Silvaco Group, Inc. (SVCO) AI Stock Analysis

• Market Cap: $145.17M
• Dividend Yield: N/A
• Average Volume (3M): 106.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 279
• Sector: General
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): -0.07
• Shares Outstanding: 29,385,720
• 10 Day Avg. Volume: 82,911
• 30 Day Avg. Volume: 106,192
• PEG Ratio: -0.65
• Price to Book (P/B): 56.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -258.41
• Enterprise Value/Market Cap: 3.91
• Enterprise Value/Revenue: 2.45
• Enterprise Value/Gross Profit: 12.68
• Enterprise Value/Ebitda: -3.30
• 1Y Price Target: $10.33
• Price Target Upside: 109.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 47 Neutral
• Price Target: $5.00 ▲(1.21%Upside)

Silvaco Group, Inc.'s stock faces significant risks primarily due to poor financial performance, characterized by declining revenue, negative cash flows, and lack of profitability. Technical analysis signals are mixed, with bearish indicators prevailing. The company's valuation is unattractive with a negative P/E ratio. However, strategic acquisitions provide a positive outlook for future growth, offering some potential for improved market positioning.

Positive Factors

Bookings Growth

Guidance sees bookings up 17% quarter-over-quarter to $16M and 7% year-over-year to $70.5M, implying strong growth through the second half.

Operating Margins

Silvaco's operating margins are expected to improve as the company scales its revenues, aiming for a long-term target of around 25%.

Strategic Acquisitions

Strategic acquisitions of Cadence's PPC group and recently announced Tech-X, a provider of software simulation, are additive to the growth story.

Negative Factors

Earnings Outlook

FY25 EPS is expected to decline meaningfully from the FY24 level due to increased R&D investments and acquisition costs.

Financial Guidance

Silvaco lowered its FY25 guidance on both the top and bottom lines due to near-term macro headwinds and tariff uncertainty.

Operational Expenses

PPC and Tech-X acquisitions incur an estimated $1-2M per quarter in operational expense headwind before seeing a more material sales impact.

Silvaco Group, Inc. Business Overview & Revenue Model

Company Description

Silvaco Group, Inc. provides technology computer aided design (TCAD) software, electronic design automation (EDA) software, and semiconductor intellectual property (SIP) solutions. The company's TCAD software are used in various applications, such as physical etch and deposition process simulation; calibration of doping profiles and metal oxide semiconductor/bipolar transistors; modeled effects; photonics simulation for solar cell, charge-coupled device (CCD), metal oxide semiconductor image sensor, thin-film transistor (TFT), liquid crystal display, and organic light-emitting diode using ray tracing/finite-difference time domain/timing memory; single event effect and total dose simulation; and stress simulation. Its EDA software solution covers various areas of analog/mixed-signal/radiofrequency circuit simulation; and custom integrated circuits CAD and interconnect modeling, including support for CMOS, bipolar, diode, junction-gate field-effect transistor, silicon on insulator, TFT, high-electron mobility transistor, insulated-gate bipolar transistor, and resistor and capacitor models, as well as provides SPICE modeling services for the semiconductor industry. The company also provides SIP and EDA software and design services, such as standard cell library development; IP migration to new process; embedded memory compilers, such as static random-access memories, read only memories, and register files; library characterization services; and general purpose and custom I/Os. Further, the company provides SIP management tools and SIP. It serves semiconductor manufacturers, original equipment manufacturers, and original design manufacturers that deploys solutions in production flows across various target markets, including display, power devices, automotive, memory, high performance compute, Internet of Things, and 5G/6G mobile markets in the United States and internationally. Silvaco Group, Inc. was incorporated in 2009 and is headquartered in Santa Clara, California.

How the Company Makes Money

Silvaco Group, Inc. generates revenue primarily through the sale of its EDA software licenses and semiconductor IP products. The company follows a licensing model where clients purchase software licenses for a specified duration, typically through annual or multi-year agreements. Additionally, Silvaco offers maintenance and support services, which provide clients with software updates and technical assistance, generating recurring revenue. The company also engages in consulting services and custom design solutions, leveraging its expertise to deliver tailored assistance to clients. Strategic partnerships with semiconductor manufacturers and technology companies further enhance Silvaco's revenue streams by expanding its market reach and driving collaborative innovation.

Silvaco Group, Inc. Financial Statement Overview

Summary

Silvaco Group, Inc. is facing significant financial challenges, with declining revenue and profitability, negative cash flows, and reliance on external financing. Despite strong gross margins and low financial leverage, the company struggles with sustainability due to consistent net losses and negative free cash flow.

Income Statement

Silvaco Group, Inc. shows declining revenue growth with fluctuating profitability. The TTM data indicates a revenue decline from the previous annual report, compounding concerns with negative EBIT and EBITDA margins. The gross profit margin remains healthy at 77.39% TTM, but the net profit margin is deeply negative at -103.76%, reflecting substantial operational challenges.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.02, suggesting low financial leverage. However, the equity ratio has weakened to 60.50% TTM, and the return on equity is negative due to net losses. The balance sheet shows strong cash reserves relative to liabilities, providing some buffer against financial instability.

Cash Flow

Cash flow analysis reveals negative operating cash flow, with free cash flow also negative and declining. The TTM figures indicate challenges in turning revenue into positive cash flow, highlighted by a negative free cash flow to net income ratio. The company is heavily reliant on financing activities, raising concerns about long-term sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
57.88M	59.68M	54.25M	46.47M	41.96M	40.28M
	Gross Profit
44.80M	47.64M	44.89M	37.59M	33.31M	31.61M
	EBIT
-62.30M	-40.28M	1.13M	27.00K	-3.54M	3.64M
	EBITDA
-58.96M	-37.11M	1.74M	-1.11M	-2.37M	4.46M
	Net Income Common Stockholders
-60.05M	-39.40M	-316.00K	-3.93M	-1.84M	2.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
74.54M	82.68M	4.42M	5.48M	6.70M	9.72M
	Total Assets
138.13M	142.34M	40.88M	38.72M	35.73M	41.91M
	Total Debt
1.51M	1.69M	3.93M	8.47M	501.00K	3.49M
	Net Debt
-27.98M	-17.92M	-488.00K	2.99M	-6.20M	-6.23M
	Total Liabilities
54.54M	42.26M	31.48M	28.70M	21.36M	24.67M
	Stockholders Equity
83.59M	100.08M	9.40M	10.02M	14.37M	17.24M
Cash Flow		Free Cash Flow
-18.93M	-20.28M	841.00K	-2.19M	-2.73M	5.29M
	Operating Cash Flow
-18.34M	-19.77M	1.18M	-2.10M	-2.64M	5.78M
	Investing Cash Flow
-55.12M	-66.53M	-339.00K	-89.00K	234.00K	-1.60M
	Financing Cash Flow
96.92M	101.30M	-1.65M	624.00K	60.00K	2.33M

Silvaco Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SVCO, the sentiment is Neutral. The current price of 4.94 is above the 20-day moving average (MA) of 4.77, above the 50-day MA of 4.72, and below the 200-day MA of 7.86, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 51.36 is Neutral, neither overbought nor oversold. The STOCH value of 72.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SVCO.

Silvaco Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEYE	69 Neutral	$152.99M	―	-76.11%	―	16.52%	-1.28%
MAPS	60 Neutral	$174.44M	13.03	23.24%	―	0.20%	―
Sector *	57 Neutral	$4.90B	18.92	-17.01%	7.26%	13.61%	-24.47%
FRGE	53 Neutral	$194.42M	―	-27.44%	―	16.03%	30.99%
VCSA	52 Neutral	$138.62M	―	-123.26%	―	-18.56%	69.22%
SVCO	47 Neutral	$145.17M	―	-127.52%	―	―	―
NXTT	44 Neutral	$562.78M	0.59	80.54%	―	-44.58%	1200.82%

Silvaco Group, Inc. Corporate Events

Silvaco Group Approves Key Amendments at Annual Meeting

On May 22, 2025, Silvaco Group, Inc. held its Annual Meeting where 83.61% of the outstanding shares were represented. During the meeting, stockholders elected Class 1 directors and approved an amendment to the company’s Certificate of Incorporation allowing for the removal of directors by stockholders without cause.

The most recent analyst rating on (SVCO) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Silvaco Group, Inc. stock, see the SVCO Stock Forecast page.

Silvaco Group Acquires Tech-X to Boost Photonics

On April 29, 2025, Silvaco Group, Inc. announced its acquisition of Tech-X Corporation, a leader in multi-physics simulation software for applications in photonics, electromagnetics, and plasma dynamics. This strategic acquisition aims to enhance Silvaco’s product offerings in photonics and wafer-scale plasma modeling for AI applications, combining Tech-X’s advanced simulation tools with Silvaco’s Victory TCAD platform to accelerate innovation in the semiconductor industry. The integration of Tech-X’s expertise is expected to significantly improve simulation speed and accuracy, expanding Silvaco’s presence in the rapidly growing photonics market.

Silvaco Group Announces CFO Resignation and Transition Plan

On March 18, 2025, Silvaco Group, Inc. announced the resignation of its Chief Financial Officer, Ryan Benton, effective April 11, 2025. Benton is leaving to pursue a new career opportunity outside of the semiconductor design industry, and his departure is not due to any disagreements with the company. To ensure a smooth transition, CEO Dr. Babak Taheri will temporarily take on the roles of principal financial officer and principal accounting officer, while Keith Tainsky will serve as Interim Chief Financial Officer. The company has started the process of finding Benton’s successor. Additionally, Silvaco reaffirmed its financial guidance for the first quarter and full year of fiscal 2025, indicating stability and confidence in its strategic direction.