Soitec SA (SOI) AI Stock Analysis

• Market Cap: €1.31B
• Dividend Yield: N/A
• Average Volume (3M): 142.94K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.26
• Revenue Growth: -8.90%
• EPS Growth: -48.52%
• Country: FR
• Employees: 2,070
• Sector: Technology
• Sector Strength: 92
• Industry: Semiconductors
• EPS (TTM): 1.73
• Shares Outstanding: 35,727,040
• 10 Day Avg. Volume: 241,198
• 30 Day Avg. Volume: 142,941
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €53.17
• Price Target Upside: 44.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 60 Neutral
• Price Target: €39.00 ▲(6.01% 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 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 advanced semiconductor materials, particularly its silicon-on-insulator (SOI) wafers, which are crucial for manufacturing high-performance integrated circuits. The company supplies these materials to major electronics manufacturers around the world, benefiting from long-term contracts and partnerships with industry leaders. In addition to direct sales, Soitec also engages in licensing agreements, allowing other companies to utilize its proprietary technologies. The company's earnings are significantly influenced by the growing demand for semiconductor components across various industries, including automotive, telecommunications, and consumer electronics.

Soitec SA Financial Statement Overview

Summary

Soitec SA demonstrates strong profitability margins with a stable balance sheet and moderate leverage. However, revenue volatility and inconsistent free cash flow growth present challenges. Enhancing revenue stability and improving free cash flow conversion is crucial for sustained 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	891.00M	977.91M	1.09B	862.74M	583.76M
Gross Profit	286.00M	331.91M	375.99M	294.23M	168.27M
EBITDA	278.00M	327.23M	355.92M	279.95M	130.69M
Net Income	92.00M	178.32M	233.03M	201.96M	72.67M
Balance Sheet
Total Assets	2.81B	2.69B	2.42B	2.00B	1.59B
Cash, Cash Equivalents and Short-Term Investments	695.00M	712.74M	788.95M	730.27M	649.99M
Total Debt	781.00M	742.74M	647.58M	585.70M	648.48M
Total Liabilities	1.21B	1.20B	1.11B	955.57M	911.80M
Stockholders Equity	1.59B	1.49B	1.31B	1.04B	676.70M
Cash Flow
Free Cash Flow	2.00M	-59.88M	32.33M	45.94M	38.73M
Operating Cash Flow	201.00M	165.31M	259.82M	250.87M	172.33M
Investing Cash Flow	-176.00M	-208.38M	-235.76M	-211.49M	-132.87M
Financing Cash Flow	-50.00M	-33.35M	30.37M	37.78M	414.22M

Soitec SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 36.79 is below the 20-day moving average (MA) of 42.90, below the 50-day MA of 45.00, and below the 200-day MA of 61.40, indicating a bearish trend. The MACD of -2.66 indicates Positive momentum. The RSI at 29.12 is Positive, neither overbought nor oversold. The STOCH value of 3.06 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
Sector *	69 Neutral	¥233.80B	14.87	7.64%	2.58%	9.19%	5.65%
SOI	60 Neutral	€1.31B	14.15	5.91%	―	-8.90%	-48.52%
EUTLF	―	$1.83B	―	-32.71%	―	―	―
0DNH	―	€625.32M	0.41	58.08%	―	―	―
0NJQ	―	€3.74B	13.37	14.39%	―	―	―
0INB	―	€19.39B	33.91	3.92%	―	―	―
XFB	―	€946.43M	32.66	3.08%	―	―	―