116.17 USD
-0.93 (-0.79%)
119.44 USD
+3.27 (+2.81%)
SIMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 valied quite expensively at the moment, while 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.
- SIMO had a positive operating cash flow in each of the past 5 years.
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.
- Looking at the Return On Equity, with a value of 11.57%, SIMO is in the better half of the industry, outperforming 75.22% of the companies in the same industry.
- 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 10.79%.
- 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 has a better Profit Margin (12.08%) than 68.14% of its industry peers.
- SIMO's Profit Margin has declined in the last couple of years.
- The Operating Margin of SIMO (9.90%) is better than 62.83% of its industry peers.
- In the last couple of years the Operating Margin of SIMO has declined.
- Looking at the Gross Margin, with a value of 47.39%, SIMO is in line with its industry, outperforming 57.52% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SIMO is still 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.
- 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
WACC10.95%
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's Current ratio of 3.44 is in line compared to the rest of the industry. SIMO outperforms 58.41% of its industry peers.
- 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.
- SIMO has a Quick ratio (2.10) which is in line with its industry peers.
| 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%.
- 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 decrease in Revenue. The Revenue has decreased by -2.02% 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)-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
- Based on estimates for the next years, SIMO will show a very strong growth in Earnings Per Share. The EPS will grow by 20.72% on average per year.
- SIMO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.02% yearly.
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
- With a Price/Earnings ratio of 36.30, SIMO can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, SIMO is valued a bit cheaper than 77.88% of the companies in the same industry.
- SIMO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.39.
- Based on the Price/Forward Earnings ratio of 24.14, the valuation of SIMO can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, SIMO is valued cheaply inside the industry as 82.30% of the companies are valued more expensively.
- SIMO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.3 | ||
| Fwd PE | 24.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SIMO is valued a bit 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 SIMO does not grow enough to justify the current Price/Earnings ratio.
- 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 20.72% in the coming years.
PEG (NY)5.41
PEG (5Y)6.28
EPS Next 2Y18.44%
EPS Next 3Y20.72%
5. Dividend
5.1 Amount
- SIMO has a Yearly Dividend Yield of 1.73%.
- 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.
- 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 36.3 and the Price/Book (PB) ratio is 4.69.
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%.