SIMO Intrinsic Stock Value – SILICON MOTION TECHNOLOGY Reports Earnings Results for FY2022 Q4 on February 8 2023
February 22, 2023
Earnings Overview
On February 8 2023, SILICON MOTION TECHNOLOGY ($NASDAQ:SIMO) Corporation reported its financial performance for the fourth quarter of FY2022, ended December 31 2022. Total income during this period was estimated at USD 23.5 million, registering a 61.1% dip compared to that of the previous year. Net income too fell 24.1% year-on-year to USD 200.8 million.
Price History
On Wednesday, SILICON MOTION TECHNOLOGY reported their earnings results for the fourth quarter of 2022. The company’s stock opened at $65.0, but closed at $66.6, a slight 0.4% increase from the prior closing price of $66.3. Overall, it was a successful quarter for Silicon Motion Technology, where they saw both revenue and operating income increase significantly year-over-year. They have also seen their long-term debt significantly decreased, which should provide them with a strong foundation to continue their growth in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SIMO. More…
| Total Revenues | Net Income | Net Margin |
| 945.92 | 172.51 | 18.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SIMO. More…
| Operations | Investing | Financing |
| 83.75 | -32.78 | -183.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SIMO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 961.25 | 228.65 | 19.9 |
Key Ratios Snapshot
Some of the financial key ratios for SIMO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 27.4% | 46.5% | 22.7% |
| FCF Margin | ROE | ROA |
| 5.4% | 20.4% | 13.9% |
Analysis – SIMO Intrinsic Stock Value
After careful analysis, GoodWhale has determined that SILICON MOTION TECHNOLOGY’s intrinsic value is approximately $84.6. This valuation was determined through our proprietary Valuation Line system. This means that the SILICON MOTION TECHNOLOGY stock is currently undervalued by 21.2%, as it is currently being traded at $66.6. Our analysis represents a great opportunity for investors looking to increase their portfolio with an undervalued stock. We recommend investors closely examine SILICON MOTION TECHNOLOGY and consider taking advantage of this market opportunity. More…
Peers
The company’s products are used in a wide range of devices, including digital cameras, camcorders, MP3 players, USB flash drives, and solid state drives. Silicon Motion Technology Corp competes with Marvell Technology Inc, Qualcomm Inc, and Microchip Technology Inc in the development and manufacture of NAND flash controllers.
– Marvell Technology Inc ($NASDAQ:MRVL)
With a market cap of 33.23B as of 2022 and a ROE of 0.5%, Marvell Technology Inc is a company that designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. The company’s products are used in a variety of end markets, including data storage, enterprise, cloud, automotive, industrial, consumer, mobile, and networking.
– Qualcomm Inc ($NASDAQ:QCOM)
Qualcomm Inc is a global semiconductor company that designs, manufactures, and markets digital wireless telecommunications products and services. The company has a market capitalization of 119.6 billion as of 2022 and a return on equity of 56.84%. Qualcomm’s products and services include wireless voice and data communications, multimedia, and business solutions. The company’s products are used in a variety of mobile devices, including cell phones, tablets, laptops, and cars.
– Microchip Technology Inc ($NASDAQ:MCHP)
Microchip Technology Inc. is a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide.
Summary
SILICON MOTION TECHNOLOGY reported a decrease of 61.1% in total revenue for the fourth quarter of FY2022, compared to the same period last year. Net income, similarly, dropped 24.1% year over year to USD 200.8 million. This news likely indicates a slowing of demand, and investors should be wary of any further indications of financial difficulty moving forward. With this in mind, those considering investing in this company should study the company’s future performance closely, taking into account both short-term and long-term trends to make sure their investment is being used in the most effective manner.
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