NasdaqGS:SILC

Stock Analysis Report

Executive Summary

Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for a range of servers, server based systems, and communications devices in North America, Europe, and the Asia Pacific.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Silicom's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SILC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

SILC

0.3%

US Communications

0.4%

US Market


1 Year Return

-19.8%

SILC

4.2%

US Communications

13.1%

US Market

Return vs Industry: SILC underperformed the US Communications industry which returned 4.2% over the past year.

Return vs Market: SILC underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

SILCIndustryMarket
7 Day-2.4%0.3%0.4%
30 Day0.4%3.8%4.0%
90 Day7.1%4.1%7.4%
1 Year-19.8%-19.8%6.6%4.2%15.6%13.1%
3 Year-17.2%-18.9%46.2%36.8%48.2%38.6%
5 Year3.1%-4.4%78.2%58.3%62.6%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Silicom undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SILC ($32.14) is trading below our estimate of fair value ($77.06)

Significantly Below Fair Value: SILC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SILC is good value based on its PE Ratio (13.7x) compared to the Communications industry average (20.5x).

PE vs Market: SILC is good value based on its PE Ratio (13.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SILC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SILC is good value based on its PB Ratio (1.5x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is Silicom forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SILC's earnings are forecast to decline over the next 3 years (-0.9% per year).

Earnings vs Market: SILC's earnings are forecast to decline over the next 3 years (-0.9% per year).

High Growth Earnings: SILC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SILC's revenue (2.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SILC's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SILC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Silicom performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SILC has a high level of non-cash earnings.

Growing Profit Margin: SILC's current net profit margins (14.1%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: SILC's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: SILC's earnings growth over the past year (17.3%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: SILC earnings growth over the past year (17.3%) underperformed the Communications industry 42.2%.


Return on Equity

High ROE: SILC's Return on Equity (10.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Silicom's financial position?


Financial Position Analysis

Short Term Liabilities: SILC's short term assets ($97.1M) exceeds its short term liabilities ($17.0M)

Long Term Liabilities: SILC's short term assets (97.1M) exceeds its long term liabilities (5.1M)


Debt to Equity History and Analysis

Debt Level: SILC is debt free.

Reducing Debt: SILC has not had any debt for past 5 years.

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

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


Balance Sheet

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

Debt Coverage by Assets: SILC's debt is not covered by short term assets (assets are -2.187578482999E+17x debt).


Next Steps

Dividend

What is Silicom's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SILC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SILC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SILC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SILC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SILC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SILC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

18.6yrs

Average management tenure


CEO

Shaike Orbach (67yo)

18.6yrs

Tenure

US$884,846

Compensation

Mr. Yeshayahu Orbach, also known as Shaike, has been the President and Chief Executive Officer of Silicom Ltd. since April 2001. In December, 2001. Mr. Orbach served as the President and Chief Executive Of ...


CEO Compensation Analysis

Compensation vs Market: Shaike's total compensation ($USD884.85K) is about average for companies of similar size in the US market ($USD1.14M).

Compensation vs Earnings: Shaike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

18.6yrs

Average Tenure

62yo

Average Age

Experienced Management: SILC's management team is seasoned and experienced (18.6 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

62yo

Average Age

Experienced Board: SILC's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: SILC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$3,028,57316 Jan 19
Zohar Zisapel
EntityIndividual
Shares79,075
Max PriceUS$38.30
SellUS$5,296,54626 Nov 18
Lomsha Ltd.
EntityCompany
Shares121,948
Max PriceUS$44.62

Ownership Breakdown

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


Management Team

  • Avi Eizenman (62yo)

    Co-Founder & Chairman

    • Tenure: 18.6yrs
    • Compensation: US$1.03m
  • Shaike Orbach (67yo)

    CEO, President & Director

    • Tenure: 18.6yrs
    • Compensation: US$884.85k
  • Eran Gilad (52yo)

    CFO & Company Secretary

    • Tenure: 14.5yrs
    • Compensation: US$322.24k
  • David Castiel

    Vice President of Engineering

    • Tenure: 0yrs
    • Compensation: US$381.72k
  • Elad Blatt

    Chief Strategy & Business Development Officer

    • Tenure: 0yrs
    • Compensation: US$450.66k

Board Members

  • Avi Eizenman (62yo)

    Co-Founder & Chairman

    • Tenure: 18.6yrs
    • Compensation: US$1.03m
  • Ilan Erez (52yo)

    External Director

    • Tenure: 9.3yrs
  • Eli Doron (66yo)

    Director

    • Tenure: 4.3yrs
  • Shaike Orbach (67yo)

    CEO, President & Director

    • Tenure: 18.6yrs
    • Compensation: US$884.85k
  • Ayelet Hayak (49yo)

    External Director

    • Tenure: 6.3yrs

Company Information

Silicom Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Silicom Ltd.
  • Ticker: SILC
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$244.268m
  • Shares outstanding: 7.60m
  • Website: https://www.silicom-usa.com

Number of Employees


Location

  • Silicom Ltd.
  • 14 Atir Yeda Street
  • Kfar Sava
  • 4464323
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SILCNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDFeb 1994
S1LDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1994

Biography

Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for a range of servers, server based systems, and communications devi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 23:46
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.