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SemtechSTU:SM2 -2.16%71 Interest Coverage is 14.53 as of Apr. 2026, which is 69% above its 10-year median of 8.60. GuruFocus rates STU:SM2 with a GF Score™ of 71/100 and a GF Value™ of €32.62 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 637 Semiconductors companies, Semtech ranks worse than 66.25% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Semtech's
Operating Income
for the
three
months ended in Apr. 2026 was €23.1 Mil. Semtech's Interest Expense for the
three
months ended in Apr. 2026 was €-1.6 Mil.
Semtech's interest coverage for the quarter that ended in Apr. 2026 was 14.53.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Semtech's Interest Coverage or its related term are showing as below:
STU:SM2'
s Interest Coverage Range Over the Past 10 Years
Min: 0.77 Med: 8.6 Max: 39.56
Current: 9.4
STU:SM2's Interest Coverage is ranked worse than 66.25% of 637
companies
in the Semiconductors industry
Industry Median: 20.5
vs STU:SM2: 9.40
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Semtech Interest Coverage Related Terms
Semtech Interest Coverage Historical Data
* Premium members only.
The historical data trend for Semtech's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
STU:SM2 vs RMBS, ALGM, SIMO: Interest Coverage Comparison
For the Semiconductors subindustry, Semtech's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Semtech Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Semtech's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Semtech's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Semtech (STU:SM2) has a Interest Coverage of 14.53 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Semtech and its competitors. This is 69% above median its historical median of 8.60. Over the past decade, Semtech's Interest Coverage has ranged from 0.77 to 39.56. According to the industry distribution chart, Semtech ranks #422 out of 637 companies in the Semiconductors industry, placing it in the top 66.2%.
Is Semtech's Interest Coverage too high?
Semtech's current Interest Coverage of 14.53 is 69% above median its 10-year median of 8.60. Over the past 10 years, this metric has ranged from a low of 0.77 to a high of 39.56. The Semiconductors industry median Interest Coverage is 20.50. Semtech's value of 14.53 is 29.1% below this industry median. Based on the distribution chart, Semtech ranks #422 out of 637 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Semtech has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Semtech's Interest Coverage compare to RMBS and ALGM?
According to the Semiconductors industry distribution chart, Semtech ranks #422 out of 637 companies for Interest Coverage. This places Semtech in the lower half of its industry. The industry median Interest Coverage is 20.50. Semtech's value of 14.53 is 29.1% below this benchmark. Historically, Semtech's own Interest Coverage has ranged from 0.77 to 39.56 over the past decade. While the company's 10-year median is 8.60 vs. the industry median of 20.50, Semtech has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.50, based on 637 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Semtech's current Interest Coverage of 14.53 is 29.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Semtech and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Semtech's current Interest Coverage is 14.53, which is 69% above median its own 10-year median of 8.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Semtech stock overvalued right now?
Based on GuruFocus' analysis, Semtech (STU:SM2) is currently considered Significantly Overvalued. The stock's GF Value™ is €32.62, compared to a current price of €115.75 — trading 254.8% above its estimated fair value. The current Interest Coverage is 14.53, which is 69% above median its 10-year median of 8.60 and 29.1% below the Semiconductors industry median of 20.50. Semtech's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Semtech (STU:SM2), the current Interest Coverage is 14.53 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Semtech (STU:SM2) Overvalued in 2026?
Based on GuruFocus' analysis, Semtech stock appears to be overvalued.
The current stock price of €115.75 is trading 254.8% above its estimated GF Value™ of €32.62.
GuruFocus considers Semtech to be Significantly Overvalued.
Key valuation signals for STU:SM2:
Interest Coverage: 14.53 (69% above median its 10-year median of 8.60)
GF Value™: €32.62 vs. price of €115.75 (254.8% above fair value)
Industry Position: 29.1% below the Semiconductors median (#422 of 637)
No single metric tells the full story. See the STU:SM2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Semtech Corp is a provider of high-performance semiconductors powering data center networking, Internet of Things ("IoT") connectivity, and cellular infrastructure solutions. The company designs, develops, manufactures, and markets a diverse portfolio of products for commercial applications, addressing the infrastructure, high-end consumer, and industrial end markets. The company operates in four reportable segments: Signal Integrity, Analog Mixed Signal and Wireless, IoT Systems, and Connected Services. The majority of the company's revenue is earned through the Analog Mixed Signal and Wireless segment. Geographically, the majority of the company's revenue is earned from the Asia Pacific region; the company also operates in North America and Europe.
71GF Score
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