117.1 USD
+0.86 (+0.74%)
117.25 USD
+0.15 (+0.13%)
We assign a fundamental rating of 6 out of 10 to SIMO. SIMO was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. SIMO has an excellent financial health rating, but there are some minor concerns on its profitability. SIMO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SIMO was profitable.
- SIMO had a positive operating cash flow in the past year.
- SIMO had positive earnings in each of the past 5 years.
- In the past 5 years SIMO always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 8.48%, SIMO is doing good in the industry, outperforming 76.99% of the companies in the same industry.
- The Return On Equity of SIMO (11.57%) is better than 75.22% of its industry peers.
- The Return On Invested Capital of SIMO (7.58%) is better than 74.34% of its industry peers.
- SIMO had an Average Return On Invested Capital over the past 3 years of 12.40%. This is in line with the industry average of 10.78%.
- The 3 year average ROIC (12.40%) for SIMO is well above the current ROIC(7.58%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.48% | ||
| ROE | 11.57% | ||
| ROIC | 7.58% |
ROA(3y)10.62%
ROA(5y)12.64%
ROE(3y)14.1%
ROE(5y)17.4%
ROIC(3y)12.4%
ROIC(5y)16.34%
1.3 Margins
- SIMO's Profit Margin of 12.08% is fine compared to the rest of the industry. SIMO outperforms 68.14% of its industry peers.
- In the last couple of years the Profit Margin of SIMO has declined.
- SIMO has a better Operating Margin (9.90%) than 62.83% of its industry peers.
- In the last couple of years the Operating Margin of SIMO has declined.
- SIMO's Gross Margin of 47.39% is in line compared to the rest of the industry. SIMO outperforms 57.52% of its industry peers.
- SIMO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.9% | ||
| PM (TTM) | 12.08% | ||
| GM | 47.39% |
OM growth 3Y-24.52%
OM growth 5Y-5.1%
PM growth 3Y-20%
PM growth 5Y-4.64%
GM growth 3Y-2.8%
GM growth 5Y-1.14%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SIMO is still creating some value.
- Compared to 1 year ago, SIMO has more shares outstanding
- Compared to 5 years ago, SIMO has less shares outstanding
- There is no outstanding debt for SIMO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- SIMO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC10.93%
2.3 Liquidity
- SIMO has a Current Ratio of 3.44. This indicates that SIMO is financially healthy and has no problem in meeting its short term obligations.
- SIMO has a Current ratio (3.44) which is comparable to the rest of the industry.
- A Quick Ratio of 2.10 indicates that SIMO has no problem at all paying its short term obligations.
- The Quick ratio of SIMO (2.10) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
- SIMO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.25%.
- The Earnings Per Share has been growing slightly by 5.78% on average over the past years.
- SIMO shows a decrease in Revenue. In the last year, the revenue decreased by -2.02%.
- SIMO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.94% yearly.
EPS 1Y (TTM)-7.25%
EPS 3Y-17.95%
EPS 5Y5.78%
EPS Q2Q%8.7%
Revenue 1Y (TTM)-2.02%
Revenue growth 3Y-4.48%
Revenue growth 5Y11.94%
Sales Q2Q%13.93%
3.2 Future
- The Earnings Per Share is expected to grow by 20.72% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 12.02% on average over the next years. This is quite good.
EPS Next Y6.72%
EPS Next 2Y18.44%
EPS Next 3Y20.72%
EPS Next 5YN/A
Revenue Next Year7.48%
Revenue Next 2Y11.97%
Revenue Next 3Y12.02%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 36.59, the valuation of SIMO can be described as expensive.
- 77.88% of the companies in the same industry are more expensive than SIMO, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, SIMO is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 24.34, SIMO is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, SIMO is valued cheaply inside the industry as 82.30% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. SIMO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.59 | ||
| Fwd PE | 24.34 |
4.2 Price Multiples
- SIMO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SIMO is cheaper than 66.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.35 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of SIMO may justify a higher PE ratio.
- SIMO's earnings are expected to grow with 20.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.45
PEG (5Y)6.33
EPS Next 2Y18.44%
EPS Next 3Y20.72%
5. Dividend
5.1 Amount
- SIMO has a Yearly Dividend Yield of 1.73%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.49, SIMO pays a better dividend. On top of this SIMO pays more dividend than 89.38% of the companies listed in the same industry.
- SIMO's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
- On average, the dividend of SIMO grows each year by 10.06%, which is quite nice.
- SIMO has paid a dividend for at least 10 years, which is a reliable track record.
- SIMO has decreased its dividend recently.
Dividend Growth(5Y)10.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 69.74% of the earnings are spent on dividend by SIMO. This is not a sustainable payout ratio.
- SIMO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.74%
EPS Next 2Y18.44%
EPS Next 3Y20.72%
SILICON MOTION TECHNOL-ADR / SIMO FAQ
Can you provide the ChartMill fundamental rating for SILICON MOTION TECHNOL-ADR?
ChartMill assigns a fundamental rating of 6 / 10 to SIMO.
What is the valuation status for SIMO stock?
ChartMill assigns a valuation rating of 3 / 10 to SILICON MOTION TECHNOL-ADR (SIMO). This can be considered as Overvalued.
How profitable is SILICON MOTION TECHNOL-ADR (SIMO) stock?
SILICON MOTION TECHNOL-ADR (SIMO) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for SIMO stock?
The Price/Earnings (PE) ratio for SILICON MOTION TECHNOL-ADR (SIMO) is 36.59 and the Price/Book (PB) ratio is 4.73.
Can you provide the dividend sustainability for SIMO stock?
The dividend rating of SILICON MOTION TECHNOL-ADR (SIMO) is 5 / 10 and the dividend payout ratio is 69.74%.