113.15 USD
+0.22 (+0.19%)
115 USD
+1.85 (+1.63%)
Overall SIMO gets a fundamental rating of 6 out of 10. We evaluated SIMO against 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- SIMO had positive earnings in the past year.
- In the past year SIMO had a positive cash flow from operations.
- In the past 5 years SIMO has always been profitable.
- Each year in the past 5 years SIMO had a positive operating cash flow.
1.2 Ratios
- SIMO's Return On Assets of 8.48% is fine compared to the rest of the industry. SIMO outperforms 76.99% of its industry peers.
- SIMO has a better Return On Equity (11.57%) than 75.22% of its industry peers.
- SIMO has a better Return On Invested Capital (7.58%) than 74.34% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SIMO is in line with the industry average of 10.75%.
- 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
- With a decent Profit Margin value of 12.08%, SIMO is doing good in the industry, outperforming 68.14% of the companies in the same industry.
- In the last couple of years the Profit Margin of SIMO has declined.
- With a decent Operating Margin value of 9.90%, SIMO is doing good in the industry, outperforming 62.83% of the companies in the same industry.
- In the last couple of years the Operating Margin of SIMO has declined.
- SIMO has a Gross Margin of 47.39%. This is comparable to the rest of the industry: SIMO outperforms 57.52% of its industry peers.
- In the last couple of years the Gross Margin of SIMO has remained more or less at the same level.
| 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
- SIMO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- SIMO has more shares outstanding than it did 1 year ago.
- SIMO has less shares outstanding than it did 5 years ago.
- SIMO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
- SIMO has a Quick Ratio of 2.10. This indicates that SIMO is financially healthy and has no problem in meeting its short term obligations.
- With a Quick ratio value of 2.10, SIMO perfoms like the industry average, outperforming 48.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
- The earnings per share for SIMO have decreased by -7.25% in the last year.
- Measured over the past 5 years, SIMO shows a small growth in Earnings Per Share. The EPS has been growing by 5.78% on average per year.
- The Revenue has decreased by -2.02% in the past 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)-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
- SIMO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.72% yearly.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 35.36, which means the current valuation is very expensive for SIMO.
- SIMO's Price/Earnings ratio is a bit cheaper when compared to the industry. SIMO is cheaper than 77.88% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. SIMO is valued slightly more expensive when compared to this.
- A Price/Forward Earnings ratio of 23.52 indicates a rather expensive valuation of SIMO.
- 82.30% of the companies in the same industry are more expensive than SIMO, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SIMO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.36 | ||
| Fwd PE | 23.52 |
4.2 Price Multiples
- SIMO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SIMO is cheaper than 67.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 33.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SIMO does not grow enough to justify the current Price/Earnings ratio.
- 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)5.27
PEG (5Y)6.12
EPS Next 2Y18.44%
EPS Next 3Y20.72%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.73%, SIMO has a reasonable but not impressive dividend return.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.82, SIMO has a dividend comparable with the average S&P500 company.
| 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.
- The dividend of SIMO decreased 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.
- The dividend of SIMO is growing, but earnings are growing more, so the dividend growth is 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 35.36 and the Price/Book (PB) ratio is 4.57.
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%.