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Silicon Laboratories (SLAB)
NASDAQ:SLAB
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Silicon Laboratories
(NASDAQ:SLAB)
63Neutral
Positive Factors
Market Performance
Silicon Labs is expected to see sequential growth throughout the remainder of the year, driven by improving supply and demand balance and market share gains.
Sales Growth
The company expects new program ramps to be the prevailing driver of sales growth throughout the year, with a significant annual increase in revenue.
Negative Factors
Market Risks
Weakness in the Industrial & Commercial market and low visibility keep risk reward balanced.
Silicon Laboratories (SLAB) vs. S&P 500 (SPY)
Market Cap
$4.35B
Dividend YieldN/A
Average Volume (3M)404.20K
Price to Earnings (P/E)―
Beta (1Y)1.61
Revenue Growth-25.29%
EPS Growth-449.44%
CountryUS
Employees1,889
SectorTechnology
Sector Strength45
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)-5.95
Shares Outstanding32,472,958
10 Day Avg. Volume378,044
30 Day Avg. Volume404,199
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.70
Price to Cash Flow (P/CF)111.10
P/FCF Ratio111.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$145.75Price Target Upside17.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Silicon Laboratories Business Overview & Revenue Model
Company DescriptionSilicon Laboratories, Inc. designs and develops analog-intensive and mixed-signal integrated circuits. The firm offers microcontrollers, wireless, sensors, USB bridges, analog, clocks and oscillators, isolators, power, audio & radio, modems and TV & video product categories. It provides solutions for automotive, communications, data centers, healthcare & fitness, home automation & entertainment, industrial automation & power and retail industries. The company was founded by Navdeep S. Sooch, David R. Welland, and Jeffrey W. Scott in August 1996 and is headquartered in Austin, TX.
How the Company Makes MoneySilicon Laboratories generates revenue primarily through the sale of its semiconductor products and software solutions. Key revenue streams include microcontrollers, wireless connectivity solutions, and sensor products, which are sold to original equipment manufacturers (OEMs) and system integrators. The company's business model involves direct sales as well as distribution through a network of authorized distributors. Revenue is also generated through licensing of its intellectual property and software solutions, which provide recurring income. Strategic partnerships with companies in various industries, such as consumer electronics and automotive, further support its revenue by integrating its technology into a wide array of end-user applications. Innovations and expansions in IoT and industrial automation sectors serve as significant growth drivers for the company's earnings.
Silicon Laboratories Financial Statement Overview
Summary
Silicon Laboratories faces challenges in revenue generation and profitability, as indicated by declining income statement metrics. The balance sheet is strong with no debt and a robust equity position, which provides stability and reduces financial risk. Cash flow metrics highlight areas for improvement, particularly in generating positive free cash flow. Overall, while the company has a solid financial base, it needs to address profitability and cash flow generation to enhance its financial health.Income Statement
Silicon Laboratories has experienced declining revenue over recent years, with a significant drop from $1.02 billion in 2022 to $584 million in 2024, representing a negative trend. The gross profit margin has also decreased, indicating pressure on profitability. The company has reported negative net income and EBIT margins, highlighting challenges in maintaining profitability.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with no total debt in 2024, which is noteworthy for financial stability. The equity ratio has improved, indicating a solid financial foundation. However, the decrease in total assets over time suggests potential challenges in asset management. Overall, the company's low leverage is a positive aspect.70
Positive
Cash Flow
Cash flow analysis shows negative free cash flow in the most recent year, which is concerning. The operating cash flow to net income ratio indicates inefficiencies in converting sales into cash. Despite these issues, the company has maintained a reasonable cash balance, supporting liquidity.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 584.39M | 782.26M | 1.02B | 720.86M | 886.68M | Gross Profit |
| 312.19M | 460.59M | 642.56M | 425.39M | 527.53M | EBIT |
| -165.49M | -24.15M | 119.26M | -27.14M | 38.30M | EBITDA |
| -104.92M | 46.09M | 175.85M | 32.04M | -43.28M | Net Income Common Stockholders |
| -191.01M | -34.52M | 91.40M | -71.60M | 12.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 382.16M | 439.22M | 1.19B | 2.04B | 724.68M | Total Assets |
| 1.22B | 1.44B | 2.17B | 2.96B | 1.99B | Total Debt |
| 15.55M | 64.83M | 529.57M | 450.60M | 563.42M | Net Debt |
| -266.06M | -162.67M | 29.66M | -624.02M | 360.70M | Total Liabilities |
| 142.65M | 234.37M | 764.42M | 745.87M | 793.65M | Stockholders Equity |
| 1.08B | 1.21B | 1.41B | 2.21B | 1.20B |
| Cash Flow | Free Cash Flow | |||
| -25.66M | -52.63M | 45.28M | -129.02M | 115.30M | Operating Cash Flow |
| -13.91M | -30.35M | 71.81M | -100.44M | 135.72M | Investing Cash Flow |
| 113.12M | 469.81M | 240.54M | 2.27B | -361.01M | Financing Cash Flow |
| -45.10M | -711.87M | -887.05M | -1.30B | 200.87M |
Silicon Laboratories Technical Analysis
Negative
123.80
Price Trends
138.11
Negative
125.97
Negative
119.91
Positive
Market Momentum
-2.41
Positive
34.35
Neutral
24.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLAB, the sentiment is Negative. The current price of 123.8 is below the 20-day moving average (MA) of 143.66, below the 50-day MA of 138.11, and above the 200-day MA of 119.91, indicating a neutral trend. The MACD of -2.41 indicates Positive momentum. The RSI at 34.35 is Neutral, neither overbought nor oversold. The STOCH value of 24.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLAB.
Silicon Laboratories Risk Analysis
Silicon Laboratories disclosed 37 risk factors in its most recent earnings report. Silicon Laboratories 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
Silicon Laboratories Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $103.70B | 68.96 | 4.43% | 1.70% | -19.28% | -44.00% | |
68 Neutral | $28.75B | 105.40 | 4.71% | 3.40% | -44.31% | -86.74% | |
67 Neutral | $52.20B | 21.23 | 28.16% | 1.94% | -4.99% | -9.18% | |
67 Neutral | $18.06B | 11.80 | 18.97% | ― | -14.19% | -27.42% | |
65 Neutral | $161.36B | 35.89 | 28.25% | 2.85% | -10.72% | -26.60% | |
63 Neutral | $4.35B | ― | -16.69% | ― | -25.29% | -449.44% | |
58 Neutral | $21.35B | 10.05 | -19.26% | 2.35% | 5.02% | -22.63% |
* Technology Sector Average
Performance Comparison
SLAB
Silicon Laboratories
123.80
-16.36
-11.67%
ADI
Analog Devices
209.08
13.72
7.02%
MCHP
Microchip
52.24
-36.10
-40.86%
NXPI
NXP Semiconductors
205.80
-40.99
-16.61%
ON
ON Semiconductor
42.86
-37.03
-46.35%
TXN
Texas Instruments
177.34
9.36
5.57%
Silicon Laboratories Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -8.15% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with strong growth in specific segments like connected healthcare, smart metering, and electronic shelf labeling. Despite a year-over-year revenue decline, significant progress was made in reducing inventory and improving financial positions, indicating a recovery trajectory.Highlights
Significant Revenue Growth from Trough
Silicon Labs grew more than 90% from its trough one year ago, driven by design wins and share gains across business units.
Connected Healthcare and CGM Growth
In Q4, significant volume was shipped to multiple CGM customers, contributing to the sequential growth in the Home & Life business. CGM is projected to comprise nearly 10% of revenue in the next 12 to 18 months.
Smart Metering Expansion
Silicon Labs began shipping millions of units to India's Smart Electric Metering Initiative and is well-positioned for a majority share in the 250 million unit deployment.
Strong Performance in ESL Market
Strong momentum in the electronic shelf labeling market with significant unit shipments, supporting anticipated rollouts and design plans.
Advancements in Bluetooth and Wi-Fi
Bluetooth is now the fastest-growing technology by revenue and opportunity funnel. The new Wi-Fi 6 device, 917, is in early design wins with strong customer engagement.
Lowlights
Year-over-Year Revenue Decline
Fiscal year 2024 revenue was $584 million, representing a 25% year-over-year decline primarily due to excess inventory issues.
Industrial & Commercial Segment Decline
The Industrial & Commercial products experienced a 32% decline as customers depleted excess inventory positions throughout the year.
GAAP Operating Losses
The company ended the fourth quarter with a GAAP operating loss of $29 million, although this was an improvement from the prior year's $73 million loss.
Company Guidance
During the call, Silicon Labs provided guidance highlighting several key metrics and growth drivers for 2025. The company anticipates revenue between $170 million and $185 million for the March quarter, implying a 67% year-over-year growth at the midpoint. This growth is largely driven by design win ramps across various sectors, including connected health and smart home applications. Silicon Labs expects connected healthcare, particularly continuous glucose monitoring (CGM), to potentially account for nearly 10% of its revenue within the next 12 to 18 months. The company also noted significant progress in its smart metering initiatives, especially in India, and in electronic shelf labeling, with strong unit shipments and design wins. In terms of financial performance, Silicon Labs ended fiscal year 2024 with $584 million in revenue, experiencing a 25% year-over-year decline, but showing sequential improvement, with a GAAP operating loss of $29 million in the fourth quarter, improving from a $73 million loss the prior year. The company's gross margin for the March quarter is projected to be between 54% and 56%, with non-GAAP operating expenses expected to slightly increase due to the new fiscal year resets. Overall, Silicon Labs is confident in its ability to drive above-market growth through continued innovation and strategic market positioning.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.