SiTime Corporation (SITM) AI Stock Analysis

• Market Cap: $5.99B
• Dividend Yield: N/A
• Average Volume (3M): 384.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.69
• Revenue Growth: 65.12%
• EPS Growth: 15.46%
• Country: US
• Employees: 395
• Sector: Technology
• Sector Strength: 84
• Industry: Semiconductors
• EPS (TTM): 0.47
• Shares Outstanding: 26,003,971
• 10 Day Avg. Volume: 384,869
• 30 Day Avg. Volume: 384,060
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 18.72
• Enterprise Value/Gross Profit: 36.75
• Enterprise Value/Ebitda: -71.00
• 1Y Price Target: $245.00
• Price Target Upside: 6.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 61 Neutral
• Price Target: $254.00 ▲(10.20% Upside)

SiTime's strong earnings call performance and technical momentum are significant positives, driving the stock's potential. However, financial performance concerns, particularly ongoing losses and valuation challenges, weigh heavily on the overall score.

Positive Factors

Financial Performance

There is a significant improvement in operating leverage, with operating expenses growing at a much lower rate than revenue, which drives meaningful upside to prior estimates.

Market Expansion

The company is making significant progress in expanding the addressable market for precision timing solutions, particularly in 'mission critical' applications like datacenters and ADAS systems.

Product Penetration

Increasing penetration at hyperscalers was also highlighted, although the level of penetration varies across customers.

Negative Factors

Customer Uncertainty

There is uncertainty regarding the launch rate and attach rate of the modem at SITM's largest customer, leading to a conservative modeling of that opportunity.

Gross Margin Pressure

While gross profit dollars increase, increased consumer mix will weigh on the long term GM ramp.

SiTime Corporation Business Overview & Revenue Model

Company Description

SiTime Corporation (SITM) is a leading provider of silicon timing systems solutions that enable the production of electronic devices with improved performance, stability, and reliability. The company operates in the semiconductor industry, focusing on developing micro-electromechanical systems (MEMS) timing devices, including oscillators, resonators, and clock generators. SiTime's innovative products cater to a wide range of sectors, including automotive, consumer electronics, industrial, and communications, by replacing traditional quartz-based timing components with advanced silicon-based solutions.

How the Company Makes Money

SiTime Corporation generates revenue primarily through the sale of its MEMS-based timing devices. These products are sold to a diverse customer base across various industries, providing essential components for devices that require precise timing and synchronization. The company's revenue model is centered on the direct sales of its silicon timing solutions to original equipment manufacturers (OEMs) and other businesses in electronics and technology sectors. Significant factors contributing to SiTime's earnings include its ability to offer differentiated products with superior performance characteristics compared to traditional quartz-based solutions, as well as strategic partnerships and collaborations that enhance market reach and product development. Additionally, SiTime's focus on innovation and continuous improvement of its MEMS technology helps maintain its competitive edge and drive sustained revenue growth.

SiTime Corporation Financial Statement Overview

Summary

SiTime Corporation shows potential with strong equity and revenue growth. However, persistent operational losses and negative net income pose substantial risks. The lack of debt reduces financial risk, but cash flow challenges and operational inefficiencies need addressing for sustainable profitability.

Income Statement

SiTime Corporation has experienced volatile revenue growth, with significant fluctuations in Total Revenue over the years. The Gross Profit Margin for 2024 stood at around 51.55%, indicating some efficiency in production. However, the Net Profit Margin is negative due to substantial losses, primarily driven by elevated EBIT and EBITDA losses, reflecting operational inefficiencies and high operating expenses. Recent revenue growth is positive, but the consistent net losses are a critical concern.

Balance Sheet

The company's balance sheet shows a strong Equity Ratio of approximately 79%, highlighting a solid capital base primarily funded by equity. SiTime Corporation has a Debt-to-Equity Ratio of 0, indicating no reliance on debt for funding, which minimizes financial risk. However, the Return on Equity is negative due to the net losses, and there's a notable reduction in cash and short-term investments, which could impact liquidity.

Cash Flow

Free Cash Flow fluctuated significantly, with 2024 seeing negative Free Cash Flow due to high capital expenditures relative to operating cash flow. The Operating Cash Flow to Net Income Ratio is positive, suggesting some ability to generate cash from operations despite net losses. However, the negative Free Cash Flow to Net Income Ratio underscores challenges in converting earnings into positive cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	229.99M	202.70M	143.99M	283.61M	218.81M	116.16M
Gross Profit	117.17M	104.49M	82.09M	182.96M	139.46M	57.93M
EBITDA	-60.65M	-74.45M	-83.34M	27.98M	40.77M	-2.24M
Net Income	-88.77M	-93.60M	-80.53M	23.25M	32.28M	-9.37M
Balance Sheet
Total Assets	872.11M	884.96M	951.68M	750.62M	678.21M	136.01M
Cash, Cash Equivalents and Short-Term Investments	398.92M	418.83M	528.20M	564.10M	559.46M	73.53M
Total Debt	5.93M	6.23M	8.02M	10.63M	6.40M	6.99M
Total Liabilities	179.59M	185.24M	243.63M	42.14M	45.71M	26.13M
Stockholders Equity	692.51M	699.72M	708.05M	708.48M	632.50M	109.88M
Cash Flow
Free Cash Flow	-13.24M	-13.03M	-4.19M	4.10M	25.29M	8.81M
Operating Cash Flow	36.49M	23.19M	8.06M	39.75M	59.08M	16.60M
Investing Cash Flow	9.84M	64.76M	-36.66M	-560.09M	-33.79M	-7.79M
Financing Cash Flow	-103.77M	-91.31M	3.47M	-4.52M	460.65M	1.30M

SiTime Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 230.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SITM, the sentiment is Positive. The current price of 230.5 is above the 20-day moving average (MA) of 224.96, above the 50-day MA of 212.46, and above the 200-day MA of 198.18, indicating a bullish trend. The MACD of 7.30 indicates Positive momentum. The RSI at 54.10 is Neutral, neither overbought nor oversold. The STOCH value of 38.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SITM.

SiTime Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAMT	74 Outperform	$3.74B	28.33	24.28%	1.73%	27.88%	37.85%
SMTC	65 Neutral	$5.01B	245.36	11.57%	―	22.22%	―
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
SITM	61 Neutral	$5.99B	―	-9.17%	―	65.12%	15.46%
IPGP	59 Neutral	$3.38B	―	-9.89%	―	-14.77%	-261.91%
POWI	55 Neutral	$2.51B	74.56	4.68%	1.88%	7.16%	-21.24%
SLAB	54 Neutral	$4.43B	―	-9.71%	―	29.66%	47.97%

SiTime Corporation Corporate Events

SiTime Corporation Approves Key Proposals at Annual Meeting

On May 30, 2025, SiTime Corporation held its Annual Meeting of Stockholders, where three key proposals were approved. Stockholders elected three Class II directors to serve until 2028, approved executive compensation, and ratified Deloitte & Touche LLP as the independent accounting firm for the fiscal year ending December 31, 2025.