SILICON MOTION TECHNOL-ADR (SIMO) Stock Fundamental Analysis
NASDAQ:SIMO - Nasdaq - US82706C1080 - ADR - Currency: USD
SIMO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. SIMO has an average financial health and profitability rating. 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.
Each year in the past 5 years SIMO has been profitable.
In the past 5 years SIMO always reported a positive cash flow from operatings.
1.2 Ratios
SIMO has a Return On Assets of 8.78%. This is in the better half of the industry: SIMO outperforms 74.07% of its industry peers.
SIMO has a better Return On Equity (11.72%) than 71.30% of its industry peers.
SIMO's Return On Invested Capital of 9.57% is fine compared to the rest of the industry. SIMO outperforms 78.70% 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's Profit Margin of 11.29% is fine compared to the rest of the industry. SIMO outperforms 65.74% of its industry peers.
SIMO's Profit Margin has declined in the last couple of years.
SIMO has a Operating Margin of 11.71%. This is in the better half of the industry: SIMO outperforms 65.74% of its industry peers.
SIMO's Operating Margin has declined in the last couple of years.
SIMO has a Gross Margin of 46.13%. This is comparable to the rest of the industry: SIMO outperforms 50.93% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SIMO 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/WACC0.81
WACC11.82%
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.
The Current ratio of SIMO (3.99) is better than 66.67% 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 better Quick ratio (2.98) than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.99 | ||
| Quick Ratio | 2.98 |
3. Growth
3.1 Past
SIMO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.10%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.78% on average over the past years.
SIMO shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.71%.
Measured over the past years, SIMO shows a quite strong growth in Revenue. The Revenue has been growing by 11.93% on average per year.
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
SIMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.75% yearly.
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
With a Price/Earnings ratio of 17.14, SIMO is valued on the expensive side.
Based on the Price/Earnings ratio, SIMO is valued cheaply inside the industry as 82.41% of the companies are valued more expensively.
SIMO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.62.
A Price/Forward Earnings ratio of 15.98 indicates a correct valuation of SIMO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SIMO indicates a rather cheap valuation: SIMO is cheaper than 87.04% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SIMO to the average of the S&P500 Index (22.70), we can say SIMO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 15.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIMO is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
62.04% of the companies in the same industry are more expensive than SIMO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.48 | ||
| EV/EBITDA | 14.28 |
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.
A more expensive valuation may be justified as SIMO's earnings are expected to grow with 15.75% in the coming years.
PEG (NY)2.36
PEG (5Y)2.97
EPS Next 2Y19.87%
EPS Next 3Y15.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.33%, SIMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.21, SIMO pays a better dividend. On top of this SIMO pays more dividend than 95.37% of the companies listed in the same industry.
SIMO's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of SIMO decreases each year by -16.04%.
SIMO has been paying a dividend for at least 10 years, so it has a reliable track record.
SIMO has decreased its dividend 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%
58.8
-0.91 (-1.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change-80.68%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.98B
Analysts78.75
Price Target75.14 (27.79%)
Short Float %11.41%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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)-3.91%
PT rev (3m)-3.91%
EPS NQ rev (1m)-35.78%
EPS NQ rev (3m)-52.37%
EPS NY rev (1m)-10.31%
EPS NY rev (3m)-10.31%
Revenue NQ rev (1m)-12.16%
Revenue NQ rev (3m)-19.6%
Revenue NY rev (1m)-5.09%
Revenue NY rev (3m)-5.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 15.98 | ||
| P/S | 2.46 | ||
| P/FCF | 60.48 | ||
| P/OCF | 25.66 | ||
| P/B | 2.56 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 14.28 |
EPS(TTM)3.43
EY5.83%
EPS(NY)3.68
Fwd EY6.26%
FCF(TTM)0.97
FCFY1.65%
OCF(TTM)2.29
OCFY3.9%
SpS23.86
BVpS22.97
TBVpS22.97
PEG (NY)2.36
PEG (5Y)2.97
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
WACC11.82%
ROIC/WACC0.81
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 Year28.36%
EBIT Next 3YN/A
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%