SILICON MOTION TECHNOL-ADR (SIMO) Stock Fundamental Analysis
NASDAQ:SIMO - Nasdaq - US82706C1080 - ADR - Currency: USD
Overall SIMO gets a fundamental rating of 6 out of 10. We evaluated SIMO against 110 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SIMO had positive earnings in the past year.
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
SIMO has a Return On Assets of 9.35%. This is in the better half of the industry: SIMO outperforms 79.09% of its industry peers.
SIMO's Return On Equity of 12.00% is fine compared to the rest of the industry. SIMO outperforms 75.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.65%, SIMO is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SIMO is in line with the industry average of 10.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 12% | ||
| ROIC | 8.65% |
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
Looking at the Profit Margin, with a value of 11.87%, SIMO is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
In the last couple of years the Profit Margin of SIMO has declined.
The Operating Margin of SIMO (10.75%) is better than 65.45% of its industry peers.
SIMO's Operating Margin has declined in the last couple of years.
SIMO has a Gross Margin (46.37%) which is comparable to the rest of the industry.
SIMO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.75% | ||
| PM (TTM) | 11.87% | ||
| GM | 46.37% |
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
SIMO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.86
WACC10.09%
2.3 Liquidity
A Current Ratio of 4.45 indicates that SIMO has no problem at all paying its short term obligations.
SIMO's Current ratio of 4.45 is fine compared to the rest of the industry. SIMO outperforms 65.45% of its industry peers.
SIMO has a Quick Ratio of 3.37. This indicates that SIMO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SIMO (3.37) is better than 64.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
SIMO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.40%, which is quite impressive.
SIMO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.78% yearly.
Looking at the last year, SIMO shows a quite strong growth in Revenue. The Revenue has grown by 10.84% in the last year.
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)31.4%
EPS 3Y-17.95%
EPS 5Y5.78%
EPS Q2Q%-6.25%
Revenue 1Y (TTM)10.84%
Revenue growth 3Y-4.48%
Revenue growth 5Y11.94%
Sales Q2Q%-12.05%
3.2 Future
SIMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.01% yearly.
Based on estimates for the next years, SIMO will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
EPS Next Y2.8%
EPS Next 2Y17.4%
EPS Next 3Y15.01%
EPS Next 5YN/A
Revenue Next Year-0.29%
Revenue Next 2Y6.25%
Revenue Next 3Y6.19%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.17 indicates a rather expensive valuation of SIMO.
SIMO's Price/Earnings ratio is a bit cheaper when compared to the industry. SIMO is cheaper than 74.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of SIMO to the average of the S&P500 Index (27.15), we can say SIMO is valued inline with the index average.
With a Price/Forward Earnings ratio of 15.90, SIMO is valued correctly.
81.82% of the companies in the same industry are more expensive than SIMO, based on the Price/Forward Earnings ratio.
SIMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 15.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIMO is valued a bit cheaper than 68.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SIMO is valued a bit cheaper than 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.08 | ||
| EV/EBITDA | 20.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SIMO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SIMO's earnings are expected to grow with 15.01% in the coming years.
PEG (NY)7.91
PEG (5Y)3.84
EPS Next 2Y17.4%
EPS Next 3Y15.01%
5. Dividend
5.1 Amount
SIMO has a Yearly Dividend Yield of 2.72%.
Compared to an average industry Dividend Yield of 2.28, SIMO pays a better dividend. On top of this SIMO pays more dividend than 93.64% of the companies listed in the same industry.
SIMO's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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
SIMO pays out 72.71% of its income as dividend. This is not a sustainable payout ratio.
SIMO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP72.71%
EPS Next 2Y17.4%
EPS Next 3Y15.01%
75.17
-0.6 (-0.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.53%
Inst Owner Change2.52%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.53B
Analysts78.75
Price Target81.98 (9.06%)
Short Float %15%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend0.5
Dividend Growth(5Y)10.06%
DP72.71%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.04%
Min EPS beat(2)16.24%
Max EPS beat(2)23.84%
EPS beat(4)3
Avg EPS beat(4)11.32%
Min EPS beat(4)-0.75%
Max EPS beat(4)23.84%
EPS beat(8)6
Avg EPS beat(8)6.67%
EPS beat(12)7
Avg EPS beat(12)-3.93%
EPS beat(16)11
Avg EPS beat(16)-0.99%
Revenue beat(2)1
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-3.93%
Max Revenue beat(2)0.33%
Revenue beat(4)1
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)0.33%
Revenue beat(8)5
Avg Revenue beat(8)1.09%
Revenue beat(12)5
Avg Revenue beat(12)-4.37%
Revenue beat(16)8
Avg Revenue beat(16)-2.79%
PT rev (1m)12.22%
PT rev (3m)9.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.17%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 15.9 | ||
| P/S | 3.24 | ||
| P/FCF | 34.08 | ||
| P/OCF | 21.18 | ||
| P/B | 3.28 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | 20.53 |
EPS(TTM)3.39
EY4.51%
EPS(NY)4.73
Fwd EY6.29%
FCF(TTM)2.21
FCFY2.93%
OCF(TTM)3.55
OCFY4.72%
SpS23.18
BVpS22.93
TBVpS22.93
PEG (NY)7.91
PEG (5Y)3.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 12% | ||
| ROCE | 10.2% | ||
| ROIC | 8.65% | ||
| ROICexc | 13% | ||
| ROICexgc | 13% | ||
| OM | 10.75% | ||
| PM (TTM) | 11.87% | ||
| GM | 46.37% | ||
| FCFM | 9.52% |
ROA(3y)10.62%
ROA(5y)12.64%
ROE(3y)14.1%
ROE(5y)17.4%
ROIC(3y)12.4%
ROIC(5y)16.34%
ROICexc(3y)18.23%
ROICexc(5y)30.51%
ROICexgc(3y)18.23%
ROICexgc(5y)30.51%
ROCE(3y)14.61%
ROCE(5y)19.25%
ROICexcg growth 3Y-39.42%
ROICexcg growth 5Y-11.46%
ROICexc growth 3Y-39.42%
ROICexc growth 5Y-10.11%
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%
F-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 167.96% | ||
| Cap/Sales | 5.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.8% | ||
| Profit Quality | 80.15% | ||
| Current Ratio | 4.45 | ||
| Quick Ratio | 3.37 | ||
| Altman-Z | N/A |
F-Score8
WACC10.09%
ROIC/WACC0.86
Cap/Depr(3y)193.26%
Cap/Depr(5y)173.52%
Cap/Sales(3y)5.62%
Cap/Sales(5y)4.63%
Profit Quality(3y)84.34%
Profit Quality(5y)90.11%
High Growth Momentum
Growth
EPS 1Y (TTM)31.4%
EPS 3Y-17.95%
EPS 5Y5.78%
EPS Q2Q%-6.25%
EPS Next Y2.8%
EPS Next 2Y17.4%
EPS Next 3Y15.01%
EPS Next 5YN/A
Revenue 1Y (TTM)10.84%
Revenue growth 3Y-4.48%
Revenue growth 5Y11.94%
Sales Q2Q%-12.05%
Revenue Next Year-0.29%
Revenue Next 2Y6.25%
Revenue Next 3Y6.19%
Revenue Next 5YN/A
EBIT growth 1Y56.47%
EBIT growth 3Y-27.9%
EBIT growth 5Y6.23%
EBIT Next Year22.9%
EBIT Next 3Y23.58%
EBIT Next 5YN/A
FCF growth 1Y27.74%
FCF growth 3Y-39.79%
FCF growth 5Y-13.26%
OCF growth 1Y28.57%
OCF growth 3Y-23.87%
OCF growth 5Y-0.15%