NasdaqGS:SIMO

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with moderate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

SIMO

2.3%

US Semiconductor

1.5%

US Market


1 Year Return

4.8%

SIMO

36.3%

US Semiconductor

6.9%

US Market

Return vs Industry: SIMO underperformed the US Semiconductor industry which returned 36.3% over the past year.

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


Shareholder returns

SIMOIndustryMarket
7 Day1.6%2.3%1.5%
30 Day-0.8%7.6%5.9%
90 Day0.5%22.4%17.9%
1 Year8.3%4.8%38.9%36.3%9.2%6.9%
3 Year6.8%-1.9%80.8%71.1%36.4%27.5%
5 Year71.4%51.9%200.8%171.2%64.9%47.0%

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?

18.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SIMO ($43.85) is trading above our estimate of fair value ($20.49)

Significantly Below Fair Value: 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 (18.8x) compared to the US Semiconductor industry average (36.9x).

PE vs Market: SIMO is poor value based on its PE Ratio (18.8x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: SIMO is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: SIMO is good value based on its PB Ratio (2.7x) 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 11 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIMO's forecast earnings growth (11.3% per year) is above the savings rate (2.2%).

Earnings vs Market: SIMO's earnings (11.3% per year) are forecast to grow slower than the US market (22.4% per year).

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

Revenue vs Market: SIMO's revenue (12.1% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: SIMO's revenue (12.1% 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 (20.7%)


Next Steps

Past Performance

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

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIMO has high quality earnings.

Growing Profit Margin: SIMO's current net profit margins (16.6%) are lower than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: SIMO's earnings have grown by 2.4% 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 (-3.9%) over the past year, making it difficult to compare to the Semiconductor industry average (-10.8%).


Return on Equity

High ROE: SIMO's Return on Equity (14.5%) 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 ($586.5M) exceed its short term liabilities ($129.4M).

Long Term Liabilities: SIMO's short term assets ($586.5M) exceed its long term liabilities ($25.9M).


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


Next Steps

Dividend

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

3.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SIMO's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: SIMO's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (4.58%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.6%), 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 (36% payout ratio).


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Wallace Kou (62yo)

25.5yrs

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
Founder25.5yrsno data1.36% $21.0m
Riyadh Lai
Chief Financial Officer13.25yrsno data1.28% $19.7m
Ken Chen
Vice President of Operations16.67yrsno data0.14% $2.2m
Christopher A. Chaney
Director of Investor Relations & Strategy1.25yrsno datano data
Arthur Yeh
Vice President of Salesno datano data0.030% $466.2k
Nelson S. Duann
Senior VP of Marketing & R&D and Director1.83yrsno data0.033% $504.3k
Robert C. Fan
President of SMI USA3.67yrsno data0.044% $679.7k

8.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SIMO's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chia-Chang Kou
Founder25.5yrsno data1.36% $21.0m
Nelson S. Duann
Senior VP of Marketing & R&D and Director1.83yrsno data0.033% $504.3k
Bangji Chow
Independent Chairman of the Board15.25yrsno data1.52% $23.5m
Yung-Chien Wang
Director15.08yrsno data0.60% $9.2m
Lien-Chun Liu
Director15.08yrsno data0.17% $2.6m
Tsung-Ming Chung
Director15.08yrsno data0.057% $876.9k
Han-Ping D. Shieh
Director5.83yrsno data0.043% $666.6k
Kuan-Ming Lin
Director1.83yrsno data0.014% $219.3k
Steve Chen
Director8.5yrsno data0.036% $548.2k

15.1yrs

Average Tenure

63yo

Average Age

Experienced Board: SIMO's board of directors are seasoned and experienced ( 15.1 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$1.541b
  • 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)YesSPONS ADR EACH REP 4 COM USD0.01USUSDJun 2005
S9MDB (Deutsche Boerse AG)YesSPONS ADR EACH REP 4 COM USD0.01DEEURJun 2005
SIMO NBMV (Bolsa Mexicana de Valores)YesSPONS ADR EACH REP 4 COM USD0.01MXMXNJun 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 and other devices, as well as embedded multimediacard (eMMC) and UFS mobile embedded storage used in smartphones. The company also provides enterprise-grade SSDs used in data centers; and small form-factor specialized SSDs used in industrial, commercial, and automotive applications. It sells its controllers under the SMI brand; data center SSDs under the Shannon brand; and single-chip industrial-grade SSDs under the Ferri SSD and Ferri-eMMC brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to flash makers, module makers, hyperscalers, and OEMs. It operates in Taiwan, the United States, Korea, China, Malaysia, Singapore, and internationally. Silicon Motion Technology Corporation was founded in 1995 and is based in Kowloon, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 23:53
End of Day Share Price2020/07/15 00:00
Earnings2020/03/31
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.