Siltronic (WAF) AI Stock Analysis

• Market Cap: €1.53B
• Dividend Yield: 0.44%
• Average Volume (3M): 125.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: -5.17%
• EPS Growth: -128.32%
• Country: DE
• Employees: 4,400
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -1.29
• Shares Outstanding: 30,000,000
• 10 Day Avg. Volume: 114,113
• 30 Day Avg. Volume: 125,470
• 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: €55.71
• Price Target Upside: 22.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: €45.00 ▼(-1.10% Downside)

Siltronic's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability, and negative cash flow. Technical analysis indicates bearish momentum, while valuation metrics highlight potential profitability concerns. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Operational Efficiency

Siltronic's ability to maintain positive EBIT and EBITDA margins indicates strong operational efficiency, which can support long-term profitability even in challenging market conditions.

Stable Capital Structure

A solid equity ratio reflects a stable capital structure, providing a buffer against financial instability and supporting long-term strategic investments.

Long-term Contracts

Long-term contracts with major clients provide revenue stability and predictability, allowing Siltronic to plan and invest in future growth with greater confidence.

Negative Factors

Declining Revenue

Declining revenue indicates potential market share loss or reduced demand, which could hinder future growth and necessitate strategic adjustments to regain momentum.

Rising Leverage

Increased leverage can strain financial resources and limit flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.

Negative Cash Flow

Negative free cash flow suggests that the company is not generating sufficient cash from operations, which can limit its ability to fund new projects or reduce debt, impacting long-term financial health.

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 generates revenue primarily through the sale of silicon wafers. Its revenue model is based on direct sales to semiconductor manufacturers who require specific wafer specifications for their production processes. Key revenue streams include various wafer sizes and types, including standard and customized products, which cater to different applications in the industry. Furthermore, the company benefits from long-term contracts and partnerships with major clients, ensuring a stable demand for its products. Additionally, Siltronic invests in research and development to innovate and improve its wafer technology, which can lead to higher margins and new market opportunities.

Siltronic Financial Statement Overview

Summary

Siltronic faces challenges with declining revenue and profitability, increased leverage, and negative free cash flow. Operational efficiency is a strength, but cash flow issues and debt management need improvement.

Income Statement

Siltronic's income statement shows declining revenue and profitability metrics over the TTM period. The Gross Profit Margin and Net Profit Margin have decreased compared to previous years, indicating pressure on profitability. The Revenue Growth Rate is negative, reflecting a challenging market environment. However, the company maintains a positive EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a moderate Debt-to-Equity Ratio, which has increased over recent periods, indicating rising leverage. Return on Equity has declined, reflecting reduced profitability. However, the company maintains a solid Equity Ratio, suggesting a stable capital structure despite increased debt levels.

Cash Flow

Siltronic's cash flow statement highlights challenges with negative Free Cash Flow and declining Free Cash Flow Growth. The Operating Cash Flow to Net Income Ratio is below 1, indicating potential cash flow issues. The negative Free Cash Flow to Net Income Ratio suggests that the company is not generating sufficient free cash flow relative to its net income.

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: 45.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 45.5 is below the 20-day moving average (MA) of 54.41, below the 50-day MA of 47.44, and above the 200-day MA of 41.94, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 36.18 is Neutral, neither overbought nor oversold. The STOCH value of 2.51 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	79 Outperform	€1.54B	12.44	22.08%	1.10%	-5.55%	21.30%
SMHN	69 Neutral	€518.03M	9.13	19.94%	0.99%	34.77%	52.20%
IFX	66 Neutral	$44.49B	65.67	6.85%	1.07%	-3.60%	-67.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WCH	58 Neutral	$3.34B	13.86	―	3.68%	-10.63%	-23.15%
WAF	45 Neutral	€1.53B	-56.63	-1.40%	0.44%	-5.17%	-128.32%