Siltronic (WAF) AI Stock Analysis

• Market Cap: €1.20B
• Dividend Yield: 0.5%
• Average Volume (3M): 69.65K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 1.14
• Revenue Growth: -2.61%
• EPS Growth: -72.43%
• Country: DE
• Employees: 4,400
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Semiconductors
• EPS (TTM): 0.08
• Shares Outstanding: 30,000,000
• 10 Day Avg. Volume: 48,547
• 30 Day Avg. Volume: 69,653
• PEG Ratio: 0.10
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.30
• 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: €45.57
• Price Target Upside: 14.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 59 Neutral
• Price Target: €39.00 ▼(-2.35%Downside)

Siltronic's overall stock score of 59.1 reflects key challenges in financial performance, with declining profitability and increasing leverage posing significant risks. The technical analysis points to mixed signals, with some short-term strength but longer-term concerns. Valuation metrics suggest the stock may be overpriced, further impacting the overall score.

Positive Factors

Liquidity

Siltronic AG has a sufficient cash cushion, limiting the need for additional capital and downside to the shares.

Market Share

Michael confirmed that the company's superior production process for 200mm power semi wafers should protect its market share against local Chinese competition.

Negative Factors

Cash Flow

Free cash flow expected to remain negative in the coming years.

Demand and Inventory

Demand for wafers continues to be subdued with inventories still at elevated levels at semi manufacturers, and timing of normalization is still uncertain.

Financial Performance

Sales were down sequentially on negative product mix and price.

Siltronic Business Overview & Revenue Model

Company Description

Siltronic AG is a leading global manufacturer of hyperpure silicon wafers, which are crucial components in the semiconductor industry. The company operates primarily in the technology and electronics sectors, providing wafers for a variety of applications, including microprocessors, memory chips, and other semiconductor devices. Siltronic's products are essential for the production of consumer electronics, automotive electronics, and industrial applications.

How the Company Makes Money

Siltronic 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

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

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

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

Siltronic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 39.94 is above the 20-day moving average (MA) of 39.34, above the 50-day MA of 37.96, and below the 200-day MA of 45.82, indicating a neutral trend. The MACD of 0.93 indicates Negative momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 66.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:WAF.

Siltronic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMHN	77 Outperform	€832.29M	14.70	21.21%	0.59%	40.17%	347.51%
ELG	74 Outperform	€1.57B	12.78	23.28%	1.09%	-1.67%	18.77%
WCH	68 Neutral	€3.19B	13.22	5.37%	3.36%	-10.63%	-23.15%
IFX	65 Neutral	$48.04B	62.12	7.74%	0.95%	-6.01%	-69.47%
Sector *	60 Neutral	€6.39B	8.30	0.45%	1.72%	-2.39%	100.22%
WAF	59 Neutral	€1.20B	30.18	2.02%	0.50%	-2.61%	-72.43%