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 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
SIMO had positive earnings in the past year.
SIMO had a positive operating cash flow in the past year.
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 7.56% is fine compared to the rest of the industry. SIMO outperforms 75.45% of its industry peers.
SIMO's Return On Equity of 9.91% is fine compared to the rest of the industry. SIMO outperforms 69.09% of its industry peers.
SIMO has a better Return On Invested Capital (7.46%) than 74.55% 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 10.72%.
The 3 year average ROIC (12.40%) for SIMO is well above the current ROIC(7.46%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 9.91% | ||
| ROIC | 7.46% |
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 10.17%, SIMO is doing good in the industry, outperforming 65.45% of the companies in the same industry.
SIMO's Profit Margin has declined in the last couple of years.
The Operating Margin of SIMO (9.66%) is better than 60.91% of its industry peers.
In the last couple of years the Operating Margin of SIMO has declined.
The Gross Margin of SIMO (46.82%) is comparable to the rest of the 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 | 9.66% | ||
| PM (TTM) | 10.17% | ||
| GM | 46.82% |
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.
The number of shares outstanding for SIMO has been increased compared to 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/WACC0.69
WACC10.86%
2.3 Liquidity
SIMO has a Current Ratio of 4.10. This indicates that SIMO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SIMO (4.10) is better than 62.73% of its industry peers.
SIMO has a Quick Ratio of 3.00. This indicates that SIMO is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.00, SIMO is doing good in the industry, outperforming 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
The earnings per share for SIMO have decreased by -1.27% in the last 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 decrease in Revenue. The Revenue has decreased by -0.77% in the last year.
Measured over the past years, SIMO shows a quite strong growth in Revenue. The Revenue has been growing by 11.94% on average per year.
EPS 1Y (TTM)-1.27%
EPS 3Y-17.95%
EPS 5Y5.78%
EPS Q2Q%-28.13%
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y-4.48%
Revenue growth 5Y11.94%
Sales Q2Q%-5.68%
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 15.01% on average per year.
SIMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.19% yearly.
EPS Next Y2.8%
EPS Next 2Y17.4%
EPS Next 3Y15.01%
EPS Next 5YN/A
Revenue Next Year-0.21%
Revenue Next 2Y6.57%
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
SIMO is valuated rather expensively with a Price/Earnings ratio of 23.96.
Compared to the rest of the industry, the Price/Earnings ratio of SIMO indicates a somewhat cheap valuation: SIMO is cheaper than 72.73% of the companies listed in the same industry.
SIMO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
The Price/Forward Earnings ratio is 15.81, which indicates a correct valuation of SIMO.
Based on the Price/Forward Earnings ratio, SIMO is valued a bit cheaper than 76.36% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SIMO to the average of the S&P500 Index (36.28), we can say SIMO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIMO is valued a bit cheaper than 63.64% of the companies in the same industry.
SIMO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 82.83 | ||
| EV/EBITDA | 23.03 |
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.
A more expensive valuation may be justified as SIMO's earnings are expected to grow with 15.01% in the coming years.
PEG (NY)8.55
PEG (5Y)4.15
EPS Next 2Y17.4%
EPS Next 3Y15.01%
5. Dividend
5.1 Amount
SIMO has a Yearly Dividend Yield of 2.60%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.37, SIMO pays a better dividend. On top of this SIMO pays more dividend than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SIMO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
The dividend of SIMO is nicely growing with an annual growth rate of 10.06%!
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)10.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SIMO pays out 86.11% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SIMO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP86.11%
EPS Next 2Y17.4%
EPS Next 3Y15.01%
74.76
-1.75 (-2.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.53%
Inst Owner Change0.23%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.52B
Analysts78.75
Price Target80.81 (8.09%)
Short Float %11.51%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly Dividend0.5
Dividend Growth(5Y)10.06%
DP86.11%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.98%
Min EPS beat(2)23.84%
Max EPS beat(2)24.12%
EPS beat(4)4
Avg EPS beat(4)17.54%
Min EPS beat(4)5.96%
Max EPS beat(4)24.12%
EPS beat(8)7
Avg EPS beat(8)12.55%
EPS beat(12)7
Avg EPS beat(12)-2.27%
EPS beat(16)11
Avg EPS beat(16)-0.33%
Revenue beat(2)2
Avg Revenue beat(2)4.2%
Min Revenue beat(2)0.33%
Max Revenue beat(2)8.07%
Revenue beat(4)2
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)8.07%
Revenue beat(8)5
Avg Revenue beat(8)1.22%
Revenue beat(12)6
Avg Revenue beat(12)-3.16%
Revenue beat(16)8
Avg Revenue beat(16)-2.76%
PT rev (1m)-1.43%
PT rev (3m)7.42%
EPS NQ rev (1m)1.63%
EPS NQ rev (3m)-6.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 15.81 | ||
| P/S | 3.28 | ||
| P/FCF | 82.83 | ||
| P/OCF | 31.17 | ||
| P/B | 3.19 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 23.03 |
EPS(TTM)3.12
EY4.17%
EPS(NY)4.73
Fwd EY6.32%
FCF(TTM)0.9
FCFY1.21%
OCF(TTM)2.4
OCFY3.21%
SpS22.82
BVpS23.42
TBVpS23.42
PEG (NY)8.55
PEG (5Y)4.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 9.91% | ||
| ROCE | 8.8% | ||
| ROIC | 7.46% | ||
| ROICexc | 9.9% | ||
| ROICexgc | 9.9% | ||
| OM | 9.66% | ||
| PM (TTM) | 10.17% | ||
| GM | 46.82% | ||
| FCFM | 3.95% |
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-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 176.24% | ||
| Cap/Sales | 6.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.53% | ||
| Profit Quality | 38.88% | ||
| Current Ratio | 4.1 | ||
| Quick Ratio | 3 | ||
| Altman-Z | N/A |
F-Score5
WACC10.86%
ROIC/WACC0.69
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)-1.27%
EPS 3Y-17.95%
EPS 5Y5.78%
EPS Q2Q%-28.13%
EPS Next Y2.8%
EPS Next 2Y17.4%
EPS Next 3Y15.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y-4.48%
Revenue growth 5Y11.94%
Sales Q2Q%-5.68%
Revenue Next Year-0.21%
Revenue Next 2Y6.57%
Revenue Next 3Y6.19%
Revenue Next 5YN/A
EBIT growth 1Y-11.39%
EBIT growth 3Y-27.9%
EBIT growth 5Y6.23%
EBIT Next Year22.9%
EBIT Next 3Y23.58%
EBIT Next 5YN/A
FCF growth 1Y-64.51%
FCF growth 3Y-39.79%
FCF growth 5Y-13.26%
OCF growth 1Y-35.71%
OCF growth 3Y-23.87%
OCF growth 5Y-0.15%