SITIME Corp (NASDAQ: SITM)

Sector: Technology Industry: Semiconductors CIK: 0001451809
Market Cap 10.33 Bn
P/B 8.93
P/E -240.73
P/S 31.62
ROIC (Qtr) -5.69
Div Yield % 0.00
Rev 1y % (Qtr) 66.32
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

SITIME Corp, also known as SITM, is a prominent player in the global electronics industry, specializing in Precision Timing solutions. The company's offerings are crucial for the reliable operation of electronic devices, providing high performance, resilience, and reliability, along with programmability, compact size, and low power consumption. SITIME's primary business activities revolve around designing and manufacturing precision timing solutions, which include oscillators, clock ICs, and resonators. These products find application in a diverse...

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Investment thesis

Bull case

  • Short-term investments of 791.65M provide solid 12.63x coverage of other current liabilities 62.68M, indicating strong liquidity.
  • Operating cash flow of 87.15M fully covers other non-current liabilities 54.51M by 1.60x, showing strong long-term stability.
  • Tangible assets of 1.06B provide robust 16.92x coverage of other current liabilities 62.68M, indicating strong asset backing.
  • Operating cash flow of 87.15M provides strong 13.27x coverage of operating expenses 6.57M, showing operational efficiency.
  • Operating cash flow of 87.15M provides solid 1.04x coverage of current liabilities 84M, showing strong operational health.

Bear case

  • Operating cash flow of 87.15M barely covers its investment activities of (427.87M), with a coverage ratio of -0.20, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 16.76M against inventory of 81.56M, the 0.21 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Investment activities of (427.87M) provide weak support for R&D spending of 118.89M, which is -3.60x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 791.65M significantly exceed cash reserves of 16.76M, which is 47.24x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of 87.15M shows concerning coverage of stock compensation expenses of 103.54M, with a 0.84 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,081.81 Bn 2,078.31 541.21 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,887.11 Bn 425.89 133.83 31.18 Bn
3 AVGO Broadcom Inc. 1,662.70 Bn -332,540.00 1,106.25 65.14 Bn
4 MU Micron Technology Inc 426.40 Bn 109.53 25.16 12.43 Bn
5 AMD Advanced Micro Devices Inc 329.72 Bn 76.06 9.52 3.85 Bn
6 TXN Texas Instruments Inc 224.64 Bn 55.45 14.64 14.05 Bn
7 INTC Intel Corp 205.50 Bn -769.67 3.89 46.59 Bn
8 QCOM Qualcomm Inc/De 153.04 Bn 28.53 3.41 14.82 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 7.96 4.34
EV to Cash from Ops. EV/CFO 118.19 -208.66
EV to Debt EV to Debt 0.00 79.86
EV to EBIT EV/EBIT -243.49 709.44
EV to EBITDA EV/EBITDA -384.52 250.41
EV to Free Cash Flow [EV/FCF] EV/FCF 293.25 403.96
EV to Market Cap EV to Market Cap 1.00 0.75
EV to Revenue EV/Rev 31.53 61.40
Price to Book Value [P/B] P/B 8.93 52.11
Price to Earnings [P/E] P/E -240.73 -5,067.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.41
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -3.82
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 20.71
Interest Coverage Int. cover (Qtr) 0.00 8.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -43.66 -164.54
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 174.47 64.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.42
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 54.16 60.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 68.55 86.38
EBIT Growth (1y) % EBIT 1y % (Qtr) 54.57 52.71
EBT Growth (1y) % EBT 1y % (Qtr) 54.57 57.92
EPS Growth (1y) % EPS 1y % (Qtr) 57.53 65.33
FCF Growth (1y) % FCF 1y % (Qtr) 369.64 109.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 67.46 27.07
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.25 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 0.20 2.55
Current Ratio Curr Ratio (Qtr) 11.30 5.58
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.30
Interest Cover Ratio Int Coverage (Qtr) 0.00 8.87
Times Interest Earned Times Interest Earned (Qtr) 0.00 8.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -0.60 -115.40
EBIT Margin % EBIT Margin % (Qtr) -12.95 -94.51
EBT Margin % EBT Margin % (Qtr) -12.95 -136.09
Gross Margin % Gross Margin % (Qtr) 53.60 47.45
Net Profit Margin % Net Margin % (Qtr) -13.10 -137.24