yield further contribute to a cautious outlook.

Positive Factors

Earnings

Siltronic's Q2 print came in ahead of expectations due to a later than anticipated activation of D&A.

Financial Performance

EBITDA was 25% ahead, indicating better than expected financial performance.

Market Recovery

The wafer volume pick up later in 2025 should be supported by a demand recovery in key semi markets (auto & industrial, memory).

Negative Factors

Demand

Subdued demand across key end markets for Siltronic could extend the destocking cycle.

Inventory

Stubbornly elevated wafer inventories pose risks for Siltronic.

Market Challenges

Siltronic's end markets continue to be affected by increased trade tensions.

Siltronic Business Overview & Revenue Model

Company Description

Siltronic AG is a leading global manufacturer of hyperpure silicon wafers primarily used in the semiconductor industry. Based in Germany, the company specializes in producing wafers of various diameters, which serve as the fundamental building blocks for microchips and various electronic components. Siltronic's products are essential for a wide range of applications in consumer electronics, automotive, and industrial sectors, ensuring the company's pivotal role in the advancement of digital technology.

How the Company Makes Money

Siltronic makes money by producing and selling silicon wafers to semiconductor manufacturers around the world. Its key revenue streams include the sale of wafers in different sizes and specifications tailored to meet the needs of its customers across various technology sectors, such as consumer electronics, automotive, and telecommunications. The company benefits from long-term supply agreements with major semiconductor producers, providing a stable and predictable revenue flow. Additionally, Siltronic invests in research and development to innovate and maintain its competitive edge, which helps in securing partnerships and supporting its market position in the rapidly evolving semiconductor industry.

Siltronic Financial Statement Overview

Summary

Siltronic faces challenges with declining revenue and shrinking margins. Despite these issues, the company maintains decent profitability with a strong EBITDA margin and stable equity base. However, negative free cash flow and high leverage are significant concerns.

Income Statement

Siltronic's revenue has declined over the recent periods, with a decrease from 2023 to TTM. The gross profit margin for TTM is approximately 18.38%, and the net profit margin is around 2.81%, indicating profitability but under pressure. The EBITDA margin is strong at 23.97%, though EBIT margin decreased to 7.24%. Overall, the company maintains decent profitability, but recent revenue decline and shrinking margins pose challenges.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 0.77, indicating a significant leverage position. The equity ratio is stable at 39.77%, reflecting a solid equity base. However, the return on equity has declined to about 2.01% for TTM, showing reduced efficiency in generating returns. Despite these challenges, the company's assets and equity stability provide a strong foundation.

Cash Flow

Siltronic's free cash flow is negative, with a deteriorating trend seen in the recent TTM. The operating cash flow to net income ratio is strong at 8.57, suggesting robust cash generation relative to net income. However, negative free cash flow poses concerns over cash management and investment efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.39B	1.41B	1.51B	1.81B	1.41B	1.21B
Gross Profit	249.80M	275.40M	372.20M	615.30M	441.20M	339.50M
EBITDA	338.90M	348.60M	455.90M	690.70M	480.00M	337.10M
Net Income	29.40M	63.00M	184.40M	390.60M	253.30M	160.80M
Balance Sheet
Total Assets	4.93B	5.08B	4.50B	4.05B	2.46B	1.92B
Cash, Cash Equivalents and Short-Term Investments	570.40M	663.70M	456.90M	1.04B	555.40M	455.70M
Total Debt	1.56B	1.52B	904.60M	770.50M	105.80M	52.40M
Total Liabilities	2.79B	2.87B	2.41B	1.98B	1.14B	1.05B
Stockholders Equity	1.94B	2.01B	1.90B	1.89B	1.19B	786.10M
Cash Flow
Free Cash Flow	-253.50M	-355.40M	-710.90M	-118.20M	108.40M	31.90M
Operating Cash Flow	253.00M	344.50M	487.90M	804.50M	501.10M	236.70M
Investing Cash Flow	-657.80M	-959.80M	-628.90M	-1.33B	-322.20M	-36.40M
Financing Cash Flow	461.40M	525.60M	42.80M	577.10M	-64.50M	-95.30M

Siltronic Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 35.88 is below the 20-day moving average (MA) of 41.74, below the 50-day MA of 39.83, and below the 200-day MA of 43.28, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 34.71 is Neutral, neither overbought nor oversold. The STOCH value of 1.54 is Positive, 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	€1.52B	12.12	23.45%	1.14%	-2.03%	20.37%
SMHN	68 Neutral	€618.58M	10.92	21.21%	0.93%	40.17%	347.51%
WCH	64 Neutral	€3.18B	13.18	5.37%	3.91%	-10.63%	-23.15%
IFX	62 Neutral	€45.94B	67.81	6.85%	1.04%	-3.60%	-67.86%
Sector *	57 Neutral	€1.73B	11.15	1.00%	3.83%	3.99%	-87.85%
WAF	46 Neutral	€1.08B	36.61	1.51%	0.54%	-0.55%	-73.49%