Siltronic WAF.DE
What does Siltronic do?
Siltronic develops and manufactures wafers made of ultra-pure silicon, which serve as the base material for almost all semiconductor devices. The range includes polished and epitaxial wafers as well as float-zone wafers for power semiconductors and discrete applications. The wafers are used in memory chips such as DRAM and NAND, in logic components and in power electronics, for example in computers, smartphones, industrial equipment, wind turbines and vehicles.
The company generates revenue through sales to chip manufacturers and contract manufacturers worldwide, with Asia being a central sales region. Supply relationships are often shaped by multi-year contracts and close qualification processes with customers. In terms of competition, Siltronic belongs to a very small group of globally leading wafer manufacturers, which come mainly from Japan, Taiwan and South Korea. Differentiation arises from material quality, process expertise with large wafer diameters and proximity to customers' technology steps. The business is capital-intensive and requires permanently high investment in manufacturing capacity.
Score profile
Rank vs. Semiconductors (40 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Siltronic ranks in the bottom fifth in the group Semiconductors (0.8/10). On growth, the company ranks below average in the group Semiconductors (3.5/10). On valuation (higher = cheaper), the stock ranks above average in the group Semiconductors (6.0/10). On financial strength, Siltronic ranks below average in the group Semiconductors (3.7/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | -14.2x | 18.7x | better than 0 % |
| EV/EBITDA | 9.3x | 21.3x | better than 89 % |
| Price/sales | 1.3x | 5.8x | better than 91 % |
| Price/book | 0.9x | 5.1x | better than 96 % |
| Revenue growth | 18.3% | 25.5% | better than 38 % |
| Earnings growth | 0.0% | 7.4% | better than 32 % |
| Gross margin | -3.6% | 53.3% | better than 4 % |
| Operating margin | -11.9% | 15.5% | better than 9 % |
| Net margin | -14.9% | 10.3% | better than 9 % |
| Return on equity | -11.2% | 8.6% | better than 9 % |
| Debt/equity | 67.5% | 36.5% | better than 21 % |
| Current ratio | 1.9x | 3.3x | better than 20 % |
| Free cash flow yield | 3.3% | 1.3% | better than 71 % |
| Dividend yield | 0.4% | 1.2% | – |
| Payout ratio | 20.6% | 38.0% | – |
| Beta | 1.59 | 1.92 | – |
Valuation: what is Siltronic worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Siltronic a model range of 31.66 EUR to 48.21 EUR per share.
10 analysts, average rating “Buy”, average price target 91.10 EUR (+69.8%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Demand for wafers follows the utilization and expansion of chip manufacturers' production capacity worldwide.
- Structural growth in memory, data centers, electromobility and power electronics increases the long-term need for silicon wafers.
- Long-term supply contracts and high qualification hurdles stabilize sales volumes and prices, as long as plant utilization remains high.
Risks
- The semiconductor industry is cyclical; demand slumps quickly lead to underutilization and weigh on earnings because of high fixed costs.
- High energy costs and investment needs in production facilities weigh on margins and free cash flow, especially under price pressure.
- Dependence on a few large customers and on Asia, as well as geopolitical trade restrictions, can impair sales and supply chains.
What to look for with Siltronic
The EBITDA margin shows how well high fixed costs are absorbed under fluctuating utilization, and allows comparisons across cycle phases despite high depreciation.