SILICON MOTION TECHNOL-ADR (SIMO) Stock Fundamental Analysis
NASDAQ:SIMO - Nasdaq - US82706C1080 - ADR - Currency: USD
Taking everything into account, SIMO scores 6 out of 10 in our fundamental rating. SIMO was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of SIMO get a neutral evaluation. Nothing too spectacular is happening here. SIMO is not valued too expensively and it also shows 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.
SIMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SIMO's Return On Assets of 8.78% is fine compared to the rest of the industry. SIMO outperforms 76.15% of its industry peers.
The Return On Equity of SIMO (11.72%) is better than 70.64% of its industry peers.
SIMO has a better Return On Invested Capital (9.57%) than 77.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.78% | ||
| ROE | 11.72% | ||
| ROIC | 9.57% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SIMO has a Profit Margin of 11.29%. This is in the better half of the industry: SIMO outperforms 66.06% of its industry peers.
In the last couple of years the Profit Margin of SIMO has declined.
Looking at the Operating Margin, with a value of 11.71%, SIMO is in the better half of the industry, outperforming 66.06% 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 (46.13%) 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 | 11.71% | ||
| PM (TTM) | 11.29% | ||
| GM | 46.13% |
OM growth 3Y-24%
OM growth 5Y-4.73%
PM growth 3Y-19.56%
PM growth 5Y-4.32%
GM growth 3Y-2.63%
GM growth 5Y-1.03%
2. Health
2.1 Basic Checks
SIMO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
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
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC10.99%
2.3 Liquidity
SIMO has a Current Ratio of 3.99. This indicates that SIMO is financially healthy and has no problem in meeting its short term obligations.
SIMO has a Current ratio of 3.99. This is in the better half of the industry: SIMO outperforms 64.22% of its industry peers.
A Quick Ratio of 2.98 indicates that SIMO has no problem at all paying its short term obligations.
SIMO has a Quick ratio of 2.98. This is in the better half of the industry: SIMO outperforms 62.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.99 | ||
| Quick Ratio | 2.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.10% over the past year.
The Earnings Per Share has been growing slightly by 5.78% on average over the past years.
Looking at the last year, SIMO shows a very strong growth in Revenue. The Revenue has grown by 25.71%.
SIMO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.93% yearly.
EPS 1Y (TTM)51.1%
EPS 3Y-17.95%
EPS 5Y5.78%
EPS Q2Q%-2.15%
Revenue 1Y (TTM)25.71%
Revenue growth 3Y-4.48%
Revenue growth 5Y11.93%
Sales Q2Q%-5.54%
3.2 Future
Based on estimates for the next years, SIMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.75% on average per year.
Based on estimates for the next years, SIMO will show a small growth in Revenue. The Revenue will grow by 6.38% on average per year.
EPS Next Y7.28%
EPS Next 2Y19.87%
EPS Next 3Y15.75%
EPS Next 5YN/A
Revenue Next Year0.26%
Revenue Next 2Y6.59%
Revenue Next 3Y6.38%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.15 indicates a correct valuation of SIMO.
Based on the Price/Earnings ratio, SIMO is valued cheaply inside the industry as 84.40% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SIMO to the average of the S&P500 Index (28.78), we can say SIMO is valued rather cheaply.
SIMO is valuated correctly with a Price/Forward Earnings ratio of 12.26.
Based on the Price/Forward Earnings ratio, SIMO is valued cheaply inside the industry as 89.91% of the companies are valued more expensively.
SIMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIMO is valued a bit cheaper than 78.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SIMO is valued a bit cheaper than 60.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.4 | ||
| EV/EBITDA | 10.41 |
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's earnings are expected to grow with 15.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.81
PEG (5Y)2.28
EPS Next 2Y19.87%
EPS Next 3Y15.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.52%, SIMO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.79, SIMO pays a better dividend. On top of this SIMO pays more dividend than 95.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, SIMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
The dividend of SIMO decreases each year by -16.04%.
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)-16.04%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
74.13% of the earnings are spent on dividend by SIMO. This is not a sustainable payout ratio.
DP74.13%
EPS Next 2Y19.87%
EPS Next 3Y15.75%
45.11
+1.05 (+2.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change-58.46%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.52B
Analysts78.75
Price Target75.22 (66.75%)
Short Float %12.45%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend0.13
Dividend Growth(5Y)-16.04%
DP74.13%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.1%
Min EPS beat(2)5.96%
Max EPS beat(2)16.24%
EPS beat(4)3
Avg EPS beat(4)7.8%
Min EPS beat(4)-0.75%
Max EPS beat(4)16.24%
EPS beat(8)5
Avg EPS beat(8)-3.48%
EPS beat(12)7
Avg EPS beat(12)-5.05%
EPS beat(16)11
Avg EPS beat(16)-1.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.26%
Min Revenue beat(2)-3.93%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)3.08%
Revenue beat(8)4
Avg Revenue beat(8)-1.96%
Revenue beat(12)5
Avg Revenue beat(12)-4.37%
Revenue beat(16)8
Avg Revenue beat(16)-2.45%
PT rev (1m)0.11%
PT rev (3m)-3.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.26 | ||
| P/S | 1.89 | ||
| P/FCF | 46.4 | ||
| P/OCF | 19.68 | ||
| P/B | 1.96 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 10.41 |
EPS(TTM)3.43
EY7.6%
EPS(NY)3.68
Fwd EY8.16%
FCF(TTM)0.97
FCFY2.16%
OCF(TTM)2.29
OCFY5.08%
SpS23.86
BVpS22.97
TBVpS22.97
PEG (NY)1.81
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.78% | ||
| ROE | 11.72% | ||
| ROCE | 11.29% | ||
| ROIC | 9.57% | ||
| ROICexc | 14.31% | ||
| ROICexgc | 14.31% | ||
| OM | 11.71% | ||
| PM (TTM) | 11.29% | ||
| GM | 46.13% | ||
| FCFM | 4.07% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-24%
OM growth 5Y-4.73%
PM growth 3Y-19.56%
PM growth 5Y-4.32%
GM growth 3Y-2.63%
GM growth 5Y-1.03%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 175.47% | ||
| Cap/Sales | 5.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.65% | ||
| Profit Quality | 36.09% | ||
| Current Ratio | 3.99 | ||
| Quick Ratio | 2.98 | ||
| Altman-Z | N/A |
F-Score7
WACC10.99%
ROIC/WACC0.87
Cap/Depr(3y)193.41%
Cap/Depr(5y)173.44%
Cap/Sales(3y)5.63%
Cap/Sales(5y)4.63%
Profit Quality(3y)84.15%
Profit Quality(5y)90.01%
High Growth Momentum
Growth
EPS 1Y (TTM)51.1%
EPS 3Y-17.95%
EPS 5Y5.78%
EPS Q2Q%-2.15%
EPS Next Y7.28%
EPS Next 2Y19.87%
EPS Next 3Y15.75%
EPS Next 5YN/A
Revenue 1Y (TTM)25.71%
Revenue growth 3Y-4.48%
Revenue growth 5Y11.93%
Sales Q2Q%-5.54%
Revenue Next Year0.26%
Revenue Next 2Y6.59%
Revenue Next 3Y6.38%
Revenue Next 5YN/A
EBIT growth 1Y128.39%
EBIT growth 3Y-27.41%
EBIT growth 5Y6.64%
EBIT Next Year33.85%
EBIT Next 3Y21.93%
EBIT Next 5YN/A
FCF growth 1Y-66.85%
FCF growth 3Y-39.79%
FCF growth 5Y-13.26%
OCF growth 1Y-48.22%
OCF growth 3Y-23.83%
OCF growth 5Y-0.13%