Silicon Motion Technology SIMO
Hong KongTechnology · SemiconductorsUSD
369.70 USD (+29.4%)
10 analysts
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Silicon Motion Technology is a Taiwanese manufacturer of NAND flash controllers for SSDs and storage devices, selling to original equipment manufacturers and the enterprise channel.
Key points
from its scores- ✓Good share-price trend9.8
- ✓Very solid balance sheet7.9
- ✓Strong growth7.2
- ✕Unfavourable risk and backdrop1.0
- ✕Little or no dividend4.6
AI analysis
bottom line, main risk, context and newsGrowth and quality are real, but the valuation already discounts much of the good news and free cash flow generation is concerning.
Silicon Motion shows explosive growth (revenue +127%, earnings +733.8%) with solid margins (gross 48.87%, operating 22.42%) and net cash, but its valuation is demanding (P/E 33.42, EV/EBITDA 39.07) and free cash flow conversion is deeply negative (-79.38%), warranting caution despite strong momentum.
Free cash flow conversion of -79.38% suggests growth is being funded by working capital or investments that are not translating into cash, a risk if the semiconductor cycle cools.
Context and risks
Silicon Motion is domiciled in Hong Kong, a jurisdiction with weak institutional governance and growing state interference that may affect minority shareholder protection. Additionally, its semiconductor business is exposed to export controls and geopolitical tensions between the U.S. and China, which could restrict its access to key markets or technologies.
Is Silicon Motion Technology stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 49% above the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 33.4 | 31.3 | +7% |
| EV / EBITDA | 39.1 | 20.4 | +91% |
| Price / book | 9.3 | 6.3 | +47% |
| Price / sales | 7.4 | 5.3 | +40% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.2 out of 10 (median for Technology: 5.3).
Average analyst target: 369.70 USD, +29.4% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 6.6 (sector 6.4), Growth 7.2 (sector 7.5).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 33.4
- Forward P/E
- 18.0
- EV / EBITDA
- 39.1
- Price / book
- 9.3
- Price / sales
- 7.4
- PEG
- 0.70
- Market cap
- 9.7B USD
- Enterprise value
- 9.7B USD
Profitability
- ROE
- 31.6%
- ROA
- 10.1%
- ROIC (approx.)
- 26.3%
- Gross margin
- 48.9%
- Operating margin
- 22.4%
- Net margin
- 22.1%
- Free cash flow
- −196.9M USD
- FCF yield
- −2.0%
- Cash conversion
- −79%
Solvency
- Total debt
- 72.5M USD
- Net debt
- −1.9M USD
- Cash
- 74.4M USD
- EBITDA
- 248.0M USD
- Net debt / EBITDA
- −0.01
- Debt / equity
- 6.92
- Current ratio
- 2.52
- Quick ratio
- 0.82
Growth
- Revenue growth
- +127.0%
- Earnings growth
- +733.8%
- EPS (TTM)
- 8.55 USD
- EPS (forward)
- 15.87 USD
Dividend
- Dividend yield
- 0.7%
- Payout
- 23.4%
Risk and market
- Beta
- 1.68
- Analyst consensus
- Strong buy (10)
- Target price
- 369.70 USD
- 52-week range
- 79.76 – 355.00
Recent news
All SIMO news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Silicon Motion Technology
Is Silicon Motion Technology stock cheap or expensive?
On P/E and EV / EBITDA, it trades 49% above the Technology median on average. Valuation score: 5.2 out of 10 (median for Technology: 5.3). Average analyst target: 369.70 USD, +29.4% versus the price. This is not investment advice.
What score does Silicon Motion Technology get on MeridIAn Screener?
It scores 5.9 out of 10, rank 1,106 of 2,130 (better than 47% of the companies analysed). Its strongest category is Momentum (9.8) and its weakest, Risk & Context (1.0). Analysis of 08/10/2026.
What is Silicon Motion Technology's P/E ratio?
Its P/E is 33.4: the share price equals 33.4 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 18.0.
How much is Silicon Motion Technology worth on the stock market?
Its market capitalisation is 9.7B USD and its enterprise value, debt included, is 9.7B USD.
How much debt does Silicon Motion Technology have?
It has more cash than debt: net cash of 1.9M USD.
Does Silicon Motion Technology pay a dividend?
Yes: its dividend yield is 0.70% and it pays out 23% of its earnings.
How has Silicon Motion Technology stock performed over the last year?
It has risen 237.7% over the last year, excluding dividends. Over the last 52 weeks it has traded between 79.76 and 355.00 USD. Past performance does not guarantee future results.
What do analysts think of Silicon Motion Technology?
10 analysts cover it; their average recommendation is “Strong buy” and their average target is 369.70 USD (+29.4% versus the price). It is an estimate, not market data.