📊 SMTC Key Takeaways
Is Semtech Corp. (SMTC) a Good Investment?
Semtech demonstrates solid fundamental strength with 15.5% revenue growth, exceptional 75.1% net income growth, and a fortress balance sheet featuring 2.37x current ratio and 33.7x interest coverage. However, the disproportionate earnings growth relative to revenue expansion raises sustainability concerns, and severely depressed ROE of 4.6% and ROA of 1.8% indicate capital inefficiency that limits upside potential.
Semtech Corp. Key Strengths (SMTC)
- Strong revenue growth of 15.5% YoY demonstrates market demand and competitive positioning
- Excellent balance sheet health with 2.37x current ratio, $163.3M cash, and manageable 0.86x debt-to-equity leverage
- Exceptional interest coverage of 33.7x provides substantial debt service cushion and financial flexibility
- Healthy 52% gross margin indicates strong pricing power and competitive product mix
- Positive free cash flow of $28.0M with 9.6% FCF margin shows cash generation capability
SMTC Stock Risks: Semtech Corp. Investment Risks
- Disproportionate 75.1% net income growth versus 15.5% revenue growth suggests non-recurring items or unsustainable cost reductions driving earnings
- Critically low ROE of 4.6% and ROA of 1.8% indicate severe capital inefficiency and poor shareholder returns despite growth
- Modest 8.9% operating margin despite revenue growth suggests limited operational leverage and cost structure challenges
- $492.0M long-term debt represents material financial obligation requiring consistent cash generation for servicing
- Significant insider trading activity (29 Form 4 filings in 90 days) without directional context creates uncertainty about management conviction
Key Metrics to Watch
- Operating margin trend and breakdown of net income growth between recurring and non-recurring items
- Return on equity (ROE) and return on assets (ROA) trajectory to assess capital deployment efficiency
- Debt reduction progress and free cash flow sustainability to measure deleveraging commitment
- Quarterly revenue growth rates to validate sustainability of 15.5% YoY expansion
- Gross margin maintenance as proxy for pricing power and competitive positioning
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 |
|---|---|---|---|
| Q1 2027 | $251.1M | $19.3M | $0.22 |
| 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 |
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
❓ Frequently Asked Questions about SMTC
What is the AI rating for SMTC?
Semtech Corp. (SMTC) has an AI grade of A with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SMTC's key strengths?
Claude: Strong revenue growth of 15.5% YoY demonstrates market demand and competitive positioning. Excellent balance sheet health with 2.37x current ratio, $163.3M cash, and manageable 0.86x debt-to-equity leverage.
What are the risks of investing in SMTC?
Claude: Disproportionate 75.1% net income growth versus 15.5% revenue growth suggests non-recurring items or unsustainable cost reductions driving earnings. Critically low ROE of 4.6% and ROA of 1.8% indicate severe capital inefficiency and poor shareholder returns despite growth.
What is SMTC's revenue and growth?
Semtech Corp. reported revenue of $291.0M.
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 $0.27.
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 grade reflects both perspectives for balanced insights.
What is SMTC's fundamental grade?
Based on our AI fundamental analysis in May 2026, Semtech Corp. has a A grade with 65% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is SMTC stock overvalued or undervalued?
Valuation metrics for SMTC: ROE of 4.6% (sector avg: 22%), net margin of 9.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is SMTC's AI grade for 2026?
Our dual AI analysis gives Semtech Corp. a combined A grade 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 $36.2M, with capital expenditures of $8.2M. FCF margin is 9.6%.
How does SMTC compare to other Technology stocks?
Vs Technology sector averages: Net margin 9.1% (avg: 18%), ROE 4.6% (avg: 22%), current ratio 2.37 (avg: 2.5).