Silvaco Group, Inc. (SVCO) AI Stock Analysis

• Market Cap: $130.77M
• Dividend Yield: N/A
• Average Volume (3M): 107.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• 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: 89,662
• 30 Day Avg. Volume: 107,649
• PEG Ratio: 0.05
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.14
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 13.96
• Enterprise Value/Ebitda: -96.66
• 1Y Price Target: $10.33
• Price Target Upside: 132.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 49 Neutral
• Price Target: $4.50 ▲(1.12%Upside)

Silvaco Group, Inc. is facing significant financial and operational challenges, reflected in a low financial performance score. However, the strategic acquisition of Mixel Group provides a positive outlook for future growth in the semiconductor IP market. The technical indicators suggest bearish momentum, and the company's negative valuation metrics further weigh down the overall score.

Positive Factors

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.

Market Expansion

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

Revenue Growth

Silvaco's CY25 revenue growth is projected to be 400 basis points above its large-cap peers, indicating a strong performance outlook.

Negative Factors

Cost Pressures

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

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.

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. faces significant challenges with negative profitability and cash flow, despite strong gross margins. The reliance on external financing and declining revenue growth are major concerns, though the company's low leverage offers some stability.

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

Silvaco Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.45
• 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 4.45 is below the 20-day moving average (MA) of 4.63, below the 50-day MA of 4.71, and below the 200-day MA of 6.21, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 45.19 is Neutral, neither overbought nor oversold. The STOCH value of 67.28 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	68 Neutral	$157.22M	―	-76.11%	―	16.52%	-1.28%
FRGE	59 Neutral	$205.51M	―	-30.28%	―	14.78%	16.74%
MAPS	58 Neutral	$144.34M	11.22	23.24%	―	0.20%	―
Sector *	56 Neutral	$6.34B	18.40	-28.96%	6.02%	10.40%	-36.04%
VCSA	52 Neutral	$138.62M	―	-123.26%	―	-18.56%	69.22%
SVCO	49 Neutral	$130.77M	―	-127.52%	―	―	―
NXTT	44 Neutral	$837.63M	0.85	80.54%	―	-44.58%	1200.82%

Silvaco Group, Inc. Corporate Events

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.

The most recent analyst rating on (SVCO) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Silvaco Group, Inc. stock, see the SVCO Stock Forecast page.

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.