Semtech Corporation is a leading supplier of analog and mixed-signal semiconductors for high-end consumer, enterprise computing, communications and industrial equipment. The company was founded in 1960 and is based in Camarillo, California.
SMTC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Semtech Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Semtech Corp ranked in the 21th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Semtech Corp, consider:
The company's balance sheet shows it gets 97% of its capital from equity, and 3% of its capital from debt. Its equity weight surpasses that of 72.32% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than merely 13.61% of the free cash flow producing stocks we're observing.
SMTC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 46.23% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
IIIV, LSCC, MELI, STM, and STX can be thought of as valuation peers to SMTC, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Semtech Corporation (Nasdaq: SMTC), a leading supplier of high performance analog and mixed-signal semiconductors and advanced algorithms, announced that Meshed Pty Ltd (Meshed IoT Integrators), Australia’s premier provider of Internet of Things (IoT) solutions for smart cities, environment, water, energy, agriculture, and asset management, has integrated the LoRaWAN® protocol into its nCounter people counting solution to provide accurate and anonymized people counting data for smart cities amid the COVID-19 pandemic.
On Wednesday, the Relative Strength (RS) Rating for Semtech climbed to 81 from 78, put it in an exclusive group of top stocks to watch. The 81 RS Rating means that Semtech outperformed 81% of all stocks, regardless of industry group, over the past year. Market research shows stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves.
Semtech Corporation (Nasdaq: SMTC), a leading supplier of high performance analog and mixed-signal semiconductors and advanced algorithms, announced Digital Matter, a leading supplier of GPS and Internet of Things (IoT) hardware and device management software, has utilized Semtech’s LoRa Edge™ asset management platform to develop the Yabby Edge, an innovative battery-powered tracking device for indoor/outdoor asset management. The LoRa Edge (LR1110) platform significantly reduces the cost and complexity of IoT asset management in key applications such as pallet and warehouse equipment tracking, inventory and shipment management, trolley, cart and container tracking, medical equipment management, and more.