SMTC Analysis — TradeApes

SEMTECH CORP (SMTC)

Technology Semiconductors

$151.02 close · Jun 06, 2026

Above 50 & 200 SMA

52W -10.8% from High

Methodology Breakdown

This stock uses a non-standard methodology. The breakdown below shows what the engine computed.

Method	Value	Role
Peer Multiples	$29.31	REFERENCE
Book Value Anchor	$38.70	REFERENCE
Cash Floor	$1.17	REFERENCE
NAV Anchor	$38.70	REFERENCE

⚠️

Multiple stretched z = +2.79

EV/EBITDA (316.2×) is 2.79 std deviations above its 2-year average

Jun 05

Health Score

Out of 100

Weak

Pillar Scores

Financial Strength 20

Operating Trend 50

Valuation 25

Capital Allocation 50

Risk Management 80

Positives

↑ Free cash flow positive — business generates real spendable cash +2.5

↑ Strong liquidity — current assets more than 2× current liabilities +1.3

Concerns

↓ Very high leverage — net debt/EBITDA above 5× -6.3

↓ Historically expensive — EV/EBITDA in top 20% of its 5-year range -6.3

↓ Weak interest coverage — earnings barely cover debt service -3.8

Signal contribution: +3.8 from strengths -17.7 from concerns

Health Score Trend 6 snapshots

Cross-Check: Greenblatt Magic Formula

⚠ Divergent

Earnings Yield

0.4%

Rank 1203 / 1256

Return on Capital

8.6%

Rank 1130 / 1256

Combined Rank

6th pctl

1256 companies ranked

Our composite ranks this company higher than the Magic Formula. This is likely because our model credits growth trajectory, improving margins, or momentum signals that the Magic Formula's static snapshot does not capture.

Based on Joel Greenblatt's Magic Formula methodology. Not investment advice.

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	1.09B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	562.3M
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	22.4M
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	-33.2M
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	173.2M
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	51.3M
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	492.0M
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	163.3M

Valuation

Market Cap	14.80B
Enterprise Value	15.16B
EV / Revenue	13.9x
EV / EBITDA	295.7x
P/E (TTM)	-446.5x
Forward P/E	—
PEG	—
P/FCF	85.5x
FCF Yield	1.2%

EV/EBITDA vs history — 92% percentile (historically expensive)

CheapMidExpensive

EV/Sales vs history — 91% percentile (historically expensive)

CheapMidExpensive

P/Book vs history — 92% percentile (historically expensive)

CheapMidExpensive

Relative Valuation

Using relative multiples

EV / Revenue

13.9x

Book Value / Share

$5.85

Price / Book

25.8x

Price / Sales

13.6x

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	51.6%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	4.7%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	-3.0%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	15.9%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	14.2%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	72.2%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	6 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	—

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Quarterly Financials

Metric	Q1 '27	Q4 '26	Q3 '26	Q2 '26	Q1 '26	Q4 '26	Q3 '26	Q2 '26	Q1 '26	Q4 '26	Q3 '25	Q2 '25
Revenue ?Total quarterly sales from primary business operations.	291.0M	274.4M	267.0M	257.6M	251.1M	251.0M	236.8M	215.4M	206.1M	192.9M	200.9M	238.4M
Gross Profit ?Quarterly revenue minus cost of goods sold.	151.5M	138.3M	138.5M	134.1M	131.3M	130.5M	121.0M	105.5M	99.6M	-$390,000	93.0M	100.7M
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	25.8M	-18.3M	31.1M	-16.2M	36.0M	21.2M	17.8M	7.8M	3.1M	-620.0M	-12.4M	-300.1M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	26.6M	-29.8M	-2.9M	-27.1M	19.3M	39.1M	-7.6M	-170.3M	-23.2M	-642.4M	-38.3M	-382.0M
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	28.0M	59.1M	44.6M	41.5M	26.2M	30.9M	29.1M	-8.4M	-1.4M	12.2M	-12.4M	-18.9M

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.