SiTime Corporation (SITM) AI Stock Analysis

• Market Cap: $4.88B
• Dividend Yield: N/A
• Average Volume (3M): 303.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.83
• Revenue Growth: 65.85%
• EPS Growth: 7.92%
• Country: US
• Employees: 395
• Sector: Technology
• Sector Strength: 76
• Industry: Semiconductors
• EPS (TTM): 0.26
• Shares Outstanding: 23,721,598
• 10 Day Avg. Volume: 334,249
• 30 Day Avg. Volume: 303,101
• PEG Ratio: -24.65
• Price to Book (P/B): 6.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -343.36
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 6.70
• Enterprise Value/Gross Profit: 43.14
• Enterprise Value/Ebitda: -14.08
• 1Y Price Target: $220.00
• Price Target Upside: 9.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: $196.00 ▼( -2.55% Downside)

SiTime Corporation exhibits strong revenue growth and a solid equity position, which are significant positives. However, persistent operational losses and cash flow challenges present notable risks. The technical indicators suggest positive momentum, but valuation concerns due to a negative P/E ratio and no dividend yield weigh on the overall score. The optimistic earnings call outlook partially offsets these concerns, contributing to the moderate overall score.

Positive Factors

Market Demand

Growth in CED should continue to be driven by data center strength, as the company sells into all key applications within the AI ecosystem.

Product Deployment

SiTime posted another beat and raise, led by CED and initial shipments into the iPhone 16e.

Revenue Growth

Management now expects to significantly exceed its $100MM clock revenue target in the coming years.

Negative Factors

Gross Margin

Increased consumer mix will weigh on the long term GM ramp.

Profitability

1Q25 GM was guided to decline 180bps to 57% due to lower revenue absorption, increased depreciation from higher CapEx spend, and lower yields on new product ramps.

SiTime Corporation Business Overview & Revenue Model

Company Description

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. Its solutions have applications in various markets, including communications and enterprise, automotive, industrial, Internet of Things, mobile, consumer, and aerospace and defense. The company sells its timing products through distributors and resellers. SiTime Corporation was incorporated in 2003 and is headquartered in Santa Clara, California.

How the Company Makes Money

SiTime Corporation generates revenue primarily through the sale of its silicon MEMS timing solutions to original equipment manufacturers (OEMs) and other companies across multiple industries. The company's revenue model is based on the production and sale of precision timing devices, which replace traditional quartz-based solutions, offering advantages in size, reliability, and power efficiency. SiTime's key revenue streams include sales of oscillators, clock generators, and resonators. The company benefits from strategic partnerships with major semiconductor distributors and manufacturers, enhancing its market reach and distribution capabilities. Furthermore, SiTime's focus on research and development allows it to innovate and introduce new products, maintaining its competitive edge and driving sales growth.

SiTime Corporation Financial Statement Overview

Summary

SiTime Corporation shows potential with its solid equity position and revenue growth. However, persistent operational losses and a negative net income pose substantial risks. The lack of debt reduces financial risk, but cash flow challenges and operational efficiency improvements are crucial 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
202.70M	143.99M	283.61M	218.81M	116.16M
	Gross Profit
104.49M	82.09M	182.96M	139.46M	57.93M
	EBIT
-115.24M	-107.20M	4.30M	24.92M	-8.61M
	EBITDA
-63.04M	-83.34M	27.98M	40.77M	-2.24M
	Net Income Common Stockholders
-93.60M	-80.53M	23.25M	32.28M	-9.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
418.83M	528.20M	564.10M	559.46M	73.53M
	Total Assets
884.96M	951.68M	750.62M	678.21M	136.01M
	Total Debt
6.23M	8.02M	10.63M	6.40M	6.99M
	Net Debt
126.00K	-1.44M	-23.97M	-553.06M	-66.54M
	Total Liabilities
185.24M	243.63M	42.14M	45.71M	26.13M
	Stockholders Equity
699.72M	708.05M	708.48M	632.50M	109.88M
Cash Flow		Free Cash Flow
-13.03M	-4.19M	4.10M	25.29M	8.81M
	Operating Cash Flow
23.19M	8.06M	39.75M	59.08M	16.60M
	Investing Cash Flow
64.76M	-36.66M	-560.09M	-33.79M	-7.79M
	Financing Cash Flow
-91.31M	3.47M	-4.52M	460.65M	1.30M

SiTime Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 201.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 201.12 is above the 20-day moving average (MA) of 179.11, above the 50-day MA of 162.44, and above the 200-day MA of 179.92, indicating a bullish trend. The MACD of 15.36 indicates Negative momentum. The RSI at 66.19 is Neutral, neither overbought nor oversold. The STOCH value of 75.85 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	79 Outperform	$2.98B	24.70	24.82%	2.02%	32.63%	46.16%
SLAB	66 Neutral	$4.19B	―	-14.77%	―	2.16%	-55.38%
IPGP	62 Neutral	$2.79B	―	-9.17%	―	-20.08%	-218.29%
Sector *	60 Neutral	$11.56B	10.24	-7.04%	2.94%	7.46%	-10.54%
SITM	58 Neutral	$4.88B	―	-12.78%	―	65.85%	7.92%
POWI	55 Neutral	$2.97B	81.31	5.03%	1.55%	-5.75%	-41.75%
SMTC	49 Neutral	$3.48B	―	-137.83%	―	4.66%	84.78%