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Silicon Laboratories (SLAB)
NASDAQ:SLAB
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Silicon Laboratories
(NASDAQ:SLAB)
Rating:66Neutral
Price Target:
$144.00
▲( 15.33% Upside)
Positive Factors
Financial Performance
Silicon Labs reported in-line results and better guidance as the company continues to benefit from new customer ramps and share gains in its key markets.
Investor Relations
The participation of key executives like Dean Butler, CFO, and representatives from investor relations indicates a transparent communication strategy.
Market Positioning
SLAB reiterated their expectations to outperform the broader semis market and highlighted that they can grow from new product ramps without broad market strength.
Negative Factors
Inventory Management
Channel inventory decreased eight days QOQ to 48 days, which is a new low and well below the company's target level of 70-75 days, indicating potential supply chain challenges.
Valuation Concerns
Even with elevated P/E ratios, SLAB's fundamentals are turning a corner, which may cause valuation concerns despite strong industry positioning.
Silicon Laboratories (SLAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.19B
Dividend YieldN/A
Average Volume (3M)479.92K
Price to Earnings (P/E)―
Beta (1Y)1.72
Revenue Growth2.16%
EPS Growth-55.38%
CountryUS
Employees1,889
SectorTechnology
Sector Strength76
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.08
Shares Outstanding32,571,850
10 Day Avg. Volume427,475
30 Day Avg. Volume479,915
Financial Highlights & Ratios
PEG Ratio-0.97
Price to Book (P/B)3.39
Price to Sales (P/S)0.00
P/FCF Ratio-143.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$140.56Price Target Upside12.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Silicon Laboratories Business Overview & Revenue Model
Company DescriptionSilicon Laboratories Inc. (SLAB) is a leading provider of silicon, software, and solutions for a smarter, more connected world. The company specializes in the design and development of semiconductors, wireless microcontrollers, and sensors that are integral to the Internet of Things (IoT), industrial automation, consumer electronics, and automotive markets. With a focus on innovation, Silicon Labs offers a broad range of products that enable advanced connectivity and performance in electronic devices.
How the Company Makes MoneySilicon Laboratories generates revenue primarily through the sale of its semiconductor products and solutions. These products include microcontrollers, wireless chips, sensors, and timing devices, which are sold to a wide array of customers across various industries such as IoT, automotive, industrial, and consumer electronics. The company focuses on providing energy-efficient and high-performance solutions that meet the needs of modern applications. Additionally, Silicon Labs engages in strategic partnerships and collaborations that enhance its market presence and expand its customer base, contributing to its revenue growth. Licensing of proprietary technology and software tools also supports the company's earnings, providing additional revenue streams.
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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 584.39M | 782.26M | 1.02B | 720.86M | 886.68M | Gross Profit |
| 312.19M | 460.59M | 642.56M | 425.39M | 527.53M | EBIT |
| -165.49M | -24.15M | 119.26M | -27.14M | 38.30M | EBITDA |
| -104.92M | 46.09M | 175.85M | 32.04M | -43.28M | Net Income Common Stockholders |
| -191.01M | -34.52M | 91.40M | -71.60M | 12.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 382.16M | 439.22M | 1.19B | 2.04B | 724.68M | Total Assets |
| 1.22B | 1.44B | 2.17B | 2.96B | 1.99B | Total Debt |
| 15.55M | 64.83M | 529.57M | 450.60M | 563.42M | Net Debt |
| -266.06M | -162.67M | 29.66M | -624.02M | 360.70M | Total Liabilities |
| 142.65M | 234.37M | 764.42M | 745.87M | 793.65M | Stockholders Equity |
| 1.08B | 1.21B | 1.41B | 2.21B | 1.20B |
| Cash Flow | Free Cash Flow | |||
| -25.66M | -52.63M | 45.28M | -129.02M | 115.30M | Operating Cash Flow |
| -13.91M | -30.35M | 71.81M | -100.44M | 135.72M | Investing Cash Flow |
| 113.12M | 469.81M | 240.54M | 2.27B | -361.01M | Financing Cash Flow |
| -45.10M | -711.87M | -887.05M | -1.30B | 200.87M |
Silicon Laboratories Technical Analysis
Positive
124.86
Price Trends
110.85
Positive
124.40
Negative
118.33
Positive
Market Momentum
6.02
Negative
57.89
Neutral
42.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLAB, the sentiment is Positive. The current price of 124.86 is above the 20-day moving average (MA) of 116.55, above the 50-day MA of 110.85, and above the 200-day MA of 118.33, indicating a bullish trend. The MACD of 6.02 indicates Negative momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 42.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLAB.
Silicon Laboratories Risk Analysis
Silicon Laboratories disclosed 37 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 1 New Risks
1.
Any borrowings under our credit agreement or other indebtedness could adversely affect our operations and financial condition Q4, 2024
Silicon Laboratories Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.51B | 15.08 | 12.60% | ― | 10.60% | ― | |
66 Neutral | $4.19B | ― | -14.77% | ― | 2.16% | -55.38% | |
60 Neutral | $11.56B | 10.24 | -7.04% | 2.94% | 7.46% | -10.54% | |
58 Neutral | $4.90B | ― | -12.78% | ― | 65.85% | 7.92% | |
56 Neutral | $5.02B | ― | -7.09% | ― | -28.33% | -129.75% | |
55 Neutral | $2.97B | 81.31 | 5.03% | 1.55% | -5.75% | -41.75% | |
49 Neutral | $3.41B | ― | -137.83% | ― | 4.66% | 84.78% |
* Technology Sector Average
Performance Comparison
SLAB
Silicon Laboratories
122.75
-1.47
-1.18%
POWI
Power Integrations
51.19
-24.10
-32.01%
SMTC
Semtech
37.79
-1.59
-4.04%
SYNA
Synaptics
60.70
-27.94
-31.52%
SITM
SiTime Corporation
201.12
81.19
67.70%
ALGM
Allegro MicroSystems
26.28
-3.81
-12.66%
Silicon Laboratories Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -1.15%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong revenue growth across segments, significant product innovation, and improved cash flow. However, concerns such as the operating loss and ongoing economic uncertainties were noted. Overall, the positive momentum in revenue and product development suggests optimism for future performance.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Silicon Labs reported revenue of $178 million for the March quarter, a 7% sequential increase and a 67% year-over-year increase.
Significant Growth in Home & Life Segment
The Home & Life segment nearly doubled its revenue year-over-year with a growth rate of 99%.
Robust Industrial & Commercial Performance
Industrial & Commercial segment revenue was $96 million, up 8% sequentially and 47% year-over-year.
Improvement in Gross Margins
Non-GAAP gross margin improved to 55.4%, up from the prior quarter and ahead of forecasts.
Innovative Product Launches
Launch of BG29, BG22L, BG24L, and MG26 SoCs, showcasing advancements in Bluetooth, security, and AI/ML capabilities.
Positive Cash Flow
Despite an operating loss, Silicon Labs recorded a positive operating cash flow of $48 million.
Negative Updates
Operating Loss
Silicon Labs reported a GAAP operating loss of $32 million and a non-GAAP operating loss of $7 million.
Channel Inventory Below Target
Channel inventory decreased further to 48 days, below the target level of 70-75 days.
Ongoing Economic Uncertainty
The macroeconomic environment remains uncertain, with potential impacts from tariffs and global trade policies.
Company Guidance
During the Silicon Labs First Quarter Fiscal 2025 Earnings Call, the company provided guidance indicating strong performance across its business units, with expectations of continued growth. The Industrial & Commercial business reported March quarter revenue of $96 million, up 8% sequentially and 47% year-over-year, driven by smart metering and electronic shelf label market growth. The Home & Life segment achieved $82 million in revenue, increasing 5% sequentially and nearly doubling year-over-year due to smart home applications and connected health customer shipments. Channel inventory decreased to 48 days, below the target level, but the company plans to gradually increase it over the coming quarters. Silicon Labs expects June quarter revenue between $185 million and $200 million, implying a 32% year-over-year growth and an 8% sequential increase. Gross margins are projected to be between 55% and 57%, with GAAP operating expenses estimated between $129 million and $131 million. Non-GAAP earnings per share are anticipated to range from $0.19 to a loss of $0.01, based on a diluted share count of 33 million shares.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.