Soitec SA (SOI) AI Stock Analysis

• Market Cap: €833.39M
• Dividend Yield: N/A
• Average Volume (3M): 192.66K
• Price to Earnings (P/E): 73.5
• Beta (1Y): 1.46
• Revenue Growth: -14.27%
• EPS Growth: -89.94%
• Country: FR
• Employees: 2,070
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -1.13
• Shares Outstanding: 35,772,015
• 10 Day Avg. Volume: 230,228
• 30 Day Avg. Volume: 192,660
• PEG Ratio: -0.39
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 2.00
• P/FCF Ratio: 61.39
• 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: €37.71
• Price Target Upside: 61.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: €27.00 ▲(15.88% Upside)

Soitec SA's overall stock score is primarily influenced by its solid financial foundation, which is offset by bearish technical indicators and a high valuation. The company's strong profitability and stable balance sheet are positive, but revenue volatility and high P/E ratio present significant risks. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Profitability Margins

Strong profitability margins indicate effective cost management and pricing power, contributing to sustainable earnings and competitive positioning.

Stable Balance Sheet

A stable balance sheet with a strong equity ratio suggests financial resilience, providing a solid foundation for future growth and investment.

Healthy Operating Cash Flow

Healthy operating cash flow indicates efficient operations and the ability to fund growth and investments without relying heavily on external financing.

Negative Factors

Revenue Volatility

Inconsistent revenue growth can lead to unpredictability in financial performance, affecting long-term strategic planning and investment decisions.

Inconsistent Free Cash Flow

Inconsistent free cash flow growth may limit the company's ability to invest in new opportunities or return capital to shareholders, impacting long-term value creation.

Reduced Return on Equity

A reduced return on equity suggests challenges in efficiently generating profits from shareholder investments, potentially affecting investor confidence and future capital raising.

Soitec SA Business Overview & Revenue Model

Company Description

Soitec S.A. designs and manufactures semiconductor materials worldwide. Its products are used to manufacture chips that are used in smart phones, tablets, computers, IT servers, and data centers, as well as electronic components in cars, connected devices, and industrial and medical equipment. It offers Fully Depleted Silicon-On-Insulator (FD-SOI) for automotive radar and processors, and PD-SOI and FinFET-SOI products for high-performance computing markets. The company also offers RF-SOI substrates for front-end module devices, as well as 4G LTE and new 5G sub-6 GHz/ mmWave smartphones. In addition, it offers power-SOI products that address the requirements for integrating high and low voltage functions in power IC devices for automotive and industry markets. Further, the company offers Smart photonics-SOI products for optical networking; Smart Imager-SOI products for next generation 3D image sensing; Auto Smartsic for green mobility; Connect RF-GaN for 5G infrastructure architecture and smartphone power amplifier markets; Connect-POI engineered substrates for high performance surface acoustic wave filter; and Gallium Nitride (GAN) Epitaxial wafers for energy efficient power management system. Soitec S.A. was incorporated in 1992 and is headquartered in Bernin, France.

How the Company Makes Money

Soitec makes money primarily through the sale of its semiconductor materials, particularly its SOI wafers, to major semiconductor manufacturers and foundries. The company has a diversified revenue model that includes direct sales to clients in various sectors, including mobile, automotive, and IoT. Key revenue streams are generated from long-term contracts and partnerships with leading technology companies, which rely on Soitec's advanced materials for their chip production. Additionally, Soitec invests in research and development to innovate and improve its product offerings, which helps maintain its competitive edge and attract new clients, further contributing to its earnings.

Soitec SA Financial Statement Overview

Summary

Soitec SA exhibits a solid financial foundation with strong profitability margins and a stable balance sheet. However, revenue volatility and inconsistent free cash flow growth present challenges. While the company maintains effective cost controls and moderate leverage, enhancing revenue stability and improving free cash flow conversion will be key to sustaining financial health.

Income Statement

Soitec SA's income statement reveals a mixed performance. The company has demonstrated strong gross profit margins over the years, with the latest annual rate at approximately 32.1%. While revenue showed a significant decline in the latest period, the firm maintained a decent net profit margin of about 10.3%. The revenue growth rate has been inconsistent, highlighting potential volatility in income streams. Despite these fluctuations, the EBIT and EBITDA margins remain robust at 13.4% and 31.2% respectively, indicating effective cost management.

Balance Sheet

The company's balance sheet reflects a stable financial structure with a commendable equity ratio of 56.8%, suggesting a strong asset base supported by equity. The debt-to-equity ratio stands at 0.49, pointing to moderate leverage and manageable debt levels relative to equity. Return on equity has been somewhat reduced to 5.8%, indicating room for improvement in generating returns on shareholder investments. Overall, the balance sheet portrays stability but highlights the need for enhanced profitability.

Cash Flow

Soitec's cash flow statement shows a positive trajectory in operating cash flow, which outpaces net income, resulting in a healthy operating cash flow to net income ratio. However, the free cash flow has been inconsistent, with recent years showing minimal growth. The free cash flow to net income ratio is low, indicating that net income is not fully translating into free cash flow. This highlights potential challenges in capital expenditure management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	784.00M	891.00M	977.91M	1.09B	862.74M	583.76M
Gross Profit	231.81M	286.00M	331.91M	375.99M	294.23M	168.27M
EBITDA	184.75M	260.00M	308.02M	353.36M	257.36M	137.27M
Net Income	11.49M	92.00M	178.32M	233.03M	201.96M	72.67M
Balance Sheet
Total Assets	2.74B	2.81B	2.69B	2.42B	2.00B	1.59B
Cash, Cash Equivalents and Short-Term Investments	498.73M	695.00M	712.74M	788.95M	730.27M	644.68M
Total Debt	951.47M	781.00M	742.74M	647.58M	585.70M	648.48M
Total Liabilities	1.26B	1.21B	1.20B	1.11B	955.57M	911.80M
Stockholders Equity	1.47B	1.59B	1.49B	1.31B	1.04B	676.70M
Cash Flow
Free Cash Flow	-27.60M	29.00M	-59.88M	32.33M	45.94M	38.73M
Operating Cash Flow	97.33M	201.00M	165.31M	259.82M	250.87M	172.33M
Investing Cash Flow	-132.16M	-176.00M	-208.38M	-235.76M	-211.49M	-132.87M
Financing Cash Flow	151.30M	-50.00M	-33.35M	20.37M	35.93M	414.22M

Soitec SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SOI, the sentiment is Negative. The current price of 23.3 is below the 20-day moving average (MA) of 25.49, below the 50-day MA of 33.16, and below the 200-day MA of 41.88, indicating a bearish trend. The MACD of -2.46 indicates Negative momentum. The RSI at 29.76 is Positive, neither overbought nor oversold. The STOCH value of 4.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:SOI.

Soitec SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOP	65 Neutral	€3.16B	11.29	14.39%	2.98%	-4.12%	43.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XFAB	57 Neutral	€653.16M	35.14	2.04%	―	-5.30%	-81.29%
STMMI	57 Neutral	€19.77B	42.30	3.17%	1.40%	-18.77%	-76.73%
SOI	56 Neutral	€833.39M	73.46	0.73%	―	-14.27%	-89.94%
ATO	43 Neutral	€901.79M	0.55	―	―	-14.60%	―
ETL	39 Underperform	€1.93B	-0.92	-32.71%	―	2.53%	-192.58%