Don't Buy Semtech (SMTC) Before Checking Its Fundamentals!

Mid-cap technology company Semtech has moved 1.4% this evening, reaching $14.8 per share. In contrast, the average analyst target price for the stock is $34.09.

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. The company is based in the United States.

What to Consider if You Are Thinking of Buying Semtech:

  • Semtech has moved -47.0% over the last year.

  • SMTC has a forward P/E ratio of 20.3 based on its EPS guidance of 0.73.

  • Over the last 6 years, earnings per share (EPS) have been growing at a compounded average rate of 11.1%.

  • The company has a price to earnings growth (PEG) ratio of -47.8.

  • Its Price to Book (P/B) ratio is 2.58

Semtech Has Irregular Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cash Flow ($ k) YoY Growth (%)
2023 126,711 28,323 98,388 -44.4
2022 203,123 26,181 176,942 105.28
2021 118,930 32,734 86,196 -9.8
2020 118,616 23,056 95,560 -42.61
2019 183,563 17,052 166,511 119.02
2018 111,485 35,461 76,024

Semtech's free cash flows have a decent average of $116.6 Million over the last 6 years, but they are highly variable since their coefficient of variability is 378.6%. The compounded average growth rate over this period is 4.4%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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