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Semtech

SMTC on Nasdaq. Semtech sells semiconductors to makers of data center, consumer, and industrial equipment. Market value $18.0bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to July 2026. Quality checks use five annual reports, the latest for the year to January 2026.

Recent profit includes a big one-time charge, so we price the company excluding that charge.

Should I look at this?

Not a fit for our list right now

Why it could be worth it

What to watch out for

See Technology stocks that passed both tests

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to July 2026
1.1%low

For every $100 of what the whole company costs, it produced $1.05 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to July 2026, without the one-off
136.0×full

You pay 136.0 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to January 2026
3.9%five-year median

Each dollar kept in the business earns 4 cents a year. Above 10 is good.

Quality score: 68 of 100. Price score: 11 of 100. Our list needs 70 on quality and 60 on price.

$197.20 a share, 227% above its 1-year low

Over the past year the price has ranged from $60.28 to $201.99.

Pays no dividend

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

0.2
0.1
-0.1
0.1
0.2
0.2
2022202320242025202612 monthsto Jul '26
Revenue
$741m$757m$869m$909m$1.0bn
Operating margin
19.6%12.3%-108.7%5.5%3.1%
Debt to equity
0.231.77n/a1.020.89
Shares outstanding
0.06bn0.06bn0.08bn0.09bn0.09bn

Health checks

  • Free cash flow positive4 of 5 years
  • Accounting looks honest (Beneish)Nothing unusual
  • Financial strength (Piotroski)6 of 9
  • Profit backed by cash (accruals)No
  • Debt0.89× equity
  • Revenue growth, five yearsStrong, 12.1% a year
  • Buying back its own sharesNo, 46% more shares since 2022

The quarter to July 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $342 million last quarter, up 33% on a year ago.
  • Profit: $160 million, after a loss of $27 million a year ago.
  • It keeps 8 cents of each $1 of sales as operating profit, up from 6 cents a year earlier.
  • Spare cash over the past 12 months: $193 million, up from $128 million.
  • 16% more shares than a year ago. Each share owns a bit less of the company.
  • Debt is $289 million more than cash, down from $350 million a year ago.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
October 2024$237m
January 2025$251m
April 2025$251m
July 2025$258m
October 2025$267m
January 2026$274m
April 2026$291m
July 2026$342m
Profit by quarter
Profit by quarter
Quarter toAmount
October 2024-$8m
January 2025$39m
April 2025$19m
July 2025-$27m
October 2025-$3m
January 2026-$30m
April 2026$27m
July 2026$160m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
23 March 2026
Next quarterly (estimated, 10-Q)
25 November 2026

Who owns it

3 long-term investors we follow own it, down from 5 last quarter. 576 funds in all.

Jun '25
Dec '25
Jun '26

Sold out this quarter

Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

4 investors own more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 12 sold $18m, $11m of it under preset trading plans.

  • HOU HONG Q
    President and CEO, Director
    Sold
    under a preset trading plan
    Date
    2 October 2026
    Shares
    2,000
    Price
    $191.21
    Value
    $382,420
  • Lin Mark
    EVP and CFO
    Sold
    under a preset trading plan
    Date
    1 October 2026
    Shares
    967
    Price
    $178.87
    Value
    $172,967
  • Walsh Paul V Jr
    Director
    Sold
    under a preset trading plan
    Date
    23 September 2026
    Shares
    500
    Price
    $172.61
    Value
    $86,305
  • Cardenuto Rodolpho C
    Director
    Sold
    Date
    16 September 2026
    Shares
    5,321
    Price
    $165.00
    Value
    $877,978
  • Lin Mark
    EVP and CFO
    Sold
    under a preset trading plan
    Date
    10 September 2026
    Shares
    683
    Price
    $159.90
    Value
    $109,212
  • Ruehl Julie Garcia
    Director
    Sold
    under a preset trading plan
    Date
    4 September 2026
    Shares
    1,500
    Price
    $145.00
    Value
    $217,500
  • HOU HONG Q
    President and CEO, Director
    Sold
    under a preset trading plan
    Date
    4 September 2026
    Shares
    2,000
    Price
    $138.71
    Value
    $277,420
  • Walsh Paul V Jr
    Director
    Sold
    under a preset trading plan
    Date
    19 August 2026
    Shares
    500
    Price
    $135.48
    Value
    $67,740
  • Silberstein Asaf
    EVP and COO
    Sold
    under a preset trading plan
    Date
    17 August 2026
    Shares
    5,000
    Price
    $150.00
    Value
    $750,000
  • HOU HONG Q
    President and CEO, Director
    Sold
    under a preset trading plan
    Date
    7 August 2026
    Shares
    2,000
    Price
    $140.00
    Value
    $280,000

From Form 4 filings: insiders must report trades in their own company's shares within two days.

What could go wrong

  • It isn't cheap on profits: 136.0× operating profit.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.