SILICON MOTION TECHNOL-ADR (SIMO) Stock Fundamental Analysis
NASDAQ:SIMO - Nasdaq - US82706C1080 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to SIMO. SIMO was compared to 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
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.
In the past 5 years SIMO always reported a positive cash flow from operatings.
1.2 Ratios
SIMO's Return On Assets of 9.35% is fine compared to the rest of the industry. SIMO outperforms 79.09% of its industry peers.
SIMO has a Return On Equity of 12.00%. This is in the better half of the industry: SIMO outperforms 75.45% of its industry peers.
SIMO's Return On Invested Capital of 8.65% is fine compared to the rest of the industry. SIMO outperforms 77.27% 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 11.17%.
| 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
SIMO's Profit Margin of 11.87% is fine compared to the rest of the industry. SIMO outperforms 70.00% of its industry peers.
In the last couple of years the Profit Margin of SIMO has declined.
SIMO's Operating Margin of 10.75% is fine compared to the rest of the industry. SIMO outperforms 64.55% 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 in line with 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SIMO is creating some value.
SIMO has more shares outstanding than it did 1 year ago.
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/WACC0.76
WACC11.46%
2.3 Liquidity
A Current Ratio of 4.45 indicates that SIMO has no problem at all paying its short term obligations.
SIMO has a Current ratio of 4.45. This is in the better half 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.
SIMO has a Quick ratio of 3.37. This is in the better half of the industry: SIMO outperforms 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.
SIMO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.84%.
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.
The Revenue is expected to grow by 6.19% on average over the next years.
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
Based on the Price/Earnings ratio of 19.09, the valuation of SIMO can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SIMO indicates a somewhat cheap valuation: SIMO is cheaper than 77.27% of the companies listed in the same industry.
SIMO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.69, the valuation of SIMO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SIMO indicates a rather cheap valuation: SIMO is cheaper than 86.36% of the companies listed in the same industry.
SIMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIMO is valued a bit cheaper than 69.09% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SIMO is valued a bit cheaper than 71.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.34 | ||
| EV/EBITDA | 17.17 |
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 15.01% in the coming years.
PEG (NY)6.81
PEG (5Y)3.3
EPS Next 2Y17.4%
EPS Next 3Y15.01%
5. Dividend
5.1 Amount
SIMO has a Yearly Dividend Yield of 3.25%.
Compared to an average industry Dividend Yield of 2.41, SIMO pays a better dividend. On top of this SIMO pays more dividend than 93.64% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SIMO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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%
64.71
-0.39 (-0.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change2.6%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.18B
Analysts78.75
Price Target73.06 (12.9%)
Short Float %7.52%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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)-2.77%
PT rev (3m)-5.89%
EPS NQ rev (1m)-18.9%
EPS NQ rev (3m)-18.9%
EPS NY rev (1m)-4.17%
EPS NY rev (3m)-4.17%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-5.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 13.69 | ||
| P/S | 2.79 | ||
| P/FCF | 29.34 | ||
| P/OCF | 18.23 | ||
| P/B | 2.82 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 17.17 |
EPS(TTM)3.39
EY5.24%
EPS(NY)4.73
Fwd EY7.31%
FCF(TTM)2.21
FCFY3.41%
OCF(TTM)3.55
OCFY5.49%
SpS23.18
BVpS22.93
TBVpS22.93
PEG (NY)6.81
PEG (5Y)3.3
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
WACC11.46%
ROIC/WACC0.76
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 Year33.85%
EBIT Next 3Y21.93%
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%