SiTime Corporation Fundamental Analysis (NASDAQ: SITM)
SiTime Corporation (NASDAQ: SITM) shows weak financial fundamentals with a PE ratio of 485.95, profit margin of 3.87%, and ROE of 1.55%. The company generates $0.7B in annual revenue with strong year-over-year growth of 61.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SITM's fundamental strength across five key dimensions:
Efficiency Score
WeakSITM struggles to generate sufficient returns from assets.
Valuation Score
ModerateSITM shows balanced valuation metrics.
Growth Score
ExcellentSITM delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSITM maintains a strong and stable balance sheet.
Profitability Score
ModerateSITM maintains healthy but balanced margins.
Key Financial Metrics
Is SITM Expensive or Cheap?
P/E Ratio
SITM trades at 485.95 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SITM's PEG of 0.58 indicates potential undervaluation.
Price to Book
The market values SiTime Corporation at 4.11 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 225.77 times EBITDA. This signals the market has high growth expectations.
How Well Does SITM Make Money?
Net Profit Margin
For every $100 in sales, SiTime Corporation keeps $3.87 as profit after all expenses.
Operating Margin
Core operations generate 2.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.55 in profit for every $100 of shareholder equity.
ROA
SiTime Corporation generates $0.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SiTime Corporation produces operating cash flow of $90.01M, showing steady but balanced cash generation.
Free Cash Flow
SiTime Corporation produces free cash flow of $39.70M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.31 in free cash annually.
FCF Yield
SITM converts 0.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
485.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
21.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.003
vs 25 benchmark
How SITM Stacks Against Its Sector Peers
| Metric | SITM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 485.95 | 32.70 | Worse (Expensive) |
| ROE | 1.55% | 758.00% | Weak |
| Net Margin | 3.87% | -4312.00% (disorted) | Weak |
| Debt/Equity | 0.38 | 0.96 | Strong (Low Leverage) |
| Current Ratio | 5.56 | 12.15 | Strong Liquidity |
| ROA | 0.53% | 1067467.00% | Weak |
SITM outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SiTime Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
80.94%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-194.54%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
237.72%
Industry Style: Growth, Innovation, High Beta
High Growth