Silicom Ltd. (NASDAQ: SILC)

Sector: Technology Industry: Communication Equipment CIK: 0000916793
Market Cap 85.00 Mn
P/B 0.71
P/E -5.64
P/S 1.43
ROIC (Qtr) -11.19
Div Yield % 0.00
Rev 1y % (Qtr) 5.81
Total Debt (Qtr) 6.41 Mn
Debt/Equity (Qtr) 0.05

About

Silicom Ltd., a company listed on the NASDAQ Global Select Markets under the ticker symbol "SILC", operates in the high-performance networking and data infrastructure solutions industry. The company's offerings are designed to enhance performance and efficiency in Cloud and Data Center environments, and are used by major Cloud players, service providers, telcos, and OEMs. Silicom's main business activities revolve around the design and manufacture of products in three primary segments: Server Adapters, Smart Cards, and Smart Platforms. The Server...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 38.42M provide 19.63x coverage of short-term debt 1.96M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 148.75M provides 23.20x coverage of total debt 6.41M, indicating robust asset backing and low credit risk.
  • Long-term investments of 20.62M provide solid 4.63x coverage of long-term debt 4.45M, indicating strategic financial planning.
  • Retained earnings of 98.55M provide full 22.13x coverage of long-term debt 4.45M, indicating strong internal capital position.
  • Cash reserves of 38.42M provide robust 1.60x coverage of current liabilities 23.96M, indicating strong short-term solvency.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 19.71M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Long-term investments of 20.62M represent a high 2.17x of fixed assets 9.52M, indicating potential overexposure to financial assets versus operational capabilities.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 3.75M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Tangible assets of 148.75M provide limited backing for working capital of 92.95M, which is 1.60x, suggesting increased operational risk in market downturns.
  • Tax assets of 0 provide limited offset against tax liabilities of 283000, which is 0x, indicating potential future cash flow pressure from tax obligations.

Peer comparison

Companies in the Communication Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CSCO Cisco Systems, Inc. 306.02 Bn 29.63 5.30 28.09 Bn
2 MSI Motorola Solutions, Inc. 63.92 Bn 30.21 5.65 9.81 Bn
3 HPE Hewlett Packard Enterprise Co 35.43 Bn -600.50 1.03 22.37 Bn
4 UI Ubiquiti Inc. 33.47 Bn 42.27 12.14 0.17 Bn
5 CIEN Ciena Corp 33.16 Bn 268.82 6.95 1.58 Bn
6 LITE Lumentum Holdings Inc. 25.28 Bn 224.75 13.73 3.28 Bn
7 ASTS AST SpaceMobile, Inc. 19.88 Bn -65.43 1,072.82 0.72 Bn
8 ZBRA Zebra Technologies Corp 12.46 Bn 24.33 2.37 2.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.26 2.22
EV to Cash from Ops. EV/CFO 2.15 10.78
EV to Debt EV to Debt 6.14 25.00
EV to EBIT EV/EBIT -3.47 32.18
EV to EBITDA EV/EBITDA -3.55 10.60
EV to Free Cash Flow [EV/FCF] EV/FCF 2.32 -3.32
EV to Market Cap EV to Market Cap 0.46 1.17
EV to Revenue EV/Rev 0.66 27.87
Price to Book Value [P/B] P/B 0.71 5.35
Price to Earnings [P/E] P/E -5.64 2.67
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.91
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -25.01
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 4.46
Interest Coverage Interest Coverage 0.00 -12.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -73.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -35.42 463.06
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.39
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 64.57 204.95
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -1.04
EBIT Growth (1y) % EBIT 1y % (Qtr) 75.16 238.24
EBT Growth (1y) % EBT 1y % (Qtr) 75.16 173.82
EPS Growth (1y) % EPS 1y % (Qtr) 59.59 8.68
FCF Growth (1y) % FCF Growth (1y) % 0.00 20.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 126.07 41.66
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.39 0.76
Cash Payout Ratio Cash Payout Ratio 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.60 1.20
Current Ratio Curr Ratio (Qtr) 4.88 2.69
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 0.43
Interest Cover Ratio Interest Cover Ratio 0.00 -12.93
Times Interest Earned Times Interest Earned 0.00 -12.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -40.66
EBIT Margin % EBIT Margin % (Qtr) -19.04 -52.32
EBT Margin % EBT Margin % (Qtr) -19.04 -59.46
Gross Margin % Gross Margin % (Qtr) 30.30 39.35
Net Profit Margin % Net Margin % (Qtr) -25.30 -60.72