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Silicon Laboratories (SLAB)
:SLAB
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Silicon Laboratories
(NASDAQ:SLAB)
Select Model
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Rating:57Neutral
Price Target:
$138.00
▲(5.63% Upside)
Silicon Laboratories' overall stock score is primarily influenced by its strong earnings call performance, which indicates growth potential and market share expansion. However, financial performance challenges, particularly in profitability and cash flow generation, weigh down the score. The technical analysis and valuation components further contribute to a cautious outlook, with the stock appearing overvalued given its current earnings.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong demand for Silicon Labs' products, particularly in the Industrial and Commercial segments, supporting long-term business expansion.
Product Innovation
Innovative products like the Series 3 platform enhance competitive advantage and open new market opportunities, driving future growth.
Market Share Expansion
Securing design wins in key applications strengthens market position and ensures sustained revenue streams from diverse sectors.
Negative Factors
Operating Loss
Operating losses highlight challenges in cost management and profitability, potentially impacting long-term financial health if not addressed.
Inventory Management
Suboptimal inventory levels can disrupt supply chain efficiency and sales fulfillment, affecting customer satisfaction and revenue.
Cash Flow Challenges
Negative cash flow indicates inefficiencies in cash generation, which could limit investment in growth initiatives and operational flexibility.
Silicon Laboratories (SLAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.33B
Dividend YieldN/A
Average Volume (3M)254.39K
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth29.66%
EPS Growth47.97%
CountryUS
Employees1,889
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.11
Shares Outstanding32,815,310
10 Day Avg. Volume235,126
30 Day Avg. Volume254,388
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue6.54
Enterprise Value/Gross Profit11.91
Enterprise Value/Ebitda-84.51
Forecast
1Y Price Target
$149.25Price Target Upside14.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Silicon Laboratories Business Overview & Revenue Model
Company DescriptionSilicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, and internationally. The company's products include wireless microcontrollers and sensor products. Its products are used in various electronic products in a range of applications for the Internet of Things (IoT), including connected home and security, industrial automation and control, smart metering, smart lighting, commercial building automation, consumer electronics, asset tracking, and medical instrumentation. The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.
How the Company Makes MoneySilicon Laboratories generates revenue through the sale of its semiconductor products, which include microcontrollers, wireless connectivity solutions, and sensors. The company's revenue model is predominantly based on product sales to original equipment manufacturers (OEMs) and other technology companies. Key revenue streams include IoT solutions, which are increasingly in demand as more devices become connected, and automotive solutions that cater to the growing need for advanced automotive electronics. Additionally, Silicon Labs has established significant partnerships with major technology firms, which enhance its market reach and product integration capabilities, further contributing to its earnings. The company's focus on innovation and development of cutting-edge technology helps maintain its competitive advantage and drives revenue growth.
Silicon Laboratories Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant year-over-year growth, driven by the success of the Series 2 platform and promising future developments with the Series 3 platform. Despite some challenges, such as operating loss and inventory levels, the company's positive outlook for the next quarter and continued market share gains indicate overall positive sentiment.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Silicon Labs reported a revenue of $193 million for the June quarter, up 9% sequentially and 33% year-over-year. The Industrial and Commercial business saw a 14% sequential increase and 25% year-over-year growth, while the Home & Life business grew 2% sequentially and 45% year-over-year.
Series 2 and Series 3 Platforms
The Series 2 platform continues to drive revenue growth and market share, with 10 of the 12 largest customer ramps on track or ahead of plan. The new Series 3 platform, with the 301 device achieving PSA Level 4 security certification, positions the company for future growth.
Market Share Expansion and Design Wins
Silicon Labs has secured significant design wins in various applications, including commercial building controls and connected healthcare, with over 60 customers engaged in the glucose monitoring space.
Gross Margin Improvement
GAAP gross margin improved to 56.1%, with non-GAAP gross margin at 56.3%, up 90 basis points from the prior quarter. The company expects further improvements in the September quarter, aiming for 57% to 58%.
Positive Outlook for September Quarter
The company anticipates revenue between $200 million to $210 million for the September quarter, implying a strong 23% year-over-year growth rate.
Negative Updates
Operating Loss
GAAP operating loss was reported at $23 million for the quarter, although non-GAAP operating income was $1 million.
Distribution Inventory Levels
Channel inventory increased slightly to 51 days, below the target range of 70 to 75 days, indicating a need to rebuild inventory levels.
Impact of Tariff Discussions
Ongoing tariff discussions create uncertainty, though no significant changes have been observed in customer forecasts or end customer inventory levels.
Company Guidance
During the Silicon Labs Second Quarter Fiscal 2025 Earnings Call, the company reported strong financial performance, with revenue for the quarter at $193 million, marking a 9% sequential increase and a 33% year-over-year rise. The Industrial and Commercial segment contributed $110 million, up 14% sequentially, while the Home & Life segment added $83 million, up 2% sequentially. Silicon Labs achieved a non-GAAP gross margin of 56.3%, and their non-GAAP operating income reached $1 million. Looking forward, they anticipate third-quarter revenue between $200 million and $210 million, with expected gross margins of 57% to 58%. Additionally, the company aims to grow operating expenses at one-third the rate of revenue growth, supporting rapid earnings acceleration. Their strong design win pipeline and the launch of new products, such as the Series 3 platform, continue to drive market share expansion and revenue growth.Silicon Laboratories Financial Statement Overview
Summary
Silicon Laboratories faces challenges in revenue generation and profitability, as indicated by declining income statement metrics. The balance sheet is strong with no debt and a robust equity position, which provides stability and reduces financial risk. Cash flow metrics highlight areas for improvement, particularly in generating positive free cash flow. Overall, while the company has a solid financial base, it needs to address profitability and cash flow generation to enhance its financial health.Income Statement
Silicon Laboratories has experienced declining revenue over recent years, with a significant drop from $1.02 billion in 2022 to $584 million in 2024, representing a negative trend. The gross profit margin has also decreased, indicating pressure on profitability. The company has reported negative net income and EBIT margins, highlighting challenges in maintaining profitability.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with no total debt in 2024, which is noteworthy for financial stability. The equity ratio has improved, indicating a solid financial foundation. However, the decrease in total assets over time suggests potential challenges in asset management. Overall, the company's low leverage is a positive aspect.70
Positive
Cash Flow
Cash flow analysis shows negative free cash flow in the most recent year, which is concerning. The operating cash flow to net income ratio indicates inefficiencies in converting sales into cash. Despite these issues, the company has maintained a reasonable cash balance, supporting liquidity.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 703.20M | 584.39M | 782.26M | 1.02B | 720.86M | 886.68M |
| Gross Profit | 386.42M | 312.19M | 460.59M | 642.56M | 425.39M | 527.53M |
| EBITDA | -54.44M | -104.92M | 46.09M | 175.85M | 32.04M | -43.28M |
| Net Income | -104.61M | -191.01M | -34.52M | 91.40M | -71.60M | 12.53M |
Balance Sheet | ||||||
| Total Assets | 1.22B | 1.22B | 1.44B | 2.17B | 2.96B | 1.99B |
| Cash, Cash Equivalents and Short-Term Investments | 415.54M | 382.16M | 439.22M | 1.19B | 2.04B | 724.68M |
| Total Debt | 0.00 | 15.55M | 64.83M | 529.57M | 450.60M | 563.42M |
| Total Liabilities | 159.99M | 142.65M | 234.37M | 764.42M | 745.87M | 793.65M |
| Stockholders Equity | 1.06B | 1.08B | 1.21B | 1.41B | 2.21B | 1.20B |
Cash Flow | ||||||
| Free Cash Flow | 75.07M | -25.66M | -52.63M | 45.28M | -129.02M | 115.30M |
| Operating Cash Flow | 94.79M | -13.91M | -30.35M | 71.81M | -100.44M | 135.72M |
| Investing Cash Flow | -22.04M | 113.12M | 469.81M | 240.54M | 2.27B | -361.01M |
| Financing Cash Flow | 868.00K | -45.10M | -711.87M | -887.05M | -1.30B | 200.87M |
Silicon Laboratories Technical Analysis
Negative
130.64
Price Trends
134.61
Negative
134.38
Negative
129.62
Positive
Market Momentum
-0.68
Positive
43.07
Neutral
11.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLAB, the sentiment is Negative. The current price of 130.64 is below the 20-day moving average (MA) of 134.24, below the 50-day MA of 134.61, and above the 200-day MA of 129.62, indicating a neutral trend. The MACD of -0.68 indicates Positive momentum. The RSI at 43.07 is Neutral, neither overbought nor oversold. The STOCH value of 11.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLAB.
Silicon Laboratories Risk Analysis
Silicon Laboratories disclosed 38 risk factors in its most recent earnings report. Silicon Laboratories 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
Silicon Laboratories Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 6.49B | 19.66 | 18.14% | ― | 4.52% | 18.89% | |
76 Outperform | 6.42B | 31.66 | 10.18% | ― | 15.51% | 20.31% | |
76 Outperform | 7.25B | 23.95 | 7.24% | 2.52% | -1.20% | -19.46% | |
65 Neutral | 5.19B | 261.03 | 4.30% | ― | 22.22% | ― | |
57 Neutral | $4.33B | ― | -9.71% | ― | 29.66% | 47.97% | |
51 Neutral | 5.75B | -81.49 | -7.43% | ― | -18.82% | -195.20% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
SLAB
Silicon Laboratories
130.64
14.11
12.11%
AMKR
Amkor
29.02
-0.95
-3.17%
CRUS
Cirrus Logic
126.14
4.54
3.73%
ONTO
Onto Innovation
127.58
-87.79
-40.76%
SMTC
Semtech
62.97
16.62
35.86%
ALGM
Allegro MicroSystems
29.71
5.40
22.21%
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.