Semiconductors Industry Report
Market Cap: $11.8T
Stocks: 95
Median P/E: 26.6x
Median ROIC: 3.5%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
Part of the Technology sector.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | -0.4% | -0.4% |
| 1 Week | +1.0% | -1.1% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +1.7% | +0.8% |
| 1 Year | +86.6% | +62.8% |
| 3 Years | +445.5% | +22.0% |
| 5 Years | +736.4% | +18.5% |
Today's Breadth: 41 advancing · 44 declining · 2 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 26.6x | 9.6x | 71.8x | -18% |
| P/B | 3.0x | 1.2x | 5.4x | -19% |
| P/S | 2.8x | 1.2x | 5.5x | — |
| P/FCF | 30.9x | 16.8x | 65.6x | — |
| EV/EBITDA | 16.4x | 8.8x | 25.9x | — |
| EV/EBIT | 30.0x | 20.8x | 59.2x | — |
Earnings Yield
2.5%
FCF Yield
1.4%
Below Fair Value
21% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 44.4% | 44.8% | 30.0% | 55.4% |
| Operating Margin | 6.1% | — | -8.9% | 15.6% |
| Net Margin | 3.2% | 7.6% | -9.0% | 14.6% |
| FCF Margin | 6.6% | — | 0.3% | 17.5% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 3.9% | — | -9.1% | 10.3% |
| ROA | 1.0% | — | -8.4% | 5.9% |
| ROIC | 3.5% | 9.5% | -11.3% | 11.3% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +6.1% | -1.8% | +7.6% |
| EPS | +23.5% | -14.9% | +3.3% |
| Free Cash Flow | +17.9% | -6.0% | +3.0% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.2x
Net Debt / EBITDA
-0.2x
Interest Coverage
8.0x
Current Ratio
2.6x
Altman Z-Score
Safe (>3): 39 (47%)
Gray (1.8–3): 21 (25%)
Distress (<1.8): 23 (28%)
Piotroski F-Score
Strong (7–9): 20 (21%)
Moderate (4–6): 49 (52%)
Weak (0–3): 26 (27%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| NVDA | 1 | $4.6T | 39.1x | 34.8x | 146.3% | 55.6% | +65.5% | 0.0% | -5.7% | 6/9 |
| TSM | 2 | $1.9T | 28.6x | — | 56.7% | 40.0% | +29.5% | 1.1% | +1.2% | 7/9 |
| AVGO | 3 | $1.8T | 84.1x | 76.0x | 21.7% | 36.2% | +23.9% | 0.6% | +18.2% | 6/9 |
| ASML-AS | 4 | $489.5B | 35.5x | 25.9x | 67.9% | 31.3% | +21.1% | 0.2% | — | 6/9 |
| MU | 5 | $479.9B | 20.7x | 10.0x | 15.6% | 22.8% | +48.9% | 0.3% | +13.9% | 2/9 |
| AMD | 6 | $403.8B | 81.1x | 17.1x | 6.6% | 12.5% | +34.3% | — | -0.6% | 4/9 |
| AMAT | 7 | $319.8B | 26.2x | 20.8x | 36.6% | 24.7% | +4.4% | 0.8% | +4.5% | 6/9 |
| INTC | 8 | $290.1B | — | 18.2x | -0.2% | -0.5% | -0.5% | 1.1% | -2.6% | 1/9 |
| TXN | 9 | $198.9B | 32.5x | 21.7x | 21.3% | 28.3% | +13.1% | 3.1% | +2.3% | 5/9 |
| ADI | 10 | $174.0B | 58.0x | 27.7x | 6.2% | 20.6% | +16.9% | 1.5% | +0.8% | 4/9 |
| ATEYY | 11 | $116.9B | — | — | 7.8% | 7.9% | +28.1% | — | +1.1% | 1/9 |
| MRVL | 12 | $114.2B | — | — | — | 32.6% | +42.1% | — | +4.5% | 1/9 |
| ADTTF | 13 | $97.3B | — | — | 7.8% | 7.9% | +28.1% | — | -1.4% | 1/9 |
| MPWR | 14 | $66.3B | 73.5x | — | 27.1% | 22.3% | +26.4% | 0.7% | +3.2% | 5/9 |
| ASX | 15 | $58.1B | — | — | — | 5.7% | -1.0% | — | +4.0% | 3/9 |
| NXPI | 16 | $52.9B | 28.0x | 16.4x | 15.8% | 16.5% | -2.7% | 1.8% | +1.5% | 7/9 |
| STM | 17 | $37.2B | 145.8x | 11.2x | 0.6% | 1.4% | -11.1% | 1.3% | -0.8% | 5/9 |
| STMMI-MI | 18 | $30.6B | 11.1x | 6.0x | 7.0% | 15.0% | -23.3% | 1.5% | — | 4/9 |
| ALAB | 19 | $30.0B | 137.1x | — | 153.9% | 25.7% | +115.1% | — | +6.3% | 3/9 |
| ON | 20 | $29.6B | 189.4x | 30.3x | 0.9% | 2.0% | -15.3% | — | +5.7% | 5/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Semiconductors & Related Devices | 87 | $11.3T | 95.4% | |
| Semiconductors | 8 | $542.4B | 4.6% |
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
3%
Median Piotroski F
5/9
Profitable Years
6 of 10
Dividends & Shareholder Returns
Paying Dividends
25%
Median Div Yield
1.2%
Median Buyback Yield
0.8%
Shareholder Yield
1.0%
Payout Ratio
48.5%
Div Growth (3Y)
8.6%
Div Growth (5Y)
11.3%
Strengths & Weaknesses
Strengths
- +[Balance Sheet]Conservative balance sheets with a median Debt/Equity of 0.2x, providing financial flexibility for opportunistic investment.
- +[Growth]Revenue growth is accelerating: median 1-year growth of 6.1% exceeds the 3-year CAGR of -1.8%, signaling improving demand conditions.
- +[Valuation]Attractive valuations: current median P/E of 26.6x is 17.6% below the 5-year average, presenting potential value opportunity.
Weaknesses
- −[Financial Health]27.7% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Profitability]Below-average capital returns with a median ROIC of 3.5%, suggesting limited pricing power or capital-intensive operations.
- −[Quality]Only 3.2% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.
- −[Valuation]Only 21.2% of companies trade below estimated fair value, suggesting limited margin of safety at current prices.