Silicon Motion Technology Stock Working Capital
| SIMO Stock | USD 95.06 2.69 2.91% |
By evaluating key metrics such as revenue growth, profitability, cash flow trends, and balance sheet strength, investors can better assess Silicon Motion's long-term financial health and intrinsic value.
| Last Reported | Projected for Next Year | ||
| Net Working Capital | 597.2 M | 546.8 M | |
| Change In Working Capital | -55.2 M | -52.5 M |
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Silicon Motion Technology Company Working Capital Analysis
Silicon Motion's Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .
More About Working Capital | All Equity Analysis
Working Capital | = | Current Assets | - | Current Liabilities |
Current Silicon Motion Working Capital | 597.23 M |
Most of Silicon Motion's fundamental indicators, such as Working Capital, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Silicon Motion Technology is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Silicon Working Capital Driver Correlations
Understanding the fundamental principles of building solid financial models for Silicon Motion is extremely important. It helps to project a fair market value of Silicon Stock properly, considering its historical fundamentals such as Working Capital. Since Silicon Motion's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Silicon Motion's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Silicon Motion's interrelated accounts and indicators.
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Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.
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Silicon Capital Surpluse
Capital Surpluse |
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Based on the company's disclosures, Silicon Motion Technology has a Working Capital of 597.23 M. This is 93.89% lower than that of the Semiconductors & Semiconductor Equipment sector and 80.53% lower than that of the Information Technology industry. The working capital for all United States stocks is 59.6% higher than that of the company.
Silicon Working Capital Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Silicon Motion's direct or indirect competition against its Working Capital to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Silicon Motion could also be used in its relative valuation, which is a method of valuing Silicon Motion by comparing valuation metrics of similar companies.Silicon Motion is currently under evaluation in working capital category among its peers.
Silicon Motion ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Silicon Motion's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Silicon Motion's managers, analysts, and investors.Environmental | Governance | Social |
Silicon Fundamentals
| Return On Equity | 0.0994 | ||||
| Return On Asset | 0.045 | ||||
| Profit Margin | 0.10 % | ||||
| Operating Margin | 0.11 % | ||||
| Current Valuation | 2.86 B | ||||
| Shares Outstanding | 33.98 M | ||||
| Shares Owned By Institutions | 86.01 % | ||||
| Number Of Shares Shorted | 766.96 K | ||||
| Price To Earning | 27.14 X | ||||
| Price To Book | 3.98 X | ||||
| Price To Sales | 4.08 X | ||||
| Revenue | 803.55 M | ||||
| Gross Profit | 359.88 M | ||||
| EBITDA | 119.6 M | ||||
| Net Income | 90.56 M | ||||
| Cash And Equivalents | 179.86 M | ||||
| Cash Per Share | 5.43 X | ||||
| Total Debt | 259.12 M | ||||
| Debt To Equity | 0.01 % | ||||
| Current Ratio | 3.12 X | ||||
| Book Value Per Share | 23.51 X | ||||
| Cash Flow From Operations | 77.19 M | ||||
| Short Ratio | 2.38 X | ||||
| Earnings Per Share | 2.31 X | ||||
| Price To Earnings To Growth | (4.43) X | ||||
| Target Price | 93.3 | ||||
| Number Of Employees | 1.82 K | ||||
| Beta | 0.97 | ||||
| Market Capitalization | 3.14 B | ||||
| Total Asset | 1.03 B | ||||
| Retained Earnings | 432.62 M | ||||
| Working Capital | 597.23 M | ||||
| Current Asset | 315.18 M | ||||
| Current Liabilities | 88.29 M | ||||
| Annual Yield | 0.02 % | ||||
| Five Year Return | 2.61 % | ||||
| Net Asset | 1.03 B |
About Silicon Motion Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Silicon Motion Technology's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Silicon Motion using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Silicon Motion Technology based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Silicon Motion
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 Silicon Motion 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 Silicon Motion will appreciate offsetting losses from the drop in the long position's value.Moving together with Silicon Stock
Moving against Silicon Stock
| 0.64 | GFS | Globalfoundries | PairCorr |
| 0.57 | XPER | Xperi Corp | PairCorr |
| 0.51 | NA | Nano Labs | PairCorr |
| 0.5 | ON | ON Semiconductor | PairCorr |
| 0.45 | MX | MagnaChip Semiconductor | PairCorr |
The ability to find closely correlated positions to Silicon Motion could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Silicon Motion 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 Silicon Motion - 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 Silicon Motion Technology to buy it.
The correlation of Silicon Motion 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 Silicon Motion moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Silicon Motion Technology 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 Silicon Motion 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.Check out Silicon Motion Piotroski F Score and Silicon Motion Altman Z Score analysis. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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 (0.47) | Earnings Share 2.31 | Revenue Per Share | Quarterly Revenue Growth (0.06) | 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.