Silicon Laboratories Stock To $142?
Silicon Laboratories (SLAB) stock has jumped 49% during the past day, and is currently trading at $203.41. Our multi-factor assessment suggests that it may be time to sell SLAB stock. We have, overall, a pessimistic view of the stock, and a price of $142 may not be out of reach. We believe there is a near-equal mix of good and bad in SLAB stock given its overall Moderate operating performance and financial condition. But keeping in mind its Very High valuation, we think that the stock is Unattractive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Very High |
| What you get: | |
| Growth | Inconsistent |
| Profitability | Very Weak |
| Financial Stability | Very Strong |
| Downturn Resilience | Weak |
| Operating Performance | Moderate |
| Stock Opinion | Unattractive |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $6.7 Bil in market cap, Silicon Laboratories provides mixed-signal integrated circuits, microcontrollers, wireless products, and sensor solutions including optical, humidity/temperature, and hall effect magnetic sensors globally.
[1] Valuation Looks Very High
| SLAB | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 9.0 | 3.3 |
| Price-to-Earnings Ratio | -77.5 | 24.6 |
| Price-to-Free Cash Flow Ratio | 90.7 | 21.6 |
This table highlights how SLAB is valued vs broader market. For more details see: SLAB Valuation Ratios
[2] Growth Is Inconsistent
- Silicon Laboratories has seen its top line shrink at an average rate of -0.7% over the last 3 years
- Its revenues have grown 47% from $505 Mil to $743 Mil in the last 12 months
- Also, its quarterly revenues grew 23.8% to $206 Mil in the most recent quarter from $166 Mil a year ago.
| SLAB | S&P 500 | |
|---|---|---|
| 3-Year Average | -0.7% | 5.6% |
| Latest Twelve Months* | 47.1% | 6.4% |
| Most Recent Quarter (YoY)* | 23.8% | 7.4% |
This table highlights how SLAB is growing vs broader market. For more details see: SLAB Revenue Comparison
[3] Profitability Appears Very Weak
- SLAB last 12 month operating income was $-96 Mil representing operating margin of -12.9%
- With cash flow margin of 13.1%, it generated nearly $97 Mil in operating cash flow over this period
- For the same period, SLAB generated nearly $-86 Mil in net income, suggesting net margin of about -11.6%
| SLAB | S&P 500 | |
|---|---|---|
| Current Operating Margin | -12.9% | 18.8% |
| Current OCF Margin | 13.1% | 20.6% |
| Current Net Income Margin | -11.6% | 12.8% |
This table highlights how SLAB profitability vs broader market. For more details see: SLAB Operating Income Comparison
[4] Financial Stability Looks Very Strong
- SLAB Debt was $0.0 at the end of the most recent quarter, while its current Market Cap is $6.7 Bil. This implies Debt-to-Equity Ratio of 0.0%
- SLAB Cash (including cash equivalents) makes up $439 Mil of $1.3 Bil in total Assets. This yields a Cash-to-Assets Ratio of 35.0%
| SLAB | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 0.0% | 20.2% |
| Current Cash-to-Assets Ratio | 35.0% | 7.2% |
[5] Downturn Resilience Is Weak
SLAB has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
2022 Inflation Shock
- SLAB stock fell 58.5% from a high of $210.10 on 16 November 2021 to $87.17 on 1 November 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $203.41 on 4 February 2026 $203.41
| SLAB | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -58.5% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- SLAB stock fell 43.6% from a high of $121.92 on 23 January 2020 to $68.75 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 December 2020
| SLAB | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -43.6% | -33.9% |
| Time to Full Recovery | 261 days | 148 days |
2008 Global Financial Crisis
- SLAB stock fell 60.5% from a high of $44.46 on 25 October 2007 to $17.54 on 4 December 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 28 August 2009
| SLAB | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -60.5% | -56.8% |
| Time to Full Recovery | 267 days | 1,480 days |
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read SLAB Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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