Silicon Motion (SIMO)
NASDAQ:SIMO
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Silicon Motion
(NASDAQ:SIMO)
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Rating:73Outperform
Price Target:
$125.00
▲(9.75% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by strong financial strength (notably the near-zero-debt balance sheet) and improving operating performance, plus bullish technical momentum. These positives are tempered by weak recent free-cash-flow consistency, a relatively high P/E valuation, and guidance that includes near-term margin and expense pressures despite an upbeat 2026 growth outlook.
Positive Factors
Near-zero debt, strong balance sheet
Silicon Motion's near-zero debt and rising equity (about $558M in 2020 to $831M in 2025) provide durable financial flexibility. This conservatism supports continued R&D, inventory builds for product ramps, dividend capacity and resilience through NAND/PC cycles without leverage constraints.
Negative Factors
Inconsistent free cash flow
Volatile free cash flow and weakened cash conversion versus net income constrain the firm's ability to self-fund tapeouts, inventory builds and dividends consistently. If demand softens, limited FCF cushions raise financing or timing risk for strategic investments and dividend policy.
Read all positive and negative factors
Positive Factors
Negative Factors
Near-zero debt, strong balance sheet
Silicon Motion's near-zero debt and rising equity (about $558M in 2020 to $831M in 2025) provide durable financial flexibility. This conservatism supports continued R&D, inventory builds for product ramps, dividend capacity and resilience through NAND/PC cycles without leverage constraints.
Read all positive factors
Silicon Motion (SIMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.87B
Dividend Yield2.22%
Average Volume (3M)504.13K
Price to Earnings (P/E)4.1
Beta (1Y)1.88
Revenue Growth-2.26%
EPS Growth9.74%
CountryUS
Employees1,819
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.26
Shares Outstanding33,983,670
10 Day Avg. Volume556,395
30 Day Avg. Volume504,132
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)0.94
Price to Sales (P/S)0.88
P/FCF Ratio123.89
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue4.19
Enterprise Value/Gross Profit8.68
Enterprise Value/Ebitda30.11
Forecast
1Y Price Target
$152.83Price Target Upside34.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)5.78
Revenue Forecast (FY)$1.27B
Silicon Motion Business Overview & Revenue Model
Company Description
Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. It offers controllers for computing-grade solid state drives (SSDs), which are used in PC...
How the Company Makes Money
Silicon Motion makes money primarily by selling semiconductor controller ICs and related storage solutions used in NAND-flash-based products. Its key revenue streams generally include: (1) SSD controller sales: controllers that go into client PC S...
Silicon Motion Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: significant Q4 revenue and margin outperformance, multiple product wins (PCIe 5 client SSD, MonTitan enterprise controllers, boot drive shipments), and a confident outlook for sequential quarterly growth and a record 2026. Offsetting these positives are notable risks from industry-wide NAND and DRAM supply tightness, near-term margin pressure from mix and NAND pass-through obligations, elevated R&D and tapeout costs, and expected PC unit softness. On balance, the company presented more substantial and tangible positives (revenue beats, product ramps, design wins, clear market diversification) than negatives, while acknowledging supply-driven constraints that management believes it can mitigate through partnerships and selective program engagement.Positive Updates
Strong Q4 Revenue and Double-Digit Growth
Revenue of $278.5M in Q4 2025, up 15% sequentially and over 45% year-over-year; performance beat the high end of guidance and surpassed the $1.0B run-rate target set at the start of the year.
Negative Updates
NAND and DRAM Supply Constraints and Price Volatility
Management highlighted broad supply tightness and rapid price increases for NAND and DRAM, with hyperscalers and AI customers attempting to lock up supply through 2026; this creates allocation risk and intra-quarter price increases that pressure many end markets.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Revenue and Double-Digit Growth
Revenue of $278.5M in Q4 2025, up 15% sequentially and over 45% year-over-year; performance beat the high end of guidance and surpassed the $1.0B run-rate target set at the start of the year.
Read all positive updates
Company Guidance
Silicon Motion guided that Q1 2026 revenue should rise 5%–10% sequentially to $292–$306 million (they expect Q1 to be the low point for 2026 and sequential growth each quarter thereafter), with gross margin slightly down to 46%–47% in the March quarter (recovering to a 48%–50% target range later in the year) and operating margin of 16%–18%; they expect an effective tax rate of 19% and stock‑based compensation/dispute expenses of $10.8–$11.8 million in Q1, while warning that additional tapeout/development costs (including a planned 4 nm tapeout in Q2) will raise operating expenses in Q2–Q3 even as full‑year 2026 operating margin should improve versus 2025. For context, Q4 2025 actuals were revenue $278.5M (+15% sequential, +45% YoY), gross margin 49.2%, operating expenses $83.2M, operating margin 19.3%, EPS $1.26, stock comp $15.8M, cash $277.1M and dividend outflows of $16.7M; management reiterated 2026 should be a record revenue year, expects MonTitan to reach roughly 5%–10% of revenue exiting 2026 (boot drives excluded) and automotive to be ~10% of revenue by year‑end.Silicon Motion Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 885.63M | 803.55M | 639.14M | 945.92M | 922.10M |
| Gross Profit | 427.51M | 368.76M | 270.39M | 465.83M | 460.80M |
| EBITDA | 123.21M | 132.74M | 83.04M | 231.57M | 264.46M |
| Net Income | 122.71M | 89.25M | 52.87M | 172.51M | 200.00M |
Balance Sheet | |||||
| Total Assets | 1.22B | 1.03B | 1.01B | 961.25M | 971.33M |
| Cash, Cash Equivalents and Short-Term Investments | 201.84M | 276.07M | 314.30M | 232.18M | 360.08M |
| Total Debt | 0.00 | 2.53M | 2.34M | 3.20M | 2.90M |
| Total Liabilities | 390.27M | 259.12M | 273.26M | 228.65M | 313.75M |
| Stockholders Equity | 830.74M | 773.75M | 734.70M | 732.60M | 657.58M |
Cash Flow | |||||
| Free Cash Flow | 6.28M | 32.74M | 98.77M | 50.97M | 150.04M |
| Operating Cash Flow | 61.43M | 77.19M | 149.08M | 83.75M | 176.87M |
| Investing Cash Flow | -27.47M | -44.19M | -49.09M | -32.78M | -30.34M |
| Financing Cash Flow | -91.51M | -67.25M | -16.69M | -183.10M | -99.73M |
Silicon Motion Technical Analysis
Neutral
113.90
Price Trends
123.85
Negative
108.94
Positive
95.59
Positive
Market Momentum
-3.41
Positive
43.80
Neutral
38.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIMO, the sentiment is Neutral. The current price of 113.9 is below the 20-day moving average (MA) of 119.09, below the 50-day MA of 123.85, and above the 200-day MA of 95.59, indicating a neutral trend. The MACD of -3.41 indicates Positive momentum. The RSI at 43.80 is Neutral, neither overbought nor oversold. The STOCH value of 38.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SIMO.
Silicon Motion Risk Analysis
Silicon Motion disclosed 37 risk factors in its most recent earnings report. Silicon Motion reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The restrictions on our ability to solicit or engage in negotiations with respect to other potential acquisition proposals may discourage other potential transactions that may be favorable to our shareholders. Q4, 2022
2.
Some of our directors and officers may have interests that may be different from, or in addition to, the interests of our shareholders. Q4, 2022
3.
Our shareholders could file claims challenging the Merger, which may delay or prevent the closing of the Merger and may cause us to incur substantial defense or settlement costs, or otherwise adversely affect us. Q4, 2022
Silicon Motion Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.87B | 4.07 | 15.21% | 2.22% | -2.26% | 9.74% | |
65 Neutral | $6.89B | -66.51 | -6.05% | ― | 47.10% | 64.29% | |
64 Neutral | $2.91B | 90.19 | 3.17% | 2.27% | 10.50% | -52.00% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $2.87B | -48.27 | -4.45% | ― | 13.24% | -129.14% | |
60 Neutral | $4.81B | 98.08 | 1.48% | ― | -7.49% | ― | |
59 Neutral | $2.21B | -42.07 | -13.00% | ― | 48.08% | 51.23% |
* Technology Sector Average
SIMO
Silicon Motion
113.90
73.16
179.58%
IPGP
IPG Photonics
113.94
61.90
118.95%
POWI
Power Integrations
52.37
9.92
23.37%
SLAB
Silicon Laboratories
209.13
117.94
129.33%
SYNA
Synaptics
74.15
28.59
62.75%
AMBA
Ambarella
50.54
8.87
21.29%
Silicon Motion Corporate Events
Silicon Motion Posts Strong Q4 2025 Results as New SSD and eMMC/UFS Products Drive Growth
Feb 4, 2026
On February 4, 2026, Silicon Motion reported strong fourth-quarter and full-year 2025 results, highlighted by broad-based product momentum and expanding market share in key storage segments. Fourth-quarter 2025 net sales rose 15% sequentially and ...
Silicon Motion Confirms Next Quarterly Dividend Payment for February 26, 2026
Feb 2, 2026
On February 2, 2026, Silicon Motion Technology Corporation confirmed that it will proceed with the next quarterly installment of its previously declared annual cash dividend of US$2.00 per ADS (US$0.50 per ordinary share), which was authorized by ...
Silicon Motion Sets February 4 Call for Q4 2025 Earnings
Jan 9, 2026
On January 9, 2026, Silicon Motion Technology Corporation announced that it will release its fourth-quarter 2025 financial results after the market closes on February 3, 2026, and will host an earnings conference call on February 4 at 8:00 a.m. Ea...
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.