Silicon Motion Technology (SIMO) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Silicon Motion Technology ( SIMO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Silicon Motion Technology as such a stock due to the following factors:

  • SIMO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.8 million.
  • SIMO has traded 43,200 shares today.
  • SIMO is trading at a new lifetime high.

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More details on SIMO:

Silicon Motion Technology Corporation, a fabless semiconductor company, designs, develops, and markets semiconductor solutions worldwide. The stock currently has a dividend yield of 1.7%. SIMO has a PE ratio of 44. Currently there are 9 analysts that rate Silicon Motion Technology a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Silicon Motion Technology has been 672,100 shares per day over the past 30 days. Silicon Motion Technology has a market cap of $1.2 billion and is part of the technology sector and electronics industry. Shares are up 49.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Silicon Motion Technology as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • SIMO's very impressive revenue growth greatly exceeded the industry average of 0.7%. Since the same quarter one year prior, revenues leaped by 52.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SIMO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.77, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 300.00% and other important driving factors, this stock has surged by 88.91% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SIMO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SILICON MOTION TECH -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, SILICON MOTION TECH -ADR increased its bottom line by earning $1.30 versus $0.81 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.30).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 303.9% when compared to the same quarter one year prior, rising from $3.83 million to $15.46 million.

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