Silicon Motion Technology Corporation EBITDA jumped on 34.1% and Revenue jumped on 18.0%
02/03/2021 • About Silicon Motion Technology Corporation (
$SIMO) • By InTwits
Silicon Motion Technology Corporation reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Silicon Motion Technology Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 14.0%
- CAPEX is quite volatile: $19m in FY2020, $11m in FY2019, $75m in FY2018, $12m in FY2017, $12m in FY2016
- The company has highly profitable business model: ROIC is 14.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 18.0%. Revenue growth showed slowdown in FY20Q4 - it was -6.1% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.2 pp from 5.0% to 9.3% in 2020.
Gross Margin showed almost no change in FY2020. SG&A as a % of Revenue decreased slightly on 1.9 pp from 9.4% to 7.5% in FY2020. During the last 5 years SG&A as a % of Revenue topped in FY2019 at 9.4%.
Net Income margin increased slightly on 0.70 pp from 14.1% to 14.8% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 3.5%. Silicon Motion Technology Corporation showed small growth in CAPEX/Revenue of 1.2 pp from 2.2% in FY2017 to 3.5% in FY2020. For the last three years the average CAPEX/Revenue was 6.7%.
Return on investment
The company operates at good ROIC (14.4%) and ROE (14.6%). ROIC increased on 4.8 pp from 9.7% to 14.4% in FY2020. ROE increased on 2.5 pp from 12.0% to 14.6% in FY2020.
Leverage (Debt)
The company paid down all the debt in FY2020. Cash increased on 6.1%.
Valuation and dividends
The company's trades at EV/EBITDA 19.2x and P/E 27.0x.
Management team
Silicon Motion Technology Corporation's CEO Wallace C Kou has spent 26 years with the company. The company's CFO is Riyadh Lai. Riyadh Lai has 13 years tenure at the company.
Financial and operational results
Silicon Motion Technology Corporation ($SIMO) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 556.1 | 523.4 | 530.3 | 457.3 | 539.5 | 18.0% |
| Gross Profit | 274.6 | 251.2 | 260.8 | 222.2 | 260.2 | 17.1% |
| SG&A | 42.8 | 42.8 | 46.9 | 43.0 | 40.4 | -6.0% |
| EBITDA | 148.8 | 108.5 | 119.6 | 70.1 | 94.0 | 34.1% |
| Net Income | 110.9 | 75.0 | 98.1 | 64.4 | 79.7 | 23.8% |
Balance Sheet
|
|---|
| Cash | 274.5 | 359.5 | 285.0 | 323.2 | 343.0 | 6.1% |
| Short Term Debt | 25.2 | 25.6 | 0.3 | 3.0 | 0.0 | -100.0% |
| Long Term Debt | 0.4 | 0.1 | 0.0 | 5.6 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 12.2 | 11.7 | 74.9 | 11.0 | 18.8 | 70.5% |
Ratios
|
|---|
| Revenue growth | 53.9% | -5.9% | 1.3% | -13.8% | 18.0% | |
| EBITDA growth | 74.3% | -27.1% | 10.3% | -41.4% | 34.1% | |
|
|---|
| Gross Margin | 49.4% | 48.0% | 49.2% | 48.6% | 48.2% | -0.4% |
| EBITDA Margin | 26.8% | 20.7% | 22.6% | 15.3% | 17.4% | 2.1% |
| SG&A, % of revenue | 7.7% | 8.2% | 8.8% | 9.4% | 7.5% | -1.9% |
| Net Income Margin | 19.9% | 14.3% | 18.5% | 14.1% | 14.8% | 0.7% |
| CAPEX, % of revenue | 2.2% | 2.2% | 14.1% | 2.4% | 3.5% | 1.1% |
|
|---|
| ROIC | 32.2% | 18.5% | 19.5% | 9.7% | 14.4% | 4.8% |
| ROE | 28.2% | 16.0% | 19.1% | 12.0% | 14.6% | 2.5% |
| Net Debt/EBITDA | -1.7x | -3.1x | -2.4x | -4.5x | -3.6x | 0.8x |
Silicon Motion Technology Corporation ($SIMO) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 133 | 137 | 126 | 144 | | 40.2% | 38.4% | 14.0% | -6.1% |
| EBITDA | 28 | 34 | 29 | 4 | | 136.2% | 113.9% | 269.6% | -86.8% |
| Net Income | 26 | 28 | 24 | 1 | | 213.3% | 6.5% | 476.0% | -94.7% |
Balance Sheet
|
|---|
| Cash | 344 | 351 | 341 | 343 | | 24.1% | 2.3% | 10.7% | 6.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | | - | - | - | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | | - | - | - | -100.0% |
Ratios
|
|---|
| Gross Margin | 48.1% | 50.0% | 49.1% | 45.9% | | -2.2% | 3.3% | -0.5% | -2.2% |
| EBITDA Margin | 21.3% | 24.5% | 23.1% | 2.8% | | 8.7% | 8.6% | 16.0% | -17.2% |
| Net Income Margin | 19.5% | 20.6% | 19.3% | 0.9% | | 10.8% | -6.2% | 15.4% | -15.7% |
Peers in Semiconductors
Below you can find Silicon Motion Technology Corporation benchmarking vs. other companies in Semiconductors industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Inphi Corporation ($IPHI) | - | 30.8% | -15.4% | 24.2% | 86.8% |
| Sequans Communications S.A. ($SQNS) | - | 5.9% | -16.6% | -23.3% | 65.0% |
| MaxLinear, Inc ($MXL) | - | 8.4% | -8.4% | -17.6% | 50.9% |
| Advanced Micro Devices, Inc. ($AMD) | - | 21.6% | 23.3% | 4.0% | 45.0% |
| Kopin Corporation ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
| |
|---|
| Median (43 companies) | 1.2% | 11.0% | 4.9% | -3.0% | 1.0% |
|---|
| Silicon Motion Technology Corporation ($SIMO) | - | -5.9% | 1.3% | -13.8% | 18.0% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| CEVA, Inc. ($CEVA) | 91.6% | 92.1% | 89.8% | 88.4% | 89.3% |
| Universal Display Corporation ($OLED) | 83.9% | 80.8% | 75.5% | 78.5% | 80.1% |
| Rambus, Inc. ($RMBS) | 80.1% | 79.9% | 76.8% | 77.1% | 75.0% |
| Analog Devices, Inc. ($ADI) | 65.1% | 59.9% | 68.3% | 67.0% | 65.9% |
| MoSys, Inc. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
| |
|---|
| Median (43 companies) | 47.2% | 49.1% | 50.4% | 50.7% | 49.4% |
|---|
| Silicon Motion Technology Corporation ($SIMO) | 49.4% | 48.0% | 49.2% | 48.6% | 48.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 43.5% | 46.7% | 48.6% | 47.5% | 47.6% |
| Intel Corp ($INTC) | 35.2% | 41.7% | 45.7% | 45.9% | 46.7% |
| Broadcom Inc. ($AVGO) | 19.9% | 40.4% | 44.2% | 40.9% | 46.2% |
| Universal Display Corporation ($OLED) | 44.8% | 51.6% | 35.3% | 48.0% | 45.9% |
| Analog Devices, Inc. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (41 companies) | 9.2% | 10.7% | 9.3% | 12.9% | 17.3% |
|---|
| Silicon Motion Technology Corporation ($SIMO) | 26.8% | 20.7% | 22.6% | 15.3% | 17.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Micron Technology, Inc. ($MU) | 46.9% | 23.3% | 29.2% | 41.8% | 38.4% |
| Sequans Communications S.A. ($SQNS) | 11.8% | 13.3% | 22.9% | 29.6% | 27.1% |
| Intel Corp ($INTC) | 16.2% | 18.8% | 21.4% | 22.5% | 18.6% |
| First Solar, Inc. ($FSLR) | 7.9% | 17.5% | 33.0% | 21.8% | 15.4% |
| Power Integrations, Inc. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (40 companies) | 3.7% | 4.7% | 4.2% | 3.8% | 4.0% |
|---|
| Silicon Motion Technology Corporation ($SIMO) | 2.2% | 2.2% | 14.1% | 2.4% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 34.9% | 43.1% | 47.5% | 39.7% | 38.2% |
| Applied Materials Inc ($AMAT) | 19.0% | 31.2% | 36.4% | 27.7% | 32.1% |
| Advanced Micro Devices, Inc. ($AMD) | -21.7% | 7.3% | 21.6% | 21.5% | 31.8% |
| QUALCOMM Incorporated ($QCOM) | 15.8% | 5.7% | 2.2% | 38.0% | 28.1% |
| NVIDIA Corporation ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| |
|---|
| Median (45 companies) | 1.4% | 3.2% | 2.2% | 2.2% | 5.3% |
|---|
| Silicon Motion Technology Corporation ($SIMO) | 32.2% | 18.5% | 19.5% | 9.7% | 14.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| SunPower Corporation ($SPWR) | - | - | - | - | 8.2x |
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 3.0x | 7.2x | 98.6x | - | 6.6x |
| Rambus, Inc. ($RMBS) | -0.1x | -0.1x | - | - | 5.9x |
| Inphi Corporation ($IPHI) | 4.5x | 33.7x | 32.2x | 4.5x | 3.4x |
| Canadian Solar Inc. ($CSIQ) | 11.3x | 6.8x | 2.7x | 3.4x | 3.3x |
| |
|---|
| Median (31 companies) | 0.4x | 0.4x | 0.3x | 0.5x | 0.5x |
|---|
| Silicon Motion Technology Corporation ($SIMO) | -1.7x | -3.1x | -2.4x | -4.5x | -3.6x |
