X-Fab Silicon Foundries SE (XFAB) AI Stock Analysis

• Market Cap: €593.59M
• Dividend Yield: N/A
• Average Volume (3M): 178.85K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 1.42
• Revenue Growth: -5.30%
• EPS Growth: -81.29%
• Country: FR
• Employees: 4,500
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): <0.01
• Shares Outstanding: 130,781,680
• 10 Day Avg. Volume: 151,834
• 30 Day Avg. Volume: 178,852
• PEG Ratio: -0.52
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.88
• P/FCF Ratio: -9.99
• 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: €5.10
• Price Target Upside: 10.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.22
• Revenue Forecast (FY): €876.95M

• Rating: 50 Neutral
• Price Target: €4.50 ▼(-2.17% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

Overall score reflects pressured fundamentals led by negative free cash flow and sharply weaker margins/returns versus 2023, alongside a clearly bearish technical setup (below all key moving averages with negative MACD). Valuation is only moderate (P/E ~20.8) and does not sufficiently offset the cash flow and momentum risks.

Positive Factors

Diversified end-markets & specialty tech

X‑Fab's focus on mixed-signal, analog and MEMS processes across automotive, industrial and medical supports durable demand and client stickiness. Specialized manufacturing and engineering services create higher switching costs and recurring contract opportunities, reducing cyclicality over the medium term.

Solid equity base, moderate leverage

A sizeable equity cushion (~€1.05B) versus ~€0.48B debt gives X‑Fab capacity to fund capital investment and absorb industry cyclicality without immediate refinancing stress. This financial headroom supports strategic investments and customer commitments over the coming months.

Revenue rebound and ongoing investment

An 8.2% revenue rebound in 2025 signals demand resilience in core end-markets. Concurrent asset growth indicates continuing capex to expand capacity and update processes, positioning X‑Fab to capture medium-term order growth and benefit from scale in specialty manufacturing.

Negative Factors

Negative free cash flow & OCF decline

Operating cash flow collapse and consecutive negative free cash flow reduce the firm's ability to self-fund capex, service debt, or return capital. Persistent weak cash generation increases reliance on external financing and constrains strategic flexibility over the medium term.

Sharp margin deterioration

Material compression in gross and net margins substantially lowers profitability and internal reinvestment capacity. If the pricing or cost pressures persist, weaker margins will hamper return on invested capital and limit the company's ability to rebuild sustainable earnings over time.

Rising leverage and collapsing returns

Higher debt-to-equity alongside a steep ROE decline raises solvency and capital-efficiency concerns. Increasing leverage with shrinking returns makes the company more vulnerable to downturns and may force deleveraging or margin-restoration measures that constrain growth choices.

X-Fab Silicon Foundries SE Business Overview & Revenue Model

Company Description

X-FAB Silicon Foundries SE operates as an analog/mixed-signal semiconductor technology foundry. The company manufactures silicon wafers for automotive, industrial, consumer, medical, and mobile communications, and other applications; and analog/mixed-signal integrated circuits, sensors, and micro-electro-mechanical systems. It also provides manufacturing and design support services for customers that design analog/mixed-signal integrated circuits and other semiconductor devices, as well as engineering and prototyping, outsourcing, technical, and design support services. The company serves integrated device manufacturers, original equipment manufacturers, and fabless semiconductor companies. It operates in Belgium, Germany, the United Kingdom, Austria, France, Switzerland, Denmark, Sweden, Finland, Netherlands, Ireland, Singapore, China, Japan, Thailand, Malaysia, Korea, Taiwan, Hong Kong, New Zealand, the United States, and internationally. The company was founded in 1992 and is based in Tessenderlo, Belgium. X-FAB Silicon Foundries SE is a subsidiary of XTRION NV.

How the Company Makes Money

XFAB generates revenue primarily through its silicon foundry services, which involve the fabrication of semiconductor wafers for clients in various industries. The company's key revenue streams include contract manufacturing agreements, where clients pay for the production of their specific semiconductor designs, and engineering services, which entail customization and optimization of semiconductor processes. Strategic partnerships with technology firms and collaborations with research institutions further enhance its capabilities, enabling XFAB to attract a diverse clientele. Additionally, the increasing demand for advanced semiconductor solutions, particularly in the automotive and healthcare sectors, provides significant growth opportunities that contribute to the company's earnings.

X-Fab Silicon Foundries SE Financial Statement Overview

Summary

Mixed fundamentals: revenue rebounded in 2025 (+8.2%), but profitability deteriorated sharply (gross margin ~21.2% vs ~28.5% in 2023; net margin ~3.5% vs ~17.9% in 2023). Balance sheet is still fairly solid (equity ~1.05B vs debt ~0.48B), but leverage is up and returns weakened materially (ROE ~3.0% in 2025). Cash flow is the key weakness with negative free cash flow in 2024–2025 and operating cash flow down significantly versus 2023.

Income Statement

Revenue rebounded in 2025 (+8.2% vs. 2024) after a flat/down 2024, showing some resilience, but profitability has compressed sharply from 2023 peaks. Gross margin fell to ~21.2% in 2025 (from ~28.5% in 2023) and net margin dropped to ~3.5% (from ~17.9% in 2023), indicating a much weaker pricing/cost environment. EBIT and net income also declined materially versus 2023, so while the top line is holding up, earnings quality and margin stability are key weaknesses.

Balance Sheet

The balance sheet remains relatively solid, supported by a large equity base (2025 equity ~1.05B vs. debt ~0.48B). Leverage has risen meaningfully since 2021 (debt-to-equity ~0.46 in 2025 vs. ~0.17 in 2021), but it is not extreme for a capital-intensive semiconductor manufacturer. Total assets have continued to grow, suggesting ongoing investment, yet returns have softened: return on equity fell to ~3.0% in 2025 from ~16.9% in 2023, reflecting weaker profitability on a larger capital base.

Cash Flow

Cash flow is the main pressure point. Operating cash flow declined to ~133M in 2025 (from ~410M in 2023), and free cash flow was negative in 2024 and 2025 (about -313M and -79M, respectively), consistent with heavy spending and/or weaker cash generation. In both 2024 and 2025, free cash flow did not cover net income (negative free cash flow relative to profits), which reduces financial flexibility despite some improvement in the free-cash deficit from 2024 to 2025.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	905.74M	816.38M	906.79M	739.47M	657.75M
Gross Profit	191.92M	182.95M	258.05M	175.95M	149.98M
EBITDA	241.01M	224.93M	256.19M	163.42M	150.55M
Net Income	31.36M	61.52M	161.90M	52.49M	83.61M
Balance Sheet
Total Assets	1.95B	1.90B	1.70B	1.26B	986.93M
Cash, Cash Equivalents and Short-Term Investments	194.34M	215.84M	406.24M	369.43M	290.19M
Total Debt	480.46M	414.13M	260.98M	296.94M	127.03M
Total Liabilities	893.79M	876.66M	743.27M	458.09M	242.59M
Stockholders Equity	1.05B	1.02B	960.54M	796.97M	743.97M
Cash Flow
Free Cash Flow	-79.43M	-313.50M	72.17M	-80.59M	42.54M
Operating Cash Flow	133.02M	196.05M	409.96M	99.99M	109.51M
Investing Cash Flow	-210.80M	-496.13M	-323.62M	-174.98M	-65.15M
Financing Cash Flow	47.04M	116.30M	-53.16M	158.03M	48.23M

X-Fab Silicon Foundries SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.60
• 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:XFAB, the sentiment is Negative. The current price of 4.6 is above the 20-day moving average (MA) of 4.58, below the 50-day MA of 4.97, and below the 200-day MA of 5.86, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 44.58 is Neutral, neither overbought nor oversold. The STOCH value of 41.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:XFAB.

X-Fab Silicon Foundries SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOI	65 Neutral	€1.51B	-5.18	0.73%	―	-14.27%	-89.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STMMI	57 Neutral	€24.77B	133.49	3.17%	1.40%	-18.77%	-76.73%
WLN	52 Neutral	€419.31M	-0.06	-71.58%	―	-2.35%	-387.75%
XFAB	50 Neutral	€593.59M	25.30	2.04%	―	-5.30%	-81.29%
ETL	49 Neutral	€2.43B	-2.13	-13.29%	―	2.53%	-192.58%