Silicon Laboratories (SLAB) AI Stock Analysis

• Market Cap: $4.20B
• Dividend Yield: N/A
• Average Volume (3M): 229.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: 29.66%
• EPS Growth: 47.97%
• Country: US
• Employees: 1,889
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.32
• Shares Outstanding: 32,815,310
• 10 Day Avg. Volume: 239,328
• 30 Day Avg. Volume: 229,063
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $149.88
• Price Target Upside: 17.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 55 Neutral
• Price Target: $131.00 ▲(2.38% Upside)

The overall stock score is primarily influenced by the company's strong balance sheet and positive earnings call guidance, which are offset by weak financial performance in terms of revenue and profitability, as well as bearish technical indicators and poor valuation metrics.

Positive Factors

Strategic Partnership

The expansion of the partnership with GlobalFoundries enhances Silicon Labs' capabilities in developing energy-efficient wireless technologies, supporting long-term growth and reinforcing U.S. semiconductor resilience.

Strong Revenue Growth

Projected 34% revenue growth indicates strong demand in industrial and commercial sectors, showcasing the company's ability to capture market opportunities and drive long-term growth.

Innovation in IoT

Innovative tools like Studio 6 and Simplicity AI SDK enhance Silicon Labs' leadership in IoT, facilitating faster development and adoption, which supports sustained market penetration.

Negative Factors

Declining Revenue

The significant decline in revenue highlights challenges in maintaining sales momentum, which could impact the company's ability to sustain growth and profitability long-term.

Negative Free Cash Flow

Negative free cash flow indicates inefficiencies in cash generation, potentially limiting the company's ability to invest in growth initiatives and manage financial obligations effectively.

Sustainability of Gross Margins

The reliance on a onetime benefit to boost gross margins suggests potential challenges in maintaining margin improvements, which could affect long-term profitability.

Silicon Laboratories Business Overview & Revenue Model

Company Description

Silicon Laboratories Inc. (SLAB) is a leading provider of high-performance, analog-intensive, mixed-signal semiconductor solutions. The company operates primarily in the Internet of Things (IoT), automotive, industrial, and consumer markets. Silicon Labs designs and manufactures a wide range of products including microcontrollers, wireless chips, timing devices, and sensors that enable connectivity and efficient power management in various applications.

How the Company Makes Money

Silicon Laboratories generates revenue through the sale of its semiconductor products, which include microcontrollers, wireless connectivity solutions, and sensors. The company's revenue model is predominantly based on product sales to original equipment manufacturers (OEMs) and other technology companies. Key revenue streams include IoT solutions, which are increasingly in demand as more devices become connected, and automotive solutions that cater to the growing need for advanced automotive electronics. Additionally, Silicon Labs has established significant partnerships with major technology firms, which enhance its market reach and product integration capabilities, further contributing to its earnings. The company's focus on innovation and development of cutting-edge technology helps maintain its competitive advantage and drives revenue growth.

Silicon Laboratories Financial Statement Overview

Summary

Silicon Laboratories faces challenges in revenue generation and profitability, as indicated by declining income statement metrics. The balance sheet is strong with no debt and a robust equity position, which provides stability and reduces financial risk. Cash flow metrics highlight areas for improvement, particularly in generating positive free cash flow. Overall, while the company has a solid financial base, it needs to address profitability and cash flow generation to enhance its financial health.

Income Statement

Silicon Laboratories has experienced declining revenue over recent years, with a significant drop from $1.02 billion in 2022 to $584 million in 2024, representing a negative trend. The gross profit margin has also decreased, indicating pressure on profitability. The company has reported negative net income and EBIT margins, highlighting challenges in maintaining profitability.

Balance Sheet

The balance sheet reflects a strong equity position with no total debt in 2024, which is noteworthy for financial stability. The equity ratio has improved, indicating a solid financial foundation. However, the decrease in total assets over time suggests potential challenges in asset management. Overall, the company's low leverage is a positive aspect.

Cash Flow

Cash flow analysis shows negative free cash flow in the most recent year, which is concerning. The operating cash flow to net income ratio indicates inefficiencies in converting sales into cash. Despite these issues, the company has maintained a reasonable cash balance, supporting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	703.20M	584.39M	782.26M	1.02B	720.86M	886.68M
Gross Profit	386.42M	312.19M	460.59M	642.56M	425.39M	527.53M
EBITDA	-54.44M	-104.92M	46.09M	175.85M	32.04M	-43.28M
Net Income	-104.61M	-191.01M	-34.52M	91.40M	-71.60M	12.53M
Balance Sheet
Total Assets	1.22B	1.22B	1.44B	2.17B	2.96B	1.99B
Cash, Cash Equivalents and Short-Term Investments	415.54M	382.16M	439.22M	1.19B	2.04B	724.68M
Total Debt	0.00	15.55M	64.83M	529.57M	450.60M	563.42M
Total Liabilities	159.99M	142.65M	234.37M	764.42M	745.87M	793.65M
Stockholders Equity	1.06B	1.08B	1.21B	1.41B	2.21B	1.20B
Cash Flow
Free Cash Flow	75.07M	-25.66M	-52.63M	45.28M	-129.02M	115.30M
Operating Cash Flow	94.79M	-13.91M	-30.35M	71.81M	-100.44M	135.72M
Investing Cash Flow	-22.04M	113.12M	469.81M	240.54M	2.27B	-361.01M
Financing Cash Flow	868.00K	-45.10M	-711.87M	-887.05M	-1.30B	200.87M

Silicon Laboratories Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 127.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLAB, the sentiment is Negative. The current price of 127.96 is below the 20-day moving average (MA) of 133.10, below the 50-day MA of 134.03, and below the 200-day MA of 130.20, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 15.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLAB.

Silicon Laboratories Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONTO	―	$6.61B	33.40	10.53%	―	15.51%	20.31%
CRUS	―	$6.74B	20.55	18.53%	―	4.52%	18.89%
AMKR	―	$9.35B	30.49	7.27%	1.95%	0.13%	-16.17%
SMTC	―	$5.84B	284.84	11.57%	―	22.22%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALGM	―	$5.36B	―	-3.02%	―	-7.23%	-15.69%
SLAB	―	$4.20B	―	-9.71%	―	29.66%	47.97%

Silicon Laboratories Corporate Events

Silicon Labs’ Earnings Call Highlights Strong Growth and Positive Outlook

Silicon Labs’ recent earnings call conveyed a generally positive sentiment, underscored by strong revenue growth and improved gross margins. The company’s strategic execution and innovation in the IoT sector were highlighted as key drivers of this performance. However, challenges such as customer inventory levels and the sustainability of gross margins were acknowledged. Despite these hurdles, the outlook remains optimistic with expectations for continued market share gains.

Silicon Labs Reports Strong Q2 2025 Growth

Silicon Laboratories Inc., a leader in low-power wireless connectivity, specializes in developing embedded technology for smart home, industrial IoT, and smart cities markets. Headquartered in Austin, Texas, the company operates in over 16 countries, providing solutions that enhance edge connectivity applications.

Silicon Labs Reports Strong Growth Amid Challenges

Silicon Labs’ recent earnings call painted a picture of robust growth and innovation, despite some operational challenges. The company showcased strong revenue growth driven by successful product innovation and execution on design wins, particularly in the industrial, commercial, and home & life segments. While they faced some hurdles, such as an operating loss and inventory management issues, the overall sentiment remained positive, with significant growth anticipated in the coming quarters.