SiTime Corporation (SITM) AI Stock Analysis

• Market Cap: $3.93B
• Dividend Yield: N/A
• Average Volume (3M): 350.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.08
• Revenue Growth: 40.77%
• EPS Growth: -11.80%
• Country: US
• Employees: 395
• Sector: Technology
• Sector Strength: 46
• Industry: Semiconductors and Equipment
• EPS (TTM): -4.06
• Shares Outstanding: 23,597,832
• 10 Day Avg. Volume: 329,061
• 30 Day Avg. Volume: 350,944
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 20.75
• Price to Cash Flow (P/CF): 78.00
• P/FCF Ratio: 78.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $248.33
• Price Target Upside: 49.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

SiTime Corporation demonstrates potential with strong revenue growth and a robust equity position. However, the negative financial performance due to persistent losses and cash flow challenges significantly impacts the overall score. The positive outlook from the earnings call provides some optimism, but valuation concerns and mixed technical signals caution investors.

Positive Factors

Market Positioning

SITM's strong position with next-gen GPUs and high share in 800G optical modules and AECs.

Product Integration

Teardowns showed two timing chips from SITM in the iPhone 16e, which supports the belief that SITM has content alongside the internal AAPL modem.

Revenue Growth

Bookings for 2025 are strong, and management reiterated its target for +25-30% Y/Y revenue growth in 2025.

Negative Factors

Depreciation Costs

Increased depreciation from higher CapEx spend is contributing to a decline in gross margins.

Gross Margin Decline

1Q25 GM was guided to decline 180bps to 57% due to lower revenue absorption, increased depreciation from higher CapEx spend, and lower yields on new product ramps.

SiTime Corporation Business Overview & Revenue Model

Company Description

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. Its solutions have applications in various markets, including communications and enterprise, automotive, industrial, Internet of Things, mobile, consumer, and aerospace and defense. The company sells its timing products through distributors and resellers. SiTime Corporation was incorporated in 2003 and is headquartered in Santa Clara, California.

How the Company Makes Money

SiTime Corporation generates revenue primarily through the sale of its silicon MEMS timing solutions to original equipment manufacturers (OEMs) and other companies across multiple industries. The company's revenue model is based on the production and sale of precision timing devices, which replace traditional quartz-based solutions, offering advantages in size, reliability, and power efficiency. SiTime's key revenue streams include sales of oscillators, clock generators, and resonators. The company benefits from strategic partnerships with major semiconductor distributors and manufacturers, enhancing its market reach and distribution capabilities. Furthermore, SiTime's focus on research and development allows it to innovate and introduce new products, maintaining its competitive edge and driving sales growth.

SiTime Corporation Financial Statement Overview

Summary

SiTime Corporation shows a strong equity position with no debt, reducing financial risk. However, persistent operational losses and negative net income pose substantial risks. The company must address cash flow challenges and improve operational efficiencies to achieve sustainable profitability.

Income Statement

SiTime Corporation has experienced volatile revenue growth, with significant fluctuations in Total Revenue over the years. The Gross Profit Margin for 2024 stood at around 51.55%, indicating some efficiency in production. However, the Net Profit Margin is negative due to substantial losses, primarily driven by elevated EBIT and EBITDA losses, reflecting operational inefficiencies and high operating expenses. Recent revenue growth is positive, but the consistent net losses are a critical concern.

Balance Sheet

The company's balance sheet shows a strong Equity Ratio of approximately 79%, highlighting a solid capital base primarily funded by equity. SiTime Corporation has a Debt-to-Equity Ratio of 0, indicating no reliance on debt for funding, which minimizes financial risk. However, the Return on Equity is negative due to the net losses, and there's a notable reduction in cash and short-term investments, which could impact liquidity.

Cash Flow

Free Cash Flow fluctuated significantly, with 2024 seeing negative Free Cash Flow due to high capital expenditures relative to operating cash flow. The Operating Cash Flow to Net Income Ratio is positive, suggesting some ability to generate cash from operations despite net losses. However, the negative Free Cash Flow to Net Income Ratio underscores challenges in converting earnings into positive cash flows.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
202.70M	143.99M	283.61M	218.81M	116.16M
	Gross Profit
104.49M	82.09M	182.96M	139.46M	57.93M
	EBIT
-115.24M	-107.20M	4.30M	24.92M	-8.61M
	EBITDA
-74.45M	-83.34M	27.98M	40.77M	-2.24M
	Net Income Common Stockholders
-93.60M	-80.53M	23.25M	32.28M	-9.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
418.83M	528.20M	564.10M	559.46M	73.53M
	Total Assets
884.96M	951.68M	750.62M	678.21M	136.01M
	Total Debt
6.23M	8.02M	10.63M	6.40M	6.99M
	Net Debt
126.00K	-1.44M	-23.97M	-553.06M	-66.54M
	Total Liabilities
185.24M	243.63M	42.14M	45.71M	26.13M
	Stockholders Equity
699.72M	708.05M	708.48M	632.50M	109.88M
Cash Flow		Free Cash Flow
-13.03M	-4.19M	4.10M	25.29M	8.81M
	Operating Cash Flow
23.19M	8.06M	39.75M	59.08M	16.60M
	Investing Cash Flow
64.76M	-36.66M	-560.09M	-33.79M	-7.79M
	Financing Cash Flow
-91.31M	3.47M	-4.52M	460.65M	1.30M

SiTime Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 166.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SITM, the sentiment is Negative. The current price of 166.65 is below the 20-day moving average (MA) of 169.89, below the 50-day MA of 187.13, and below the 200-day MA of 175.59, indicating a bearish trend. The MACD of -0.77 indicates Negative momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 50.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SITM.

SiTime Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVGO	75 Outperform	$842.92B	90.80	14.85%	1.21%	40.30%	-22.79%
ADI	71 Outperform	$103.63B	67.14	4.43%	1.75%	-19.28%	-44.00%
MCHP	68 Neutral	$27.32B	91.99	4.71%	3.48%	-44.31%	-86.74%
NXPI	67 Neutral	$50.74B	20.92	28.16%	1.97%	-4.99%	-9.18%
TXN	65 Neutral	$164.48B	35.51	28.25%	2.88%	-10.72%	-26.60%
Sector *	58 Neutral	$21.67B	10.60	-18.43%	2.42%	4.66%	-24.45%
SITM	53 Neutral	$3.93B	―	-13.30%	―	40.77%	-11.80%