Semtech (SMTC) AI Stock Analysis

• Market Cap: $5.73B
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 270.4
• Beta (1Y): 2.00
• Revenue Growth: 22.22%
• EPS Growth: N/A
• Country: US
• Employees: 1,838
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 89,773,990
• 10 Day Avg. Volume: 1,913,340
• 30 Day Avg. Volume: 1,510,672
• PEG Ratio: 0.34
• Price to Book (P/B): 8.84
• Price to Sales (P/S): 5.27
• P/FCF Ratio: 109.51
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 4.98
• Enterprise Value/Gross Profit: 9.61
• Enterprise Value/Ebitda: 63.81
• 1Y Price Target: $73.57
• Price Target Upside: 15.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $69.00 ▲(8.07% Upside)

Semtech's overall stock score reflects a stable financial performance with strong cash flow generation, but challenges in profitability and valuation. The earnings call provided a positive outlook with growth in key segments, contributing to a higher score. However, technical analysis and valuation concerns weigh down the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Debt Reduction

Significant debt reduction improves financial flexibility and reduces interest burden, supporting future investment and growth.

Product Innovation

Innovative product development in fiber optics positions Semtech to capture growth in expanding fiber network markets.

Negative Factors

Goodwill Impairment

Goodwill impairment reflects challenges in achieving forecasted earnings, potentially impacting future profitability and investor confidence.

Supply Constraints

Supply constraints in China could limit growth in key segments, affecting revenue and market competitiveness in the short to medium term.

Low Net Profit Margin

A low net profit margin indicates challenges in cost management and pricing power, potentially affecting long-term financial health.

Semtech Business Overview & Revenue Model

Company Description

Semtech Corporation (SMTC) is a leading global supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms for a variety of markets, including the Internet of Things (IoT), data centers, telecommunications, and consumer electronics. The company specializes in developing solutions that facilitate long-range, low-power communication, particularly through its LoRa® technology, which enables the deployment of low-power wide-area networks (LPWAN). Semtech's product portfolio includes data communication and telecommunications products, protection devices, and various integrated circuits designed to enhance the performance and efficiency of electronic systems.

How the Company Makes Money

Semtech generates revenue primarily through the sale of its semiconductor products and solutions, which are used in various applications across multiple sectors. The company has several key revenue streams, including the sale of LoRa devices and wireless radio frequency products, data center products, and various protection devices. Additionally, Semtech benefits from licensing its LoRa technology to third parties, creating an additional revenue stream through licensing agreements. Strategic partnerships with industry leaders in IoT and telecommunications also contribute significantly to its earnings, as these collaborations enable Semtech to expand its market reach and enhance the adoption of its technologies in various applications.

Semtech Financial Statement Overview

Summary

Semtech demonstrates a stable but not exceptional financial performance. The company shows strength in cash flow generation, which is crucial for sustaining operations and growth. However, profitability and operational efficiency need improvement to enhance overall financial health. The balance sheet is moderately leveraged, providing some stability but also indicating room for improvement in equity returns.

Income Statement

Semtech's income statement shows a mixed performance. The TTM gross profit margin is healthy at 51.87%, indicating efficient production. However, the net profit margin is low at 2.39%, suggesting limited profitability. Revenue growth is modest at 4.43%, showing some positive momentum. The EBIT and EBITDA margins are relatively low, reflecting challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio is 0.94, indicating a balanced leverage. Return on equity is low at 6.24%, suggesting limited returns for shareholders. The equity ratio is not directly provided, but the overall asset management appears stable.

Cash Flow

Cash flow analysis is strong, with a significant free cash flow growth of 68.57%, indicating robust cash generation. The operating cash flow to net income ratio is 0.56, showing moderate cash conversion efficiency. Free cash flow to net income is high at 98.37%, reflecting effective cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	996.47M	909.29M	868.76M	756.53M	740.86M	595.12M
Gross Profit	516.86M	456.53M	296.25M	478.56M	466.08M	363.55M
EBITDA	77.83M	115.07M	-851.10M	126.55M	178.04M	106.55M
Net Income	23.80M	-161.90M	-1.09B	61.38M	125.66M	59.90M
Balance Sheet
Total Assets	1.41B	1.42B	1.37B	2.57B	1.13B	1.08B
Cash, Cash Equivalents and Short-Term Investments	168.56M	164.46M	143.13M	235.51M	279.60M	268.89M
Total Debt	518.94M	551.50M	1.40B	1.34B	175.65M	179.19M
Total Liabilities	852.99M	876.84M	1.68B	1.81B	393.14M	383.15M
Stockholders Equity	552.89M	542.43M	-307.43M	755.85M	737.58M	698.74M
Cash Flow
Free Cash Flow	133.09M	43.78M	-125.02M	98.39M	176.94M	86.20M
Operating Cash Flow	135.29M	57.99M	-93.92M	126.71M	203.12M	118.93M
Investing Cash Flow	-19.42M	-11.89M	-22.70M	-1.25B	-40.32M	-42.91M
Financing Cash Flow	-64.13M	-21.66M	10.55M	1.08B	-152.10M	-100.45M

Semtech Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 63.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMTC, the sentiment is Neutral. The current price of 63.85 is below the 20-day moving average (MA) of 67.88, below the 50-day MA of 67.03, and above the 200-day MA of 48.14, indicating a neutral trend. The MACD of -0.88 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 14.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SMTC.

Semtech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRUS	78 Outperform	$6.03B	16.79	19.12%	―	2.19%	19.22%
ONTO	72 Outperform	$6.23B	35.85	8.96%	―	6.38%	-4.15%
SMTC	62 Neutral	$5.73B	270.44	11.57%	―	22.22%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SLAB	56 Neutral	$3.97B	―	-8.00%	―	47.10%	64.29%
SITM	51 Neutral	$6.99B	―	-7.88%	―	59.04%	28.50%
ALGM	51 Neutral	$4.46B	―	-3.02%	―	-7.23%	-15.69%

Semtech Corporate Events

Semtech Prices $350M Convertible Notes Offering

On October 7, 2025, Semtech Corporation announced the pricing of its $350 million offering of 0% Convertible Senior Notes due 2030, with an option for initial purchasers to buy an additional $52.5 million, bringing the total to $402.5 million. The net proceeds, estimated at $391.2 million, will be used to exchange existing notes, repay term loans, and fund capped call transactions to mitigate stock dilution. The Notes, convertible under specific conditions, are expected to enhance Semtech’s financial flexibility and market positioning, while the capped call transactions aim to reduce potential dilution and cash outflows upon conversion.

The most recent analyst rating on (SMTC) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Semtech stock, see the SMTC Stock Forecast page.

Semtech Announces $350M Convertible Notes Offering

On October 6, 2025, Semtech Corporation announced its intention to offer $350 million in 0% convertible senior notes due 2030 in a private placement to qualified institutional buyers. The proceeds from this offering are expected to be used for exchanges of existing convertible notes and to repay a portion of term loans under Semtech’s senior credit facilities. This strategic move is anticipated to influence the market price of Semtech’s common stock and notes, potentially affecting stakeholders’ ability to convert notes and the value of shares received upon conversion.

The most recent analyst rating on (SMTC) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Semtech stock, see the SMTC Stock Forecast page.

Semtech Corp. Reports Strong Earnings and Growth

The recent earnings call for Semtech Corp. highlighted a robust financial performance with significant growth in key segments like data centers and high-end consumer markets. Despite some challenges, such as a goodwill impairment charge and cautious bookings in China, the overall sentiment was positive, indicating strong performance and optimistic future prospects.

Semtech Corporation Reports Strong Q2 FY2026 Results

Semtech Corporation is a leading provider of high-performance semiconductor, Internet of Things (IoT) systems, and cloud connectivity service solutions, dedicated to delivering technology solutions that enable a smarter, more connected, and sustainable planet.

Semtech Reports Record Q2 2026 Financial Results

On August 25, 2025, Semtech Corporation announced its financial results for the second quarter of fiscal year 2026, ending July 27, 2025. The company reported record net sales of $257.6 million, a 20% increase from the previous year, and improved gross margins. Despite a GAAP operating margin loss, the non-GAAP adjusted operating margin showed significant improvement. The results reflect strong financial performance driven by customer engagement and operational discipline, with a focus on debt reduction and capturing high-growth opportunities.

The most recent analyst rating on (SMTC) stock is a Buy with a $54.00 price target. To see the full list of analyst forecasts on Semtech stock, see the SMTC Stock Forecast page.