Silicon Laboratories (SLAB) AI Stock Analysis

• Market Cap: $4.41B
• Dividend Yield: N/A
• Average Volume (3M): 232.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: 29.66%
• EPS Growth: 47.97%
• Country: US
• Employees: 1,889
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.11
• Shares Outstanding: 32,815,310
• 10 Day Avg. Volume: 240,632
• 30 Day Avg. Volume: 232,209
• 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: 1.04
• Enterprise Value/Revenue: 6.54
• Enterprise Value/Gross Profit: 11.91
• Enterprise Value/Ebitda: -84.51
• 1Y Price Target: $149.88
• Price Target Upside: 10.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 61 Neutral
• Price Target: $142.00 ▲(5.09% Upside)

Silicon Laboratories' overall stock score is driven by a strong earnings call performance and a solid balance sheet, which are offset by challenges in profitability and valuation concerns. The technical analysis suggests a neutral to slightly positive trend, while the lack of a dividend yield and negative P/E ratio weigh on the valuation score.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong demand for Silicon Labs' products, particularly in the Industrial and Commercial segments, supporting long-term expansion and market presence.

Market Share Expansion

Securing design wins in key applications like commercial building controls and connected healthcare enhances Silicon Labs' competitive position and drives future revenue growth.

Strong Balance Sheet

A strong balance sheet with no debt provides financial stability and flexibility, allowing Silicon Labs to invest in growth opportunities and weather economic uncertainties.

Negative Factors

Declining Revenue

The significant decline in revenue over recent years highlights challenges in maintaining growth and could impact the company's ability to sustain its market position.

Negative Free Cash Flow

Negative free cash flow indicates inefficiencies in cash generation, which can limit Silicon Labs' ability to invest in new projects and pay down liabilities, affecting long-term growth.

Operating Loss

The operating loss suggests challenges in cost management and profitability, which could hinder Silicon Labs' ability to reinvest in business development and innovation.

Silicon Laboratories Business Overview & Revenue Model

Company Description

Silicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, and internationally. The company's products include wireless microcontrollers and sensor products. Its products are used in various electronic products in a range of applications for the Internet of Things (IoT), including connected home and security, industrial automation and control, smart metering, smart lighting, commercial building automation, consumer electronics, asset tracking, and medical instrumentation. The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.

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: Positive
• Last Price: 135.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLAB, the sentiment is Positive. The current price of 135.12 is above the 20-day moving average (MA) of 133.03, above the 50-day MA of 134.32, and above the 200-day MA of 130.22, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 62.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLAB.

Silicon Laboratories Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONTO	80 Outperform	$6.15B	32.65	10.53%	―	15.51%	20.31%
CRUS	77 Outperform	$6.62B	20.58	18.53%	―	4.52%	18.89%
AMKR	76 Outperform	$7.90B	26.10	7.37%	2.25%	-1.20%	-19.46%
SMTC	67 Neutral	$5.96B	287.12	11.57%	―	22.22%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SLAB	61 Neutral	$4.41B	―	-9.71%	―	29.66%	47.97%
ALGM	52 Neutral	$5.73B	―	-6.75%	―	-18.82%	-195.20%

Silicon Laboratories Corporate Events

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.

Silicon Laboratories Faces Financial Strain Amid Global Trade Challenges and Tariffs

Silicon Laboratories faces significant risks from international trade restrictions, including tariffs and import/export controls, which could disrupt their supply chain and increase costs. The imposition of reciprocal tariffs by other countries in response to U.S. trade policies further exacerbates these challenges, potentially leading to lower profit margins. The dynamic nature of global trade policies, including investigations into semiconductor imports by the U.S. Department of Commerce, adds to market volatility and economic uncertainty. This environment could negatively impact customer demand and operational efficiency, ultimately affecting the company’s financial health if mitigation strategies are insufficient.