Silicom Ltd (SILC)
NASDAQ:SILC
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Silicom
(NASDAQ:SILC)
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Rating:55Neutral
Price Target:
$22.50
▲(2.41% Upside)
Action:ReiteratedDate:03/20/26
Overall score reflects a weak recent profitability and inconsistent cash generation as the primary drag, partially offset by a strong, low-debt balance sheet and a generally positive earnings-call outlook (growth guidance, design-win momentum, and a large customer expansion). Technicals are broadly neutral with mild signs of stabilization, while valuation is difficult to assess given negative earnings and no dividend data.
Positive Factors
Strong balance sheet & liquidity
A large cash and marketable-securities position with no debt provides multi-quarter runway to fund R&D, support customer ramps, absorb temporary cash-flow swings, and pursue opportunistic investments or product development without immediate financing—a durable financial cushion.
Negative Factors
Sustained GAAP losses
Persistent GAAP losses have eroded equity and produced negative ROE, constraining internal funding capacity and increasing reliance on the balance sheet. If unaddressed, ongoing losses can force cost cuts, slow product roadmaps, or lead to equity dilution over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet & liquidity
A large cash and marketable-securities position with no debt provides multi-quarter runway to fund R&D, support customer ramps, absorb temporary cash-flow swings, and pursue opportunistic investments or product development without immediate financing—a durable financial cushion.
Read all positive factors
Silicom (SILC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$125.32M
Dividend YieldN/A
Average Volume (3M)20.95K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth-4.61%
EPS Growth63.88%
CountryUS
Employees260
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.34
Shares Outstanding5,696,565
10 Day Avg. Volume18,089
30 Day Avg. Volume20,945
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)0.71
Price to Sales (P/S)1.35
P/FCF Ratio-25.05
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue1.63
Enterprise Value/Gross Profit5.32
Enterprise Value/Ebitda-8.90
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-1.23
Revenue Forecast (FY)$69.40M
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, I...
How the Company Makes Money
Silicom primarily makes money by selling specialized networking hardware products to other businesses (B2B), typically as components or integrated platforms that customers incorporate into their own systems and branded solutions. Key revenue strea...
Silicom Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive outlook driven by a solid quarter that beat guidance (17% YoY growth to $16.9M), momentum from eight design wins, a broadened pipeline, an expanded key customer relationship that more than doubled expected annual revenue, improved gross margin (30.2%) and reduced net loss. The company also highlighted large long-term market opportunities (AI inference, PQC, white-label switching) and a strong balance sheet ($111M in working capital/marketable securities, $74M cash, no debt). Offsetting items include a remaining net loss, higher operating expenses due to currency impacts, customer concentration (~14% from one customer), sizable inventory, and the fact that the new strategic opportunities are still early-stage with limited near-term revenue. Overall, the positive operational and financial beats and strong liquidity outweigh the midterm risks and execution uncertainties.Positive Updates
Revenue Growth and Guidance Beat
Q4 revenue grew 17% year-over-year to $16.9 million, beating guidance of $15.0M–$16.0M. Management is targeting 2026 revenues of $16.5M–$17.5M, which they state represents ~18% growth year-over-year at the midpoint and supports expectation of accelerated double-digit growth in 2026.
Negative Updates
Continued Quarterly Net Loss
Despite improvement, the company still reported a net loss of $1.9M for the quarter and remains unprofitable on a GAAP basis for the period presented.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Guidance Beat
Q4 revenue grew 17% year-over-year to $16.9 million, beating guidance of $15.0M–$16.0M. Management is targeting 2026 revenues of $16.5M–$17.5M, which they state represents ~18% growth year-over-year at the midpoint and supports expectation of accelerated double-digit growth in 2026.
Read all positive updates
Company Guidance
Silicom guided 2026 revenues of $16.5–$17.5 million (midpoint $17.0M), which management said implies ~18% year‑over‑year growth at the midpoint and supports their expectation of accelerated double‑digit annual growth in 2026 and beyond; they also plan to secure 7–9 design wins in 2026 (after eight major design wins in 2025) and highlighted a recent customer expansion that lifted expected annual revenue from $3–4M to $8–10M (with some incremental revenue expected in the coming months). Management reiterated a short‑to‑mid‑term gross‑margin target of 27–32% (2025 gross margin 30.2%, $5.1M gross profit), noted 2025 operating expenses of $7.5M and a Q4 revenue increase of 17% YoY to $16.9M, and emphasized a strong balance sheet—working capital and marketable securities of $111M (including $74M cash and $42M inventory), no debt and roughly $20 per share—while flagging three upside markets (AI inference, PQC, white‑label switching) as potential additional growth drivers.Silicom Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
74
Positive
Cash Flow
44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 61.93M | 58.11M | 124.13M | 150.58M | 128.46M |
| Gross Profit | 18.93M | 16.60M | 28.69M | 51.96M | 44.39M |
| EBITDA | -10.61M | -11.07M | -616.00K | 22.34M | 15.49M |
| Net Income | -11.48M | -13.71M | -26.41M | 18.31M | 10.54M |
Balance Sheet | |||||
| Total Assets | 152.52M | 150.41M | 167.73M | 216.20M | 219.60M |
| Cash, Cash Equivalents and Short-Term Investments | 48.11M | 72.14M | 54.93M | 34.75M | 37.55M |
| Total Debt | 10.52M | 6.47M | 5.95M | 7.84M | 9.19M |
| Total Liabilities | 35.03M | 22.57M | 19.47M | 36.90M | 61.14M |
| Stockholders Equity | 117.49M | 127.84M | 148.26M | 179.29M | 158.46M |
Cash Flow | |||||
| Free Cash Flow | -3.35M | 17.36M | 30.80M | -6.18M | -1.51M |
| Operating Cash Flow | -2.16M | 18.29M | 31.93M | -4.09M | 1.08M |
| Investing Cash Flow | -12.42M | -4.28M | -7.52M | 8.27M | 16.77M |
| Financing Cash Flow | -1.66M | -9.88M | -7.97M | -1.05M | -9.78M |
Silicom Technical Analysis
Positive
21.97
Price Trends
19.83
Positive
17.30
Positive
16.90
Positive
Market Momentum
0.75
Negative
60.01
Neutral
65.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SILC, the sentiment is Positive. The current price of 21.97 is above the 20-day moving average (MA) of 20.34, above the 50-day MA of 19.83, and above the 200-day MA of 16.90, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 65.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SILC.
Silicom Risk Analysis
Silicom disclosed 50 risk factors in its most recent earnings report. Silicom reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Silicom Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $177.65M | 101.82 | -5.49% | ― | -9.26% | 36.90% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $84.52M | -27.50 | -3.58% | ― | 9.55% | 65.17% | |
55 Neutral | $125.32M | -7.31 | -10.53% | ― | -4.61% | 63.88% | |
55 Neutral | $74.69M | -7.48 | -21.76% | ― | -1.53% | 55.08% | |
48 Neutral | $112.19M | -3.04 | 4.39% | ― | -1.89% | 76.61% |
* Technology Sector Average
SILC
Silicom
22.00
8.80
66.67%
CMTL
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3.78
2.42
177.94%
KVHI
KVH Industries
9.12
4.25
87.27%
OCC
Optical Cable
9.57
6.66
228.87%
AIRG
Airgain
6.11
2.34
62.07%
FKWL
Franklin Wireless
3.70
-1.38
-27.17%
Silicom Corporate Events
Silicom Sets April 30, 2026 Date to Report Q1 Results and Host Investor Call
Mar 31, 2026
Silicom Ltd., a high-performance networking and data infrastructure specialist serving cloud, data center and edge markets, detailed its role as a backbone provider for critical technologies including AI inference, SD-WAN, SASE, cyber security and...
Silicom Publishes Audited 2025 Financials and Confirms Effective Internal Controls
Mar 16, 2026
On March 16, 2026, Silicom Ltd. filed a Form 6-K announcing the release of its audited consolidated financial statements and management’s review for the year ended December 31, 2025, together with an auditor’s opinion on both the finan...
Silicom Wins Major Global Streaming Provider as Network Adapter Customer
Mar 12, 2026
On March 12, 2026, Silicom Ltd. reported that one of the world’s largest streaming service providers has selected a high-speed Silicom network adapter for deployment in its proprietary streaming infrastructure. The customer has already place...
Silicom Wins New Edge System Design From Tier-1 Cybersecurity Customer, Securing Over $1 Million in 2026 Orders
Feb 9, 2026
On February 9, 2026, Silicom Ltd. announced that a long-standing Tier-1 cyber security customer has chosen one of its advanced Edge systems as the platform for that customer’s next-generation high-end product line. The decision extends a rel...
Silicom Files New Investor Presentation Highlighting Growth Push in AI, Post‑Quantum Security and White‑Label Switching
Jan 29, 2026
On January 29, 2026, Silicom Ltd. filed a Form 6-K with the U.S. Securities and Exchange Commission to furnish an updated investor presentation outlining its strategy and current traction in AI inference, post-quantum cybersecurity, and white-labe...
Silicom Posts Strong Q4 2025 Rebound and Targets Double-Digit Growth on AI, PQC and Switching Upside
Jan 29, 2026
On January 29, 2026, Silicom reported its fourth-quarter and full-year 2025 results, showing a return to top-line growth and narrowing losses. Fourth-quarter 2025 revenue rose 17% year-on-year to $16.9 million, while the GAAP net loss shrank to $2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.