Silvaco Group, Inc. (SVCO) AI Stock Analysis

• Market Cap: $152.22M
• Dividend Yield: N/A
• Average Volume (3M): 95.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• 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: 150,966
• 30 Day Avg. Volume: 95,157
• 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: 3.73
• Enterprise Value/Revenue: 2.45
• Enterprise Value/Gross Profit: 12.68
• Enterprise Value/Ebitda: -3.30
• 1Y Price Target: $9.50
• Price Target Upside: 96.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 46 Neutral
• Price Target: $4.50 ▼(-6.83%Downside)

Silvaco Group's overall stock score reflects significant financial and operational challenges, with persistent net losses and negative cash flow being the most critical factors. While the recent acquisition of Tech-X offers strategic growth potential, the company's valuation remains unattractive due to negative earnings.

Positive Factors

Customer Expansion

Design win progress with 9 additional customers added during the quarter and expansion of FTCO into SiC market.

Growth Strategy

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 Guidance

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

Operational Costs

Growing costs associated with ramping up new technologies could negatively impact Silvaco if they increase faster than sales growth.

Silvaco Group, Inc. Business Overview & Revenue Model

Company Description

Silvaco Group, Inc. (SVCO) is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) solutions. The company specializes in developing advanced software tools that facilitate the design and simulation of semiconductors, integrated circuits, and electronic systems. Silvaco's products are utilized across various sectors including consumer electronics, automotive, aerospace, and telecommunications, assisting engineers and designers in optimizing the performance, efficiency, and manufacturability of their electronic products.

How the Company Makes Money

Silvaco Group, Inc. generates revenue primarily through the sale of its electronic design automation (EDA) software and semiconductor IP solutions. The company's revenue model is based on software licensing, where customers purchase licenses to use Silvaco's EDA tools for a specified period or perpetually. Additionally, Silvaco offers maintenance and support services that provide ongoing updates and technical assistance, contributing to recurring revenue streams. The company also engages in partnerships with semiconductor manufacturers and design firms, which can lead to collaborative projects and joint ventures that enhance its market presence and revenue opportunities. Furthermore, Silvaco may generate income from consulting services, where it assists clients in optimizing their design processes and implementing its software solutions effectively.

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
EBITDA	-58.96M	-37.11M	1.74M	-1.11M	-2.37M	4.46M
Net Income	-60.05M	-39.40M	-316.00K	-3.93M	-1.84M	2.55M
Balance Sheet
Total Assets	138.13M	142.34M	40.88M	38.72M	35.73M	41.91M
Cash, Cash Equivalents and Short-Term Investments	74.54M	82.68M	4.42M	5.48M	6.70M	9.72M
Total Debt	1.51M	1.69M	3.93M	8.47M	501.00K	3.49M
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: Negative
• Last Price: 4.83
• 50DMA: Negative
• 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 Negative. The current price of 4.83 is below the 20-day moving average (MA) of 4.88, below the 50-day MA of 4.86, and below the 200-day MA of 6.84, indicating a bearish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 47.86 is Neutral, neither overbought nor oversold. The STOCH value of 68.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SVCO.

Silvaco Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEYE	62 Neutral	$150.75M	―	-76.11%	―	16.52%	-1.28%
MAPS	61 Neutral	$159.00M	12.53	23.24%	―	0.20%	―
FRGE	58 Neutral	$210.81M	―	-27.44%	―	16.03%	30.99%
Sector *	56 Neutral	$5.71B	21.53	-28.61%	5.61%	10.78%	-31.78%
SVCO	46 Neutral	$152.22M	―	-127.52%	―	―	―
NXTT	44 Neutral	$1.27B	1.12	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.