GICS Sector : Technology
SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, and internationally.The company provides resonators and clock integrated circuits, and various types of oscillators.Its solutions have applications in various markets, including communications and enterprise, automotive, industrial, Internet of Things, mobile, consumer, and aerospace and defense.
SiTime reported a robust Q3 2025 with revenue reaching $83.6 million, a 45% year-over-year increase. Gross margins expanded to 58.8%, and EPS more than doubled to $0.87, beating estimates of $0.71. The strong performance was driven by revenue growth across all end customer segments, with communications, enterprise, and datacenter revenue growing 115% year-over-year to $42.1 million. As Beth Howe, CFO, noted, "Our performance demonstrates the strength of our diversified products and applications, the scalability of our operating model, and the growing demand for our differentiated solutions."
Publication Date: Nov -15
The company's segment performance was impressive, with sales into the automotive, industrial, and defense market totaling $20.2 million, up 14% year-over-year, and sales into the mobile IoT and consumer market increasing 4% year-over-year to $21.3 million. The datacenter business continues to be a significant growth driver, with Rajesh Vashist stating that SiTime is in the early innings of the datacenter market, which is driving significant growth.
For Q4, SiTime expects revenue of $100 million to $103 million, gross margins of 60% to 60.5%, and non-GAAP EPS to be in the range of $1.16 to $1.21 per share. The company's guidance suggests continued growth momentum, driven by the datacenter and AI businesses. Analysts estimate next year's revenue growth at 38.6%, indicating a strong outlook for the company.
SiTime's valuation metrics indicate a premium valuation, with a P/S Ratio of 28.85 and an EV/EBITDA of -138.22. The company's P/E Ratio is -82.26, and the ROE is -10.31%. These metrics suggest that the market is pricing in significant growth expectations, which may be challenging to meet. However, the company's strong performance and guidance suggest that it is on track to deliver on its growth prospects.
The company's growth drivers include the increasing demand for AI and datacenter applications, as well as its expanding geographic footprint in the US, Asia, and Europe. SiTime's R&D efforts, direct sales to OEMs, and indirect sales through the channel to hyperscalers are also driving growth. The company's robust value chain and supply chain are well-positioned to capitalize on the growing demand for its products.
SiTime Takes on GNSS Threats, Unveiling Jamming- and Spoofing-Resilient Precision Timing Solution
Dec -03
SiTime Corporation (SITM) Presents at UBS Global Technology and AI Conference 2025 Transcript
Dec -02
Creative Planning Sells 1,245 Shares of SiTime Corporation $SITM
Nov -29
SiTime (NASDAQ:SITM) and One Stop Systems (NASDAQ:OSS) Financial Contrast
Nov -29
Can SiTime (SITM) Climb 28.17% to Reach the Level Wall Street Analysts Expect?
Nov -20
SiTime to Present at the UBS Global Technology and AI Conference
Nov -20
SiTime (NASDAQ:SITM) vs. Hoya (OTCMKTS:HOCPY) Financial Review
Nov -19
Envestnet Asset Management Inc. Sells 3,483 Shares of SiTime Corporation $SITM
Nov -17
SiTime Corporation's Silicon Timing Systems Solutions growth is driven by increasing demand for 5G infrastructure, autonomous vehicles, and IoT devices, which rely on precise timing and synchronization. The company's proprietary MEMS technology and high-volume manufacturing capabilities enable it to capitalize on these trends, resulting in an 8.72% growth rate.
A high-frequency, low-jitter oscillator that provides a stable clock signal for high-speed interfaces, such as PCIe, SATA, and Ethernet.
A programmable oscillator that offers high frequency stability and low jitter, suitable for high-speed interfaces, such as HDMI, DisplayPort, and USB 3.0.
A low-power, high-frequency oscillator that provides a stable clock signal for wireless and IoT devices, such as Wi-Fi, Bluetooth, and GPS modules.
A high-precision, low-jitter oscillator that provides a stable clock signal for high-speed data converters, such as ADCs and DACs.
A programmable oscillator that offers high frequency stability and low jitter, suitable for high-speed interfaces, such as PCIe, SATA, and Ethernet.
SiTime Corporation's products are highly specialized and customized, making it difficult for substitutes to emerge. However, the company's reliance on a few key customers increases the threat of substitutes.
SiTime Corporation's customers are large and influential, giving them significant bargaining power. The company's reliance on a few key customers increases their bargaining power.
SiTime Corporation's suppliers are numerous and fragmented, reducing their bargaining power. The company's ability to switch suppliers also reduces their bargaining power.
The high barriers to entry in the semiconductor industry, including significant capital requirements and technical expertise, reduce the threat of new entrants.
The semiconductor industry is highly competitive, but SiTime Corporation's specialized products and strong relationships with customers reduce the intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 1.12% |
| Debt Cost | 3.95% |
| Equity Weight | 98.88% |
| Equity Cost | 12.80% |
| WACC | 12.70% |
| Leverage | 1.13% |
Value: 6.2
Growth: 2.4
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