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Technology Sector Report

Semiconductors Industry Report

Market Cap: $13.0T
Stocks: 95
Median P/E: 19.0x
Median ROIC: 3.6%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Technology sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day-0.5%-1.5%
1 Week+0.9%-1.1%
1 Month
3 Months
6 Months
YTD-4.5%-2.5%
1 Year+169.3%+102.9%
3 Years+458.6%+82.8%
5 Years+713.3%+83.5%

Today's Breadth: 21 advancing · 64 declining · 2 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E19.0x0.0x45.3x-18%
P/B1.9x0.0x4.1x-45%
P/S2.1x0.0x4.0x
P/FCF26.9x11.4x58.0x
EV/EBITDA16.8x11.7x28.3x
EV/EBIT28.9x20.0x53.7x
Earnings Yield
2.4%
FCF Yield
1.6%
Below Fair Value
10% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin43.4%43.0%28.5%55.3%
Operating Margin5.3%-9.0%13.4%
Net Margin3.2%6.8%-6.9%13.8%
FCF Margin6.9%-0.3%18.5%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE4.7%-5.6%11.9%
ROA1.3%-8.1%5.9%
ROIC3.6%9.5%-9.3%10.4%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+9.0%+1.0%+7.0%
EPS+37.3%-13.6%+5.1%
Free Cash Flow+30.0%-2.1%+4.3%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
0.2x
Net Debt / EBITDA
-0.4x
Interest Coverage
6.8x
Current Ratio
2.6x

Altman Z-Score

Safe (>3): 36 (43%)
Gray (1.8–3): 18 (22%)
Distress (<1.8): 29 (35%)

Piotroski F-Score

Strong (7–9): 23 (24%)
Moderate (4–6): 49 (52%)
Weak (0–3): 23 (24%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
NVDA1$4.8T39.1x34.8x113.6%55.6%+65.5%0.0%-4.6%7/9
AVGO2$1.7T84.1x58.1x20.0%36.2%+23.9%0.6%-2.6%6/9
MU3$1.1T20.7x10.1x16.3%22.8%+48.9%0.3%-13.4%2/9
TSM4$1.0T28.6x1.2%+33.9%8.0%+3.1%6/9
AMD5$847.1B81.1x53.0x6.6%12.5%+34.3%-5.8%4/9
ASML-AS6$629.9B35.5x25.9x73.1%31.3%+21.1%0.2%6/9
INTC7$535.6B18.2x-0.2%-0.5%-0.5%-6.6%1/9
AMAT8$487.3B26.2x20.8x35.1%24.7%+4.4%0.8%-8.0%6/9
TXN9$267.4B32.5x15.1x21.5%28.1%+13.1%3.1%-8.8%5/9
MRVL10$213.3B7.1%32.6%+42.1%-2.2%2/9
ASX11$196.4B0.2%+8.4%+3.3%2/9
ADI12$187.5B58.0x27.7x6.1%20.6%+16.9%1.5%-7.3%4/9
ALAB13$73.0B137.1x135.3%25.7%+115.1%-2.8%5/9
NXPI14$69.5B28.0x16.4x9.4%16.5%-2.7%1.8%-9.0%6/9
STM15$63.0B145.8x11.2x0.7%1.4%-11.1%1.4%+1.4%5/9
MPWR16$62.3B73.5x26.9%22.3%+26.4%0.7%-6.7%6/9
UMC17$61.7B10.4x3.9x20.2%20.9%+1.0%+0.2%6/9
STMMI-MI18$56.7B11.1x6.0x7.0%15.0%-23.3%1.5%4/9
MCHP19$45.7B3.5%2.5%+7.1%-10.0%3/9
CRDO20$43.5B148.4x9.8%11.9%+126.3%+4.6%3/9

Industry Composition

IndustryStocksMarket Cap%
Semiconductors & Related Devices87$12.3T94.5%
Semiconductors8$715.3B5.5%

Quality Distribution

0
1
2
3
4
5
6
7
8
9

Quality Score (0-9)

High Quality (7+)
1%
Median Piotroski F
5/9
Profitable Years
6 of 10

Dividends & Shareholder Returns

Paying Dividends
22%
Median Div Yield
1.4%
Median Buyback Yield
0.0%
Shareholder Yield
0.3%
Payout Ratio
49.0%
Div Growth (3Y)
11.2%
Div Growth (5Y)
12.0%

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 9.0% exceeds the 3-year CAGR of 1.0%, signaling improving demand conditions.
  • +[Valuation]Attractive valuations: current median P/E of 19.0x is 17.9% below the 5-year average, presenting potential value opportunity.

Weaknesses

  • [Breadth]Narrow weakness: only 24.1% of stocks advanced today, suggesting widespread selling pressure.
  • [Financial Health]34.9% 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 3.6%, suggesting limited pricing power or capital-intensive operations.
  • [Quality]Only 1.1% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.

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