Semtech Corporation (SMTC): one to watch?

Wait for earnings (due today) — the drop looks like profit-taking after a huge run-up and a semiconductor sector selloff, not a company-specific blowup, but the stock is still expensive and unprofitable.

👀 WATCH Fundamentals60/100

Fell 22% in 6 trading day(s) — now $120.91

$177$13.1 2023202420252026

Why SMTC dropped

No company-specific bad news (no fraud, no guidance withdrawal, no lost customer) was found for this particular 6-day, -21.6% slide; instead it lines up with a broader chip-sector pullback tied to rising bond yields and oil prices, on top of a stock that had already rocketed roughly 80% year-to-date and was flagged by valuation models as overvalued, plus routine insider selling by the CEO.

Fwd P/E 31.0Op margin 9.3%Rev growth 15.9%Debt/equity 90.3%Analyst upside 66.6%
How this scored 60/100
✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.
✅ Makes money Loss-making today, but operations are profitable (9.3%) and analysts expect positive earnings next year
✅ Generates cash Free cash flow $133M
✅ Not drowning in debt Debt/equity 90.3% (limit 200%)
✅ Can pay its bills Current ratio 2.4 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 3/25
Operating margin 9.3% 3/9
Net profit margin -3.0% 0/8
Return on equity -5.8% 0/8
Growth Is it getting bigger, or dying? 21/25
Revenue growth 15.9% 6/9
Earnings growth 22.7% 7/8
Expected profit change 1073.7% 8/8
Value Is it cheap right now? 16/25
Forward P/E 31.0 3/10
PEG ratio 1.2 6/8
Analyst target upside 66.6% 7/7
Balance sheet Will it survive? 20/25
Debt / equity 90.3% 6/10
Current ratio 2.4 7/8
Free cash flow $133M 7/7

🔒 Read the full AI analysis

Create a free account to unlock the bull case and the risks for SMTC — plus today's other picks.

Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-25. Research only — not financial advice.