NasdaqGS:SIMO

Stock Analysis Report

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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 and good value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

SIMO

4.9%

US Semiconductor

2.3%

US Market


1 Year Return

9.6%

SIMO

46.8%

US Semiconductor

17.2%

US Market

Return vs Industry: SIMO underperformed the US Semiconductor industry which returned 44.9% over the past year.

Return vs Market: SIMO underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

SIMOIndustryMarket
7 Day4.3%4.9%2.3%
30 Day2.5%-0.06%-4.6%
90 Day-19.4%13.4%7.4%
1 Year13.2%9.6%49.6%46.8%19.8%17.2%
3 Year-12.2%-19.6%84.4%74.8%37.4%28.3%
5 Year52.8%35.1%240.4%207.2%83.8%63.0%

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?

8.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIMO ($38.86) is trading below our estimate of fair value ($42.26)

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 (16.3x) compared to the US Semiconductor industry average (35x).

PE vs Market: SIMO is good value based on its PE Ratio (16.3x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: SIMO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SIMO is good value based on its PB Ratio (2.3x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Silicon Motion Technology forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIMO's forecast earnings growth (12% per year) is above the savings rate (2.2%).

Earnings vs Market: SIMO's earnings (12% per year) are forecast to grow slower than the US market (22.8% per year).

High Growth Earnings: SIMO's earnings are forecast to grow, but not significantly.

Revenue vs Market: SIMO's revenue (10.4% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: SIMO's revenue (10.4% 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 low in 3 years time (17.8%).


Next Steps

Past Performance

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

0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIMO has high quality earnings.

Growing Profit Margin: SIMO's current net profit margins (15.7%) are lower than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: SIMO's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: SIMO's earnings growth over the past year (6.4%) exceeds its 5-year average (0.9% per year).

Earnings vs Industry: SIMO earnings growth over the past year (6.4%) underperformed the Semiconductor industry 7.5%.


Return on Equity

High ROE: SIMO's Return on Equity (14.1%) is considered low.


Next Steps

Financial Health

How is Silicon Motion Technology's financial position?


Financial Position Analysis

Short Term Liabilities: SIMO's short term assets ($600.2M) exceed its short term liabilities ($116.1M).

Long Term Liabilities: SIMO's short term assets ($600.2M) exceed its long term liabilities ($27.2M).


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


Next Steps

Dividend

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

3.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SIMO's dividend (3.6%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: SIMO's dividend (3.6%) is low compared to the top 25% of dividend payers in the US market (4.83%).


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 (56.6%), 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 (34.8% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Semiconductors industry.

Management

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

8.6yrs

Average management tenure


CEO

Wallace Kou (62 yo)

25.67yrs

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

NamePositionTenureCompensationOwnership
Chia-Chang Kou
Founder25.67yrsno data1.36%
$ 18.6m
Riyadh Lai
Chief Financial Officer13.42yrsno data1.28%
$ 17.4m
Ken Chen
Vice President of Operations16.83yrsno data0.14%
$ 1.9m
Christopher A. Chaney
Director of Investor Relations & Strategy1.42yrsno datano data
Arthur Yeh
Vice President of Salesno datano data0.030%
$ 413.2k
Nelson S. Duann
Senior VP of Marketing & R&D and Director2yrsno data0.033%
$ 446.9k
Robert C. Fan
President of SMI USA3.83yrsno data0.044%
$ 602.3k

8.6yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SIMO's management team is seasoned and experienced (8.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chia-Chang Kou
Founder25.67yrsno data1.36%
$ 18.6m
Nelson S. Duann
Senior VP of Marketing & R&D and Director2yrsno data0.033%
$ 446.9k
Bangji Chow
Independent Chairman of the Board15.42yrsno data1.52%
$ 20.8m
Yung-Chien Wang
Director15.25yrsno data0.60%
$ 8.1m
Lien-Chun Liu
Director15.25yrsno data0.17%
$ 2.3m
Tsung-Ming Chung
Director15.25yrsno data0.057%
$ 777.1k
Han-Ping D. Shieh
Director6yrsno data0.043%
$ 590.7k
Kuan-Ming Lin
Director2yrsno data0.014%
$ 194.4k
Steve Chen
Director8.67yrsno data0.036%
$ 485.8k

15.3yrs

Average Tenure

63yo

Average Age

Experienced Board: SIMO's board of directors are seasoned and experienced ( 15.3 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$1.366b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIMONasdaqGS (Nasdaq Global Select)YesSPONSORED ADRUSUSDJun 2005
S9MDB (Deutsche Boerse AG)YesSPONSORED ADRDEEURJun 2005
SIMO NBMV (Bolsa Mexicana de Valores)YesSPONSORED ADRMXMXNJun 2005

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 Analysis2020/09/30 00:15
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.