Is the business good?
How good a business is SIMO?
Silicon Motion Technology Corporation earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
12%
Return on invested capital · cost of capital 9.0% · 2.7 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Semiconductors median 8.5% · fiscal year to FY2025
- Cash conversion
- 0.05×
Cash conversion · 0.37× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −0.13%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 15% |
| FY2021 | 27% |
| FY2022 | 23% |
| FY2023 | 6.2% |
| FY2024 | 11% |
| FY2025 | 11% |
Details›
- Gross marginfiscal year to FY2025
- 48%
- Operating marginfiscal year to FY2025
- 11%
- Net marginfiscal year to FY2025
- 14%
- Free cash flow margin
- 0.71%
- R&D as % of revenue
- 30%
- Revenue, trailing twelve months
- $886M
- Free cash flow, trailing twelve months
- $6.3M
- Net income, trailing twelve months
- $123M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Semiconductors
Ranks #32 of 48 by Smart Score