Silicon Motion Technology Corp

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SIMO : NASDAQ : Technology
$42.67 -1.24 | -2.82%
Today's Range: 42.17 - 43.77
Avg. Daily Volume: 613300.0
07/21/17 - 4:00 PM ET

Financial Analysis


SILICON MOTION TECH -ADR's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. SILICON MOTION TECH -ADR is extremely liquid. Currently, the Quick Ratio is 2.73 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 23.81% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)127.29112.68
EBITDA ($mil)32.4829.87
EBIT ($mil)29.9827.67
Net Income ($mil)23.5123.01


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)304.36191.01
Total Assets ($mil)622.79494.89
Total Debt ($mil)25.00.0
Equity ($mil)470.9380.34


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin52.4852.04
EBITDA Margin25.5126.51
Operating Margin23.5624.56
Sales Turnover0.920.79
Return on Assets17.8913.7
Return on Equity23.6617.82
Debt Q1 FY17 Q1 FY16
Current Ratio3.73.6
Debt/Capital0.050.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)35.3334.88
Div / share0.20.15
EPS0.650.65
Book value / share13.3310.9
Institutional Own % n/a n/a
Avg Daily Volume608142.0698613.0

Valuation


BUY. SILICON MOTION TECH -ADR's P/E ratio indicates a significant discount compared to an average of 26.49 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 24.41. To use another comparison, its price-to-book ratio of 3.18 indicates valuation on par with the S&P 500 average of 3.04 and a significant discount versus the industry average of 5.57. 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 13.59 Peers 26.49   SIMO 10.02 Peers 20.91

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.

 

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

SIMO is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SIMO 10.60 Peers 22.36   SIMO 2.24 Peers 1.29

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SIMO 3.18 Peers 5.57   SIMO 60.82 Peers 34.26

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.

 

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 2.63 Peers 5.22   SIMO 45.10 Peers 25.50

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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