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Siltronic AG (DE:WAF)
:WAF

Siltronic (WAF) AI Stock Analysis

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Siltronic

(LSE:WAF)

Rating:66Neutral
Price Target:
€44.00
▲(7.16%Upside)
Siltronic's stock score is primarily influenced by its financial performance challenges, including declining revenue, profitability, and negative free cash flow. Technical analysis shows some positive momentum, but caution is advised due to overbought signals. The valuation appears high relative to its financial performance, which could limit upside potential.
Positive Factors
Cash Management
Siltronic AG has a sufficient cash cushion, limiting the need for additional capital and downside to the shares.
Pricing Stability
The CEO confirmed stable pricing in LTAs with softness outside LTAs and its expectation of a H2 wafer volume improvement as volumes have been pushed from H1-25 into H2-25.
Production Process Advantage
The company's superior production process for 200mm power semi wafers should protect its market share against local Chinese competition.
Negative Factors
Free Cash Flow
Free cash flow expected to remain negative in the coming years.
Inventory Levels
Continued elevated wafer inventories is keeping analysts cautious on a recovery.
Trade Tensions
Siltronic's end markets continue to be affected by increased trade tensions.

Siltronic (WAF) vs. iShares MSCI Germany ETF (EWG)

Siltronic Business Overview & Revenue Model

Company DescriptionSiltronic 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 MoneySiltronic generates revenue primarily through the sale of its silicon wafers to semiconductor manufacturers around the world. These wafers are sold in different sizes and specifications to meet the diverse needs of its clients. The company's key revenue streams include long-term supply agreements with major semiconductor manufacturers, which provide a stable source of income. Siltronic benefits from economies of scale due to its large-scale production facilities and technological expertise, allowing it to maintain competitive pricing. Additionally, the company invests in research and development to continuously improve its product offerings, thereby attracting more clients and expanding its market share. External factors, such as the demand for consumer electronics and technological advancements, significantly influence Siltronic's earnings.

Siltronic Financial Statement Overview

Summary
Siltronic faces challenges with declining revenue and profitability, increasing leverage, and negative free cash flow. Despite maintaining a reasonable equity ratio and operational efficiencies with positive EBITDA margins, the decline in net income and free cash flow could impact future growth and investment capabilities.
Income Statement
65
Positive
Siltronic's income statement shows declining trends in revenue and profitability over the recent years. The revenue decreased from 2020 to 2024, with a particularly notable decline in 2024. Gross profit margin decreased from 2022 to 2024, indicating potential issues with cost management or pricing power. The net profit margin has also declined significantly, from 21.6% in 2022 to 4.5% in 2024, showing reduced profitability. On the positive side, the company maintained a positive EBITDA margin, suggesting some operational efficiency.
Balance Sheet
70
Positive
The balance sheet indicates a strong equity position, with an equity ratio of approximately 39.5% in 2024. However, the debt-to-equity ratio has increased over the years, reaching 0.76 in 2024, suggesting increased leverage. Despite the increased debt, the return on equity (ROE) remains positive but has decreased significantly from 20.7% in 2022 to 3.1% in 2024, indicating reduced effectiveness in generating returns on shareholder investments.
Cash Flow
60
Neutral
Siltronic's cash flow statement reflects challenges in free cash flow generation, with negative free cash flow from 2020 to 2024, largely due to significant capital expenditures. The operating cash flow to net income ratio remains positive, indicating that operating cash flows are still covering net income. However, the declining trend in operating cash flow and the inability to cover capital expenditures with operating cash flow is a concern for long-term sustainability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.41B1.51B1.81B1.41B1.21B
Gross Profit
275.40M372.20M615.30M441.20M339.50M
EBIT
125.20M231.30M495.60M316.90M192.20M
EBITDA
348.60M455.90M690.70M480.00M337.10M
Net Income Common Stockholders
63.00M184.40M390.60M253.30M160.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
663.70M456.90M1.04B555.40M455.70M
Total Assets
5.08B4.50B4.05B2.46B1.92B
Total Debt
1.52B904.60M770.50M105.80M52.40M
Net Debt
1.23B518.40M281.80M-318.50M-242.20M
Total Liabilities
2.87B2.41B1.98B1.14B1.05B
Stockholders Equity
2.01B1.90B1.89B1.19B786.10M
Cash FlowFree Cash Flow
-355.40M-710.90M-118.20M108.40M31.90M
Operating Cash Flow
344.50M487.90M804.50M501.10M236.70M
Investing Cash Flow
-959.80M-628.90M-1.33B-322.20M-36.40M
Financing Cash Flow
525.60M42.80M577.10M-64.50M-95.30M

Siltronic Technical Analysis

Technical Analysis Sentiment
Positive
Last Price41.06
Price Trends
50DMA
36.68
Positive
100DMA
40.81
Positive
200DMA
48.41
Negative
Market Momentum
MACD
0.24
Negative
RSI
65.72
Neutral
STOCH
89.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WAF, the sentiment is Positive. The current price of 41.06 is above the 20-day moving average (MA) of 36.83, above the 50-day MA of 36.68, and below the 200-day MA of 48.41, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 89.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:WAF.

Siltronic Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEWAF
66
Neutral
€1.14B28.642.02%0.53%-2.61%-72.43%
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
$55.44B66.557.74%0.87%
€1.33B10.7423.28%1.30%
€599.63M229.45-14.35%0.81%
€795.59M14.0221.21%0.72%
$3.73B14.235.37%3.77%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:WAF
Siltronic
39.72
-35.84
-47.44%
IFNNF
Infineon Technologies AG
42.24
1.80
4.45%
GB:0N9K
ELMOS Semiconductor
78.00
-3.86
-4.72%
GB:0G0X
First Sensor
57.80
-0.98
-1.67%
GB:0Q3C
Suss Microtec
42.08
-18.89
-30.98%
WKCMF
Wacker Chemie AG
74.00
-25.86
-25.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.