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 Analysis

Flawless balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

4.8%

SILC

4.5%

US Communications

5.3%

US Market


1 Year Return

-30.4%

SILC

-26.9%

US Communications

-10.7%

US Market

Return vs Industry: SILC underperformed the US Communications industry which returned -26.9% over the past year.

Return vs Market: SILC underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

SILCIndustryMarket
7 Day4.8%4.5%5.3%
30 Day-11.6%-1.4%-13.6%
90 Day-19.8%-16.2%-19.8%
1 Year-30.4%-30.4%-25.4%-26.9%-8.9%-10.7%
3 Year-42.2%-42.2%13.4%6.8%15.5%8.0%
5 Year-33.1%-36.4%43.7%28.2%35.2%20.4%

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?

19.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SILC ($26.79) is trading above our estimate of fair value ($16.39)

Significantly Below Fair Value: SILC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SILC is good value based on its PE Ratio (19.7x) compared to the Communications industry average (22.6x).

PE vs Market: SILC is poor value based on its PE Ratio (19.7x) compared to the US market (13.1x).


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 (1.2x) compared to the US Communications industry average (1.3x).


Next Steps

Future Growth

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

14.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SILC's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if SILC's earnings are forecast to grow faster than the US market

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

Revenue vs Market: SILC's revenue (14.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: SILC's revenue (14.6% 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?

2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SILC has high quality earnings.

Growing Profit Margin: SILC's current net profit margins (9.7%) are lower than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: SILC's earnings have grown by 2.9% per year over the past 5 years.

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

Earnings vs Industry: SILC had negative earnings growth (-30.1%) over the past year, making it difficult to compare to the Communications industry average (-13.2%).


Return on Equity

High ROE: SILC's Return on Equity (6.3%) is considered low.


Next Steps

Financial Health

How is Silicom's financial position?


Financial Position Analysis

Short Term Liabilities: SILC's short term assets ($110.4M) exceed its short term liabilities ($26.3M).

Long Term Liabilities: SILC's short term assets ($110.4M) exceed its long term liabilities ($5.8M).


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 -2.487045340221E+17x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

19.0yrs

Average management tenure


CEO

Shaike Orbach (67yo)

19s

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 ($USD884.85K) is below average for companies of similar size in the US market ($USD1.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Avi Eizenman
Co-Founder & Chairman19yrsUS$1.03m3.81% $7.6m
Yeshayahu Orbach
CEO, President & Director19yrsUS$884.85kno data
Eran Gilad
CFO & Company Secretary14.92yrsUS$322.24kno data
Elad Blatt
Chief Strategy & Business Development Officerno dataUS$450.66kno data
David Castiel
Vice President of Engineeringno dataUS$381.72kno data

19.0yrs

Average Tenure

62yo

Average Age

Experienced Management: SILC's management team is seasoned and experienced (19 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Avi Eizenman
Co-Founder & Chairman19yrsUS$1.03m3.81% $7.6m
Yeshayahu Orbach
CEO, President & Director19yrsUS$884.85kno data
Ilan Erez
External Director9.75yrsno datano data
Eli Doron
Director4.75yrsno datano data
Ayelet Hayak
External Director6.75yrsno datano data

9.8yrs

Average Tenure

62yo

Average Age

Experienced Board: SILC's board of directors are considered experienced (9.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$198.486m
  • Shares outstanding: 7.35m
  • 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 devices in North America, Europe, and the Asia Pacific. The company offers server network interface cards with and without bypass for the server networking industry. It also provides intelligent and programmable cards, including redirector and switching cards; encryption and data compression hardware acceleration cards; full field programmable gate array (FPGA) based packet processing cards; and compute blades. In addition, the company offers virtualized and universal customer premise equipment edge networking devices for SD-WAN and NFV deployments; networking targeted appliances; and bypass switches and intelligent bypass switches. It serves original equipment manufacturing, cloud, telco, and service provider customers. The company was founded in 1987 and is headquartered in Kfar Sava, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 08:51
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
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.