SILCSilicom Ltd.

$56.70+223% 1Y

Is the business good?

How good a business is SILC?

Silicom Ltd. earns 4.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

4.0%

Return on invested capital · cost of capital 9.0% · 5.0 points below what the capital costs: growth destroys value

Operating margin
6.4%

Operating margin · Communication Equipment median 5.0% · 12 months to Q2 2019

Share count, year on year
+0.82%

Share count, year on year · flat: no meaningful dilution

R&D as % of revenue
13%

R&D as % of revenue

Operating margin by fiscal year
YearOperating margin
FY20205.8%
FY202110%
FY202213%
FY2023−23%
FY2024−23%
FY2025−20%
Details›
Gross margin12 months to Q2 2019
29%
Operating margin12 months to Q2 2019
6.4%
Net margin12 months to Q2 2019
6.1%
R&D as % of revenue
13%
Revenue, trailing twelve months
$113M
Net income, trailing twelve months
$6.9M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
4.0%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.