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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Silicon Laboratories Inc. (XNAS:SLAB) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
SLAB
Name:
SILICON LABORATORIES INC. (XNAS:SLAB)
Sector:
70.66M
Industry:
Semiconductors
CEO:
Mr. George Tuttle
Total Employees:
1,667
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -159.52% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF SILICON LABORATORIES INC.(SLAB) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND SEMICONDUCTORS INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
117.49
One Month Price Target:
$118.28
Six Month Price Target :
$122.23
Likely Price in One Year's Time:
Ticker:
$126.96
Likely Trading Range Today Under (Normal Volatility)
$116.92
Price Upper limit ($) :
$118.2
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$109.85
This week:
$100.41
This month :
$83.32
Other Primary facts
Market Cap:
4.01B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
34.22M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
19.09%
-17.13%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$152.94
$136.67
$82.04
$98.31
Medium risk (<10%) entry points
Buy Call
Sell Call
$131.37
Buy Put:
Sell Put:
$127.90
$103.56
$107.08
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
SLAB
Sharpe Ratio:
1.58%
Comparison:
SLAB, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -48.84% lower than the industry
& is -30.51% lower than the market/S&P 500 average
Average Returns/Yield of
SLAB
Daily returns:
0.06%
Weekly returns:
0.30%
Monthly returns:
1.19%
Yearly returns:
31.95%
Comparison of returns:
Average annual returns/yield (last 3 years) is -55.33% below industry average
Classification:
SLAB, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.77
Statistical test of Returns:
SLAB has not yielded statistically significant higher returns when compared to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.20%
Weekly Volatility:
7.15%
Monthly Volatility:
14.29%
Yearly Volatility:
49.50%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
3.46%
Volatility in last five trading days has been 8.25% above long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.50%
Weekly VaR:
-14.54%
Monthly VaR:
-29.08%
How Much Can the price of
SLAB
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-25%
Worst case (decline):
>85%
This translates to price declining to:
$88.07
This translates to price declining to:
$17.62
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
SLAB is a 105.26% riskier investment compared to the market/S&P 500 & is 75.85% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -9.96% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
SLAB
Beta in relation to market/S&P 500--1.20
Expected beta in 1 year's time:
0.713
Expected beta in 3 year's time:
1.008
Unlevered (debt free) Beta:
0.238
Beta in relation to Nasdaq (XNAS):
0.911
Beta in relation to all global stocks::
1.172
Beta Comparison & Analysis
Beta of competitors/peers::
1.3
Beta is -7.72% lower than peers
Average Industry Beta:
1.41
Beta is -14.95% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
116.11%
Sustainable growth rate is 319.88% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.029
Alpha is -84.82% below industry average alpha yield
Alpha is 185% higher than market/& is unsustainably high
Analysis of Cost of Capital of
SLAB
Equity cost of capital:
0.114
Equity cost of capital is -11.27% below industry mean WACC
Unlevered (without debt) cost of capital:
2.25%
Before-tax cost of debt:
4.05%
After-tax cost of debt:
3.20%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
3.20%
WACC is -5.39% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$23.28
Revenue growth rate per share of (3Y):
2
Annual revenue growth rate is -59.86% below industry average
EPS:
$49.05
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
-
-
-
Debt per share
$15.43
EBITDA per share
$65.25
Valuation Analysis Today of
SLAB
P/E Ratio:
134.95
P/E Ratio of Competitors/Peers:
285.59
P/E ratio is -52.75% lower than main peers & is 225.36% higher than the industry
Stock price/value with industry average P/E ratio: $2,034.43
SLAB is -94.22% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
5.05
Price to sales ratio is -37.92% below the industry mean
P/B (Price to book value ratio):
2
-
-
Net income growth rate (3Y):
-74.20%
Net income growth rate is 29.53% higher than the average industry net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
26.30%
Net debt to equity ratio:
-11.85%
Debt to assets ratio:
18.57%
Net debt to assets ratio:
-8.36%
Debt-to-asset ratio is -52.36% below industry average
Ability to repay debt:
Interest coverage ratio:
104.41
Interest coverage ratio is 218.45% more than industry average
Looking forward:
Debt growth rate:
53.00%
Annual debt growth is -42% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.543
Statistical significance of correlation:
SLAB has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.627
Stock price is -13.42% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.627
Correlation of price movement with Nasdaq (^IXIC):
-0.015
Covariance of price movement with the market:
-0.028
Kurtosis
6.462
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.251
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
SLAB
Gross Profit Margin Ratio:
244%
Operating Profit Margin Ratio:
1.94%
Operating profit margin is -91.75% lower than the industry
Net Profit Margin Ratio:
244%
Effective Tax Rate:
-1437.17%
Effective tax rate is -9623.41% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
105.93%
Return on equity (ROE) is 270.45% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
74.79%
Return on assets (ROA) is 468.15% higher than the industry
Financial Leverage:
1.2x
Current Ratio:
8.62
Current ratio is 112.36% above industry average
Cash Conversion Cycle (days):
5.4
Cash conversion cycle is -90.14% below industry average
The remaining useful life of property plant & equipment is: 1.9 years
Stock based compensation to net income ratio:
0.61%
In-depth Efficiency Analysis
Revenue generated per employee:
478.0K
Each employee generates -23% less revenue than industry average revenue per employee
EBITDA generated per employee:
1.3M
Each employee generates 475% more EBITDA than industry average revenue per employee
Profit generated per employee:
1.3M
Each employee generates 692% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
42.4K
Each employee generates 53% more free cash flow than industry average revenue per employee
Assets/Capital per employee
432.1K
Each employee generates 53% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 11.95%
Growth rate in R&D investment/expenditure is -15.58% lower than the industry
Competitors/Peer firms of
SLAB
Lumentum Holdings Inc. (XNAS:LITE)
II-VI INCORPORATED (XNAS:IIVI)
UNIVERSAL DISPLAY CORPORATION (XNAS:OLED)
THOUGHTWORKS HOLDING, INC (XNAS:TWKS)
GDS HOLDINGS LIMITED (XNAS:GDS)
PEGASYSTEMS INC. (XNAS:PEGA)
FLEX LTD. (XNAS:FLEX)
WIX.COM LTD (XNAS:WIX)
Azenta, Inc. (XNAS:AZTA)
Current Analyst Ratings
Strong buy�13%
Buy�21%
Hold�17%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
4/2/22
Revenue:
796.82M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
307.41M
489.41M
286.74M
-
187.22M
-
-
473.95M
4.32M
21.39M
61.83M
2.23B
15.46M
2.13B
- 1609.00K
23.12M
2.13B
Statement of Cash Flow
Date:
Period:
15.51M
Differed Income Tax :
- 4202.00K
Stock Based Compensation :
12.88M
Change in Working Capital :
38.82M
Accounts Receivables:
19.08M
Other Working Capital:
7.79M
Other Non-Cash Items:
- 10698.00K
Net Cash Provided by Operating Activities:
75.21M
Investments in PP&E:
- 4554.00K
Net Acquisitions:
-
Purchases of Investments:
- 435690.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
4/2/22
2022
Q1
765.91M
1.17B
1.93B
79.23M
55.52M
54.93M
2.12B
147.94M
376.39M
108.63M
-
-
87.41M
720.36M
-
2.84B
64.39M
-
-
21.64M
160.18M
246.21M
528.09M
61.81M
589.90M
-
836.11M
4.00K
2.02B
- 10466.0K
-
April 2, 2022 at 6:00:00 AM
781.36M
2.01B
2.84B
-
528.09M
- 237825.0K
222.86M
-
- 217388.00K
-
-
- 157778.00K
-
- 8755.00K
- 166533.00K
-
- 308712.00K
765.91M
1.07B
75.21M
- 4554.00K
70.66M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
SLAB
2023
2024
2025
2026
2027
$127.59
$5,658.22
$6,114.31
$6,607.16
$7,139.74