Siltronic (WAF) AI Stock Analysis

• Market Cap: €1.72B
• 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): -1.29
• 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: €59.00
• Price Target Upside: 2.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -5.54
• Revenue Forecast (FY): €1.35B

• Rating: 52 Neutral
• Price Target: €48.00 ▼(-16.38% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held back primarily by weakening financial performance (declining revenue, net loss, and weak free cash flow). Technicals are only mildly supportive with oversold signals but mixed trend strength, while valuation is penalized by loss-driven negative P/E and only a modest dividend yield.

Positive Factors

Essential Market Position

Siltronic supplies an essential upstream input for chipmakers; leadership in wafer supply underpins structural demand from diverse end markets (consumer, compute, automotive). That stable industrial exposure supports durable revenue channels and long-term contract opportunities.

Advanced Manufacturing & R&D

Strong manufacturing know-how and R&D give Siltronic technical differentiation (higher yields, node support). This raises barriers to entry, helps retain strategic customers, and supports long-term competitiveness as wafer specs tighten across semiconductor nodes.

Manageable Leverage & Operational Efficiency

A moderate D/E ratio preserves financial flexibility while a solid EBITDA margin indicates underlying operational efficiency. Together these factors support capacity investment and working-capital management over the medium term despite cyclical demand swings.

Negative Factors

Declining Revenue and Loss-Making

Sustained revenue declines and net losses weaken the firm's ability to self-fund growth and erode negotiating leverage with customers and suppliers. If persistent, this can reduce scale benefits and pressure investment in capacity and technology over the coming months.

Weak Cash Conversion & Negative Free Cash Flow

Poor cash conversion and negative FCF limit the company's ability to fund capex, R&D, and working capital without external financing. This raises liquidity and refinancing risk and constrains strategic flexibility during industry upcycles or investment opportunities.

Low Return on Equity & Margin Pressure

Very low ROE and falling gross margins signal weakening profitability and capital efficiency. Over the medium term this can reduce retained earnings, limit capacity to rebuild margins, and challenge returns to shareholders absent structural margin recovery.

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 to semiconductor manufacturers. The company's revenue model is based on producing and selling high-quality wafers at competitive prices, which are essential for the production of microchips. Key revenue streams include long-term supply contracts with major semiconductor companies, which provide consistent income, as well as spot sales that allow the company to capitalize on fluctuating market demand. Additionally, Siltronic engages in research and development partnerships with technology firms to innovate and enhance their product offerings. Market dynamics, such as the increasing demand for semiconductors across various sectors, particularly in consumer electronics and automotive industries, significantly contribute to the company's earnings.

Siltronic Financial Statement Overview

Summary

Fundamentals are pressured: revenue is declining (TTM -4.09%) and the company is loss-making, with weakening gross margin. Leverage looks manageable (debt-to-equity 0.80), but ROE is very low (1.49%) and cash conversion is weak, with negative free cash flow indicators raising liquidity/quality concerns.

Income Statement

Siltronic's income statement shows a declining trend in revenue and profitability. The TTM data indicates a negative revenue growth rate of -4.09% and a net loss, reflecting challenges in maintaining profitability. Gross profit margin has decreased over the years, indicating pressure on cost management. However, the company maintains a reasonable EBITDA margin of 24.33% in TTM, suggesting some operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.80 in TTM, indicating manageable leverage. However, the return on equity has significantly declined to 1.49% in TTM, reflecting reduced profitability. The equity ratio remains stable, suggesting a solid asset base relative to equity.

Cash Flow

Siltronic's cash flow statement highlights challenges with negative free cash flow growth and a negative free cash flow to net income ratio in TTM. The operating cash flow to net income ratio is below 1, indicating potential issues in converting income into cash. These factors suggest liquidity concerns and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34B	1.41B	1.51B	1.81B	1.41B	1.21B
Gross Profit	177.00M	275.40M	372.20M	615.30M	441.20M	339.50M
EBITDA	316.20M	348.60M	455.90M	690.70M	480.00M	337.10M
Net Income	-27.10M	63.00M	184.40M	390.60M	253.30M	160.80M
Balance Sheet
Total Assets	4.86B	5.08B	4.50B	4.05B	2.46B	1.92B
Cash, Cash Equivalents and Short-Term Investments	507.40M	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	1.88B	2.01B	1.90B	1.89B	1.19B	786.10M
Cash Flow
Free Cash Flow	-202.70M	-355.40M	-710.90M	-118.20M	108.40M	31.90M
Operating Cash Flow	239.30M	344.50M	487.90M	804.50M	501.10M	236.70M
Investing Cash Flow	-539.20M	-959.80M	-628.90M	-1.33B	-322.20M	-36.40M
Financing Cash Flow	419.10M	525.60M	42.80M	577.10M	-64.50M	-95.30M

Siltronic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 57.4 is above the 20-day moving average (MA) of 53.29, above the 50-day MA of 52.21, and above the 200-day MA of 45.33, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 61.48 is Neutral, neither overbought nor oversold. The STOCH value of 85.75 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELG	74 Outperform	€2.52B	24.97	22.08%	1.08%	-5.55%	21.30%
SMHN	70 Outperform	€1.06B	19.93	19.94%	0.78%	34.77%	52.20%
WCH	62 Neutral	€4.01B	-5.14	―	3.75%	-10.63%	-23.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IFX	59 Neutral	€59.64B	59.05	6.16%	0.95%	-1.96%	-21.55%
WAF	52 Neutral	€1.72B	-63.54	-1.40%	0.43%	-5.17%	-128.32%