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Sitime Corporation (SITM)
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SiTime Corporation (SITM) AI Stock Analysis

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SITM

SiTime Corporation

(NASDAQ:SITM)

Rating:52Neutral
Price Target:
$196.00
▲(1.23%Upside)
SiTime's strong revenue growth and positive earnings call outlook are major positives, but they are offset by significant financial and valuation challenges, including ongoing operational losses, a negative P/E ratio, and bearish technical indicators. The stock's high volatility adds to the risk profile, necessitating improvements in operational efficiency and cash flow management for better future performance.
Positive Factors
Product Integration
SiTime's components are featured in the iPhone 16e, which enhances its market position and potential revenue.
Revenue Growth
Management expects to significantly exceed its $100MM clock revenue target with the new product families, indicating strong future growth.
Negative Factors
Gross Margin Decline
1Q25 gross margin is anticipated to decline by 180bps due to factors like lower revenue absorption and increased depreciation.
Gross Margin Pressure
The increased consumer mix is expected to weigh on long-term gross margin improvement, potentially affecting profitability.

SiTime Corporation (SITM) vs. SPDR S&P 500 ETF (SPY)

SiTime Corporation Business Overview & Revenue Model

Company DescriptionSiTime 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 MoneySiTime 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 Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 16.50%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
SiTime reported strong revenue growth across all segments, particularly in the data center and mobile sectors, and maintains a strong financial position. Despite pressures on gross margins and market uncertainties, the company has a positive outlook for continued growth in Q2 and beyond.
Q1-2025 Updates
Positive Updates
Record Revenue Growth
Revenue for Q1 2025 was $60.3 million, representing an 83% increase year-over-year, driven by strength in all segments.
Strong Performance in Data Center Segment
Sales to the communications, enterprise, and data center (CED) customer segment were $29.3 million, up 198% year-over-year.
Growth in Mobile, IoT, and Consumer Segments
Sales into the mobile, IoT, and consumer customer segment were $16.9 million, up 64% year-over-year.
Significant Customer Growth
Sales to SiTime's largest customer increased 76% year-over-year to $11.1 million.
Positive Outlook for Q2 2025
Revenue is expected to grow 45% to 50% year-on-year for Q2 2025.
Strong Cash and Financial Position
SiTime ended the quarter with $398.9 million in cash and short-term investments and no debt.
Sustainable Advantage in Clocking Business
SiTime has launched three new clocking products and expects significant growth in clocking revenue.
Negative Updates
Pressure on Gross Margins
The introduction of new consumer business at lower gross margins is expected to put pressure on achieving the targeted 60% gross margin by the end of the year.
Uncertainty in Market Conditions
There are uncertainties in the market, including potential impacts from tariffs and a dynamic macroeconomic environment.
CapEx and Cost Management
CapEx remains elevated as SiTime invests in capacity for new products, with expectations to continue at this level in Q2.
Company Guidance
During the first quarter of 2025, SiTime reported impressive financial results with revenue increasing by 83% year-over-year to $60.3 million, driven by strong performance across all segments. Gross margins were at 57.4%, and earnings per share (EPS) reached $0.26. The communications, enterprise, and data center (CED) segment saw sales rise by 198% year-over-year to $29.3 million. The automotive, industrial, and defense segment experienced a 10% increase, while the mobile, IoT, and consumer segment grew by 64%. Notably, revenue from SiTime's largest customer grew by 76%. Looking ahead to the second quarter, SiTime anticipates revenue growth of 45% to 50% year-over-year, with gross margins expected to remain stable. The company is targeting a non-GAAP EPS range of $0.25 to $0.31 per share. SiTime's robust performance is attributed to its product differentiation, strategic customer engagements, and expanding market opportunities in AI and data centers, underpinning its confidence in achieving 25% to 30% growth for the full year.

SiTime Corporation Financial Statement Overview

Summary
SiTime Corporation has a strong equity position and revenue growth potential, but persistent operational losses and negative net income pose substantial risks. Cash flow challenges and the need for improved operational efficiencies are critical concerns.
Income Statement
42
Neutral
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
55
Neutral
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
48
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue229.99M202.70M143.99M283.61M218.81M116.16M
Gross Profit117.17M104.49M82.09M182.96M139.46M57.93M
EBITDA-60.65M-63.04M-83.34M27.98M40.77M-2.24M
Net Income-88.77M-93.60M-80.53M23.25M32.28M-9.37M
Balance Sheet
Total Assets872.11M884.96M951.68M750.62M678.21M136.01M
Cash, Cash Equivalents and Short-Term Investments398.92M418.83M528.20M564.10M559.46M73.53M
Total Debt5.93M6.23M8.02M10.63M6.40M6.99M
Total Liabilities179.59M185.24M243.63M42.14M45.71M26.13M
Stockholders Equity692.51M699.72M708.05M708.48M632.50M109.88M
Cash Flow
Free Cash Flow-13.24M-13.03M-4.19M4.10M25.29M8.81M
Operating Cash Flow36.49M23.19M8.06M39.75M59.08M16.60M
Investing Cash Flow9.84M64.76M-36.66M-560.09M-33.79M-7.79M
Financing Cash Flow-103.77M-91.31M3.47M-4.52M460.65M1.30M

SiTime Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price193.62
Price Trends
50DMA
208.27
Negative
100DMA
182.97
Positive
200DMA
193.76
Negative
Market Momentum
MACD
-3.03
Positive
RSI
37.35
Neutral
STOCH
14.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SITM, the sentiment is Negative. The current price of 193.62 is below the 20-day moving average (MA) of 206.13, below the 50-day MA of 208.27, and below the 200-day MA of 193.76, indicating a bearish trend. The MACD of -3.03 indicates Positive momentum. The RSI at 37.35 is Neutral, neither overbought nor oversold. The STOCH value of 14.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SITM.

SiTime Corporation Risk Analysis

SiTime Corporation disclosed 59 risk factors in its most recent earnings report. SiTime Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SiTime Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$4.30B35.2024.82%1.41%32.63%46.16%
66
Neutral
$3.22B-9.17%-20.08%-218.29%
64
Neutral
$4.42B-14.77%2.16%-55.38%
63
Neutral
$34.70B5.15-11.38%1.67%5.54%-17.15%
60
Neutral
$4.55B-93.41%13.83%88.14%
55
Neutral
$2.95B81.585.03%1.60%-5.75%-41.75%
52
Neutral
$4.93B-12.78%65.85%7.92%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SITM
SiTime Corporation
190.16
45.98
31.89%
CAMT
Camtek
95.81
-6.70
-6.54%
IPGP
IPG Photonics
78.03
-9.58
-10.93%
POWI
Power Integrations
52.01
-20.14
-27.91%
SMTC
Semtech
53.07
21.42
67.68%
SLAB
Silicon Laboratories
134.50
14.68
12.25%

SiTime Corporation Corporate Events

Executive/Board ChangesShareholder Meetings
SiTime Corporation Approves Key Proposals at Annual Meeting
Neutral
May 30, 2025

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.

The most recent analyst rating on (SITM) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on SiTime Corporation stock, see the SITM Stock Forecast page.

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 25, 2025