ticker: WAF.DE layer: L0-Wafer verdict: red verify_date: 2026-05-28

Siltronic AG (WAF.DE) — Graham Screen

Abbreviated report triggered: YTD +82.7%, price EUR 95.90 is 3.7% from 52w high (EUR 99.55)

Data: yfinance, as of 2026-05-28. Shares outstanding: 30M. Currency: EUR.


Price Snapshot

Metric Value
Current price EUR 95.90
52-week high EUR 99.55
52-week low EUR 31.70
Distance from 52w high -3.7%
YTD return (since Jan 2, 2026 @ EUR 51.00) +82.7%
Market cap EUR 2.88B
Book value per share EUR 61.47
P/B 1.56x

Threshold check: YTD >80% AND within 10% of 52w high — BOTH conditions met. Cycle inflection already priced. Abbreviated report applies.


Why the Cycle Is Already Priced

Siltronic's thesis was compelling at EUR 31–51 (trough). A stock that almost trebles from its low in under a year is no longer at the trough — the market has already done the mean-reversion work. The question now is whether the fundamentals justify EUR 95.90. They do not:

The +82.7% YTD move is not driven by a fundamental inflection. Q1 2026 earnings (Apr 30) showed deeper losses than expected. The rally is likely driven by a semiconductor sector re-rating (AI capex narrative, TSMC/GlobalWafers cycle optimism) combined with short covering from the EUR 31 trough. This is momentum, not Graham value.


Graham Filters F6 and F7 (Focus of Abbreviated Report)

F6 — EPS growth of at least 1/3 over a 10-year period: FAIL

EPS trajectory: EUR 13.02 (2022) → EUR 6.15 (2023) → EUR 2.10 (2024) → EUR -2.31 (2025). The company swung from peak earnings to a net loss in three years. No 10-year growth case is possible when the most recent full year is a loss. Trailing 12-month EPS is approximately -EUR 4.31 including the deteriorating Q1 2026.

F7 — Moderate P/E and P/B: FAIL on both

Additional Graham filters for context (all FAIL or marginal):

Filter Criterion Result
F1 Sales size >EUR 1.5B FAIL — EUR 1.35B (2025)
F2 Current ratio ≥2.0x PASS (barely — 2.01x)
F3 Debt coverage Net debt <2x NCA FAIL — 2.0x (borderline)
F4 Earnings continuity No loss years in 10yr FAIL — 2025 loss
F5 Dividend continuity ≥20 years uninterrupted FAIL — IPO 2017, cuts every year
F6 EPS growth ≥1/3 over 10yr FAIL — peak-to-loss collapse
F7 P/E ≤15x, P/B ≤1.5x Both required FAIL — no pos. EPS; P/B 1.56x

Graham score: 1/7 (F2 barely passes)


Cycle Position vs. shr-017 (Cyclical Trap Check)

Per shr-017, a high trailing screen score can be a cyclical trap when guidance is worsening. WAF.DE is the mirror image: a low screen score during a cycle trough that has already been priced in. The setup that made the trade interesting (EUR 31–51, P/B ~0.5–0.8x, sentiment at maximum pessimism) is now gone. At EUR 95.90:

The stock has re-rated on hope, not on reported fundamentals. This is the time to be cautious, not to buy.


Graham Intrinsic Value

Graham IV formula V = EPS × (8.5 + 2g) requires positive EPS. With trailing EPS -EUR 4.31 and forward EPS -EUR 4.22, the formula produces negative values at all growth rates — undefined/inapplicable. This is not a technicality; it reflects that the business has no current earnings base to value. A P/B-based floor of EUR 61.47 (1.0x book) is the most defensible anchor, but even that requires confidence that book value is not being eroded further by ongoing losses and capital-intensive CapEx.

Book value erosion check: equity declined from EUR 2,009.9M (2024) to EUR 1,844.0M (2025), a EUR -166M shrinkage from the net loss. If 2026 is another loss year (consensus: yes), book value per share will fall further below EUR 61.47 before any recovery.


Verdict and Watchlist Price

VERDICT: RED

The original thesis (EU wafer maker at cycle trough, near book, maximum pessimism) was correct in identifying the opportunity class, but the window has closed. The stock is up 82.7% YTD and trades 29.6% above the analyst consensus price target of EUR 74.00, with no positive earnings inflection visible in the numbers. Q1 2026 was a miss and showed accelerating gross margin deterioration. Graham filters score 1/7. There is no margin of safety at EUR 95.90.

This is a momentum/sentiment trade now, not a value trade.

Re-engagement conditions (all required simultaneously):

  1. Price retreats to EUR 55–65 range (P/B 0.9–1.05x, or 10% discount to analyst mean PT)
  2. Gross margin returns to positive for two consecutive quarters
  3. Management provides concrete 2027 volume/price guidance with wafer ASP stabilization
  4. FCF neutral or better on a trailing-twelve-month basis

Watchlist add price: EUR 62.00 (P/B 1.01x; near book value; gives ~15% discount to analyst mean PT of EUR 74.00; meaningful margin of safety entry for a capital-intensive cyclical that is currently losing money)

If reached, re-run full screen before executing — do not auto-trigger a buy. The kill condition for any future thesis is a second annual loss year with no gross margin recovery by Q2 of that year.


VERDICT LINE: RED — cycle already priced (EUR 95.90, +83% YTD, 3.7% from 52w high, 30% above analyst consensus PT EUR 74); fundamentals still deteriorating (Q1 2026 gross profit negative, EPS miss); 1/7 Graham filters; watchlist at EUR 62 (P/B ~1.0x) only if gross margin recovers.