Fact based stock research
Silicon Motion Technology (NasdaqGS:SIMO)
US82706C1080
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Silicon Motion Technology stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 55 (better than 55% compared with investment alternatives), Silicon Motion Technology (Semiconductors, Taiwan) shares have above-average financial characteristics compared with similar stocks. Shares of Silicon Motion Technology are a good value (attractively priced) with a consolidated Value Rank of 78 (better than 78% of alternatives), show above-average growth (Growth Rank of 61), and are safely financed (Safety Rank of 63), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 55, is a buy recommendation based on Silicon Motion Technology's financial characteristics. As the company Silicon Motion Technology's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 78), above-average growth (Obermatt Growth Rank of 61), and indicate that the company is safely financed (Obermatt Safety Rank of 63), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Silicon Motion Technology. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Taiwan |
| Industry | Semiconductors |
| Index | NASDAQ |
| Size class | Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Silicon Motion Technology
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 77 |
|
31 |
|
63 |
|
78 |
|
| GROWTH | ||||||||
| GROWTH | 80 |
|
87 |
|
45 |
|
61 |
|
| SAFETY | ||||||||
| SAFETY | 95 |
|
97 |
|
100 |
|
63 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
56 |
|
34 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
83 |
|
74 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 55 (better than 55% compared with investment alternatives), Silicon Motion Technology (Semiconductors, Taiwan) shares have above-average financial characteristics compared with similar stocks. Shares of Silicon Motion Technology are a good value (attractively priced) with a consolidated Value Rank of 78 (better than 78% of alternatives), show above-average growth (Growth Rank of 61), and are safely financed (Safety Rank of 63), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 55, is a buy recommendation based on Silicon Motion Technology's financial characteristics. As the company Silicon Motion Technology's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 78), above-average growth (Obermatt Growth Rank of 61), and indicate that the company is safely financed (Obermatt Safety Rank of 63), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Silicon Motion Technology. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 77 |
|
31 |
|
63 |
|
78 |
|
| GROWTH | ||||||||
| GROWTH | 80 |
|
87 |
|
45 |
|
61 |
|
| SAFETY | ||||||||
| SAFETY | 95 |
|
97 |
|
100 |
|
63 |
|
| COMBINED | ||||||||
| COMBINED | 100 |
|
91 |
|
93 |
|
55 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 78 (better than 78% compared with alternatives) for 2024, Silicon Motion Technology shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Silicon Motion Technology. Price-to-Sales is 61 which means that the stock price compared with what market professionals expect for future sales is lower than for 61% of comparable companies, indicating a good value for Silicon Motion Technology's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 75% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 54. Compared with other companies in the same industry, dividend yields of Silicon Motion Technology are expected to be higher than for 74% of all competitors (a Dividend Yield rank of 74). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 78, is a buy recommendation based on Silicon Motion Technology's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Silicon Motion Technology based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 55 |
|
41 |
|
53 |
|
61 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 77 |
|
52 |
|
52 |
|
75 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 51 |
|
28 |
|
51 |
|
54 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 90 |
|
43 |
|
67 |
|
74 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 77 |
|
31 |
|
63 |
|
78 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 61 (better than 61% compared with alternatives), Silicon Motion Technology shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Silicon Motion Technology. Profit Growth has a rank of 66 which means that currently professionals expect the company to grow its profits more than 66% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 53, and Stock Returns has a rank of 55 which means that the stock returns have recently been above 55% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 26 (74% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 61, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 66 |
|
74 |
|
67 |
|
26 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 25 |
|
56 |
|
23 |
|
66 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
54 |
|
83 |
|
53 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 78 |
|
89 |
|
7 |
|
55 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 80 |
|
87 |
|
45 |
|
61 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 63 (better than 63% compared with alternatives), the company Silicon Motion Technology has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Silicon Motion Technology is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Silicon Motion Technology.Leverage is at 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors.Refinancing is at a rank of 77, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 77% of its competitors. Liquidity is at 1, meaning that the company generates less profit to service its debt than 99% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 63 (better than 63% compared with alternatives), Silicon Motion Technology has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Silicon Motion Technology more challenging. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 86 |
|
100 |
|
100 |
|
100 |
|
| REFINANCING | ||||||||
| REFINANCING | 67 |
|
51 |
|
83 |
|
77 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 70 |
|
100 |
|
97 |
|
1 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 95 |
|
97 |
|
100 |
|
63 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
39 |
|
58 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
55 |
|
22 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
67 |
|
52 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
56 |
|
34 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Silicon Motion Technology from November 14, 2024.
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