Astera Labs, Inc.
- 1-year return
- ▲ +74.8%
- 52-week range
- $100.27 – $483.02
- Market cap
- $49.6B
- P/E (trailing)
- 140.8
- Dividend yield
- None
Scorecard
Value checklist: 3/6 passed (score 50%). Growth checklist: 10/11 passed (score 95%). A profile needs a score of at least 60%. The stock fits the growth profile and not the value profile. 1 of 18 checks couldn't be evaluated and were left out.
Price history
Show data table
Revenue and net income
By fiscal year
Show data table
Earnings per share
Diluted EPS by fiscal year · Yahoo Finance (annual statements)
Show data table
Profit margins
Gross, operating and net margin by fiscal year
Show data table
Company
- Sector
- Technology
- Industry
- Semiconductors
- Country
- United States
- Market cap
- $49.6B
- Price
- $285.82 USD
- Annual dividend
- None
- Employees
- 756
Business description
Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure in Taiwan and the United States. It offers an intelligent connectivity platform, comprised of semiconductor-based, high-speed, mixed-signal connectivity products that integrate a matrix of microcontrollers and sensors, and COSMOS. The company provides COSMOS software suite, a connectivity system management and optimization software that enables management and optimization of resources for large fleets at cloud-scale via link, fleet, and RAS management capabilities. In addition, it offers PCIe/CXL smart DSP retimers and cable modules; ethernet smart cable modules for cloud and AI infrastructure; CXL memory connectivity controllers; and smart fabric switches. The company serves hyperscalers and system original equipment manufacturers. Astera Labs, Inc. was incorporated in 2017 and is based in San Jose, California.
Value checklist
| Ratio | Threshold | Actual | Result | Note |
|---|---|---|---|---|
| Price / Earnings Growth (PEG) | Below 1 | 2.40 | Fail | P/E / 58.7% analyst next-year EPS growth |
| Price / Earnings (P/E) | Below 15 | 140.80 | Fail | |
| Price / Book (P/B) | Below 1 | 28.73 | Fail | |
| Return on Equity (ROE) | Above 15% | 25.83% | Pass | |
| Return on Assets (ROA) | Above 4% | 10.67% | Pass | |
| Debt / Equity (D/E) | Below 1 | 0.03 | Pass |
10-Year EPS Test
N/A| EPS 0.8 years ago | $1.22 |
| Current EPS | $2.03 |
| Lowest P/E in period | 38.63 |
| Current share price | $285.82 |
| Annual dividend per share | $0.00 |
| EPS growth rate | N/A |
| Projected EPS in 0.8 years | N/A |
| Projected trading price (lowest P/E x EPS) | N/A |
| Projected value (+ 0.8 yrs of dividends) | N/A |
| Annual compound return | N/A |
| Hurdle rate | 12.00% |
Skipped loss-making years (FY 2022, 2023, 2024). Only 0.8 years of usable EPS history; at least 2 are needed.
Growth checklist
| Ratio | Threshold | Actual | Result | Note |
|---|---|---|---|---|
| Gross Profit Margin | Above 40% | 75.13% | Pass | |
| Operating Profit Margin | 10% to 25% | 22.74% | Pass | |
| Net Profit Margin | Above 10% | 30.74% | Pass | |
| Return on Equity (ROE) | Above 15% | 25.83% | Pass | |
| Current Ratio | Above 2 | 10.05 | Pass | Very high; can mean idle cash or bloated receivables/inventory, not only strength. |
| Quick Ratio | Above 1.5 | 9.16 | Pass | |
| Accounts Receivable Turnover | Above 7.3 | 13.97 | Pass | |
| Inventory Turnover | Above 7.3 | 4.06 | Fail (sector-typical) | Low inventory turnover is normal for chipmakers (NVDA ~3.2, AMD ~2.3 in 2025, per AlphaQuery). |
| Healthy Working Capital (CA > CL) | Above $0 | $1.2B | Pass | Current assets $1.4B vs current liabilities $133.0M |
| Revenue Growth (annual CAGR) * | Above 10% | 120.14% | Pass | |
| Expected EPS Growth (next year) * | Above 10% | 58.74% | Pass |
* Extra growth signal on top of the core checklist.
Qualitative: value factors
-
Small is BeautifulAgainst
Large-cap company ($49.6B market cap). It is widely followed by analysts and big investors, so the market is less likely to overlook it.
-
Annuity BusinessNeutral
Revenue has been steady, but there is no clear sign it comes from recurring contracts: revenue rose every year for the last 3 years.
-
Durable Competitive AdvantageSupports
Gross margin of 75.1% and net margin of 30.7% show pricing power that competitors haven't eroded, a sign of a moat.
-
Revenues & CommoditySupports
Revenue from Semiconductors isn't tied to commodity prices, so earnings are more predictable.
-
Need for CapitalSupports
The business funds itself without heavy borrowing or spending: debt-to-equity is 0.03 (threshold: below 1); capital spending uses 12% of operating cash flow.
-
Insider BuyingAgainst
In the past two years insiders made 0 purchases ($0) and 108 sales ($1.4B). No insider buying, so there's no signal that management sees the stock as undervalued.
Qualitative: growth factors
-
Market PotentialSupports
It has a large, expanding market to grow into: it operates in fast-growing areas (semiconductor, software, cloud); revenue has grown 120.1% per year.
-
New Goods/Services & Customer OrientationSupports
R&D spending has grown 60.3% per year alongside 120.1% annual revenue growth, showing that new products are turning into sales.
-
Research & DevelopmentSupports
R&D is 35.7% of revenue, a heavy investment that keeps products competitive and in demand.
-
Profit MarginsSupports
Gross 75.1%, operating 22.7%, net 30.7%. High margins show customers are willing to pay for its products.
-
Market ShareSupports
Revenue growth of 120.1% per year suggests it is taking market share, and at $49.6B it still has room to expand.
Caveats
- Inventory Turnover fails the threshold (4.06), but low inventory turnover is normal for chipmakers (NVDA ~3.2, AMD ~2.3 in 2025, per AlphaQuery).
- EPS test: Skipped loss-making years (FY 2022, 2023, 2024). Only 0.8 years of usable EPS history; at least 2 are needed.
- Long-run EPS history comes from Yahoo Finance (about 4 years). Set SEC_USER_AGENT to use 10+ years of SEC filings, or enter the EPS test inputs yourself.