Silicom Price To Earning vs. Profit Margin
| SILC Stock | USD 14.96 0.74 5.20% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.43 | 0.2311 |
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For Silicom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Silicom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Silicom utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Silicom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Silicom over time as well as its relative position and ranking within its peers.
Silicom |
Is Communications 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 Silicom. If investors know Silicom 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 Silicom 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 (0.80) | Earnings Share (6.45) | Revenue Per Share 10.059 | Quarterly Revenue Growth (0.51) | Return On Assets (0.06) |
The market value of Silicom is measured differently than its book value, which is the value of Silicom that is recorded on the company's balance sheet. Investors also form their own opinion of Silicom's value that differs from its market value or its book value, called intrinsic value, which is Silicom'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 Silicom's market value can be influenced by many factors that don't directly affect Silicom'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 Silicom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Silicom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Silicom'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.
Silicom Profit Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Silicom's current stock value. Our valuation model uses many indicators to compare Silicom value to that of its competitors to determine the firm's financial worth. Silicom is rated fifth in price to earning category among its peers. It is rated below average in profit margin category among its peers . At present, Silicom's Net Loss is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Silicom's earnings, one of the primary drivers of an investment's value.Silicom Profit Margin vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Silicom |
| = | 18.44 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Silicom |
| = | (0.68) % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Silicom Profit Margin Comparison
Silicom is currently under evaluation in profit margin category among its peers.
Silicom Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Silicom, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Silicom will eventually generate negative long term returns. The profitability progress is the general direction of Silicom's change in net profit over the period of time. It can combine multiple indicators of Silicom, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | -28.7 M | -27.2 M | |
| Total Other Income Expense Net | 1.4 M | 1.4 M | |
| Net Loss | -26.4 M | -25.1 M | |
| Income Tax Expense | -889 K | -844.5 K | |
| Income Before Tax | -27.3 M | -25.9 M | |
| Net Income Applicable To Common Shares | 21.1 M | 10.7 M | |
| Net Income From Continuing Ops | 14.2 M | 11.2 M | |
| Interest Income | 1.3 M | 1.3 M | |
| Net Interest Income | -668 K | -634.6 K | |
| Change To Netincome | 8.9 M | 6.2 M | |
| Net Loss | (3.94) | (3.75) | |
| Income Quality | (1.21) | (1.15) | |
| Net Income Per E B T | 0.97 | 1.00 |
Silicom Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Silicom. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Silicom position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Silicom's important profitability drivers and their relationship over time.
Use Silicom in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Silicom position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Silicom will appreciate offsetting losses from the drop in the long position's value.Silicom Pair Trading
Silicom Pair Trading Analysis
The ability to find closely correlated positions to Silicom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Silicom when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Silicom - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Silicom to buy it.
The correlation of Silicom is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Silicom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Silicom moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Silicom can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Silicom position
In addition to having Silicom in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value Funds theme has 35 constituents at this time.
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Check out World Market Map. For information on how to trade Silicom Stock refer to our How to Trade Silicom Stock guide.You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
To fully project Silicom's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Silicom at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Silicom's income statement, its balance sheet, and the statement of cash flows.