Soitec SA (SOI) AI Stock Analysis

• Market Cap: €1.66B
• Dividend Yield: N/A
• Average Volume (3M): 210.39K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.34
• Revenue Growth: -10.32%
• EPS Growth: -48.42%
• Country: FR
• Employees: 2,070
• Sector: Technology
• Sector Strength: 89
• Industry: Semiconductors
• EPS (TTM): 1.73
• Shares Outstanding: 35,727,040
• 10 Day Avg. Volume: 116,931
• 30 Day Avg. Volume: 210,390
• PEG Ratio: 2.05
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 160.41
• 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: €61.00
• Price Target Upside: 31.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 65 Neutral
• Price Target: ―

Soitec SA's overall stock score reflects its robust financial health and reasonable valuation, offset by bearish technical trends and revenue challenges. The company's strong profitability and balance sheet are key strengths, but addressing cash flow issues and reversing revenue decline are critical to improving future prospects.

Positive Factors

Client Acquisition

Soitec reported a fifth client in qualification for SmartSiC, indicating some progress in this area.

Inventory Management

RF-SOI inventories have improved significantly, suggesting that Q1 was the low point for Soitec.

Product Growth

Strong growth of AI-related products is expected to offset weaknesses in the automotive sector.

Negative Factors

Revenue Guidance

Soitec lowered its FY25 revenue guidance to a “high single-digit” LFL yoy decline, which is worse than prior guidance.

Sales Performance

Soitec reported 3Q sales of €226m, missing consensus by 10.5%.

Technology Delays

SmartSiC technology has been delayed by about two years, which has influenced investor expectations.

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 SA generates revenue primarily through the sale of its semiconductor materials, particularly its SOI wafers, to major electronics and semiconductor companies. These wafers are critical components in the production of integrated circuits, which are essential for a wide range of electronic devices. The company collaborates with leading technology firms, benefiting from strategic partnerships and long-term supply agreements. Soitec's revenue model is driven by the growing demand for high-performance and energy-efficient semiconductor solutions in various industries, including mobile communications, automotive, and data centers. The company's focus on innovation and its ability to adapt to technological advancements help sustain its competitive edge and revenue growth.

Soitec SA Financial Statement Overview

Summary

Soitec SA exhibits strong profitability with impressive margins and a solid balance sheet, reflecting efficient leverage and cost management. However, revenue decline and negative free cash flow indicate potential risks that need addressing to ensure liquidity and future growth.

Income Statement

Soitec SA demonstrates strong profitability with a healthy gross profit margin of approximately 33.93% and a solid net profit margin of 18.23% for the latest fiscal year. However, the company experienced a revenue decline of 10.18% in the most recent year, which could indicate market challenges or increased competition. Despite this, the company maintains a robust EBIT margin of 21.00% and an impressive EBITDA margin of 33.46%, highlighting efficient operational management.

Balance Sheet

Soitec SA shows a strong balance sheet with a decreasing debt-to-equity ratio of 0.50, indicating prudent leverage management. The return on equity is solid at 11.93%, reflecting efficient use of shareholder's funds to generate profits. The equity ratio stands at 55.53%, showcasing financial stability with significant equity financing.

Cash Flow

The company faces challenges in cash flow management, with a negative free cash flow in the latest fiscal year. The operating cash flow to net income ratio is positive at 0.93, indicating operational cash generation is adequate. However, the free cash flow to net income ratio is negative, suggesting capital expenditure is high relative to net income, which may impact future liquidity if not managed carefully.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	914.30M	977.91M	1.09B	862.74M	583.76M	597.55M
Gross Profit	289.00M	331.91M	375.99M	294.23M	168.27M	185.40M
EBITDA	242.45M	327.23M	355.92M	279.95M	130.69M	154.05M
Net Income	112.51M	178.32M	233.03M	201.96M	72.67M	109.68M
Balance Sheet
Total Assets	2.61B	2.69B	2.42B	2.00B	1.59B	1.02B
Cash, Cash Equivalents and Short-Term Investments	701.78M	712.74M	788.95M	730.27M	649.99M	191.01M
Total Debt	746.90M	742.74M	647.58M	585.70M	648.48M	244.70M
Total Liabilities	1.12B	1.20B	1.11B	955.57M	911.80M	463.99M
Stockholders Equity	1.49B	1.49B	1.31B	1.04B	676.70M	551.73M
Cash Flow
Free Cash Flow	99.44M	-59.88M	32.33M	45.94M	38.73M	13.95M
Operating Cash Flow	249.91M	165.31M	259.82M	250.87M	172.33M	98.07M
Investing Cash Flow	-172.66M	-208.38M	-235.76M	-211.49M	-132.87M	-90.60M
Financing Cash Flow	-32.52M	-33.35M	30.37M	37.78M	414.22M	12.81M

Soitec SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 46.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SOI, the sentiment is Neutral. The current price of 46.49 is above the 20-day moving average (MA) of 45.99, below the 50-day MA of 49.30, and below the 200-day MA of 67.60, indicating a neutral trend. The MACD of -1.20 indicates Negative momentum. The RSI at 47.50 is Neutral, neither overbought nor oversold. The STOCH value of 57.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:SOI.

Soitec SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOP	75 Outperform	€4.12B	16.29	16.26%	1.99%	-0.49%	39.02%
CAP	75 Outperform	€24.24B	14.48	15.03%	2.06%	-1.89%	1.15%
SOI	65 Neutral	€1.66B	18.06	5.91%	―	-10.32%	-48.42%
Sector *	56 Neutral	$3.12B	5.00	-5.68%	6.01%	7.96%	-51.05%