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We develop, manufacture and sell smart, connected and secure embedded control solutions used by our customers for a wide variety of applications. Our strategic focus includes general purpose and specialized 8-bit, 16-bit, and 32-bit mixed-signal microcontroller, microprocessors, analog, FPGA, and memory products.
10.40% operating margin is respectable but not wide. ROIC at 3.58%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 7.1%, steady but not accelerating. Margins contracted 9.3pp, which offsets some of the top-line progress.
ROIC dropped from 6.44% to 3.58%, capital efficiency is deteriorating. Net debt of $5.40B represents 6.2x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$4.71B
▲ +7.1% YoY
Net Income (TTM)
$230M
▲ +46100.0% YoY
Op. Margin
10.40%
▼ -9.3pp YoY
ROIC
3.58%
▼ -2.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$871M
▲ +12.8% YoY
Op. Cash Flow (TTM)
$962M
▲ +7.1% YoY
Net Debt
$5.40B
Cash & Equiv.
$240M
5Y CAGR: -2.8%
5Y CAGR: -13.7%
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