First Trust Multi-Cap Value Fund (FAB)
X-FAB: Key Segments Are Pushing The Story Forward - Still A Buy
X-FAB Silicon Foundries' core segments are doing the heavy lifting: industrial revenue surged 37% YoY, medical was up 14%, and core market sales made up 94% of total revenue. Revenue beat and upgraded full-year guide: Q2 revenue of $218.3M (adjusted) came in above guidance. XFABF's valuation remains compelling: with an EV/sales of ~1.5×, X-FAB trades at a discount to peers, even with margins under pressure and CapEx still tapering off.
X-FAB Silicon Foundries: Still A Buy, But Now The Bar Is Higher
X-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.
X-FAB: A Buy Opportunity Amid Short-Term Volatility
X-FAB Silicon Foundries SE is undervalued due to short-term disruptions, but strong fundamentals and strategic expansions position it for recovery and growth in 2025. The decline in SiC revenue is temporary, with a recovery expected in 2025, driven by demand in EVs, renewable energy, and power management. X-FAB's automotive sector, crucial for revenue, is poised for growth with advanced semiconductor components for EVs, ADAS, and power electronics.
Analog semiconductor maker X-FAB flags high inventories in 2025
Analog semiconductor manufacturer X-FAB flagged on Thursday persistent high inventories at its automotive customers, but sees recovery in industrial and medical demand in 2025.
X-FAB: A Belgian Value Gem
X-Fab's aggressive $1 billion investment plan aims to expand manufacturing capacities, enhancing revenue to $1.05 billion by 2026 and $1.5 billion by 2030. Despite negative free cash flow, the company's strategic investments in Silicon Carbide and green energy are expected to significantly boost future earnings and margins. The stock trades at a low P/E ratio of 6 and a 0.7 Price-to-book ratio, offering a strong valuation and safety cushion.
FAB: An Expensive But Exciting Multi-Cap Value ETF
FAB is a multi-cap value ETF with exposure to almost 700 U.S. stocks, offering a single-product solution for value investors. Fees are 0.64% and FAB manages $140 million in assets. Despite reasonably attractive fundamentals, FAB has delivered underwhelming returns in the last decade compared to a hypothetical benchmark I created based on ETFs from the S&P 1500 Composite. In addition, FAB's value features are weaker than SYLD's and PEY's, two alternative multi-cap funds appropriate for more aggressive and defensive investors, respectively.
Undercovered Dozen: Telus Corporation, X-FAB Silicon Foundries, GRAIL, And More
The 'Undercovered' Dozen highlights twelve ideas from the previous week on stocks with limited coverage. If you're looking for yield, two preferred stock ideas are featured, as well as other high yielding dividend-focused options. A spin-off situation, a zinc-based energy storage solutions provider, and Europe's leading semiconductor foundry are also in focus this week.
