Semtech Corporation (SMTC): one to watch?

Wait — this looks like a bubble popping (stock nearly tripled then crashed), not a proven bargain, and the company still isn't profitable.

👀 WATCH Fundamentals61/100

Fell 25% in 5 trading day(s) — now $103.55

Why SMTC dropped

No company-specific bad news (no fraud, no guidance cut, no lost customer) was found; instead this looks like a valuation correction after a huge AI-fueled run-up, compounded by a broader semiconductor sector selloff and steady insider selling by executives.

Fwd P/E 26.4Op margin 9.3%Rev growth 15.9%Debt/equity 90.3%Analyst upside 98.2%

How this scored 61/100

✅ 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 1056.5% 8/8

Value Is it cheap right now? 17/25

Forward P/E 26.4 4/10

PEG ratio 1.2 6/8

Analyst target upside 98.2% 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

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-30. Research only — not financial advice.