Recent News
On December 1, 2025 Semtech announced executive participation at the UBS Global Technology and AI Conference scheduled for early December. On December 9, 2025 the company publicized plans to showcase IoT connectivity, sensing and protection products at CES 2026 (events Jan 6–9, 2026).
Technical Analysis
Directional indicators: ADX at 14.0 indicates no established trend; DI+ shows a peak-and-reverse (bearish signal) while DI- shows a peak-and-reverse (bullish signal). The mixed directional reads reduce confidence that current upside momentum will persist without a trend-confirming pickup in ADX, which supports the introduction’s caution about near-term pressure.
MACD: MACD at 2.84 sits above its signal line (2.27) and the MACD trend increases, a bullish momentum signal that aligns with the recent rise above short-term averages and supports potential continuation in price action unless negated by weakening volume or trend strength.
MRO (momentum/regression oscillator): MRO registers 1.41 (positive), indicating price sits above the WMDST target and therefore increased potential for a corrective move; the MRO trend shows a peak-and-reverse, reinforcing the elevated probability of a pullback that would reconcile valuation differences noted below.
RSI and moving averages: RSI at 57.9 and rising signals constructive momentum without overbought conditions. Price ($88.59) trades above the 12-day EMA ($84.42), 26-day EMA ($81.37), 20-day average ($83.49), 50-day average ($77.77) and 200-day average ($59.53), indicating short- and medium-term bias leans bullish, though ADX suggests that bias lacks trend strength.
Bands, volatility and volume: Price sits near the upper Bollinger band (upper 1σ $87.45 / upper 2σ $91.41), implying limited immediate upside before volatility-driven mean reversion. Beta remains high (42-day 2.86, 52-week 2.41) and recent volume (1,185,559) sits below 10- and 200-day averages, which weakens conviction behind recent moves and increases risk of a short-duration reversal.
Fundamental Analysis
Profitability and margins: Operating margin measures 11.92% and EBIT margin sits at 2.95%. Operating margin improved year-over-year (operating margin YoY +58.92%) and quarter-over-quarter, demonstrating operational leverage on recent revenue, but EBIT margin lags the industry peer mean (35.67%) and industry peer median (30.33%), indicating material underperformance on operating returns relative to peers.
Top-line and earnings dynamics: Total revenue equals $266.97M with revenue up QoQ by 40.02% but down YoY by 63.47%, reflecting pronounced timing or product-cycle effects between comparable periods. Reported EPS of $0.48 beat the estimate of $0.45 by $0.03, a positive EPS surprise of 6.67% that aligns with recent margin gains but contrasts with negative net income of -$2.86M for the period.
Cash, leverage and cash generation: Semtech holds $164.67M in cash and short-term investments and generated free cash flow of $42.01M; free cash flow yield equals 0.71%, below the industry peer mean of 1.76%, which highlights weaker cash return to valuation. Total debt measures $490.49M with net debt $325.82M and debt-to-EBITDA around 25.28, indicating leverage remains a structural consideration despite positive operating cash flow.
Efficiency and returns: Asset turnover stands at 0.1899, roughly in line with the industry peer mean (0.19098), but return on equity and return on assets remain negative (-0.506% and -0.204% respectively), signalling capital efficiency has not yet converted into positive bottom-line returns despite margin improvements.
Valuation: WMDST values the stock as over-valued. Market multiples exceed peer norms: P/B at 10.46 sits above the industry peer mean (5.35) and peer high (8.06); PE at 133.56 stands above the industry peer mean (62.96); EV/Revenue and enterprise multiples also register elevated. Those stretched multiples combined with a low free cash flow yield and negative net income underpin the WMDST over-valued assessment.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-10-31 |
| REPORT DATE: | 2025-11-24 |
| NEXT REPORT DATE: | 2026-02-23 |
| CASH FLOW | Begin Period Cash Flow | $ 168.6 M |
| Operating Cash Flow | $ 47.5 M | |
| Capital Expenditures | $ -5.45 M | |
| Change In Working Capital | $ -5.89 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -3.89 M | |
| End Period Cash Flow | $ 164.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 267.0 M | |
| Forward Revenue | $ -1.17 B | |
| COSTS | ||
| Cost Of Revenue | $ 128.5 M | |
| Depreciation | $ 11.5 M | |
| Depreciation and Amortization | $ 11.5 M | |
| Research and Development | $ 49.4 M | |
| Total Operating Expenses | $ 235.2 M | |
| PROFITABILITY | ||
| Gross Profit | $ 138.5 M | |
| EBITDA | $ 19.4 M | |
| EBIT | $ 7.9 M | |
| Operating Income | $ 31.8 M | |
| Interest Income | $ 790.0 K | |
| Interest Expense | $ 3.4 M | |
| Net Interest Income | $ -5.69 M | |
| Income Before Tax | $ 4.4 M | |
| Tax Provision | $ 7.3 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -2.86 M | |
| Net Income From Continuing Operations | $ -2.86 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.45 | |
| EPS Actual | $ 0.48 | |
| EPS Difference | $ 0.03 | |
| EPS Surprise | 6.667 % | |
| Forward EPS | $ 0.54 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.4 B | |
| Intangible Assets | $ 525.2 M | |
| Net Tangible Assets | $ 40.4 M | |
| Total Current Assets | $ 620.9 M | |
| Cash and Short-Term Investments | $ 164.7 M | |
| Cash | $ 164.7 M | |
| Net Receivables | $ 164.8 M | |
| Inventory | $ 185.7 M | |
| Long-Term Investments | $ 115.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 75.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 255.1 M | |
| Net Debt | $ 325.8 M | |
| Total Debt | $ 490.5 M | |
| Total Liabilities | $ 840.2 M | |
| EQUITY | ||
| Total Equity | $ 565.7 M | |
| Retained Earnings | $ -406.27 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.13 | |
| Shares Outstanding | 92.303 M | |
| Revenue Per-Share | $ 2.89 | |
| VALUATION | Market Capitalization | $ 5.9 B |
| Enterprise Value | $ 6.2 B | |
| Enterprise Multiple | 321.798 | |
| Enterprise Multiple QoQ | -131.81 % | |
| Enterprise Multiple YoY | 114.589 % | |
| Enterprise Multiple IPRWA | SMTC: 321.798 high: 296.548 mean: 50.374 median: 31.937 low: -33.375 |
|
| EV/R | 23.385 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.485 | |
| Asset To Liability | 1.673 | |
| Debt To Capital | 0.464 | |
| Debt To Assets | 0.349 | |
| Debt To Assets QoQ | -5.483 % | |
| Debt To Assets YoY | -59.581 % | |
| Debt To Assets IPRWA | high: 0.6 SMTC: 0.349 mean: 0.189 median: 0.145 low: 0.011 |
|
| Debt To Equity | 0.867 | |
| Debt To Equity QoQ | -7.616 % | |
| Debt To Equity YoY | -110.176 % | |
| Debt To Equity IPRWA | high: 1.279 SMTC: 0.867 mean: 0.363 median: 0.211 low: 0.013 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 10.461 | |
| Price To Book QoQ | 36.532 % | |
| Price To Book YoY | -143.85 % | |
| Price To Book IPRWA | SMTC: 10.461 high: 8.063 mean: 5.349 median: 4.056 low: 0.81 |
|
| Price To Earnings (P/E) | 133.559 | |
| Price To Earnings QoQ | 16.486 % | |
| Price To Earnings YoY | -21.427 % | |
| Price To Earnings IPRWA | high: 305.636 SMTC: 133.559 mean: 62.964 median: 44.32 low: -140.039 |
|
| PE/G Ratio | 7.823 | |
| Price To Sales (P/S) | 22.165 | |
| Price To Sales QoQ | 34.775 % | |
| Price To Sales YoY | 57.521 % | |
| Price To Sales IPRWA | high: 97.421 SMTC: 22.165 mean: 20.401 median: 17.485 low: 3.249 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 150.435 | |
| Forward PE/G | 8.811 | |
| Forward P/S | -6.664 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -40.807 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.19 | |
| Asset Turnover Ratio QoQ | 4.605 % | |
| Asset Turnover Ratio YoY | 10.138 % | |
| Asset Turnover Ratio IPRWA | high: 0.238 mean: 0.191 SMTC: 0.19 median: 0.162 low: 0.034 |
|
| Receivables Turnover | 1.678 | |
| Receivables Turnover Ratio QoQ | 3.965 % | |
| Receivables Turnover Ratio YoY | 4.643 % | |
| Receivables Turnover Ratio IPRWA | high: 4.908 mean: 2.4 median: 1.798 SMTC: 1.678 low: 0.942 |
|
| Inventory Turnover | 0.696 | |
| Inventory Turnover Ratio QoQ | -0.309 % | |
| Inventory Turnover Ratio YoY | -3.989 % | |
| Inventory Turnover Ratio IPRWA | high: 1.28 mean: 0.764 median: 0.724 SMTC: 0.696 low: 0.181 |
|
| Days Sales Outstanding (DSO) | 54.39 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 136.761 | |
| Cash Conversion Cycle Days QoQ | -0.818 % | |
| Cash Conversion Cycle Days YoY | 3.938 % | |
| Cash Conversion Cycle Days IPRWA | high: 196.578 SMTC: 136.761 median: 125.075 mean: 118.876 low: 48.891 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.73 | |
| CapEx To Revenue | -0.02 | |
| CapEx To Depreciation | -0.473 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.1 B | |
| Net Invested Capital | $ 1.1 B | |
| Invested Capital | $ 1.1 B | |
| Net Tangible Assets | $ 40.4 M | |
| Net Working Capital | $ 365.7 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.645 | |
| Current Ratio | 2.433 | |
| Current Ratio QoQ | -3.789 % | |
| Current Ratio YoY | 2.733 % | |
| Current Ratio IPRWA | high: 10.418 mean: 2.989 median: 2.46 SMTC: 2.433 low: 0.939 |
|
| Quick Ratio | 1.705 | |
| Quick Ratio QoQ | -3.931 % | |
| Quick Ratio YoY | 1.845 % | |
| Quick Ratio IPRWA | high: 9.909 mean: 2.247 median: 1.803 SMTC: 1.705 low: 0.579 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 25.281 | |
| Cost Of Debt | 0.894 % | |
| Interest Coverage Ratio | 2.294 | |
| Interest Coverage Ratio QoQ | -185.014 % | |
| Interest Coverage Ratio YoY | 175.486 % | |
| Interest Coverage Ratio IPRWA | high: 82.905 mean: 52.443 median: 46.269 SMTC: 2.294 low: -74.981 |
|
| Operating Cash Flow Ratio | -0.003 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 53.975 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.0 % | |
| Revenue Growth | 3.642 % | |
| Revenue Growth QoQ | 40.023 % | |
| Revenue Growth YoY | -63.47 % | |
| Revenue Growth IPRWA | high: 20.574 % median: 20.152 % mean: 14.264 % SMTC: 3.642 % low: -14.38 % |
|
| Earnings Growth | 17.073 % | |
| Earnings Growth QoQ | 116.251 % | |
| Earnings Growth YoY | -87.48 % | |
| Earnings Growth IPRWA | high: 80.0 % mean: 27.796 % SMTC: 17.073 % median: 4.947 % low: -33.333 % |
|
| MARGINS | ||
| Gross Margin | 51.87 % | |
| Gross Margin QoQ | -0.369 % | |
| Gross Margin YoY | 1.549 % | |
| Gross Margin IPRWA | high: 78.591 % median: 56.043 % mean: 54.848 % SMTC: 51.87 % low: 0.701 % |
|
| EBIT Margin | 2.952 % | |
| EBIT Margin QoQ | -146.924 % | |
| EBIT Margin YoY | -60.63 % | |
| EBIT Margin IPRWA | high: 60.153 % mean: 35.672 % median: 30.33 % SMTC: 2.952 % low: -113.66 % |
|
| Return On Sales (ROS) | 11.916 % | |
| Return On Sales QoQ | 12.479 % | |
| Return On Sales YoY | 58.922 % | |
| Return On Sales IPRWA | high: 60.153 % mean: 34.654 % median: 29.399 % SMTC: 11.916 % low: -113.66 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 42.0 M | |
| Free Cash Flow Yield | 0.71 % | |
| Free Cash Flow Yield QoQ | -23.409 % | |
| Free Cash Flow Yield YoY | -15.976 % | |
| Free Cash Flow Yield IPRWA | high: 4.536 % mean: 1.761 % median: 1.267 % SMTC: 0.71 % low: -3.494 % |
|
| Free Cash Growth | 6.997 % | |
| Free Cash Growth QoQ | -86.821 % | |
| Free Cash Growth YoY | -102.103 % | |
| Free Cash Growth IPRWA | high: 2171.294 % mean: 59.903 % median: 23.043 % SMTC: 6.997 % low: -26.58 % |
|
| Free Cash To Net Income | -14.678 | |
| Cash Flow Margin | -0.255 % | |
| Cash Flow To Earnings | 0.238 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.204 % | |
| Return On Assets QoQ | -89.303 % | |
| Return On Assets YoY | -63.043 % | |
| Return On Assets IPRWA | high: 7.02 % median: 6.21 % mean: 5.669 % SMTC: -0.204 % low: -4.976 % |
|
| Return On Capital Employed (ROCE) | 0.685 % | |
| Return On Equity (ROE) | -0.005 | |
| Return On Equity QoQ | -89.663 % | |
| Return On Equity YoY | -109.317 % | |
| Return On Equity IPRWA | high: 0.13 mean: 0.097 median: 0.089 SMTC: -0.005 low: -0.036 |
|
| DuPont ROE | -0.512 % | |
| Return On Invested Capital (ROIC) | 0.589 % | |
| Return On Invested Capital QoQ | -149.33 % | |
| Return On Invested Capital YoY | -55.748 % | |
| Return On Invested Capital IPRWA | high: 8.306 % median: 7.826 % mean: 7.346 % SMTC: 0.589 % low: -7.625 % |
|