Silicon Motion Technology Corporation
Silicon Motion Technology Corporation Fundamental Analysis
Silicon Motion Technology Corporation (SIMO) shows strong financial fundamentals with a PE ratio of 9.31, profit margin of 13.85%, and ROE of 15.21%. The company generates $3.5B in annual revenue with strong year-over-year growth of 25.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SIMO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSIMO demonstrates superior asset utilization.
Valuation Score
ExcellentSIMO trades at attractive valuation levels.
Growth Score
ModerateSIMO shows steady but slowing expansion.
Financial Health Score
ExcellentSIMO maintains a strong and stable balance sheet.
Profitability Score
ModerateSIMO maintains healthy but balanced margins.
Key Financial Metrics
Is SIMO Expensive or Cheap?
P/E Ratio
SIMO trades at 9.31 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SIMO's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Silicon Motion Technology Corporation at 1.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 38.69 times EBITDA. This signals the market has high growth expectations.
How Well Does SIMO Make Money?
Net Profit Margin
For every $100 in sales, Silicon Motion Technology Corporation keeps $13.85 as profit after all expenses.
Operating Margin
Core operations generate 10.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.21 in profit for every $100 of shareholder equity.
ROA
Silicon Motion Technology Corporation generates $10.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Silicon Motion Technology Corporation generates limited operating cash flow of $247.10M, signaling weaker underlying cash strength.
Free Cash Flow
Silicon Motion Technology Corporation generates weak or negative free cash flow of $25.51M, restricting financial flexibility.
FCF Per Share
Each share generates $0.76 in free cash annually.
FCF Yield
SIMO converts 0.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How SIMO Stacks Against Its Sector Peers
| Metric | SIMO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.31 | 34.79 | Better (Cheaper) |
| ROE | 15.21% | 1185.00% | Weak |
| Net Margin | 13.85% | -133093.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 2.79 | 4.90 | Strong Liquidity |
| ROA | 10.04% | -324805.00% (disorted) | Strong |
SIMO outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Silicon Motion Technology Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
83.75%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
47.30%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
4.82%
Industry Style: Growth, Innovation, High Beta
Growing