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Soitec SA (FR:SOI)
:SOI
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Soitec SA (SOI) AI Stock Analysis

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FR:SOI

Soitec SA

(LSE:SOI)

Rating:60Neutral
Price Target:
€39.00
▲(5.95% Upside)
The overall score for Soitec SA is primarily influenced by its solid financial performance, reflecting strong profitability and a stable balance sheet, although challenged by revenue volatility and free cash flow inconsistencies. The technical analysis indicates bearish momentum, and the valuation is reasonable, albeit without a dividend yield. The lack of earnings call and corporate event data limits additional insights.
Positive Factors
Division Performance
The Edge and Cloud-AI division showed +13% LFL growth despite challenges, providing a bright spot in Soitec’s report.
Operational Improvements
Soitec’s new CFO could identify opportunities for operating working capital reduction and capex optimization, potentially improving cash generation.
Product Development
Soitec reported a fifth client in qualification for SmartSiC, indicating some progress in this area.
Negative Factors
Future Revenue Expectations
Soitec currently sees “limited growth” for FY26 revenue, well below consensus expectations.
Revenue Outlook
Soitec’s management issued a disappointing 2Q revenue outlook, with the implied 2Q revenue landing 20% below consensus.
Sales Performance
Soitec reported 3Q sales of €226m, missing consensus by 10.5%.

Soitec SA (SOI) vs. iShares MSCI France ETF (EWQ)

Soitec SA Business Overview & Revenue Model

Company DescriptionSoitec SA (SOI) is a leading global supplier of innovative semiconductor materials, primarily known for its Silicon-on-Insulator (SOI) technology. Headquartered in France, the company operates in the semiconductor industry, focusing on providing advanced materials for a variety of sectors including consumer electronics, automotive, and telecommunications. Soitec's core products include SOI wafers, which enhance the performance and energy efficiency of integrated circuits, as well as other engineered substrates that cater to specific applications such as power electronics and RF devices.
How the Company Makes MoneySoitec generates revenue primarily through the sale of its semiconductor materials, particularly Silicon-on-Insulator (SOI) wafers. The company has established key revenue streams by partnering with major semiconductor manufacturers and foundries, which utilize Soitec's materials in their production processes. Additionally, Soitec engages in research and development collaborations that enable it to innovate and expand its product offerings, further driving sales. The demand for energy-efficient and high-performance semiconductors across various applications, including mobile devices, IoT, and automotive technologies, significantly contributes to Soitec’s financial performance. The company's strategic focus on high-growth markets, along with its proprietary technologies, positions it well to capitalize on industry trends and sustain 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
75
Positive
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
72
Positive
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
68
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue891.00M891.00M977.91M1.09B862.74M583.76M
Gross Profit286.00M286.00M331.91M375.99M294.23M168.27M
EBITDA260.00M260.00M293.23M353.36M257.36M137.27M
Net Income92.00M92.00M178.32M233.03M201.96M72.67M
Balance Sheet
Total Assets2.81B2.81B2.69B2.42B2.00B1.59B
Cash, Cash Equivalents and Short-Term Investments695.00M695.00M712.74M788.95M730.27M644.68M
Total Debt781.00M781.00M742.74M647.58M585.70M648.48M
Total Liabilities1.21B1.21B1.20B1.11B955.57M911.80M
Stockholders Equity1.59B1.59B1.49B1.31B1.04B676.70M
Cash Flow
Free Cash Flow29.00M29.00M-59.88M32.33M45.94M38.73M
Operating Cash Flow201.00M201.00M165.31M259.82M250.87M172.33M
Investing Cash Flow-176.00M-176.00M-208.38M-235.76M-211.49M-132.87M
Financing Cash Flow-50.00M-50.00M-33.35M20.37M35.93M414.22M

Soitec SA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price36.81
Price Trends
50DMA
42.09
Negative
100DMA
45.61
Negative
200DMA
58.40
Negative
Market Momentum
MACD
-1.28
Negative
RSI
40.11
Neutral
STOCH
15.02
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 36.81 is below the 20-day moving average (MA) of 37.41, below the 50-day MA of 42.09, and below the 200-day MA of 58.40, indicating a bearish trend. The MACD of -1.28 indicates Negative momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 15.02 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$36.05B6.66-10.61%1.86%8.68%-8.81%
60
Neutral
€1.34B14.555.91%-8.90%-48.52%
$1.68B-32.71%
€866.59M0.5458.08%
€3.22B12.4014.39%
€20.95B36.373.92%
€943.16M33.433.08%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:SOI
Soitec SA
36.81
-76.09
-67.40%
EUTLF
Eutelsat Communications
3.60
-1.04
-22.41%
GB:0DNH
Atos SE
44.70
-15.55
-25.81%
GB:0NJQ
Sopra Steria
161.10
-4.86
-2.93%
GB:0INB
STMicroelectronics NV
23.74
-3.56
-13.04%
DE:XFB
X-Fab Silicon Foundries SE
6.74
1.41
26.45%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025