Siltronic (WAF) AI Stock Analysis

• Market Cap: €1.14B
• Dividend Yield: 0.53%
• Average Volume (3M): 66.45K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.22
• Revenue Growth: -2.61%
• EPS Growth: -72.43%
• Country: DE
• Employees: 4,400
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Semiconductors
• EPS (TTM): 0.08
• Shares Outstanding: 30,000,000
• 10 Day Avg. Volume: 79,529
• 30 Day Avg. Volume: 66,449
• 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: €48.22
• Price Target Upside: 17.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 66 Neutral
• 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 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 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
	EBIT
125.20M	231.30M	495.60M	316.90M	192.20M
	EBITDA
348.60M	455.90M	690.70M	480.00M	337.10M
	Net Income Common Stockholders
63.00M	184.40M	390.60M	253.30M	160.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
663.70M	456.90M	1.04B	555.40M	455.70M
	Total Assets
5.08B	4.50B	4.05B	2.46B	1.92B
	Total Debt
1.52B	904.60M	770.50M	105.80M	52.40M
	Net Debt
1.23B	518.40M	281.80M	-318.50M	-242.20M
	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: Positive
• Last Price: 41.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAF	66 Neutral	€1.14B	28.64	2.02%	0.53%	-2.61%	-72.43%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%
IFNNF		$55.44B	66.55	7.74%	0.87%	―	―
0N9K		€1.33B	10.74	23.28%	1.30%	―	―
0G0X		€599.63M	229.45	-14.35%	0.81%	―	―
0Q3C		€795.59M	14.02	21.21%	0.72%	―	―
WKCMF		$3.73B	14.23	5.37%	3.77%	―	―