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Market Cap

US$2.4b

Last Updated

2021/04/10 23:33 UTC

Data Sources

Company Financials +

Executive Summary

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Silicon Motion Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SIMO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SIMO's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

9.2%

SIMO

2.0%

US Semiconductor

1.6%

US Market


1 Year Return

67.5%

SIMO

91.7%

US Semiconductor

55.3%

US Market

Return vs Industry: SIMO underperformed the US Semiconductor industry which returned 91.7% over the past year.

Return vs Market: SIMO exceeded the US Market which returned 55.3% over the past year.


Shareholder returns

SIMOIndustryMarket
7 Day9.2%2.0%1.6%
30 Day10.4%11.5%4.1%
90 Day47.0%10.7%5.5%
1 Year72.9%67.5%94.8%91.7%58.1%55.3%
3 Year55.6%42.1%123.1%111.7%63.8%53.3%
5 Year98.5%74.6%341.2%298.5%120.2%95.7%

Long-Term Price Volatility Vs. Market

How volatile is Silicon Motion Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Silicon Motion Technology undervalued compared to its fair value and its price relative to the market?

4.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIMO ($69.35) is trading below our estimate of fair value ($72.39)

Significantly Below Fair Value: SIMO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SIMO is good value based on its PE Ratio (30.4x) compared to the US Semiconductor industry average (40.2x).

PE vs Market: SIMO is poor value based on its PE Ratio (30.4x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: SIMO is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SIMO is good value based on its PB Ratio (4.3x) compared to the US Semiconductor industry average (5.3x).


Future Growth

How is Silicon Motion Technology forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIMO's forecast earnings growth (27% per year) is above the savings rate (2%).

Earnings vs Market: SIMO's earnings (27% per year) are forecast to grow faster than the US market (18.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SIMO's revenue (15.9% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: SIMO's revenue (15.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SIMO's Return on Equity is forecast to be high in 3 years time (21.4%)


Past Performance

How has Silicon Motion Technology performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIMO has a large one-off loss of $22.6M impacting its December 31 2020 financial results.

Growing Profit Margin: SIMO's current net profit margins (14.8%) are higher than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: SIMO's earnings have declined by 1.1% per year over the past 5 years.

Accelerating Growth: SIMO's earnings growth over the past year (23.5%) exceeds its 5-year average (-1.1% per year).

Earnings vs Industry: SIMO earnings growth over the past year (23.5%) underperformed the Semiconductor industry 33.2%.


Return on Equity

High ROE: SIMO's Return on Equity (14.3%) is considered low.


Financial Health

How is Silicon Motion Technology's financial position?


Financial Position Analysis

Short Term Liabilities: SIMO's short term assets ($607.0M) exceed its short term liabilities ($158.7M).

Long Term Liabilities: SIMO's short term assets ($607.0M) exceed its long term liabilities ($25.6M).


Debt to Equity History and Analysis

Debt Level: SIMO is debt free.

Reducing Debt: SIMO had no debt 5 years ago.

Debt Coverage: SIMO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SIMO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Silicon Motion Technology current dividend yield, its reliability and sustainability?

2.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SIMO's dividend (2.02%) is higher than the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: SIMO's dividend (2.02%) is low compared to the top 25% of dividend payers in the US market (3.5%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SIMO has been paying a dividend for less than 10 years.

Growing Dividend: SIMO's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.4%), SIMO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SIMO's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.2yrs

Average management tenure


CEO

Wallace Kou (62 yo)

26.25yrs

Tenure

Mr. Chia-Chang Kou, also known as Wallace is a Senior Consultant at Concord Venture Capital Co., Ltd. Mr. Kou serves as the President at Silicon Motion Inc. He founded Silicon Motion, Inc. in 1995. He has ...


Leadership Team

Experienced Management: SIMO's management team is seasoned and experienced (9.2 years average tenure).


Board Members

Experienced Board: SIMO's board of directors are seasoned and experienced ( 15.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Silicon Motion Technology Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Silicon Motion Technology Corporation
  • Ticker: SIMO
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$2.437b
  • Shares outstanding: 35.15m
  • Website: https://www.siliconmotion.com

Number of Employees


Location

  • Silicon Motion Technology Corporation
  • Centre 600, Unit B
  • 16th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings


Biography

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. It offers solid-state drive (SSDs) used in PCs ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 23:33
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.