SILICON MOTION TECHNOL-ADR (SIMO) Stock Fundamental Analysis
NASDAQ:SIMO - Nasdaq - US82706C1080 - ADR - Currency: USD
Overall SIMO gets a fundamental rating of 6 out of 10. We evaluated SIMO against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. SIMO is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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
The Return On Assets of SIMO (9.35%) is better than 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.
With a decent Return On Invested Capital value of 8.65%, SIMO is doing good in the industry, outperforming 77.27% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SIMO is in line with the industry average of 10.58%.
| 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 has a Profit Margin of 11.87%. This is in the better half of the industry: SIMO outperforms 69.09% 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 65.45% of its industry peers.
In the last couple of years the Operating Margin of SIMO has declined.
SIMO's Gross Margin of 46.37% is in line compared to the rest of the industry. SIMO outperforms 51.82% of its industry peers.
SIMO's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, SIMO has more shares outstanding
Compared to 5 years ago, SIMO has less shares outstanding
SIMO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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/WACC0.75
WACC11.6%
2.3 Liquidity
SIMO has a Current Ratio of 4.45. This indicates that SIMO is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.45, SIMO is doing good in the industry, outperforming 65.45% of the companies in the same industry.
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.
With a decent Quick ratio value of 3.37, SIMO is doing good in the industry, outperforming 64.55% of the companies in the same industry.
| 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.
Looking at the last year, SIMO shows a quite strong growth in Revenue. The Revenue has grown by 10.84% in the last year.
The Revenue has been growing by 11.94% on average over the past years. This is quite good.
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.
Based on estimates for the next years, SIMO will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
EPS Next Y2.8%
EPS Next 2Y17.4%
EPS Next 3Y15.01%
EPS Next 5YN/A
Revenue Next Year-0.26%
Revenue Next 2Y6.5%
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
With a Price/Earnings ratio of 21.67, SIMO is valued on the expensive side.
76.36% of the companies in the same industry are more expensive than SIMO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SIMO to the average of the S&P500 Index (27.41), we can say SIMO is valued slightly cheaper.
SIMO is valuated correctly with a Price/Forward Earnings ratio of 15.54.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SIMO indicates a rather cheap valuation: SIMO is cheaper than 85.45% of the companies listed in the same industry.
SIMO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 15.54 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than SIMO, based on the Enterprise Value to EBITDA ratio.
SIMO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SIMO is cheaper than 73.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.31 | ||
| EV/EBITDA | 19.83 |
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)7.73
PEG (5Y)3.75
EPS Next 2Y17.4%
EPS Next 3Y15.01%
5. Dividend
5.1 Amount
SIMO has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
SIMO's Dividend Yield is rather good when compared to the industry average which is at 2.17. SIMO pays more dividend than 93.64% of the companies in the same industry.
SIMO's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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
72.71% of the earnings are spent on dividend by SIMO. This is not a sustainable payout ratio.
The dividend of SIMO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP72.71%
EPS Next 2Y17.4%
EPS Next 3Y15.01%
73.47
-1.36 (-1.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.53%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.47B
Analysts78.75
Price Target81.98 (11.58%)
Short Float %12.88%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)12.22%
PT rev (3m)9.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 15.54 | ||
| P/S | 3.17 | ||
| P/FCF | 33.31 | ||
| P/OCF | 20.7 | ||
| P/B | 3.2 | ||
| P/tB | 3.2 | ||
| EV/EBITDA | 19.83 |
EPS(TTM)3.39
EY4.61%
EPS(NY)4.73
Fwd EY6.44%
FCF(TTM)2.21
FCFY3%
OCF(TTM)3.55
OCFY4.83%
SpS23.18
BVpS22.93
TBVpS22.93
PEG (NY)7.73
PEG (5Y)3.75
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
WACC11.6%
ROIC/WACC0.75
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-0.26%
Revenue Next 2Y6.5%
Revenue Next 3Y6.19%
Revenue Next 5YN/A
EBIT growth 1Y56.47%
EBIT growth 3Y-27.9%
EBIT growth 5Y6.23%
EBIT Next Year22.9%
EBIT Next 3Y23.58%
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%