113.15 USD
+0.22 (+0.19%)
115 USD
+1.85 (+1.63%)
We assign a fundamental rating of 6 out of 10 to SIMO. SIMO was compared to 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 quite expensive at the moment. It does show 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.
- Each year in the past 5 years SIMO had a positive operating cash flow.
1.2 Ratios
- SIMO has a Return On Assets of 8.48%. This is in the better half of the industry: SIMO outperforms 76.99% of its industry peers.
- SIMO has a better Return On Equity (11.57%) than 75.22% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.58%, SIMO is in the better half of the industry, outperforming 74.34% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SIMO is in line with the industry average of 10.75%.
- 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.
- SIMO's Operating Margin of 9.90% is fine compared to the rest of the industry. SIMO outperforms 62.83% of its industry peers.
- In the last couple of years the Operating Margin of SIMO has declined.
- SIMO has a Gross Margin (47.39%) 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 | 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
- SIMO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for SIMO has been increased compared to 1 year ago.
- The number of shares outstanding for SIMO has been reduced compared to 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
WACC10.93%
2.3 Liquidity
- A Current Ratio of 3.44 indicates that SIMO has no problem at all paying 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.
- A Quick Ratio of 2.10 indicates that SIMO has no problem at all paying its short term obligations.
- SIMO has a Quick ratio (2.10) which is comparable to the rest of the industry.
| 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.
- The Revenue has been growing by 11.94% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 20.72% on average over the next years. This is a very strong growth
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- A Price/Earnings ratio of 35.36 indicates a quite expensive valuation of SIMO.
- 76.99% of the companies in the same industry are more expensive than SIMO, based on the Price/Earnings ratio.
- SIMO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 23.52, SIMO is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, SIMO is valued cheaper than 83.19% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. SIMO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.36 | ||
| Fwd PE | 23.52 |
4.2 Price Multiples
- SIMO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SIMO is cheaper than 67.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 33.13 |
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 20.72% in the coming years.
PEG (NY)5.27
PEG (5Y)6.12
EPS Next 2Y18.44%
EPS Next 3Y20.72%
5. Dividend
5.1 Amount
- SIMO has a Yearly Dividend Yield of 1.73%.
- SIMO's Dividend Yield is rather good when compared to the industry average which is at 0.49. SIMO pays more dividend than 89.38% of the companies in the same industry.
- SIMO's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| 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 35.36 and the Price/Book (PB) ratio is 4.57.
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%.