Astera Labs, Inc. (NASDAQ: ALAB)

Sector: Technology Industry: Semiconductors CIK: 0001736297
P/B 18.04
P/E 115.39
P/S 31.74
Market Cap 22.95 Bn
ROIC (Qtr) 12.07
Div Yield % 0.00
Rev 1y % (Qtr) 103.89
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Stock Price Chart

Analysis

Pros

  • Strong operating cash flow of 263.74M provides 1.53x coverage of SG&A expenses 171.90M, showing efficient operational cost management.
  • Robust free cash flow of 229.44M exceeds capital expenditure of 34.30M by 6.69x, indicating strong organic growth funding capability.
  • Short-term investments of 994.02M provide solid 13.23x coverage of other current liabilities 75.15M, indicating strong liquidity.
  • Operating cash flow of 263.74M provides solid 2.61x coverage of current liabilities 100.96M, showing strong operational health.
  • Operating cash flow of 263.74M fully covers other non-current liabilities 28.49M by 9.26x, showing strong long-term stability.

Cons

  • Operating cash flow of 263.74M barely covers its investment activities of (260.11M), with a coverage ratio of -1.01, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (260.11M) provide weak support for R&D spending of 266.73M, which is -0.98x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 994.02M significantly exceed cash reserves of 140.41M, which is 7.08x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of 263.74M shows concerning coverage of stock compensation expenses of 166.88M, with a 1.58 ratio indicating potential earnings quality issues.
  • Operating cash flow of 263.74M provides minimal -5.39x coverage of tax expenses of (48.92M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer Comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,276.26 Bn 43.11 22.85 10.48 Bn
2 AVGO Broadcom Inc. 1,690.87 Bn 89.31 28.22 64.23 Bn
3 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,514.32 Bn 29.36 12.71 31.18 Bn
4 AMD Advanced Micro Devices Inc 343.27 Bn 103.83 10.72 3.87 Bn
5 MU Micron Technology Inc 269.16 Bn 31.52 7.20 15.28 Bn
6 INTC Intel Corp 249.55 Bn 1,260.33 4.67 46.55 Bn
7 QCOM Qualcomm Inc/De 195.62 Bn 35.30 4.42 14.81 Bn
8 TXN Texas Instruments Inc 163.92 Bn 32.50 9.49 14.05 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 16.26 3.95
EV to Cash from Ops. 86.39 -331.60
EV to Debt 0.00 86.14
EV to EBIT 151.96 -55.96
EV to EBITDA 198.82 20.88
EV to Free Cash Flow [EV/FCF] 99.30 -4.09
EV to Market Cap 0.99 0.80
EV to Revenue 31.51 18.79
Price to Book Value [P/B] 18.04 5.23
Price to Earnings [P/E] 115.39 12.47

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 2.29
Dividend Payout Ratio % 0.00 8.00
Dividend per Basic Share 0.00 0.62
FCF Dividend Payout Ratio % 0.00 10.38
Interest Coverage 0.00 8.19

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -73.18 -155.77
Cash and Equivalents Growth (1y) % 11.33 44.44
Dividend Growth (1y) % 0.00 5.30
EBIAT Growth (1y) % 311.99 34.22
EBITDA Growth (1y) % 211.87 47.50
EBIT Growth (1y) % 283.33 30.14
EBT Growth (1y) % 283.33 47.04
EPS Growth (1y) % 187.76 36.18
FCF Growth (1y) % 150.58 252.76
Gross Profit Growth (1y) % 129.79 43.92

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.52 0.49
Cash Payout Ratio 0.00 0.09
Cash Ratio 1.39 2.23
Current Ratio 12.78 5.43
Debt to Equity Ratio 0.00 0.34
Interest Cover Ratio 0.00 8.19
Times Interest Earned 0.00 8.19

Profitability

Metric Value Industry Percentile
EBITDA Margin % 21.80 -112.44
EBIT Margin % 20.74 -92.10
EBT Margin % 20.74 -132.39
Gross Margin % 75.40 47.63
Net Profit Margin % 27.50 -133.41