📊 SMTC Key Takeaways
Is Semtech Corp. (SMTC) a Good Investment?
Semtech exhibits contradictory signals: strong 15.5% revenue growth with healthy 51.6% gross margins, but critical profitability issues with -3.8% net margin and dangerously low 0.8x interest coverage that cannot service debt from operations. Robust free cash flow generation of $171.4M and improving EPS trends (+79.6% YoY) suggest potential turnaround, but company must demonstrate sustainable operating profitability to justify continuation.
Why Buy Semtech Corp. Stock? SMTC Key Strengths
- Strong revenue growth of 15.5% YoY with healthy demand dynamics
- Robust gross margins of 51.6% indicating good product pricing power
- Exceptional free cash flow generation at $171.4M (16.3% FCF margin) despite net losses
SMTC Stock Risks: Semtech Corp. Investment Risks
- Company is unprofitable with negative net income of -$40.4M and -3.8% net margin
- Critical interest coverage ratio of 0.8x - operating income insufficient to service debt obligations
- Extremely thin operating margin of 3.1% indicating significant operational efficiency issues or cost pressures
Key Metrics to Watch
- Path to operating profitability and GAAP net income positivity
- Interest coverage ratio improvement above 1.5x threshold
- Operating margin expansion from current 3.1% baseline
Semtech Corp. (SMTC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.37x current ratio provides a solid financial cushion.
SMTC Profit Margin, ROE & Profitability Analysis
SMTC vs Technology Sector: How Semtech Corp. Compares
How Semtech Corp. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Semtech Corp. Stock Overvalued? SMTC Valuation Analysis 2026
Based on fundamental analysis, Semtech Corp. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Semtech Corp. Balance Sheet: SMTC Debt, Cash & Liquidity
SMTC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Semtech Corp.'s revenue has grown significantly by 42% over the 5-year period, indicating strong business expansion. The most recent EPS of $-17.03 indicates the company is currently unprofitable.
SMTC Revenue Growth, EPS Growth & YoY Performance
SMTC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $236.8M | -$2.9M | $-0.03 |
| Q2 2026 | $215.4M | -$7.7M | $-0.09 |
| Q1 2026 | $206.1M | $19.3M | $0.22 |
| Q3 2025 | $200.9M | -$7.6M | $-0.10 |
| Q2 2025 | $215.4M | -$170.3M | $-2.61 |
| Q1 2025 | $206.1M | -$23.2M | $-0.36 |
| Q3 2024 | $177.6M | $22.7M | $0.36 |
| Q2 2024 | $209.3M | $51.6M | $0.81 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Semtech Corp. Dividends, Buybacks & Capital Allocation
SMTC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Semtech Corp. (CIK: 0000088941)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 14, 2026 | 4 | xslF345X06/wk-form4_1776207654.xml | View → |
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776110807.xml | View → |
| Apr 8, 2026 | 4 | xslF345X06/wk-form4_1775682545.xml | View → |
| Apr 8, 2026 | 4 | xslF345X06/wk-form4_1775682479.xml | View → |
| Apr 8, 2026 | 4 | xslF345X06/wk-form4_1775682439.xml | View → |
❓ Frequently Asked Questions about SMTC
What is the AI rating for SMTC?
Semtech Corp. (SMTC) has an AI rating of HOLD with 55% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SMTC's key strengths?
Claude: Strong revenue growth of 15.5% YoY with healthy demand dynamics. Robust gross margins of 51.6% indicating good product pricing power.
What are the risks of investing in SMTC?
Claude: Company is unprofitable with negative net income of -$40.4M and -3.8% net margin. Critical interest coverage ratio of 0.8x - operating income insufficient to service debt obligations.
What is SMTC's revenue and growth?
Semtech Corp. reported revenue of $1.0B.
Does SMTC pay dividends?
Semtech Corp. does not currently pay dividends.
Where can I find SMTC SEC filings?
Official SEC filings for Semtech Corp. (CIK: 0000088941) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SMTC's EPS?
Semtech Corp. has a diluted EPS of $-0.46.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SMTC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Semtech Corp. has a HOLD rating with 55% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SMTC stock overvalued or undervalued?
Valuation metrics for SMTC: ROE of -7.3% (sector avg: 22%), net margin of -3.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy SMTC stock in 2026?
Our dual AI analysis gives Semtech Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SMTC's free cash flow?
Semtech Corp.'s operating cash flow is $181.2M, with capital expenditures of $9.8M. FCF margin is 16.3%.
How does SMTC compare to other Technology stocks?
Vs Technology sector averages: Net margin -3.8% (avg: 18%), ROE -7.3% (avg: 22%), current ratio 2.37 (avg: 2.5).