Silvaco Group, Inc. (SVCO) AI Stock Analysis

• Market Cap: $171.05M
• Dividend Yield: N/A
• Average Volume (3M): 152.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 279
• Sector: General
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): -0.16
• Shares Outstanding: 30,382,107
• 10 Day Avg. Volume: 146,015
• 30 Day Avg. Volume: 152,202
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 2.04
• Enterprise Value/Ebitda: -3.01
• 1Y Price Target: $9.50
• Price Target Upside: 69.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 56 Neutral
• Price Target: $5.50 ▼(-1.79% Downside)

Silvaco Group, Inc. faces significant financial challenges, with declining revenue and profitability issues being the most critical factors. However, the stock shows positive technical momentum, and recent strategic corporate events, including leadership changes and an acquisition, provide a positive outlook for future growth. The valuation remains a concern due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Leadership Strength

The appointment of Chris Zegarelli as CFO, with his extensive experience in strategic planning and financial operations, is expected to enhance Silvaco's financial strategy and support long-term growth, providing stability and direction in the evolving semiconductor market.

Strategic Acquisition

The acquisition of Mixel Group enhances Silvaco's capabilities in semiconductor IP, particularly in high-growth markets. This strategic move is expected to accelerate innovation and expand customer value, strengthening Silvaco's competitive position in the industry.

Market Position

Silvaco's position as a leading provider of EDA software and semiconductor IP solutions across various sectors ensures a strong market presence. This diversified application base supports long-term stability and growth potential as demand for advanced electronic design tools increases.

Negative Factors

Declining Revenue

The company's declining revenue growth, with a 5.03% decrease, indicates challenges in maintaining market share and competitiveness. This trend could impact long-term profitability and necessitates strategic initiatives to reverse the decline and sustain financial health.

Profitability Issues

Silvaco's negative net profit margin highlights significant operational challenges. Persistent losses could strain resources and limit investment in growth opportunities, necessitating improved cost management and revenue enhancement strategies to achieve sustainable profitability.

Cash Flow Challenges

The negative cash flow metrics indicate liquidity issues, potentially affecting Silvaco's ability to fund operations and invest in growth. Addressing these challenges is crucial for maintaining financial flexibility and supporting strategic initiatives.

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 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 financial difficulties, with declining revenue and persistent losses impacting profitability. Despite a strong gross profit margin, the company struggles with negative net profit and cash flow issues. The balance sheet shows low leverage, which is a positive sign, but the negative return on equity highlights operational inefficiencies.

Income Statement

Silvaco Group, Inc. has experienced declining revenue growth with a negative trend in profitability. The TTM data shows a revenue decline of 5.03%, and the company has been operating at a loss with a net profit margin of -56.53%. The EBIT and EBITDA margins are also negative, indicating operational challenges. Despite a strong gross profit margin of 78.67%, the company struggles to convert this into net income.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.065, indicating low leverage, which is a positive aspect. However, the return on equity is negative at -34.35%, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is not provided, but the low leverage suggests some financial stability despite profitability issues.

Cash Flow

The cash flow statement reveals significant challenges, with a negative operating cash flow and a free cash flow growth rate of -308.92% in the TTM period. The operating cash flow to net income ratio is negative, indicating cash flow issues. However, the free cash flow to net income ratio is -1.43, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.97M	59.68M	54.25M	46.47M	41.96M	40.28M
Gross Profit	43.24M	47.64M	44.89M	37.59M	33.31M	31.61M
EBITDA	-29.23M	-37.11M	1.74M	-1.11M	-2.37M	4.46M
Net Income	-31.08M	-39.40M	-316.00K	-3.93M	-1.84M	2.55M
Balance Sheet
Total Assets	127.63M	142.34M	40.88M	38.72M	35.73M	41.91M
Cash, Cash Equivalents and Short-Term Investments	55.48M	82.68M	4.42M	5.48M	6.70M	9.72M
Total Debt	5.21M	1.69M	3.93M	8.47M	501.00K	3.49M
Total Liabilities	48.04M	42.26M	31.48M	28.70M	21.36M	24.67M
Stockholders Equity	79.59M	100.08M	9.40M	10.02M	14.37M	17.24M
Cash Flow
Free Cash Flow	39.55M	-20.28M	841.00K	-2.19M	-2.73M	5.29M
Operating Cash Flow	-27.59M	-19.77M	1.18M	-2.10M	-2.64M	5.78M
Investing Cash Flow	29.15M	-66.53M	-339.00K	-89.00K	234.00K	-1.60M
Financing Cash Flow	-6.72M	101.30M	-1.65M	624.00K	60.00K	2.33M

Silvaco Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.60
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 5.6 is above the 20-day moving average (MA) of 5.15, above the 50-day MA of 4.76, and below the 200-day MA of 5.77, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 62.09 is Neutral, neither overbought nor oversold. The STOCH value of 62.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SVCO.

Silvaco Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAPS	65 Neutral	193.38M	14.91	21.17%	―	2.37%	0.00%
SVCO	56 Neutral	$171.05M	―	-34.26%	―	―	―
AEYE	55 Neutral	162.97M	-39.92	-56.62%	―	18.53%	-16.24%
FRGE	47 Neutral	218.03M	-3.54	-34.05%	―	14.78%	21.87%
NXTT	44 Neutral	63.03M	0.03	0.00%	―	-31.64%	-55.76%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

Silvaco Group, Inc. Corporate Events

Silvaco Group Appoints New Chief Financial Officer

On September 4, 2025, Silvaco Group, Inc. announced the appointment of Christopher Zegarelli as its new Chief Financial Officer, effective September 15, 2025. Zegarelli, with over 20 years of experience in the semiconductor industry, previously held senior financial roles at Infineon Technologies, GaN Systems, Thermal Engineering International, and indie Semiconductor. His appointment is seen as a strategic move to support Silvaco’s growth and innovation in the fast-evolving semiconductor and technology markets. Zegarelli’s expertise in financial operations and strategic planning is expected to drive Silvaco’s strategy, fuel growth, and create long-term value for stakeholders.

Silvaco Group Appoints Walden Rhines as New CEO

On August 21, 2025, Silvaco Group, Inc. announced the appointment of Walden C. Rhines, Ph.D., as the new CEO following the departure of Dr. Babak Taheri, who led the company for nearly seven years and oversaw its IPO. Rhines, who has been a board member since 2022, brings extensive experience from his previous roles at Cornami, Inc., Qorvo, Inc., and Mentor Graphics Corporation. The transition marks a significant moment for Silvaco as it aims to capitalize on its market opportunities in semiconductor design automation, with Rhines committed to maximizing shareholder value.

Silvaco Group Completes Acquisition of Mixel Group

On August 4, 2025, Silvaco Group, Inc. announced the completion of its acquisition of Mixel Group, Inc., a company known for low-power, high-performance mixed-signal connectivity IP solutions. This strategic acquisition aims to enhance Silvaco’s capabilities in providing innovative connectivity semiconductor IP by integrating Mixel’s proven technologies and engineering excellence. The Mixel team will join Silvaco’s Semiconductor IP Business Unit, which is expected to accelerate innovation and expand customer value. This move positions Silvaco to bring new solutions to market faster and strengthen its industry partnerships.

Silvaco Group Acquires Mixel to Boost Semiconductor IP

On July 29, 2025, Silvaco Group, Inc. announced its acquisition of Mixel Group, Inc., a provider of low-power, high-performance mixed-signal connectivity IP solutions. The acquisition, expected to close by August 1, 2025, will enhance Silvaco’s semiconductor IP offerings, particularly in high-growth markets such as mobile, automotive, VR, AR, IoT, and robotics. This strategic move is aimed at strengthening Silvaco’s position in the semiconductor IP market by leveraging Mixel’s expertise in mixed-signal design and expanding its reach into advanced process nodes and a broader range of semiconductor applications.