Soitec SA (SOI) AI Stock Analysis

• Market Cap: €1.54B
• Dividend Yield: N/A
• Average Volume (3M): 192.66K
• Price to Earnings (P/E): 135.8
• Beta (1Y): 1.66
• 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: €33.20
• Price Target Upside: -22.90% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -2.02
• Revenue Forecast (FY): €582.50M

• Rating: 65 Neutral
• Price Target: €46.00 ▲(6.83% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by solid margins and a stable balance sheet, partly offset by revenue volatility and inconsistent free cash flow. Technicals are mixed (strong short-term trend but overbought signals and still below the 200-day average). Valuation is a key headwind due to the very high P/E.

Positive Factors

Strong profit margins

Sustained gross and EBITDA margins near 30% reflect durable pricing power from specialized engineered substrates. High margins provide structural ability to fund R&D, sustain operating leverage, and absorb cyclical revenue swings over a 2–6 month horizon without immediate margin dilution.

Stable balance sheet and moderate leverage

A strong equity base and modest leverage give financial flexibility in a capital-intensive industry. This durable capital structure supports capacity investments, smooths cyclical cash needs, and reduces refinancing risk across medium-term industry cycles.

Niche technology leadership in RF- and FD-SOI substrates

Specialized FD- and RF-SOI platforms serve structural end markets (connectivity, automotive, industrial) where power, performance and isolation matter. This product specialization sustains long-term customer demand, supports qualification cycles with foundries/IDMs, and underpins durable revenue streams.

Negative Factors

Revenue volatility and recent decline

A notable revenue decline and inconsistent growth create visibility risk for EBITDA and cash generation. Dependence on end-market cycles (smartphones, automotive) means demand swings can materially affect near-term top-line and planning, challenging sustained operational gearing.

Inconsistent free cash flow conversion

Irregular conversion of net income into free cash reduces the company’s ability to self-fund capex, dividends or strategic investments. In a capital-intensive substrate business this increases reliance on balance sheet resources and raises execution risk during downturns.

Weak returns and EPS contraction

A steep EPS decline alongside a reduced ROE (~5.8% per balance sheet summary) signals weaker profitability on shareholder capital. Persistently low returns can constrain long-term investor confidence and limit reinvestment efficiency across industry cycles.

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

Solid profitability profile (gross margin ~32.1%, EBITDA margin ~31.2%, net margin ~10.3%) and a stable balance sheet (equity ratio ~56.8%, debt-to-equity ~0.49). However, revenue volatility (including a significant latest-period decline) and weak/inconsistent free cash flow conversion limit the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• Last Price: 43.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SOI, the sentiment is Positive. The current price of 43.06 is above the 20-day moving average (MA) of 36.45, above the 50-day MA of 30.25, and above the 200-day MA of 36.87, indicating a bullish trend. The MACD of 3.41 indicates Negative momentum. The RSI at 74.36 is Negative, neither overbought nor oversold. The STOCH value of 77.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	€2.52B	8.62	14.39%	3.03%	-4.12%	43.37%
SOI	65 Neutral	€1.54B	135.75	0.73%	―	-14.27%	-89.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STMMI	57 Neutral	€25.14B	172.47	3.17%	1.40%	-18.77%	-76.73%
ATO	52 Neutral	€786.05M	0.47	―	―	-14.60%	―
XFAB	50 Neutral	€613.71M	22.79	2.04%	―	-5.30%	-81.29%
ETL	49 Neutral	€2.70B	―	-13.29%	―	2.53%	-192.58%