SITM - SiTime Corporation: Growth Stock In Niche MEMS Timing Market
2024-05-21 09:16:51 ET
Summary
- SiTime Corporation has a small market share in the total DAO market but stands out with its large product breadth and superior performance compared to competitors.
- The company's revenue declined in 2023, but analyst consensus remains optimistic, forecasting revenue growth of over 25% annually for the next five years.
- SiTime's actual total addressable market is likely to be less than the estimated TAM of $10 billion, with a more accurate current TAM estimated to be between $5.5-$6.2 billion.
- While its SOM is even smaller, the company stands out with its product performance and breadth, allowing it to dominate the niche MEMS timing market.
In our previous analysis of SiTime Corporation ( SITM ), we identified the company’s offerings to include a broad range of MEMs-based oscillators, resonators, and clock ICs. However, it held a small 0.1% share in the total DAO (decentralized autonomous organization) market, with 2022 revenues of $283.6 mln. Despite this, it stood out with its large product breadth, superior frequency stability, and jitter performance compared to competitors. Despite a sharp decline in H1 2023 revenue, we identified that the company’s profitability was bolstered by rising average selling prices (ASPs). Although the company faces competition from larger players, we believed it to be well-positioned to capitalize on the growth of MEMS timing devices....
SiTime Corporation: Growth Stock In Niche MEMS Timing Market