Silicon Motion Technology Corporation (SIMO) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Silicon Motion Technology Corporation

Updated on September 26, 2026 · accounts published on July 29, 2026

Reading of September 25, 2026: A profitable, cash-rich business

Silicon Motion Technology trades at a P/E of 32.3 over the last 12 months, 73 % above its ten-year average of 18.7 after a 210 % rise in the stock.

• Is Silicon Motion Technology expensive or cheap? Silicon Motion Technology trades 73 % above its decade-average P/E, yet 7 % below the median of its sector.
• How is the business doing? Operating margin recovered to 16 % over the last 12 months from 10.5 % in fiscal 2025, with EPS up 38 %.
• How strong is the balance sheet? Net cash of $24.06 per share in fiscal 2025 equals 8.7 % of the share price, with debt at just 0.06 times equity.
• What to expect from the next earnings? On October 29, 2026, analysts expect EPS of $3.30; the company beat estimates in 7 of the last 8 quarters.
• Is it growing with real cash or by diluting shareholders? Stock pay was just 3.0 % of revenue in fiscal 2025, but free cash flow was only 0.7 % of revenue, far below the 20 % healthy mark.

Is Silicon Motion Technology expensive or cheap?

Over the last 12 months Silicon Motion Technology trades at a P/E of 32.3, against a ten-year average of 18.7. It has traded cheaper than today in 95 % of the quarters of the last decade, within a range of 9.1 to 73.6. Against its sector the picture softens: its P/E is 7 % below the median of 34.9 across 356 companies. EV/EBITDA of 31.8× is almost three times its five-year average of 10.9×. After a 210 % rise over the last 12 months, the stock sits 18 % below its 52-week high of $336.90, and the free cash flow yield is just 0.1 %.

How is the business doing?

Revenue grew 10 % over the last 12 months while EPS rose 38 %, so profits are growing faster than sales. The operating margin of 16 % over the last 12 months is a clear recovery from 10.5 % in fiscal 2025, though still below the 18 % average of fiscal 2014-2025. Returns on capital stand out against peers: ROIC of 14.8 % over the last 12 months is 6.6 points above the sector median of 8.2 %. The record is fairly steady, with ROIC above 10 % in 7 of the last 10 fiscal years; the weak spot was 2023, at 4.3 %.

How strong is the balance sheet?

Silicon Motion Technology carries almost no debt: debt to equity is 0.06 over the last 12 months, and in fiscal 2025 it held $24.06 of cash per share against no debt, equal to 8.7 % of the current price. Net debt to EBITDA of −1.2× in fiscal 2025 sits far from the 2.0× that semiconductor companies can tolerate, and a current ratio of 2.52 covers short-term obligations comfortably. The scores are less emphatic: an Altman Z of 2.8 falls in the grey zone and the Piotroski score is 6 of 9. The dividend yields 0.7 %, with a fiscal 2025 payout of 55 % of earnings.

What to expect from the next earnings?

Silicon Motion Technology reports on October 29, 2026, and analysts expect EPS of $3.30, well above the $2.43 it reported on July 29, 2026. That last result beat the $2.13 consensus by 14 %, and the company has beaten EPS estimates in 7 of the last 8 quarters, so the bar is high but the track record is solid. Sentiment is strongly positive: 25 of 31 analysts rate the stock a buy, 4 a hold and 2 a sell. The 2026 EPS consensus has held at $11.19 over the last 11 days, so estimates are stable heading into the report.

Is it growing with real cash or by diluting shareholders?

In technology, generic ratios miss what drives value, so the sector check looks at growth, pricing power and dilution from stock-based pay. Silicon Motion Technology passes on growth: revenue per share rose 54.8 % a year over fiscal 2022-2025, far above the 15 % healthy mark. Gross margin of 48.3 % in fiscal 2025 clears the 45 % bar for semiconductors, though only just, and stock compensation at 3.0 % of revenue is well under the 10 % limit, so growth is not being paid for with dilution. The weak link is cash: free cash flow was 0.7 % of revenue in fiscal 2025, against a healthy level of 20 %.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.