Is the business good?
How good a business is SMTC?
Semtech Corporation earns 2.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
2.0%
Return on invested capital · cost of capital 9.0% · 7.0 points below what the capital costs: growth destroys value
- Operating margin
- 2.1%
Operating margin · Semiconductors median 8.5% · 12 months to Q1 2026
- Share count, year on year
- +9.4%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 19%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 13% |
| FY2021 | 20% |
| FY2022 | 12% |
| FY2023 | −109% |
| FY2024 | 5.5% |
| FY2025 | 3.1% |
Details›
- Gross margin12 months to Q1 2026
- 52%
- Operating margin12 months to Q1 2026
- 2.1%
- Net margin12 months to Q1 2026
- −3.0%
- Free cash flow margin
- 16%
- R&D as % of revenue
- 19%
- Revenue, trailing twelve months
- $1.09B
- Free cash flow, trailing twelve months
- $173M
- Net income, trailing twelve months
- −$33M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 2.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.