Quality Investor

Semtech Corporation

Rank #152Startup

SMTC · Nasdaq · Technology

Semtech Corporation (SMTC) — Rank #152 by gross profitability (GP/assets 0.38) · ROE -7.3% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0000088941 · all metrics point-in-time as of the filing date.

About

Semtech Corporation provides semiconductor, Internet of Things systems, and cloud connectivity service solutions in the Asia- Pacific, North America, and Europe.

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The company operates in three segments: Signal Integrity, Analog Mixed Signal and Wireless, and IoT Systems and Connectivity. It provides signal integrity products, including a portfolio of optical and copper data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company also offers analog mixed signal and wireless products; protection devices, such as filter and termination devices which protect electronic systems from voltage spikes; and designs, develops, manufactures, and markets radio frequency products used in industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, the company offers a portfolio of IoT systems and connectivity solutions, such as modules, gateways, routers, and connected services, including wireless connectivity and cloud-based services for industrial, medical, and communications applications. It serves original equipment manufacturers, solution providers, commercial applications, infrastructure, high-end consumer, and industrial end markets. The company sells its products through direct sales personnel, independent sales representative firms, and independent distributors.

Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.

Industry
Semiconductors
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
January 31

Price History

SMTC+114.0% · +16.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens for pre-profit companies.

Market Cap

$13.99B

P/E (annual)

P/S (annual)

13.3

P/B

25.5

P/OCF (annual)

77.2

Shareholder Yield

-23.4%

Employees

1,920

Industry

Semiconductors

Exchange

Nasdaq

Signal Flags

2 green1 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.38
Return on equity
-7.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.51
Current ratio
2.37×
Net cash
-$328.67M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
5.5%

Growth

1/2 pass
Revenue growth
15.5%
Piotroski F-Score
7 / 9
Share dilution
23.4%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

26.3%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 23.4% — per-share value needs a total required return of 49.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 11.8%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

20.9%

r = 10% (base)

26.3%

r = 12%

30.9%

Net debt / market cap: 2.5%

Base FCF: $171.4M3Y mean FCF: $32.8M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
26.3xmed 67.0x102.9x

P / S

Price / revenue per share

6.4xExpensive
2.0xmed 6.0x7.3x

P / B

Price / book value per share

12.3xExpensive
2.1xmed 5.7x12.3x

P / GP

Price / gross profit per share

12.5xExpensive
3.4xmed 9.7x12.5x

P / FCF

Price / free cash flow per share

39.5xFair
16.4xmed 39.5x57.2x

Burn rate (cash flow) is the primary read at this stage — TAM and product-market fit aren't metrics this dashboard tracks.

Profitability

Gross profitability (GP / assets)

0.38

Primary signal (Novy-Marx).

4th of 17 SIC 3674 peers

Return on equity

-7.3%

Gross margin

51.6%

10th of 17 SIC 3674 peers

Revenue growth (YoY)

15.5%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

11.5%

Revenue CAGR (5Y)

12.0%

Earnings CAGR (3Y)

FCF CAGR (3Y)

20.3%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.51

16th of 16 SIC 3674 peers (best = lowest)

Current ratio

2.37×

14th of 17 SIC 3674 peers

Quick ratio

1.24×

Net cash

-$328.67M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$171.38M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

5.24

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

5.5%

Stock-based comp intensity.

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Capital Return
Hypergrowth
Startup