Silicon Motion Technology Corporation

$ 321.66 4.73 %

Silicon Motion Technology Corporation (SIMO) is a prominent company specializing in the design, development, and distribution of NAND flash controllers, which are essential components for a wide array of solid-state storage devices. Their product range supports diverse applications, including controllers for computing-grade Solid-State Drives (SSDs) found in personal computers and other client devices. They also provide solutions for enterprise-grade SSDs crucial for data centers, as well as embedded storage such as eMMC and UFS used in smartphones and IoT (Internet of Things) devices. Furthermore, their technology extends to flash memory cards and flash drives for expandable storage, and specialized SSDs designed for industrial, commercial, and automotive applications. The company brands its controller offerings under SMI. Its enterprise-level SSDs are available under the Shannon Systems name, while its integrated industrial-grade SSDs are marketed as Ferri SSD, Ferri-eMMC, and Ferri-UFS. Silicon Motion's sales strategy involves both direct sales teams and a network of independent electronics distributors, serving a customer base that includes major NAND flash manufacturers, module makers, hyperscale cloud providers, and Original Equipment Manufacturers (OEMs). Founded in 1995 and headquartered in Hong Kong, the company boasts a global operational presence, including locations in Taiwan, the United States, South Korea, China, Malaysia, Singapore, and other international markets.

CEO: Chia-Chang Kou - https://www.siliconmotion.com

Price objectif

$251.25 -21.89 %

Recommandation

Buy

DCF

$ 170.64

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SIMO vs S&P500

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Quick ratio

1.38

suggests a healthy liquidity position, showing that the company can likely meet its short-term obligations.

P/E ratio

63.82

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

5.04

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

20.24 %

is generally considered excellent, indicating that the company is generating strong profits with its equity.

ROIC

12.08 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

12.38

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.00

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

-9.70

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

39.70 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
5 indicates moderate financial health
Altman score
18.07 indicates good financial health and low risk of bankruptcy
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Cash / Debt

Cash Ratio
0.39 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.00 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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