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Astera Labs, Inc. (ALAB)
NASDAQ:ALAB
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Astera Labs, Inc.
(NASDAQ:ALAB)
63Neutral
Positive Factors
Product Development
Scorpio is the only PCIe 6 switch available today, giving Astera a significant first mover advantage.
Revenue Growth
Astera posted another strong quarter, with revenue upside and guidance above consensus.
Negative Factors
Operating Expenses
OpEx increased by 18% quarter over quarter, hindering operating margin expansion.
Valuation Concerns
The stock is considered the most expensive in the coverage.
Astera Labs, Inc. (ALAB) vs. S&P 500 (SPY)
Market Cap
$9.56B
Dividend YieldN/A
Average Volume (3M)3.87M
Price to Earnings (P/E)―
Beta (1Y)2.51
Revenue Growth242.24%
EPS Growth-221.02%
CountryUS
Employees440
SectorGeneral
Sector StrengthN/A
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.54
Shares Outstanding162,153,470
10 Day Avg. Volume4,181,553
30 Day Avg. Volume3,874,517
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)29.09
Price to Cash Flow (P/CF)72.60
P/FCF Ratio118.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$118.25Price Target Upside100.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Astera Labs, Inc. Business Overview & Revenue Model
Company DescriptionAstera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.
How the Company Makes MoneyAstera Labs makes money through the sale of its semiconductor-based connectivity solutions to data center operators, cloud service providers, and hardware manufacturers. Key revenue streams include the licensing of proprietary technology, direct product sales, and partnerships with major technology companies that integrate Astera Labs' solutions into their own products. The company's earnings are significantly influenced by its ability to deliver high-performance and reliable connectivity solutions that cater to the growing demand for efficient data transfer and processing in modern computing infrastructures.
Astera Labs, Inc. Financial Statement Overview
Summary
Astera Labs is experiencing rapid revenue growth and maintains a solid balance sheet with low leverage. However, profitability remains a concern with negative profit margins and return on equity. The positive shift in free cash flow is a favorable indicator, suggesting potential for improved financial health.Income Statement
Astera Labs has shown a strong revenue growth of 242% from 2023 to 2024. Despite the impressive revenue growth, the company is still not profitable with negative net and EBIT margins, indicating ongoing operational challenges.65
Positive
Balance Sheet
The balance sheet is robust with a high equity ratio of 91.5% and low debt, evidenced by a debt-to-equity ratio of 0.001. However, the negative ROE of -8.65% highlights inefficiencies in generating profits from shareholders' equity.70
Positive
Cash Flow
Astera Labs has improved its cash flow situation significantly, with free cash flow turning positive in 2024. The operating cash flow to net income ratio is strong at -1.64, indicating effective cash management despite net losses.75
Positive
| Breakdown | ||
| Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|
| Income Statement | Total Revenue | |
| 396.29M | 115.79M | 79.87M | Gross Profit |
| 302.70M | 79.83M | 58.68M | EBIT |
| -116.07M | -29.50M | -60.19M | EBITDA |
| -112.91M | -27.72M | -59.39M | Net Income Common Stockholders |
| -83.42M | -26.26M | -58.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |
| 914.30M | 149.31M | 163.14M | Total Assets |
| 1.05B | 196.29M | 211.73M | Total Debt |
| 1.29M | 2.93M | 1.96M | Net Debt |
| -78.27M | -42.16M | -74.13M | Total Liabilities |
| 89.71M | 38.87M | 41.90M | Stockholders Equity |
| 964.80M | 157.43M | 169.84M |
| Cash Flow | Free Cash Flow | |
| 102.43M | -15.48M | -39.77M | Operating Cash Flow |
| 136.68M | -12.72M | -35.90M | Investing Cash Flow |
| -757.57M | -17.77M | -90.59M | Financing Cash Flow |
| 655.84M | -502.00K | 151.67M |
Astera Labs, Inc. Technical Analysis
Negative
58.96
Price Trends
71.96
Negative
95.96
Negative
76.34
Negative
Market Momentum
-3.96
Negative
42.97
Neutral
67.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALAB, the sentiment is Negative. The current price of 58.96 is below the 20-day moving average (MA) of 61.57, below the 50-day MA of 71.96, and below the 200-day MA of 76.34, indicating a bearish trend. The MACD of -3.96 indicates Negative momentum. The RSI at 42.97 is Neutral, neither overbought nor oversold. The STOCH value of 67.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALAB.
Astera Labs, Inc. Risk Analysis
Astera Labs, Inc. disclosed 65 risk factors in its most recent earnings report. Astera Labs, Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Astera Labs, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $7.23B | 138.48 | -9.49% | ― | 26.40% | -234.22% | |
68 Neutral | $14.62B | 9.53 | 18.97% | ― | -14.19% | -27.42% | |
67 Neutral | $8.60B | 17.15 | 8.34% | 4.97% | -12.91% | -42.12% | |
63 Neutral | $9.56B | ― | -14.87% | ― | 242.24% | -221.02% | |
55 Neutral | $3.89B | -11.96 | -15.29% | 5.24% | 19.70% | -42.97% | |
53 Neutral | $3.06B | ― | -13.30% | ― | 40.77% | -11.80% | |
52 Neutral | $2.94B | ― | -16.69% | ― | -25.29% | -449.44% |
* General Sector Average
Performance Comparison
ALAB
Astera Labs, Inc.
58.96
-6.83
-10.38%
MTSI
MACOM Technology Solutions Holdings
97.29
1.71
1.79%
ON
ON Semiconductor
34.64
-26.01
-42.89%
SLAB
Silicon Laboratories
90.50
-28.62
-24.03%
SWKS
Skyworks Solutions
55.98
-39.02
-41.07%
SITM
SiTime Corporation
129.47
55.76
75.65%
Astera Labs, Inc. Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: -42.92% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
Astera Labs reported strong financial results with record-breaking revenue growth and a positive outlook for 2025. Despite a decrease in gross margin and increased operating expenses, the strategic acquisitions and product expansion position the company well for future growth.Highlights
Record-Breaking Quarterly Revenue
Astera Labs delivered strong Q4 results, setting the sixth consecutive record for quarterly revenue at $141 million, which was up 25% from last quarter and up 179% versus Q4 of the prior year.
Significant Full Year Revenue Growth
Full year sales for 2024 increased by 242% year-over-year to $396 million, showcasing the company's strong performance and expansion.
High Non-GAAP Gross Margin
Astera Labs reported a robust fiscal 2024 non-GAAP gross margin of 76.6%, reflecting the value of its expanding product portfolio.
Strategic Acquisition
The company closed a small, but strategic acquisition in Q4 to accelerate product development and strengthen foundational IP capability.
Positive Outlook for 2025
Astera Labs anticipates 2025 to be a breakout year with continued deployment of AI accelerator platforms and projection of Scorpio product revenue to comprise at least 10% of total revenue for 2025.
Lowlights
Decrease in Non-GAAP Gross Margin
Non-GAAP gross margin for Q4 was 74.1%, down from the previous quarter levels due to a product mix shift towards hardware-based solutions.
Increased Operating Expenses
Non-GAAP operating expenses for Q4 were $56.2 million, up from $51.3 million in the previous quarter, due to scaling R&D and a strategic acquisition.
Inventory Build-Up
Inventories were up almost 80% sequentially in the December quarter, reflecting a build-up to support future shipment profiles.
Company Guidance
Astera Labs' recent earnings call highlighted robust financial performance and provided guidance for future growth. The company reported Q4 2024 revenue of $141 million, marking a 25% increase from the previous quarter and a 179% rise from the same period last year. Fiscal year 2024 saw total sales reach $396 million, a 242% year-over-year increase. Non-GAAP gross margin for the year was 76.6%. For Q1 2025, revenue is expected to range between $151 million and $155 million, with a gross margin of approximately 74%. The company anticipates continued growth from its Aries and Taurus product families and a significant ramp in its Scorpio product line, which is expected to account for at least 10% of 2025 revenues. Astera Labs also plans to leverage industry trends such as AI and cloud infrastructure investments to drive above-market growth.Astera Labs, Inc. Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Astera Labs Expands Board with New Appointment
Positive
Mar 3, 2025
On March 2, 2025, Astera Labs, Inc. announced the appointment of Dr. Craig Barratt to its Board of Directors, expanding the board from seven to eight members. Dr. Barratt, an independent director with extensive experience in the technology sector, is expected to provide strategic insight and guidance as Astera Labs continues to expand its leadership in AI and cloud infrastructure connectivity solutions. His appointment is seen as a move to strengthen the company’s industry position and support its growth and innovation efforts.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.