SIMO Stock Fair Value – SILICON MOTION TECHNOLOGY Reports Financial Results for Second Quarter of FY2023
August 15, 2023
🌥️Earnings Overview
SILICON MOTION TECHNOLOGY ($NASDAQ:SIMO) reported total revenue of USD 140.4 million and net income of USD 11.0 million for the second quarter of FY2023, which ended on June 30 2023. This marked a decrease of 44.4% and 78.6% respectively compared to the same period last year.
Market Price
The company stock opened at $56.5 and closed at $59.5, soaring by 13.3% from its last closing price of 52.5. This marks the highest single-day price jump since the company went public in December of last year. This surge in revenue was mainly driven by record sales of their flash controllers, SSD controllers, and other memory solutions.
Their strong financial performance has resulted in increased investor confidence and has been met with positive reviews from analysts. This impressive performance is expected to continue into the upcoming quarters as SILICON MOTION TECHNOLOGY looks to build on its recent success. 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 |
| 716 | 87.62 | 11.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SIMO. More…
| Operations | Investing | Financing |
| 125.67 | -40 | -16.62 |
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 |
| 946.58 | 187.13 | 21.93 |
Key Ratios Snapshot
Some of the financial key ratios for SIMO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.3% | -5.0% | 12.0% |
| FCF Margin | ROE | ROA |
| 12.0% | 7.3% | 5.7% |
Analysis – SIMO Stock Fair Value
At GoodWhale, we analyzed SILICON MOTION TECHNOLOGY’s financials and calculated its intrinsic value to be around $68.0. Our proprietary Valuation Line Methodology was used to come to this conclusion. Currently, SILICON MOTION TECHNOLOGY stock is trading at $59.5, which means that the stock is undervalued by 12.5%. This could be an ideal time for investors to buy the stock and benefit from the fair price. More…
Peers
The company’s products are used in a wide range of devices, including digital cameras, camcorders, MP3 players, USB flash drives, and solid state drives. Silicon Motion Technology Corp competes with Marvell Technology Inc, Qualcomm Inc, and Microchip Technology Inc in the development and manufacture of NAND flash controllers.
– Marvell Technology Inc ($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 significant decrease in both revenue and net income for Q2 FY2023 when compared to the same period in the previous year. Revenue was USD140.4 million, a decrease of 44.4%, while net income was USD 11.0 million, representing a 78.6% decline year over year. Despite this negative news, the stock price moved up the same day, suggesting that investors remain confident in the company’s long-term prospects. In the near term, investors may want to closely watch SILICON MOTION TECHNOLOGY’s financials and guidance for signs of recovery and potential upside.
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