Astera Labs, Inc. (NASDAQ: ALAB)

Sector: Technology Industry: Semiconductors CIK: 0001736297
Market Cap 25.07 Bn
P/B 19.71
P/E 126.05
P/S 34.67
ROIC (Qtr) 12.07
Div Yield % 0.00
Rev 1y % (Qtr) 103.89
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Geographical Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,516.69 Bn 45.53 24.14 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,678.13 Bn 32.54 14.09 31.18 Bn
3 AVGO Broadcom Inc. 1,624.80 Bn 70.26 25.43 65.14 Bn
4 MU Micron Technology Inc 386.61 Bn 32.46 9.14 12.43 Bn
5 AMD Advanced Micro Devices Inc 330.88 Bn 100.08 10.33 3.87 Bn
6 INTC Intel Corp 300.63 Bn 1,518.33 5.63 46.55 Bn
7 QCOM Qualcomm Inc/De 195.07 Bn 35.20 4.40 14.81 Bn
8 TXN Texas Instruments Inc 173.86 Bn 34.48 10.07 14.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 17.77 4.22
EV to Cash from Ops. EV/CFO 94.43 -369.72
EV to Debt EV to Debt 0.00 90.98
EV to EBIT EV/EBIT 166.10 -66.75
EV to EBITDA EV/EBITDA 217.33 23.41
EV to Free Cash Flow [EV/FCF] EV/FCF 108.55 -8.88
EV to Market Cap EV to Market Cap 0.99 0.80
EV to Revenue EV/Rev 34.45 20.68
Price to Book Value [P/B] P/B 19.71 5.21
Price to Earnings [P/E] P/E 126.05 11.55
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.39
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 8.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 9.91
Interest Coverage Interest Coverage 0.00 8.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -73.18 -155.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 11.33 45.60
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.64
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 311.99 26.23
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 211.87 47.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 283.33 25.83
EBT Growth (1y) % EBT 1y % (Qtr) 283.33 39.93
EPS Growth (1y) % EPS 1y % (Qtr) 187.76 24.64
FCF Growth (1y) % FCF 1y % (Qtr) 150.58 244.42
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 129.79 43.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 1.39 2.23
Current Ratio Curr Ratio (Qtr) 12.78 5.43
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.34
Interest Cover Ratio Interest Cover Ratio 0.00 8.38
Times Interest Earned Times Interest Earned 0.00 8.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 21.80 -112.38
EBIT Margin % EBIT Margin % (Qtr) 20.74 -91.98
EBT Margin % EBT Margin % (Qtr) 20.74 -132.25
Gross Margin % Gross Margin % (Qtr) 75.40 47.73
Net Profit Margin % Net Margin % (Qtr) 27.50 -133.26