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Semiconductors & related devices company · DC · FY ends Oct · Revenue $29.02B · 28.59% margin · $5.34B FCF
$490.05
+$31.88 (+6.96%)
Last close via Marketstack
Margins and capital returns are both well above average: 29.22% operating margin, ROIC at 22.38%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 4.4%, steady but not accelerating. Free cash flow declined 24% despite revenue growth, conversion is weakening.
At 46x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 24% versus the prior year, cash generation momentum has weakened.
46.1x earnings, 73.3x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$29.02B
▲ +4.4% YoY
Net Income (TTM)
$8.51B
▼ -2.5% YoY
Op. Margin
28.59%
▲ +0.3pp YoY
ROIC
22.21%
▼ -6.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$5.34B
▼ -23.9% YoY
Op. Cash Flow (TTM)
$7.99B
▼ -8.3% YoY
Net Debt
$226M
Cash & Equiv.
$8.24B
5Y CAGR: +10.5%
5Y CAGR: +11.0%
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