SITIME Corp (SITM) Stock Analysis and Metrics

Sector: Technology Industry: Semiconductors CIK: 0001451809

P/B 7.86

P/E -122.31

P/S 30.80

Market Cap 8.67 Bn

ROIC (Qtr) -8.44

Div Yield % 0.00

Rev 1y % (Qtr) 44.84

Total Debt (Qtr) 0.00

Debt/Equity (Qtr) 0.00

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...

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 range of sectors such as communications, datacenter and enterprise, automotive, industrial, aerospace, mobile, IoT, and consumer markets. The company's products are engineered to deliver high performance, small size, low power consumption, and programmability, making them suitable for various applications across multiple end markets.

In terms of revenue generation, SITIME's products are designed to provide high-frequency stability, low phase noise, and low power consumption (in the case of oscillators), and high-frequency accuracy, low temperature sensitivity, and low vibration sensitivity (in the case of clock ICs and resonators). These attributes make them ideal for use in a variety of end markets, including communications infrastructure equipment, automotive electronics, industrial equipment, aerospace and defense applications, and consumer devices.

SITIME's competitive edge lies in its expertise in precision timing solutions, its ability to offer high-performance products at affordable prices, and its reliable and quick product delivery. The company's customer base includes leading technology firms such as Apple, Pernas Electronics, Arrow Electronics, and Quantek Technology.

The company's product portfolio includes a range of oscillators, clock ICs, and resonators, all designed to provide high-performance timing functionality. These products are essential components in many electronic systems, making SITIME a vital player in the global electronics industry.

Stock Price Chart

Analysis

Pros

Short-term investments of 782.47M provide solid 8.52x coverage of other current liabilities 91.81M, indicating strong liquidity.
Operating cash flow of 75.27M provides solid 0.68x coverage of current liabilities 110.68M, showing strong operational health.
Tangible assets of 1.04B provide robust 11.30x coverage of other current liabilities 91.81M, indicating strong asset backing.
Operating cash flow of 75.27M fully covers other non-current liabilities 62.92M by 1.20x, showing strong long-term stability.
Operating cash flow of 75.27M provides strong 13.95x coverage of operating expenses 5.40M, showing operational efficiency.

Cons

Operating cash flow of 75.27M barely covers its investment activities of (415.39M), with a coverage ratio of -0.18, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of (415.39M) provide weak support for R&D spending of 119.93M, which is -3.46x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Short-term investments of 782.47M significantly exceed cash reserves of 27.11M, which is 28.86x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
The company's operating cash flow of 75.27M shows concerning coverage of stock compensation expenses of 104.33M, with a 0.72 ratio indicating potential earnings quality issues.
Operating earnings of (70.30M) show weak coverage of depreciation charges of 37.40M, with a -1.88 ratio indicating high capital intensity and potential reinvestment needs.

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
EV to Assets	6.65	3.95
EV to Cash from Ops.	112.89	-331.60
EV to Debt	0.00	86.14
EV to EBIT	-120.88	-55.96
EV to EBITDA	-156.32	20.88
EV to Free Cash Flow [EV/FCF]	430.45	-4.09
EV to Market Cap	0.98	0.80
EV to Revenue	30.19	18.79
Price to Book Value [P/B]	7.86	5.23
Price to Earnings [P/E]	-122.31	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
Capex Growth (1y) %	-139.70	-155.77
Cash and Equivalents Growth (1y) %	219.35	44.44
Dividend Growth (1y) %	0.00	5.30
EBIAT Growth (1y) %	25.22	34.22
EBITDA Growth (1y) %	42.09	47.50
EBIT Growth (1y) %	25.74	30.14
EBT Growth (1y) %	25.74	47.04
EPS Growth (1y) %	28.50	36.18
FCF Growth (1y) %	232.72	252.76
Gross Profit Growth (1y) %	59.13	43.92

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.22	0.49
Cash Payout Ratio	0.00	0.09
Cash Ratio	0.24	2.23
Current Ratio	8.42	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
EBITDA Margin %	-11.70	-112.44
EBIT Margin %	-24.97	-92.10
EBT Margin %	-24.97	-132.39
Gross Margin %	52.20	47.63
Net Profit Margin %	-25.20	-133.41

SITIME Corp (NASDAQ: SITM)