Silicon Motion Technology Corp

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SIMO : NASDAQ : Technology
$44.86 -0.77 | -1.69%
Today's Range: 44.5 - 46.49
Avg. Daily Volume: 679700.0
12/09/16 - 4:00 PM ET

Financial Analysis


SILICON MOTION TECH -ADR's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. SILICON MOTION TECH -ADR has strong liquidity. Currently, the Quick Ratio is 1.96 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 18.26% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)158.5895.4
EBITDA ($mil)40.9221.71
EBIT ($mil)38.5219.41
Net Income ($mil)32.7213.18


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)269.15183.66
Total Assets ($mil)595.68434.33
Total Debt ($mil)35.00.0
Equity ($mil)410.25346.88


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin49.9953.34
EBITDA Margin25.822.76
Operating Margin24.2920.35
Sales Turnover0.860.79
Return on Assets16.4713.57
Return on Equity23.9216.99
Debt Q3 FY16 Q3 FY15
Current Ratio2.743.97
Debt/Capital0.080.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)34.8833.91
Div / share0.150.15
EPS0.920.38
Book value / share11.7610.23
Institutional Own % n/a n/a
Avg Daily Volume712916.0627627.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 30.45 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 25.45. To use another comparison, its price-to-book ratio of 3.85 indicates a premium versus the S&P 500 average of 2.82 and a discount versus the industry average of 4.25. 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 16.33 Peers 30.45   SIMO NA Peers 18.14

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 11.72 Peers 18.42   SIMO 0.16 Peers 2.01

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 significant discount to its peers.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SIMO 3.85 Peers 4.25   SIMO 62.94 Peers 22.14

Average. 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 valuation on par with its peers.

 

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

SIMO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SIMO 3.09 Peers 4.51   SIMO 48.35 Peers 10.54

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SIMO has a sales growth rate that significantly exceeds its peers.

 

 

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