Siltronic (WAF) AI Stock Analysis

• Market Cap: €1.58B
• Dividend Yield: 0.43%
• Average Volume (3M): 125.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• 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: €55.75
• Price Target Upside: 5.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €55.00 ▲(4.56% Upside)

Siltronic's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability, and liquidity concerns. Technical analysis shows mixed signals with short-term positive momentum but medium-term weakness. Valuation metrics are unfavorable due to a negative P/E ratio and low dividend yield, further weighing down the score.

Positive Factors

Market Position & Product Criticality

Siltronic’s position as a leading silicon wafer supplier gives it durable relevance in the semiconductor value chain. Wafers are indispensable inputs across smartphones, compute and automotive, supporting long-term demand and enabling multi-year supply contracts and technology partnerships.

Operational Efficiency (EBITDA Margin)

A TTM EBITDA margin of ~24% indicates structural operating scale and manufacturing efficiency in a capital-intensive business. Sustained EBITDA supports fixed-cost absorption, funds incremental capacity and helps maintain competitiveness on pricing and quality during industry cycles.

Manageable Leverage and Asset Base

A debt-to-equity ~0.8 with a stable equity ratio suggests leverage is manageable for a capital-heavy wafer producer. This financial flexibility supports necessary capex, R&D and cyclical smoothing, reducing the risk of forced asset sales or underinvestment over the medium term.

Negative Factors

Declining Revenue and Profitability

Multi-quarter revenue decline and a net loss imply weakening demand or margin pressure. Sustained top-line contraction reduces scale benefits, compresses margins and limits internal funding for R&D and capacity expansion, risking market-share erosion versus better-funded peers.

Weak Cash Generation

Negative FCF growth and poor cash conversion constrain the company’s ability to finance capital-intensive wafer equipment and R&D from operations. Persistent negative FCF raises refinancing and liquidity risk and limits strategic flexibility for long-term capacity upgrades.

Falling Returns on Equity & Margin Pressure

ROE falling to ~1.5% and reported gross margin deterioration indicate weak capital efficiency and margin compression. Over time this reduces the company’s ability to generate attractive investor returns and self-fund innovation, weakening competitiveness in a tech-driven industry.

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

Siltronic faces challenges with declining revenue and profitability, as reflected in the income statement. The balance sheet shows moderate leverage but declining returns on equity. Cash flow issues, particularly negative free cash flow, highlight liquidity concerns. The company needs to address these issues to improve financial stability and performance.

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: 52.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 52.6 is below the 20-day moving average (MA) of 53.52, above the 50-day MA of 49.62, and above the 200-day MA of 43.65, indicating a neutral trend. The MACD of 1.19 indicates Positive momentum. The RSI at 48.75 is Neutral, neither overbought nor oversold. The STOCH value of 61.43 is Neutral, 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	€1.98B	15.04	22.08%	1.08%	-5.55%	21.30%
SMHN	70 Outperform	€951.57M	16.76	19.94%	0.78%	34.77%	52.20%
IFX	67 Neutral	€54.15B	54.54	5.98%	0.95%	-1.96%	-21.55%
WCH	62 Neutral	€3.41B	-4.37	―	3.75%	-10.63%	-23.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAF	52 Neutral	€1.58B	-58.23	-1.40%	0.43%	-5.17%	-128.32%