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1. Company Snapshot

1.a. Company Description

Silicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, and internationally.The company's products include wireless microcontrollers and sensor products.Its products are used in various electronic products in a range of applications for the Internet of Things (IoT), including connected home and security, industrial automation and control, smart metering, smart lighting, commercial building automation, consumer electronics, asset tracking, and medical instrumentation.


The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors.Silicon Laboratories Inc.was founded in 1996 and is headquartered in Austin, Texas.

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1.b. Last Insights on SLAB

Breaking News: Silicon Laboratories Inc. recently reported quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.54 per share. The company announced a sale to Texas Instruments for $231.00 per share in cash. However, Halper Sadeh LLC and Brodsky & Smith are investigating the sale, questioning whether it is fair to shareholders. Shareholders are encouraged to contact the firms to discuss their rights. The sale represents a total enterprise value of approximately $7.5 billion. Analysts at Zacks recommend a hold.

1.c. Company Highlights

2. Silicon Labs' Q3 FY2025: Strong Sales and Profitability Growth

Silicon Labs reported revenue of $206 million for the third quarter of fiscal 2025, representing a 7% sequential increase and a 24% year-over-year growth. The company's gross margin saw significant improvement, with a non-GAAP gross margin of 58%, up 170 basis points from the prior quarter and 350 basis points from the same quarter last year. Non-GAAP earnings per share were $0.32, beating the midpoint of guidance by $0.02. The strong financial performance was driven by disciplined execution across its industrial and commercial business, as well as its home and life segments.

Publication Date: Nov -10

📋 Highlights
  • Revenue Growth:: Q3 revenue reached $206M (+7% QoQ, +24% YoY), with Industrial & Commercial segment at $118M (+7% QoQ, +22% YoY) and Home & Life at $88M (+6% QoQ, +26% YoY).
  • Gross Margin Expansion:: Non-GAAP gross margin hit 58% (+170 bps QoQ, +350 bps YoY), driven by better product mix and distribution efficiency (70%+ sales contribution).
  • EPS Beat:: Non-GAAP EPS of $0.32 exceeded guidance midpoint by $0.02, reflecting improved profitability and disciplined execution.
  • Q4 Guidance:: Revenue forecast of $200–215M implies 25% YoY growth, with non-GAAP gross margins targeting 62–64% from product mix and one-time benefits.
  • Wi-Fi Growth Momentum:: 30–40% YoY growth in Wi-Fi business, fueled by Series 3 platform, with expectations of continued share gains and design win acceleration.

Business Segment Performance

The industrial and commercial business revenue was $118 million, up 7% sequentially and 22% year-over-year, driven by building automation, commercial lighting, and access points. Home & Life revenue was $88 million, up 6% sequentially and 26% year-over-year, driven by smart home automation and medical applications. The company's diversified revenue streams and strong growth across various segments contributed to its overall financial performance.

Guidance and Outlook

For the fourth quarter, Silicon Labs expects revenue to be in the range of $200 million to $215 million, implying 25% year-over-year growth. Non-GAAP gross margins are expected to be in the range of 62% to 64%, driven by product mix and a one-time benefit. The company expects continued momentum in 2026, with growth driven by its industrial and commercial business, smart metering, and smart home applications.

Product Development and Innovation

The company introduced two new design tools, Studio 6 and Simplicity AI software development kit, which are expected to streamline development, integration, and debugging, and enable customers to leverage AI to train directly on Silicon Labs' software design rules and frameworks. The Series 3 rollout is on track, with the first product ramping and more products to come out at an increasing acceleration.

Valuation and Growth Prospects

With a P/E Ratio of -48.24 and an EV/EBITDA of -73.1, the company's valuation multiples indicate a high growth expectation. Analysts estimate next year's revenue growth at 17.9%. The company's strong growth prospects, driven by its technology leadership and scale in IoT, are expected to enable a new wave of IoT growth. The actual EPS of $0.32 beat estimates of $0.3, indicating a positive surprise.

Market Opportunities and Risks

The company is optimistic about its growth prospects, citing a large opportunity funnel and record design wins. It sees potential in active asset tracking, but notes it's early days and doesn't want to over-index on it. The company remains open to M&A opportunities, but with a tight filter, and is likely to use excess cash flow for buybacks.

3. NewsRoom

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Silicon Laboratories Sees Unusually Large Options Volume (NASDAQ:SLAB)

Feb -05

Source: defenseworld.net

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Silicon Laboratories Investor Alert: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Silicon Laboratories Inc. - SLAB

Feb -04

Source: businesswire.com

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Silicon Laboratories Inc. (SLAB) M&A Call Transcript

Feb -04

Source: seekingalpha.com

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Texas Instruments to acquire Silicon Labs in $7.5B all-cash deal

Feb -04

Source: proactiveinvestors.com

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Texas Instruments agrees to buy Silicon Labs for $7.5 billion.

Feb -04

Source: youtube.com

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$HAREHOLDER ALERT: The M&A Class Action Firm Announces An Investigation of Silicon Laboratories Inc. (NASDAQ: SLAB)

Feb -04

Source: prnewswire.com

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Halper Sadeh LLC Encourages SLAB and WBS Shareholders to Contact the Firm to Discuss Their Rights

Feb -04

Source: prnewswire.com

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S&P 500 Slips, Nasdaq Drops as Traders Dump Chips

Feb -04

Source: schaeffersresearch.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.39%)

6. Segments

Industrial & Commercial

Expected Growth: 8.5%

Silicon Laboratories Inc.'s Industrial & Commercial segment growth of 8.5% is driven by increasing demand for IoT devices, growing adoption of wireless connectivity technologies, and rising need for energy-efficient solutions. Additionally, the segment benefits from the company's strategic investments in research and development, expanding product portfolio, and strong relationships with key customers.

Home & Life

Expected Growth: 10.93%

Silicon Laboratories Inc.'s Home & Life segment growth of 10.93% is driven by increasing demand for IoT-enabled smart home devices, growing adoption of wireless connectivity technologies, and rising need for energy-efficient solutions. Additionally, the segment benefits from the company's strategic acquisitions and investments in emerging technologies such as Wi-Fi 6 and Bluetooth 5.

7. Detailed Products

Microcontrollers (MCUs)

Silicon Labs' microcontrollers are designed for low power consumption, high performance, and flexibility, making them suitable for a wide range of applications.

Wireless Gecko SoCs

Silicon Labs' Wireless Gecko SoCs are designed for IoT and wireless applications, offering low power consumption, high performance, and advanced security features.

Timing and Synchronization

Silicon Labs' timing and synchronization products provide accurate and reliable clocking solutions for a wide range of applications.

Isolation and Sensing

Silicon Labs' isolation and sensing products provide high-performance, high-reliability solutions for industrial, medical, and automotive applications.

Power Management

Silicon Labs' power management products provide efficient and flexible power management solutions for a wide range of applications.

Broadcast and Audio

Silicon Labs' broadcast and audio products provide high-performance, low-power solutions for audio and video applications.

8. Silicon Laboratories Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Silicon Laboratories Inc. faces moderate threat from substitutes, as customers have limited alternatives for its specialized semiconductor products.

Bargaining Power Of Customers

Silicon Laboratories Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Silicon Laboratories Inc. relies on a few key suppliers for its raw materials, giving them some bargaining power, but the company's size and diversification mitigate this risk.

Threat Of New Entrants

The semiconductor industry has high barriers to entry, including significant capital requirements and technological expertise, making it difficult for new entrants to compete with Silicon Laboratories Inc.

Intensity Of Rivalry

The semiconductor industry is highly competitive, with many established players, leading to intense rivalry and pricing pressure for Silicon Laboratories Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.09%
Debt Cost 7.04%
Equity Weight 94.91%
Equity Cost 10.18%
WACC 10.02%
Leverage 5.36%

11. Quality Control: Silicon Laboratories Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Qorvo

A-Score: 4.4/10

Value: 3.8

Growth: 3.9

Quality: 5.6

Yield: 0.0

Momentum: 8.0

Volatility: 5.0

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SiTime

A-Score: 3.6/10

Value: 6.2

Growth: 2.4

Quality: 3.2

Yield: 0.0

Momentum: 8.0

Volatility: 1.7

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Lattice Semi

A-Score: 3.5/10

Value: 0.0

Growth: 4.0

Quality: 6.2

Yield: 0.0

Momentum: 7.5

Volatility: 3.3

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Silicon Labs

A-Score: 3.4/10

Value: 4.6

Growth: 1.9

Quality: 2.8

Yield: 0.0

Momentum: 7.0

Volatility: 4.3

1-Year Total Return ->

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Allegro MicroSystems

A-Score: 3.1/10

Value: 2.4

Growth: 1.6

Quality: 3.9

Yield: 0.0

Momentum: 7.0

Volatility: 3.7

1-Year Total Return ->

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IPG Photonics

A-Score: 3.0/10

Value: 1.7

Growth: 2.1

Quality: 4.1

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

206.5$

Current Price

206.5$

Potential

-0.00%

Expected Cash-Flows