Silicon Laboratories (SLAB) AI Stock Analysis

• Market Cap: $4.80B
• Dividend Yield: N/A
• Average Volume (3M): 241.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: 47.10%
• EPS Growth: 64.29%
• Country: US
• Employees: 1,889
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.32
• Shares Outstanding: 32,852,943
• 10 Day Avg. Volume: 189,165
• 30 Day Avg. Volume: 241,527
• PEG Ratio: -0.05
• Price to Book (P/B): 3.81
• Price to Sales (P/S): 7.04
• P/FCF Ratio: -160.32
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 5.34
• Enterprise Value/Gross Profit: 9.56
• Enterprise Value/Ebitda: -96.92
• 1Y Price Target: $143.75
• Price Target Upside: -2.14% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $159.00 ▲(8.24% Upside)

The score is driven primarily by low financial risk (minimal leverage) and improving cash generation, reinforced by an optimistic earnings-call outlook with strong growth and margin/EPS guidance. These positives are tempered by still-negative profitability/ROE and a weak valuation signal from the negative P/E, despite supportive technical momentum.

Positive Factors

Strategic Partnership

The expansion of the partnership with GlobalFoundries enhances Silicon Labs' capabilities in developing energy-efficient wireless technologies, supporting long-term growth and reinforcing U.S. semiconductor resilience.

Strong Revenue Growth

Projected 34% revenue growth indicates strong demand in industrial and commercial sectors, showcasing the company's ability to capture market opportunities and drive long-term growth.

Innovation in IoT

Innovative tools like Studio 6 and Simplicity AI SDK enhance Silicon Labs' leadership in IoT, facilitating faster development and adoption, which supports sustained market penetration.

Negative Factors

Declining Revenue

The significant decline in revenue highlights challenges in maintaining sales momentum, which could impact the company's ability to sustain growth and profitability long-term.

Negative Free Cash Flow

Negative free cash flow indicates inefficiencies in cash generation, potentially limiting the company's ability to invest in growth initiatives and manage financial obligations effectively.

Sustainability of Gross Margins

The reliance on a onetime benefit to boost gross margins suggests potential challenges in maintaining margin improvements, which could affect long-term profitability.

Silicon Laboratories Business Overview & Revenue Model

Company Description

Silicon 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 Money

Silicon Laboratories generates revenue primarily through the sale of its semiconductor products, which include microcontrollers, wireless chips, and sensor solutions. The company operates on a model of selling integrated circuits (ICs) that cater to various sectors, including IoT, automotive, and industrial applications. Key revenue streams include direct sales to original equipment manufacturers (OEMs), distribution partnerships, and licensing agreements for its software and intellectual property. Strategic partnerships with leading technology firms enhance its market reach and contribute to growth by integrating Silicon Labs' solutions into larger systems. Additionally, the company benefits from recurring revenue through long-term agreements and support services, providing ongoing value to its customers.

Silicon Laboratories Financial Statement Overview

Summary

Silicon Laboratories faces challenges in revenue generation and profitability, with declining income statement metrics. However, the balance sheet is strong with no debt and a robust equity position, providing stability. Cash flow metrics highlight areas for improvement, particularly in generating positive free cash flow.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	742.81M	584.39M	782.26M	1.02B	720.86M	510.93M
Gross Profit	415.13M	312.19M	460.59M	642.56M	425.39M	294.85M
EBITDA	-40.96M	-104.92M	46.09M	189.77M	35.41M	-39.23M
Net Income	-86.05M	-191.01M	-34.52M	91.40M	2.12B	12.53M
Balance Sheet
Total Assets	1.25B	1.22B	1.44B	2.17B	2.96B	1.99B
Cash, Cash Equivalents and Short-Term Investments	439.02M	382.16M	439.22M	1.19B	2.04B	724.68M
Total Debt	0.00	15.55M	64.83M	547.58M	450.60M	563.42M
Total Liabilities	182.35M	142.65M	234.37M	764.42M	745.87M	793.65M
Stockholders Equity	1.07B	1.08B	1.21B	1.41B	2.21B	1.20B
Cash Flow
Free Cash Flow	73.58M	-25.66M	-52.63M	45.28M	-129.02M	117.63M
Operating Cash Flow	97.49M	-13.91M	-30.35M	71.81M	-100.44M	135.72M
Investing Cash Flow	-58.98M	113.12M	469.81M	240.54M	2.27B	-361.01M
Financing Cash Flow	-182.00K	-45.10M	-711.87M	-887.05M	-1.30B	200.87M

Silicon Laboratories Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 146.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 146.9 is above the 20-day moving average (MA) of 137.13, above the 50-day MA of 131.77, and above the 200-day MA of 128.81, indicating a bullish trend. The MACD of 2.84 indicates Negative momentum. The RSI at 65.17 is Neutral, neither overbought nor oversold. The STOCH value of 90.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLAB.

Silicon Laboratories Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONTO	82 Outperform	$9.29B	53.85	8.96%	―	6.38%	-4.15%
CRUS	79 Outperform	$6.21B	17.25	19.12%	―	2.19%	19.22%
AMKR	69 Neutral	$12.93B	42.14	7.27%	0.81%	0.13%	-16.17%
SMTC	69 Neutral	$7.20B	261.93	13.39%	―	20.60%	―
SLAB	68 Neutral	$4.80B	-54.90	-8.00%	―	47.10%	64.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALGM	52 Neutral	$5.79B	-195.53	-3.02%	―	-7.23%	-15.69%