Silicon Motion Technology Stock Buy Hold or Sell Recommendation
| SIMO Stock | USD 54.61 1.04 1.94% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Silicon Motion Technology is 'Cautious Hold'. The recommendation algorithm takes into account all of Silicon Motion's available fundamental, technical, and predictive indicators you will find on this site.
Check out Silicon Motion Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Silicon and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Silicon Motion Technology. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.
Silicon |
Execute Silicon Motion Buy or Sell Advice
The Silicon recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Silicon Motion Technology. Macroaxis does not own or have any residual interests in Silicon Motion Technology or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Silicon Motion's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Silicon Motion Trading Alerts and Improvement Suggestions
| Silicon Motion is unlikely to experience financial distress in the next 2 years | |
| Silicon Motion has a strong financial position based on the latest SEC filings | |
| Over 83.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Silicon Motion Technology Expected to Announce Earnings on Wednesday - MarketBeat |
Silicon Motion Returns Distribution Density
The distribution of Silicon Motion's historical returns is an attempt to chart the uncertainty of Silicon Motion's future price movements. The chart of the probability distribution of Silicon Motion daily returns describes the distribution of returns around its average expected value. We use Silicon Motion Technology price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Silicon Motion returns is essential to provide solid investment advice for Silicon Motion.
| Mean Return | -0.02 | Value At Risk | -4.3 | Potential Upside | 4.03 | Standard Deviation | 2.67 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Silicon Motion historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Silicon Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Silicon Motion, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading Silicon Motion Technology back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | Manufacturers Life Insurance Co | 2024-09-30 | 570.8 K | Wellington Management Company Llp | 2024-09-30 | 568.9 K | Massachusetts Financial Services Company | 2024-09-30 | 523.4 K | Kite Lake Capital Management (uk) Llp | 2024-09-30 | 516.4 K | Farallon Capital Management, L.l.c. | 2024-09-30 | 514 K | Systematic Financial Management Lp | 2024-09-30 | 494.3 K | Hawk Ridge Management Llc | 2024-09-30 | 468.7 K | Herald Investment Management Ltd | 2024-09-30 | 384.9 K | Robeco Institutional Asset Management Bv | 2024-09-30 | 376.3 K | Fmr Inc | 2024-09-30 | 2.2 M | Lord, Abbett & Co Llc | 2024-09-30 | 1.1 M |
Silicon Motion Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change In Cash | 21.0M | 46.3M | (128.5M) | 81.9M | 94.2M | 98.9M | |
| Free Cash Flow | 97.1M | 150.0M | 51.0M | 98.8M | 113.6M | 119.3M | |
| Depreciation | 13.6M | 17.2M | 18.9M | 21.8M | 25.1M | 26.3M | |
| Other Non Cash Items | 18.5M | 2.0M | 853K | (23.0M) | (26.4M) | (25.1M) | |
| Capital Expenditures | 18.8M | 26.8M | 32.8M | 50.3M | 57.9M | 60.8M | |
| Net Income | 79.7M | 199.9M | 172.5M | 52.9M | 60.8M | 54.7M | |
| End Period Cash Flow | 369.2M | 415.5M | 287.1M | 369.0M | 424.3M | 445.6M | |
| Change To Inventory | (10.2M) | (21.7M) | (78.1M) | 72.1M | 64.9M | 68.2M | |
| Change To Netincome | 18.8M | 31.7M | 19.8M | 25.8M | 29.6M | 31.1M | |
| Dividends Paid | 48.9M | 54.0M | 49.9M | 16.7M | 19.2M | 34.2M | |
| Investments | (2M) | (3.5M) | (32.8M) | (48.5M) | (43.6M) | (41.5M) |
Silicon Motion Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Silicon Motion or Semiconductors & Semiconductor Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Silicon Motion's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Silicon stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.08 | |
β | Beta against Dow Jones | 0.53 | |
σ | Overall volatility | 2.70 | |
Ir | Information ratio | -0.05 |
Silicon Motion Volatility Alert
Silicon Motion Technology exhibits very low volatility with skewness of -0.38 and kurtosis of 0.5. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Silicon Motion's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Silicon Motion's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Silicon Motion Fundamentals Vs Peers
Comparing Silicon Motion's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Silicon Motion's direct or indirect competition across all of the common fundamentals between Silicon Motion and the related equities. This way, we can detect undervalued stocks with similar characteristics as Silicon Motion or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Silicon Motion's fundamental indicators could also be used in its relative valuation, which is a method of valuing Silicon Motion by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Silicon Motion to competition |
| Fundamentals | Silicon Motion | Peer Average |
| Return On Equity | 0.11 | -0.31 |
| Return On Asset | 0.0554 | -0.14 |
| Profit Margin | 0.11 % | (1.27) % |
| Operating Margin | 0.12 % | (5.51) % |
| Current Valuation | 1.49 B | 16.62 B |
| Shares Outstanding | 33.68 M | 571.82 M |
| Shares Owned By Institutions | 83.36 % | 39.21 % |
| Number Of Shares Shorted | 789.62 K | 4.71 M |
| Price To Earning | 27.14 X | 28.72 X |
| Price To Book | 2.23 X | 9.51 X |
| Price To Sales | 2.21 X | 11.42 X |
| Revenue | 639.14 M | 9.43 B |
| Gross Profit | 366.39 M | 27.38 B |
| EBITDA | 83.04 M | 3.9 B |
| Net Income | 52.87 M | 570.98 M |
| Cash And Equivalents | 179.86 M | 2.7 B |
| Cash Per Share | 5.43 X | 5.01 X |
| Total Debt | 2.34 M | 5.32 B |
| Debt To Equity | 0.01 % | 48.70 % |
| Current Ratio | 3.12 X | 2.16 X |
| Book Value Per Share | 24.03 X | 1.93 K |
| Cash Flow From Operations | 149.08 M | 971.22 M |
| Short Ratio | 2.95 X | 4.00 X |
| Earnings Per Share | 2.66 X | 3.12 X |
| Price To Earnings To Growth | (4.43) X | 4.89 X |
| Target Price | 76.56 | |
| Number Of Employees | 1.55 K | 18.84 K |
| Beta | 0.83 | -0.15 |
| Market Capitalization | 1.8 B | 19.03 B |
| Total Asset | 1.01 B | 29.47 B |
| Retained Earnings | 411.16 M | 9.33 B |
| Working Capital | 580.43 M | 1.48 B |
| Current Asset | 315.18 M | 9.34 B |
Silicon Motion Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Silicon . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Silicon Motion Buy or Sell Advice
When is the right time to buy or sell Silicon Motion Technology? Buying financial instruments such as Silicon Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Silicon Motion Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Silicon Motion. If investors know Silicon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Silicon Motion listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.953 | Earnings Share 2.66 | Revenue Per Share | Quarterly Revenue Growth 0.233 | Return On Assets |
The market value of Silicon Motion Technology is measured differently than its book value, which is the value of Silicon that is recorded on the company's balance sheet. Investors also form their own opinion of Silicon Motion's value that differs from its market value or its book value, called intrinsic value, which is Silicon Motion's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Silicon Motion's market value can be influenced by many factors that don't directly affect Silicon Motion's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Silicon Motion's value and its price as these two are different measures arrived at by different means. Investors typically determine if Silicon Motion is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Silicon Motion's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.