Silvaco Group, Inc. (SVCO) AI Stock Analysis

• Market Cap: $130.22M
• Dividend Yield: N/A
• Average Volume (3M): 130.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.79
• Revenue Growth: 15.40%
• EPS Growth: 40.28%
• Country: US
• Employees: 279
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.07
• Shares Outstanding: 30,638,878
• 10 Day Avg. Volume: 111,493
• 30 Day Avg. Volume: 130,194
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 3.48
• P/FCF Ratio: -10.23
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 1.78
• Enterprise Value/Ebitda: -2.84
• 1Y Price Target: $10.00
• Price Target Upside: 135.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $4.00 ▼(-5.88% Downside)

Silvaco Group, Inc. faces significant challenges in profitability and cash flow management, reflected in a low financial performance score. The technical analysis indicates a bearish trend, and the valuation is unattractive due to ongoing losses. While the earnings call provided some positive insights into revenue growth and strategic initiatives, the overall outlook remains cautious due to operational inefficiencies and restructuring efforts.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand for Silvaco's products and potential for sustained growth in the EDA market.

Strategic Partnerships

Adoption by Vicor enhances Silvaco's market position, showcasing its technology's relevance and potential for further industry collaborations.

Cost Reduction Initiatives

The cost reduction program aims to improve financial discipline, potentially enhancing profitability and operational efficiency long-term.

Negative Factors

Operating Losses

Despite record revenue, operating losses highlight challenges in managing costs and achieving profitability, impacting financial health.

Declining Revenue Trend

A declining revenue trend suggests potential market share loss or reduced demand, posing risks to long-term growth prospects.

Cash Flow Challenges

Cash flow challenges limit the company's ability to invest in growth and manage debt, affecting financial stability and flexibility.

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 generates revenue primarily through the sale of software licenses and subscriptions for its EDA tools, which are essential for semiconductor design and development. The company also earns money from maintenance and support services, which provide ongoing technical assistance and updates to customers. Additionally, Silvaco may receive revenue from consulting services and training programs aimed at helping clients effectively utilize its software. Key partnerships with semiconductor manufacturers and technology firms enhance its market presence and contribute to its earnings by creating collaborative opportunities for software integration and development.

Silvaco Group, Inc. Financial Statement Overview

Summary

Silvaco Group, Inc. shows strengths in revenue growth and gross profit margins but faces significant challenges in profitability and cash flow management. The low leverage is positive, but negative returns and cash flow ratios highlight the need for strategic improvements.

Income Statement

Silvaco Group, Inc. shows a mixed performance in its income statement. The company has a strong gross profit margin of 78.67% TTM, indicating efficient cost management. However, the net profit margin is negative at -56.53% TTM, reflecting significant losses. Revenue growth is positive at 14.01% TTM, but the negative EBIT and EBITDA margins highlight operational inefficiencies and challenges in achieving profitability.

Balance Sheet

The balance sheet of Silvaco Group, Inc. demonstrates a stable financial structure with a low debt-to-equity ratio of 0.065 TTM, suggesting low leverage. However, the return on equity is negative at -34.35% TTM, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is relatively healthy, showing a strong equity base compared to total assets.

Cash Flow

Silvaco Group, Inc. faces challenges in cash flow management. The operating cash flow and free cash flow are both negative, with a free cash flow growth rate of 21.28% TTM, indicating some improvement. However, the operating cash flow to net income ratio is negative, reflecting difficulties in converting income into cash. The free cash flow to net income ratio is also negative, pointing to cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.67M	59.68M	54.25M	46.47M	41.96M	40.28M
Gross Profit	49.60M	47.64M	44.89M	37.59M	33.31M	31.61M
EBITDA	-31.00M	-36.74M	1.74M	-1.32M	-96.00K	4.46M
Net Income	-29.82M	-39.40M	-316.00K	-3.93M	-1.84M	2.55M
Balance Sheet
Total Assets	130.59M	142.34M	40.88M	38.72M	35.73M	41.91M
Cash, Cash Equivalents and Short-Term Investments	15.47M	82.68M	4.42M	5.48M	6.70M	9.72M
Total Debt	16.16M	1.69M	3.93M	8.47M	501.00K	3.49M
Total Liabilities	51.49M	42.26M	31.48M	28.70M	21.36M	24.67M
Stockholders Equity	79.10M	100.08M	9.40M	10.02M	14.37M	17.24M
Cash Flow
Free Cash Flow	-34.28M	-20.28M	841.00K	-2.19M	-2.73M	5.29M
Operating Cash Flow	-33.54M	-19.77M	1.18M	-2.10M	-2.64M	5.78M
Investing Cash Flow	37.61M	-66.53M	-339.00K	-89.00K	234.00K	-1.60M
Financing Cash Flow	-6.49M	101.30M	-1.65M	624.00K	60.00K	2.33M

Silvaco Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.25
• 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 4.25 is below the 20-day moving average (MA) of 4.29, below the 50-day MA of 4.95, and below the 200-day MA of 4.89, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 72.66 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAPS	60 Neutral	$146.37M	12.41	18.24%	―	0.59%	―
SSTI	49 Neutral	$99.81M	-9.28	-14.61%	―	-1.83%	-642.89%
MRT	47 Neutral	$175.52M	-1.96	―	―	―	―
SVCO	46 Neutral	$130.22M	-4.16	-33.56%	―	15.40%	40.28%
TEAD	45 Neutral	$70.73M	-0.69	-23.85%	―	30.91%	-1632.95%

Silvaco Group, Inc. Corporate Events

Silvaco Group Announces Workforce Reduction in Restructuring

In October 2025, Silvaco Group, Inc. initiated a series of cost-saving measures aimed at streamlining its organizational structure and enhancing stockholder value. On November 24, 2025, the company announced an initial involuntary reduction in force in the United States, as part of a broader restructuring effort that includes voluntary retirement and exit programs, further involuntary layoffs, and planned site closures. The company anticipates recognizing pre-tax charges of $2 million to $5 million related to these activities, with the majority of affected employees expected to be terminated by December 31, 2025, and the restructuring to be substantially completed in fiscal year 2026.