tiprankstipranks
Trending News
More News >
Soitec SA (FR:SOI)
:SOI
Advertisement

Soitec SA (SOI) AI Stock Analysis

Compare
54 Followers

Top Page

FR

Soitec SA

(LSE:SOI)

Rating:67Neutral
Price Target:
€51.00
▲(8.14%Upside)
Soitec SA's stock score reflects a solid financial foundation with strong profitability margins and moderate valuation. However, challenges such as revenue volatility and technical bearish trends weigh on the overall score. The absence of a dividend yield and uncertain short-term technical indicators further impact the attractiveness of the stock.
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 (SOI) vs. iShares MSCI France ETF (EWQ)

Soitec SA Business Overview & Revenue Model

Company DescriptionSoitec 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 MoneySoitec 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
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue891.00M977.91M1.09B862.74M583.76M
Gross Profit286.00M331.91M375.99M294.23M168.27M
EBITDA278.00M327.23M355.92M279.95M130.69M
Net Income92.00M178.32M233.03M201.96M72.67M
Balance Sheet
Total Assets2.81B2.69B2.42B2.00B1.59B
Cash, Cash Equivalents and Short-Term Investments695.00M712.74M788.95M730.27M649.99M
Total Debt781.00M742.74M647.58M585.70M648.48M
Total Liabilities1.21B1.20B1.11B955.57M911.80M
Stockholders Equity1.59B1.49B1.31B1.04B676.70M
Cash Flow
Free Cash Flow2.00M-59.88M32.33M45.94M38.73M
Operating Cash Flow201.00M165.31M259.82M250.87M172.33M
Investing Cash Flow-176.00M-208.38M-235.76M-211.49M-132.87M
Financing Cash Flow-50.00M-33.35M30.37M37.78M414.22M

Soitec SA Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price47.16
Price Trends
50DMA
48.74
Negative
100DMA
50.41
Negative
200DMA
64.12
Negative
Market Momentum
MACD
-0.36
Positive
RSI
49.91
Neutral
STOCH
34.72
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 47.16 is above the 20-day moving average (MA) of 46.78, below the 50-day MA of 48.74, and below the 200-day MA of 64.12, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 34.72 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

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FRSOI
67
Neutral
€1.59B18.325.91%-8.90%-48.52%
50
Neutral
C$3.01B2.40-63.12%2.48%4.49%-6.07%
$1.97B-28.35%
€529.00M0.0158.08%
€4.01B16.0616.26%2.35%
€24.10B25.496.33%1.14%
DEXFB
€882.42M19.355.01%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:SOI
Soitec SA
47.16
-64.34
-57.70%
EUTLF
Eutelsat Communications
4.00
-1.01
-20.16%
GB:0DNH
Atos SE
28.38
-66.71
-70.15%
GB:0NJQ
Sopra Steria
200.20
31.03
18.34%
GB:0INB
STMicroelectronics NV
27.72
-8.16
-22.74%
DE:XFB
X-Fab Silicon Foundries SE
6.93
0.71
11.41%
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: Jul 12, 2025