SiTime Corporation (SITM) AI Stock Analysis

• Market Cap: $7.64B
• Dividend Yield: N/A
• Average Volume (3M): 389.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.71
• Revenue Growth: 65.12%
• EPS Growth: 15.46%
• Country: US
• Employees: 395
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.47
• Shares Outstanding: 26,003,971
• 10 Day Avg. Volume: 468,075
• 30 Day Avg. Volume: 389,773
• 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: 0.56
• Enterprise Value/Revenue: 18.72
• Enterprise Value/Gross Profit: 36.75
• Enterprise Value/Ebitda: -71.00
• 1Y Price Target: $257.71
• Price Target Upside: -12.45% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 61 Neutral
• Price Target: $254.00 ▼(-13.71% Downside)

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

Revenue Growth

Strong revenue growth indicates robust demand for SiTime's products, enhancing its market position and supporting future expansion.

Market Diversification

Diversified market growth reduces dependency on any single sector, providing stability and resilience against industry-specific downturns.

Data Center Segment Expansion

Rapid growth in the data center segment reflects successful product adoption and positions SiTime to capitalize on increasing data infrastructure demands.

Negative Factors

Operational Inefficiencies

Persistent operational inefficiencies and losses can hinder profitability and limit reinvestment capacity, affecting long-term growth prospects.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues and challenges in funding operations without external financing, impacting financial stability.

Inventory Increase

Rising inventory levels may suggest overproduction or slowing demand, which could lead to increased holding costs and potential write-downs.

SiTime Corporation Business Overview & Revenue Model

Company Description

SiTime Corporation is a leading provider of silicon timing solutions, specializing in the design and manufacture of precision timing devices for a wide range of applications in various sectors, including telecommunications, automotive, industrial, and consumer electronics. The company offers a range of products, including silicon oscillators, clock generators, and other related timing devices that are used to enhance the performance and efficiency of electronic systems.

How the Company Makes Money

SiTime generates revenue primarily through the sale of its silicon timing products, which are integrated into a variety of electronic devices and systems. The company’s key revenue streams include the direct sale of its oscillators and clock generators to original equipment manufacturers (OEMs) and other clients in different industries. Additionally, SiTime benefits from partnerships with major semiconductor firms and technology companies that incorporate its timing solutions into their products. The demand for more precise and reliable timing solutions in the expanding markets of 5G telecommunications, automotive electronics, and IoT devices significantly contributes to its earnings. SiTime also engages in research and development to innovate new products, ensuring a competitive edge in the market and potentially leading to new revenue opportunities.

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: 294.36
• 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 294.36 is above the 20-day moving average (MA) of 269.35, above the 50-day MA of 235.02, and above the 200-day MA of 203.52, indicating a bullish trend. The MACD of 20.08 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 53.37 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	78 Outperform	5.00B	38.16	21.58%	1.29%	27.88%	37.85%
OLED	77 Outperform	7.11B	28.55	14.26%	1.17%	6.23%	10.12%
SMTC	65 Neutral	5.46B	266.71	4.30%	―	22.22%	―
SITM	61 Neutral	$7.64B	―	-9.17%	―	65.12%	15.46%
SLAB	57 Neutral	4.29B	-40.53	-17.69%	―	29.66%	47.97%
ALGM	51 Neutral	5.50B	-80.89	-7.43%	―	-18.82%	-195.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.