Silicon Motion (SIMO) AI Stock Analysis

• Market Cap: $3.33B
• Dividend Yield: 1.93%
• Average Volume (3M): 443.97K
• Price to Earnings (P/E): 41.3
• Beta (1Y): 1.72
• Revenue Growth: -0.29%
• EPS Growth: 1.47%
• Country: US
• Employees: 1,819
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.00
• Shares Outstanding: 33,983,670
• 10 Day Avg. Volume: 429,965
• 30 Day Avg. Volume: 443,971
• PEG Ratio: 0.04
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 55.53
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 3.88
• Enterprise Value/Gross Profit: 8.25
• Enterprise Value/Ebitda: 28.68
• 1Y Price Target: $119.17
• Price Target Upside: 21.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 80 Outperform
• Price Target: $113.00 ▲(15.18% Upside)

Silicon Motion's strong financial performance and positive earnings call guidance are the primary drivers of its high score. The technical indicators support a bullish outlook, while the high P/E ratio suggests caution. The company's robust growth prospects in new product segments and effective cost management further enhance its investment appeal.

Positive Factors

Strong Revenue Growth

The company's ability to achieve significant revenue growth through new products and market share expansion indicates a strong competitive position and effective business strategy, supporting long-term growth prospects.

Product and Market Diversification

Diversification across products and markets reduces dependency on any single segment, enhancing resilience against sector-specific downturns and positioning the company for sustainable long-term growth.

Strong Balance Sheet

A strong balance sheet with no debt and significant cash reserves provides financial stability and flexibility, enabling strategic investments and weathering economic uncertainties.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow raises concerns about the company's ability to fund operations and investments internally, potentially impacting future growth and financial health.

NAND Supply Shortages

Ongoing supply shortages and price increases for NAND flash could lead to higher operational costs and supply chain disruptions, affecting profitability and growth.

Geopolitical and Tariff Challenges

Geopolitical and tariff challenges introduce uncertainties that could affect international operations and cost structures, potentially impacting the company's global market position.

Silicon Motion Business Overview & Revenue Model

Company Description

Silicon Motion Technology Corporation, commonly known as Silicon Motion (SIMO), is a leading provider of NAND flash controller semiconductor solutions for solid-state drives (SSDs), mobile devices, and other storage applications. Headquartered in Taipei, Taiwan, the company operates primarily in the semiconductor sector, where it designs, develops, and markets a range of products that enable high-performance data storage and processing. Silicon Motion's core offerings include SSD controllers, embedded storage solutions, and advanced storage technologies that cater to the demands of a rapidly evolving digital landscape.

How the Company Makes Money

Silicon Motion generates revenue primarily through the sale of its NAND flash memory controllers and related products. The company has a diversified revenue model, with key revenue streams coming from the sale of SSD controllers, mobile storage solutions, and other semiconductor products. Significant partnerships with leading memory manufacturers and OEMs (original equipment manufacturers) enhance its market presence and drive sales. Additionally, Silicon Motion benefits from the growing demand for high-performance storage solutions across various sectors, including consumer electronics, enterprise data centers, and industrial applications, contributing to its overall earnings.

Silicon Motion Financial Statement Overview

Summary

Silicon Motion demonstrates strong revenue growth and operational efficiency with a solid balance sheet. Despite a decline in free cash flow, the company's financial health remains robust due to zero debt and substantial cash reserves. Stability in profitability and healthy margins position the company well within the semiconductor industry, though improvements in cash flow generation would enhance its financial standing.

Income Statement

Silicon Motion has demonstrated solid revenue growth with a significant increase from $639 million in 2023 to $803 million in 2024. The gross profit margin improved to 46.1%, indicating effective cost management. However, net profit margin remained relatively stable at around 11.3%, suggesting room for improvement in profitability. EBIT and EBITDA margins are healthy, at 11.5% and 14.9% respectively, showing good operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with zero debt as of 2024, reducing financial risk. The equity ratio is high, at approximately 75%, indicating a strong capital structure. Return on equity is solid at 11.7%, reflecting efficient use of equity capital. The company’s liquidity position remains robust with significant cash reserves.

Cash Flow

Free cash flow experienced a decline from $98.8 million in 2023 to $32.7 million in 2024, raising concerns about cash generation. However, operating cash flow remains positive, indicating the company’s ability to generate cash from operations. The operating cash flow to net income ratio is stable, reflecting consistent cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	768.74M	803.55M	639.14M	945.92M	922.10M	539.52M
Gross Profit	362.01M	368.76M	270.39M	465.83M	460.80M	260.16M
EBITDA	104.11M	119.60M	83.04M	233.25M	263.03M	99.33M
Net Income	79.76M	89.25M	52.87M	172.51M	200.00M	79.75M
Balance Sheet
Total Assets	1.03B	1.03B	1.01B	961.25M	971.33M	742.06M
Cash, Cash Equivalents and Short-Term Investments	208.03M	276.07M	314.30M	232.18M	360.08M	342.96M
Total Debt	0.00	2.53M	2.34M	3.20M	2.90M	3.06M
Total Liabilities	244.80M	259.12M	273.26M	228.65M	313.75M	184.32M
Stockholders Equity	788.88M	773.75M	734.70M	732.60M	657.58M	557.74M
Cash Flow
Free Cash Flow	30.35M	32.74M	98.77M	50.97M	150.04M	97.11M
Operating Cash Flow	81.07M	77.19M	149.08M	83.75M	176.87M	115.89M
Investing Cash Flow	-50.44M	-44.19M	-49.09M	-32.78M	-30.34M	-20.78M
Financing Cash Flow	-92.17M	-67.25M	-16.69M	-183.10M	-99.73M	-73.91M

Silicon Motion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIMO, the sentiment is Positive. The current price of 98.11 is above the 20-day moving average (MA) of 95.23, above the 50-day MA of 90.62, and above the 200-day MA of 67.36, indicating a bullish trend. The MACD of 2.57 indicates Negative momentum. The RSI at 55.71 is Neutral, neither overbought nor oversold. The STOCH value of 59.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIMO.

Silicon Motion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIMO	―	$3.33B	41.29	10.16%	1.93%	-0.29%	1.47%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SLAB	―	$4.30B	―	-9.71%	―	29.66%	47.97%
IPGP	―	$3.59B	―	-9.89%	―	-14.77%	-261.91%
SYNA	―	$2.74B	―	-3.34%	―	11.98%	-138.59%
POWI	―	$2.35B	71.13	4.68%	2.01%	7.16%	-21.24%
AMBA	―	$3.64B	―	-15.77%	―	57.91%	51.16%

Silicon Motion Corporate Events

Silicon Motion Reports Strong Q3 2025 Financial Results and Declares Dividend

Silicon Motion Technology Corporation reported a significant financial performance for the third quarter of 2025, with net sales increasing by 22% quarter-over-quarter and 14% year-over-year, reaching $242 million. The company experienced robust growth across its product lines, particularly in eMMC and UFS controllers, driven by a recovering smartphone market and increased market share. The automotive segment also saw growth due to product diversification and new customer acquisitions. The company’s strategic investments in product and market diversification are beginning to yield results, positioning it for sustainable long-term growth. The board declared a $2.00 per ADS annual dividend, with the first installment scheduled for November 26, 2025.

Silicon Motion Declares Annual Dividend Amid Improved Business Outlook

On October 27, 2025, Silicon Motion Technology Corporation announced an annual cash dividend of $2.00 per ADS, to be paid in four quarterly installments of $0.50 each. This decision reflects the company’s improved business performance and normalized margins, as well as a positive outlook for the memory industry. The dividend payments are scheduled with specific record and payment dates, starting from November 2025 through August 2026. The company emphasizes its commitment to distributing a significant portion of its strong cash flow to shareholders, indicating a stable financial position and confidence in long-term growth opportunities.

Silicon Motion Schedules Q3 2025 Earnings Release and Conference Call

Silicon Motion announced it will release its third quarter 2025 financial results on October 30, 2025, followed by an earnings conference call on October 31. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.