Silicom (SILC) AI Stock Analysis

• Market Cap: $86.25M
• Dividend Yield: N/A
• Average Volume (3M): 20.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -4.61%
• EPS Growth: 63.88%
• Country: US
• Employees: 260
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.36
• Shares Outstanding: 5,696,565
• 10 Day Avg. Volume: 18,089
• 30 Day Avg. Volume: 20,945
• PEG Ratio: 0.17
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 5.66
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 1.75
• Enterprise Value/Ebitda: -2.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $16.50 ▲(9.34% Upside)

Silicom's overall stock score reflects significant financial and technical challenges, with ongoing losses and bearish technical indicators. However, a strong balance sheet, robust cash flow management, and a positive outlook for future growth provide potential for recovery.

Positive Factors

Strong Design Win Momentum

The achievement of significant design wins indicates strong demand for Silicom's products, supporting future revenue growth and market expansion.

Financial Stability and Flexibility

A robust balance sheet with high liquidity and no debt enhances Silicom's ability to invest in growth opportunities and weather financial challenges.

Positive Outlook for 2026

The forecasted revenue growth reflects strategic positioning and product demand, which could drive long-term profitability and shareholder value.

Negative Factors

Increased Operating Expenses

Rising operating expenses can pressure margins and profitability, potentially limiting the company's ability to invest in growth initiatives.

Continued Operating Loss

Ongoing operating losses indicate challenges in achieving profitability, which may affect long-term financial health and strategic execution.

Net Loss Increase

Increasing net losses highlight financial challenges, potentially impacting investor confidence and the company's ability to fund future growth.

Silicom Business Overview & Revenue Model

Company Description

Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for a range of servers, server-based systems, and communications devices in the United States, North America, Israel, Europe, and the Asia Pacific. It offers server network interface cards; and smart cards, such as smart server adapters, which include redirector and switching cards, encryption and data compression hardware acceleration cards, forward error correction acceleration and offloading cards, time synchronization cards, and field programmable gate array-based cards. The company also provides virtualized and universal customer-premises equipment; edge devices for SD-WAN and NFV deployments; and distributed units for the 5G mobile infrastructure market. It serves original equipment manufacturing, cloud, telco, mobile, and related service provider customers. The company was incorporated in 1987 and is headquartered in Kfar Sava, Israel.

How the Company Makes Money

Silicom generates revenue through the sale of its networking hardware and solutions, which includes a variety of products such as NICs, DPUs, and other related equipment. The company's revenue streams are primarily derived from direct sales to original equipment manufacturers (OEMs), cloud service providers, and telecommunications companies. Additionally, Silicom engages in partnerships with major technology firms to integrate its products into broader networking solutions, which can enhance its market reach and drive sales. The company's focus on innovation and customization allows it to command premium pricing for its products, contributing significantly to its earnings.

Silicom Financial Statement Overview

Summary

Silicom is facing significant revenue and profitability challenges, with a sharp revenue decline and negative net profit margin. However, the company maintains a strong balance sheet with low leverage and robust cash flow management, providing a buffer against these challenges.

Income Statement

Silicom has faced significant challenges in maintaining revenue and profitability. The company reported a negative net profit margin and EBIT margin for 2024, indicating ongoing operational difficulties. Revenue declined sharply in 2024, reflecting a revenue growth rate of -53.2% from the previous year. Historically, Silicom has experienced fluctuating revenue growth, with a significant drop post-2022, affecting overall profitability and stability.

Balance Sheet

Silicom demonstrates a solid equity base with a high equity ratio of 85.0% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.05, suggesting minimal leverage risk. However, the return on equity has been negative due to net losses, impacting overall returns to shareholders. The company maintains a significant cash position, which supports its financial resilience despite recent losses.

Cash Flow

Silicom's cash flow position is relatively strong, with a positive operating cash flow to net income ratio of -1.33 in 2024, indicating effective cash generation relative to reported losses. The company has shown consistent free cash flow generation, with a positive free cash flow in 2024 despite declining operating income. This provides a cushion for operational needs and potential investments, highlighting robust cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.65M	58.11M	124.13M	150.58M	128.46M	107.40M
Gross Profit	17.29M	16.60M	28.69M	51.96M	44.39M	33.77M
EBITDA	-11.87M	-11.07M	-616.00K	22.34M	15.49M	8.63M
Net Income	-14.90M	-13.71M	-26.41M	18.31M	10.54M	5.72M
Balance Sheet
Total Assets	147.81M	150.41M	167.73M	216.20M	219.60M	195.89M
Cash, Cash Equivalents and Short-Term Investments	64.29M	72.14M	54.93M	34.75M	37.55M	60.79M
Total Debt	6.64M	6.47M	5.95M	7.84M	9.19M	10.10M
Total Liabilities	26.09M	22.57M	19.47M	36.90M	61.14M	41.05M
Stockholders Equity	121.73M	127.84M	148.26M	179.29M	158.46M	154.84M
Cash Flow
Free Cash Flow	0.00	17.36M	29.71M	-8.78M	-5.08M	1.77M
Operating Cash Flow	0.00	18.29M	31.93M	-4.09M	1.08M	4.96M
Investing Cash Flow	0.00	-4.28M	-7.52M	8.27M	16.77M	15.43M
Financing Cash Flow	0.00	-9.88M	-7.97M	-1.05M	-9.78M	-16.52M

Silicom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.09
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SILC, the sentiment is Neutral. The current price of 15.09 is above the 20-day moving average (MA) of 14.40, above the 50-day MA of 14.75, and below the 200-day MA of 15.53, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 56.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SILC.

Silicom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KVHI	58 Neutral	$142.88M	-12.09	-8.78%	―	-9.26%	36.90%
SILC	57 Neutral	$86.25M	-6.48	-10.53%	―	-4.61%	63.88%
CMTL	52 Neutral	$162.07M	-2.38	-7.88%	―	-1.89%	76.61%
AIRG	51 Neutral	$48.19M	-7.79	-19.65%	―	-1.53%	55.08%
OCC	42 Neutral	$36.90M	-21.93	-6.86%	―	9.55%	65.17%

Silicom Corporate Events

Silicom to Join 28th Annual Needham Growth Conference in New York

On January 6, 2026, Silicom Ltd. announced that its management team will participate in the 28th Annual Needham Growth Conference, scheduled for January 13–14, 2026, at the Lotte New York Palace Hotel in New York. The company’s executives will be available for one-on-one meetings with investors throughout the event, underscoring Silicom’s ongoing efforts to engage the investment community and showcase its networking and data infrastructure solutions to growth-focused institutional investors and other stakeholders.

The most recent analyst rating on (SILC) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Silicom stock, see the SILC Stock Forecast page.

Silicom Revenue Outlook Jumps as Global Networking Giant Expands Edge Device Deployment

On January 5, 2026, Silicom Ltd. announced that a global networking and security-as-a-service leader, which had granted it an initial Edge device design win in December 2024, has decided to deploy Silicom’s Edge systems across multiple additional use cases. This expanded engagement is expected to lift the annual revenue contribution from that customer from an estimated $3–4 million to $8–10 million, with part of the incremental revenue anticipated to be recognized already in 2026, underscoring the company’s strategy of building recurring, design-win-based business with large blue-chip clients and reinforcing its positioning as a sole edge networking hardware supplier for key accounts.

The most recent analyst rating on (SILC) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Silicom stock, see the SILC Stock Forecast page.

Silicom Sets January 29 Date to Release Q4 and Full-Year 2025 Results

On January 5, 2026, Silicom Ltd. announced that it will release its fourth quarter and full-year 2025 financial results on January 29, 2026. Management will discuss the results and take investor questions during a same-day conference call scheduled for 9:00 a.m. Eastern Time, which will be accessible via webcast on the company’s website and through international dial-in numbers, with a replay available online for three months, signaling continued engagement with investors ahead of a key financial reporting milestone.

The most recent analyst rating on (SILC) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Silicom stock, see the SILC Stock Forecast page.

Silicom Reports Q3 2025 Results with Strategic Wins and Future Growth Plans

Silicom Ltd. announced its financial results for the third quarter of 2025, reporting revenues of $15.6 million, a slight increase from the previous year, but also a net loss of $2.8 million on a GAAP basis. Despite the losses, the company achieved significant strategic milestones, including eight Design Wins, and anticipates double-digit growth in 2026 driven by advancements in Post-Quantum Cryptography and Edge solutions. The company is optimistic about future growth, targeting 7 to 9 new Design Wins in 2026, leveraging its strong technology portfolio and customer relationships.

The most recent analyst rating on (SILC) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Silicom stock, see the SILC Stock Forecast page.

Silicom Secures $3M Design Win with SASE Leader

On October 28, 2025, Silicom Ltd. announced a significant $3 million Design Win from a leading SASE solutions provider, marking a continuation of their successful partnership. The initial orders amount to $500,000, with expectations to ramp up in 2026, potentially reaching a $3 million annual run-rate. This development underscores Silicom’s strong position in the fast-growing SASE market, leveraging its expertise in wired and wireless connectivity solutions. The collaboration highlights Silicom’s strategic role in the industry and its potential for future growth, as it continues to engage with multiple SASE leaders.

The most recent analyst rating on (SILC) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Silicom stock, see the SILC Stock Forecast page.