Silicom Ltd Stock Fair Value – SILICOM LTD Reports Second Quarter FY2023 Earnings Results on July 31st 2023
August 24, 2023
🌥️Earnings Overview
On July 31st 2023, SILICOM LTD ($NASDAQ:SILC) announced their earnings results for the quarter ending June 30th 2023, which revealed that total revenue had increased by 11.7% to USD 38.1 million compared to the same period last year. Unfortunately, net income had decreased by 15.7%, amounting to USD 3.8 million.
Stock Price
On Monday, SILICOM LTD stock opened at $30.8 and closed at $29.4, plummeting by 24.7% from its last closing price of 39.0. This significant drop in stock price is likely a direct result of the company’s lowered expectations due to the global pandemic and its effects on their business. Overall, SILICOM LTD reported mixed results for the second quarter of FY2023 with a steep drop in their stock price but also a slight increase in their gross margin. The company will continue to monitor the effects of the pandemic on their business in order to adjust their strategies accordingly. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Silicom Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 159.67 | 18.95 | 10.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Silicom Ltd. More…
| Operations | Investing | Financing |
| -4.09 | 8.27 | -1.05 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Silicom Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 217.84 | 29.33 | 27.9 |
Key Ratios Snapshot
Some of the financial key ratios for Silicom Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.0% | 48.1% | 13.4% |
| FCF Margin | ROE | ROA |
| -5.5% | 7.2% | 6.1% |
Analysis – Silicom Ltd Stock Fair Value
GoodWhale recently conducted a detailed analysis of SILICOM LTD‘s well-being. After a thorough assessment, our proprietary Valuation Line calculated the intrinsic value of SILICOM LTD shares to be around $49.3. Our analysis indicates that the current trading price of SILICOM LTD is at $29.4, representing a 40.4% undervaluation. Considering this significant gap between intrinsic value and trading price, we believe SILICOM LTD presents an attractive investment opportunity for investors looking for potential returns. More…
Peers
It has established itself as a top competitor in the industry, alongside other prominent companies such as Eutelsat Communications, AltiGen Communications Inc, and Ceragon Networks Ltd. All four companies provide an array of cutting-edge solutions to meet the needs of their customers in the ever-evolving tech landscape.
– Eutelsat Communications ($LTS:0JNI)
Eutelsat Communications is a leading satellite operator, providing communications services to its customers via its extensive network of satellites. Founded in 1977, the company has a long history of delivering reliable communications solutions to its customers. As of 2023, Eutelsat Communications has a market capitalization of 1.74 billion and a return on equity of 9.77%. This indicates that the company is performing well and provides a solid investment opportunity for investors. The company’s ability to consistently deliver high-quality services has enabled it to remain competitive and grow its customer base over the years.
– AltiGen Communications Inc ($OTCPK:ATGN)
AltiGen Communications Inc is a leading provider of unified communications solutions for businesses. It develops, markets and sells its products to customers in the United States and internationally. The company’s market cap as of 2023 is 14.86M, indicating its relative size in the market compared to other companies. The company’s Return on Equity (ROE) is -2.48%, which is an indicator of how profitable the company is compared to its equity. AltiGen Communications Inc offers a broad range of unified communications solutions that enable businesses to improve customer service, reduce operational costs, and increase employee productivity through a variety of products and services.
– Ceragon Networks Ltd ($NASDAQ:CRNT)
Ceragon Networks Ltd is a leading provider of high-capacity wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services. With a market cap of 182.86M as of 2023, the company is well-positioned to continue providing reliable, cost-effective solutions to its customers. Additionally, the company has a Return on Equity of -1.54%, which reflects the company’s ability to create value for shareholders. Overall, Ceragon Networks Ltd is well-positioned to continue providing quality solutions to its customers.
Summary
SILICOM LTD recently reported their second quarter earnings for the fiscal year of 2023, with total revenue increasing 11.7% to USD 38.1 million.
However, net income decreased by 15.7%, amounting to USD 3.8 million. Following the announcement, the stock price of SILICOM LTD moved down. For potential investors, this could be seen as an opportunity to buy in at a lower price point than before. However, it is important to consider the decline in net income and if the company is able to maintain its revenue growth and adjust for the decline in net income. Ultimately, investors should conduct a thorough analysis of SILICOM LTD before investing.
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