Siltronic (WAF) AI Stock Analysis

• Market Cap: €1.53B
• Dividend Yield: 0.42%
• Average Volume (3M): 125.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• 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: €56.52
• Price Target Upside: 18.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €48.00 ▲(0.84% 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 Demand

The growing demand for semiconductors across various sectors supports Siltronic's revenue potential, providing a stable market for its silicon wafers.

Long-term Contracts

Long-term contracts with major clients ensure consistent revenue, enhancing financial stability and reducing the impact of market volatility.

Operational Efficiency

A strong EBITDA margin indicates effective cost management and operational efficiency, which can support profitability despite revenue challenges.

Negative Factors

Declining Revenue

Declining revenue growth reflects challenges in maintaining market share and competitiveness, potentially impacting long-term financial health.

Profitability Challenges

Reduced profitability and declining returns on equity indicate financial performance issues, which could affect investor confidence and capital access.

Liquidity Concerns

Liquidity concerns due to negative free cash flow can limit investment in growth opportunities and strain financial flexibility.

Siltronic Business Overview & Revenue Model

Company Description

Siltronic AG is a leading global manufacturer of silicon wafers, serving the semiconductor industry. The company specializes in producing high-quality silicon wafers that are essential for the manufacture of integrated circuits, which are used in a wide range of electronic devices, including smartphones, computers, and automotive applications. Siltronic operates in the semiconductor materials sector and is known for its advanced manufacturing processes and research capabilities, offering products that include polished and epitaxial wafers in various diameters and specifications.

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, increased leverage, and negative free cash flow. While operational efficiency remains a strength, the company must address its cash flow issues and manage its debt levels to improve financial stability.

Income Statement

Siltronic's income statement shows declining revenue and profitability metrics over the TTM period. The Gross Profit Margin and Net Profit Margin have decreased compared to previous years, indicating pressure on profitability. The Revenue Growth Rate is negative, reflecting a challenging market environment. However, the company maintains a positive EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a moderate Debt-to-Equity Ratio, which has increased over recent periods, indicating rising leverage. Return on Equity has declined, reflecting reduced profitability. However, the company maintains a solid Equity Ratio, suggesting a stable capital structure despite increased debt levels.

Cash Flow

Siltronic's cash flow statement highlights challenges with negative Free Cash Flow and declining Free Cash Flow Growth. The Operating Cash Flow to Net Income Ratio is below 1, indicating potential cash flow issues. The negative Free Cash Flow to Net Income Ratio suggests that the company is not generating sufficient free cash flow relative to its net income.

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: Neutral
• Last Price: 47.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 47.6 is above the 20-day moving average (MA) of 46.86, below the 50-day MA of 50.42, and above the 200-day MA of 42.16, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 20.92 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
ELG	74 Outperform	€1.54B	12.44	22.08%	1.06%	-5.55%	21.30%
SMHN	73 Outperform	€518.03M	9.13	19.94%	0.78%	34.77%	52.20%
IFX	67 Neutral	$44.49B	65.67	5.98%	0.96%	-1.96%	-21.55%
WCH	62 Neutral	$3.34B	13.86	―	3.58%	-10.63%	-23.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAF	52 Neutral	€1.53B	-56.63	-1.40%	0.42%	-5.17%	-128.32%