Macroaxis provides unbiased trade recommendation on Semtech that should be used to complement current
analysts and expert consensus on Semtech. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Semtech income statement, its balance sheet, and the statement of cash flows. Potential Semtech investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Semtech investors may use each financial statement separately, they are all related. The changes in Semtech's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Semtech's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Semtech
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Semtech performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Semtech shares is the value that is considered the true value of the share. If
the intrinsic value of Semtech is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Semtech. Please read more on our
fundamental analysis page.
How effective is Semtech in utilizing its assets?
Semtech reports assets on its Balance Sheet. It represents the amount of Semtech resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Semtech aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Semiconductors & Semiconductor Equipment space. To get a better handle on how balance sheet or income statements item affect Semtech volatility, please check the breakdown of all its
fundamentals.
Are Semtech Earnings Expected to grow?
The
future earnings power of Semtech involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Semtech factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Semtech
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Semtech
expected earnings.
Semtech Gross Profit
Semtech Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Semtech previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Semtech Gross Profit growth over the last 10 years. Please check Semtech's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Semtech
Many companies such as Semtech have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Semtech is distributed among investors.
Ownership Allocation
Semtech maintains a total of 65.15 Million outstanding shares. The majority of Semtech
outstanding shares are owned by
institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Semtech to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Semtech. Please pay attention to any change in the institutional holdings of Semtech as this could imply that something significant has changed or about to change at the company. Also note that roughly one million three hundred three thousand invesors are currently shorting Semtech expressing very little confidence in its
future performance.
| Retail Investors | -1.76 |
| Insiders | 1.66 |
| Institutions | 100.1 |
| 2015 | 2020 (projected) |
Consolidated Income | 11.5 M | 13.57 M | Direct Expenses | 210.83 M | 214.7 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Semtech has an asset utilization ratio of 60.21 percent. This suggests that the company is making $0.6 for each dollar of assets. An increasing asset utilization means that Semtech is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets422.1 M | Assets Non Current553.8 M | Goodwill406 M | |
| Current Assets | 422.08 Million | 30.06 |
| Assets Non Current | 553.79 Million | 39.44 |
| Goodwill | 406.03 Million | 28.92 |
| Tax Assets | 22.21 Million | 1.58 |
Will Semtech pull back in September 2020?
Semtech current total risk alpha builds up over 0.21. As of the 26th of August, Semtech has the Coefficient Of Variation of 480.36,
semi deviation of 2.02, and Risk Adjusted Performance of 0.3018. In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Semtech, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze and collect data for nineteen
technical drivers for Semtech, which can be compared to its competition. Please validate
Semtech treynor ratio, as well as the
relationship between the downside variance and
kurtosis to decide if Semtech is priced more or less accurately, providing market reflects its prevalent price of 62.65 per share. Given that Semtech has
jensen alpha of 0.2947, we advise you to double-check Semtech's current market performance to make sure the company can sustain itself at a future point.
Our Conclusion on Semtech
Whereas many other companies within the semiconductors industry are still a little expensive, even after the recent corrections, Semtech may offer a potential longer-term growth to investors. Taking everything into account, as of the 26th of August 2020, our analysis shows that Semtech almost mirrors the market. The company is
fairly valued and projects
very small probability of distress for the next 2 years. Our ongoing 30 days buy-sell recommendation on the company is
Strong Buy.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Semtech. Please refer to our
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