X-FAB Silicon Foundries: Still A Buy, But Now The Bar Is Higher

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Jun. 19, 2025 12:48 AM ETX-FAB Silicon Foundries SE (XFABF) StockXFABFEmmanuel Onwusah126 Followers(10min)SummaryX-FAB's fundamentals remain strong, with Q1 results showing sequential growth in core automotive and industrial segments, and margins holding steady, despite SiC weakness.The company is transitioning from recovery to strategic expansion, investing heavily in capacity, while maintaining healthy EBITDA, positioning for future demand in EVs and industrials.SiC bookings are stabilizing, and a rebound in this segment could drive significant margin expansion if customer inventories clear as expected by late 2025.Despite a 60% stock run-up, X-FAB remains attractively valued, and I reiterate my Buy rating, expecting double-digit upside as growth levers play out.luza studiosBack in March, I made the case that X-FAB’s short-term volatility was masking long-term value, and it looks like the market agreed, at least over the last two months. Since then, the stock is up over 60%, with investors pricing in a stronger 2025This article was written byEmmanuel Onwusah126 FollowersI am a financial analyst and writer with a strong foundation in financial modeling, valuation, and data analysis. I hold FMVA (Financial Modeling & Valuation Analyst) and BIDA (Business Intelligence & Data Analyst) certifications from the Corporate Finance Institute (CFI) in Canada.The markets fascinate me (we're all looking to grow to grow wealth, after all, and the stock market is the single greatest invention that allows us to do it do it fairly easily), so I combine financial data with qualitative analysis to evaluate companies and sectors critically. I'm particularly interested in the technology, infrastructure, and internet services sectors, and I focus on companies with great fundamentals and growth potential. I'm writing on Seeking Alpha to build a community and share my thoughts on tech, healthcare, and finance stocks. Moving forward, my focus remains on providing value to readers and investors who share a passion for long-term investing.P. S. I also have a bachelor's degree in petroleum and gas engineering.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in XFABF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You