NasdaqGS:SIMO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet and fair 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


Market Performance


7 Day Return

-0.4%

SIMO

-0.01%

US Semiconductor

0.4%

US Market


1 Year Return

-10.1%

SIMO

21.5%

US Semiconductor

6.9%

US Market

Return vs Industry: SIMO underperformed the US Semiconductor industry which returned 21.5% over the past year.

Return vs Market: SIMO underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

SIMOIndustryMarket
7 Day-0.4%-0.01%0.4%
30 Day14.3%-0.4%-1.1%
90 Day-7.9%3.3%-0.5%
1 Year-7.2%-10.1%23.9%21.5%9.3%6.9%
3 Year-9.7%-16.2%80.5%69.8%45.8%36.4%
5 Year72.8%54.4%132.4%108.4%62.9%45.1%

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?

17.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SIMO ($37.9) is trading above our estimate of fair value ($19.74)

Significantly Undervalued: SIMO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SIMO is good value based on its PE Ratio (17.1x) compared to the Semiconductor industry average (27.4x).

PE vs Market: SIMO is good value based on its PE Ratio (17.1x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: SIMO is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SIMO is good value based on its PB Ratio (2.4x) compared to the US Semiconductor industry average (2.7x).


Next Steps

Future Growth

How is Silicon Motion Technology forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIMO's forecast earnings growth (13.9% per year) is above the savings rate (2.7%).

Earnings vs Market: SIMO's earnings (13.9% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: SIMO's revenue (12.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: SIMO's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SIMO's Return on Equity is forecast to be low in 3 years time (16.1%).


Next Steps

Past Performance

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

13.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SIMO's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: SIMO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SIMO had negative earnings growth (-2.7%) over the past year, making it difficult to compare to the Semiconductor industry average (-6.2%).


Return on Equity

High ROE: SIMO's Return on Equity (13.9%) is considered low.


Return on Assets

ROA vs Industry: SIMO has a higher Return on Assets than the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: SIMO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Silicon Motion Technology's financial position?


Financial Position Analysis

Short Term Liabilities: SIMO's short term assets ($547.0M) exceeds its short term liabilities ($93.4M)

Long Term Liabilities: SIMO's short term assets (547.0M) exceeds its long term liabilities (31.9M)


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

Inventory Level: SIMO has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SIMO's debt is covered by short term assets.


Next Steps

Dividend

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

3.17%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SIMO's dividend (3.17%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SIMO's dividend (3.17%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.2%), 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 (40.8% payout ratio).


Next Steps

Management

What is the CEO of Silicon Motion Technology's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Wallace Kou (61yo)

24.8yrs

Tenure

0

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  ...


Management Age and Tenure

4.3yrs

Average Tenure

55yo

Average Age

Experienced Management: SIMO's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

14.3yrs

Average Tenure

62yo

Average Age

Experienced Board: SIMO's board of directors are seasoned and experienced ( 14.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Wallace Kou (61yo)

    Founder

    • Tenure: 24.8yrs
  • Arthur Yeh (58yo)

    Vice President of Sales

    • Tenure: 0yrs
  • Ken Chen (58yo)

    Vice President of Operations

    • Tenure: 15.9yrs
  • Riyadh Lai (50yo)

    Chief Financial Officer

    • Tenure: 12.5yrs
  • Chris Chaney

    Director of Investor Relations & Strategy

    • Tenure: 0.5yrs
  • Nelson Duann (50yo)

    Senior VP of Marketing & R&D and Director

    • Tenure: 1.1yrs
  • Robert Fan (55yo)

    President of SMI USA

    • Tenure: 2.9yrs
  • Xueshi Yang (42yo)

    Senior VP & GM of Shannon Systems

    • Tenure: 4.3yrs

Board Members

  • Wallace Kou (61yo)

    Founder

    • Tenure: 24.8yrs
  • James Chow (69yo)

    Chairman

    • Tenure: 14.5yrs
  • Yung-Chien Wang (56yo)

    Director

    • Tenure: 14.3yrs
  • Lien-Chun Liu (62yo)

    Director

    • Tenure: 14.3yrs
  • Tsung-Ming Chung (69yo)

    Director

    • Tenure: 14.3yrs
  • Han-Ping Shieh (65yo)

    Director

    • Tenure: 5.1yrs
  • Kenneth Lin (66yo)

    Director

    • Tenure: 1.1yrs
  • Nelson Duann (50yo)

    Senior VP of Marketing & R&D and Director

    • Tenure: 1.1yrs
  • Steve Chen (47yo)

    Director

    • Tenure: 7.8yrs

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$1.384b
  • Shares outstanding: 36.52m
  • Website: https://www.siliconmotion.com

Number of Employees


Location

  • Silicon Motion Technology Corporation
  • #909 Cheung Sha Wan Road
  • 27th 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 worldwide. It offers NAND flash controllers for  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:51
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.