Silicon Motion Technology Corp

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SIMO : NASDAQ : Technology
$44.18 -0.45 | -1.01%
Today's Range: 44.13 - 44.97
Avg. Daily Volume: 606500.0
09/21/17 - 4:00 PM ET

Financial Analysis


SILICON MOTION TECH -ADR's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. SILICON MOTION TECH -ADR is extremely liquid. Currently, the Quick Ratio is 2.94 which clearly shows the ability to cover any short-term cash needs. SIMO managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 24.34% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)132.73140.69
EBITDA ($mil)33.2738.91
EBIT ($mil)30.2736.21
Net Income ($mil)24.0329.05


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)305.97219.11
Total Assets ($mil)647.24529.06
Total Debt ($mil)25.00.0
Equity ($mil)495.83398.76


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin50.5449.97
EBITDA Margin25.0627.65
Operating Margin22.8125.74
Sales Turnover0.870.84
Return on Assets16.4414.86
Return on Equity21.4619.71
Debt Q2 FY17 Q2 FY16
Current Ratio4.03.48
Debt/Capital0.050.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)35.3334.88
Div / share0.20.15
EPS0.670.82
Book value / share14.0411.43
Institutional Own % n/a n/a
Avg Daily Volume586284.0590623.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 46.90 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 3.36 indicates valuation on par with the S&P 500 average of 3.10 and a significant discount versus the industry average of 5.49. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, SILICON MOTION TECH -ADR proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SIMO 15.89 Peers 46.90   SIMO NA Peers 18.33

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SIMO is trading at a significant discount to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SIMO 13.30 Peers 21.72   SIMO NM Peers 1.12

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SIMO is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SIMO's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SIMO 3.36 Peers 5.49   SIMO 33.18 Peers 122.55

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SIMO is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SIMO is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SIMO 2.96 Peers 5.24   SIMO 25.96 Peers 25.22

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SIMO is trading at a significant discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

SIMO is keeping pace with its peers on the basis of sales growth.

 

 

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