# Silicon Motion Technology (SIMO.US)

Canonical: https://gigainvestors.com/s/SIMO

Analysis as of: 2026-10-16T07:31:54.608Z. Financial observations: FY2002–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $218.39 per share; close as of 2026-10-15.

Estimated value: low $59.81 per share, central $72.20 per share, high $83.90 per share. Buy at or below the central value $72.20 per share. Valuation as of 2026-10-16T07:31:54.608Z; scenarios are not confidence intervals.

Expected annual return: 5.3% at the stated quote. About 5.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.36×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.25×

- FY2017: 0.20×

- FY2018: 0.21×

- FY2019: 0.16×

- FY2020: 0.21×

- FY2021: 0.27×

- FY2022: 0.23×

- FY2023: 0.06×

- FY2024: 0.11×

- FY2025: 0.11×

### moat: pass

- ROIC, median of available years: 36.4%

- ROIC, second-lowest year: 12.9%

- Typical minus recent gross margin: 2.5 pp

- Typical gross margin (annual median): 48.4%

- Recent gross margin (lower of latest and 3-year median): 45.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: 30.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 90.5%

- FY2017: 83.9%

- FY2018: 38.3%

- FY2019: 32.3%

- FY2020: 49.3%

- FY2021: 63.5%

- FY2022: 34.5%

- FY2023: 8.1%

- FY2024: 15.1%

- FY2025: 12.9%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.93×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $592M

- Net income, five-year total: $637M

- Return on incremental invested capital: 3.3%

- Working capital / revenue, annual change: 4.9 pp

- Working capital / revenue, change between three-year averages: 35.0 pp

- Working capital / revenue, final three-year average: 58.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.94×

- FY2023: 0.46×

- FY2024: 1.00×

- FY2025: 0.94×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 83.9% vs 12.9%

- Per-share earnings: 0.52 to 0.66 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.4%

- Ordinary dilution, 5-year annual growth: -0.8%

- Market cap gain: $6.5B

- Cumulative retained earnings: $252M

- Diluted shares, 10-year annual growth: -0.4%

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 3.0%

- Per-share value change: $0.14

- Per-share value, starting three-year median: $0.52

- Per-share value, ending three-year median: $0.66

- Buybacks concentrated in cheaper years (correlation): 0.66

- Average buyback yield: 0.6%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: $20M

- Cumulative net income, 10 years: $1.1B

- ROIC, first three-year median: 83.9%

- ROIC, last three-year median: 12.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.78

- FY2017: $0.52

- FY2018: $0.69

- FY2019: $0.46

- FY2020: $0.57

- FY2021: $1.43

- FY2022: $1.29

- FY2023: $0.39

- FY2024: $0.66

- FY2025: $0.91

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 5.0%

- Receivables to sales index (DSRI): 0.82×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 42.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.50×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.4%

- FY2017: -4.2%

- FY2018: -1.2%

- FY2019: -1.8%

- FY2020: -4.9%

- FY2021: 2.4%

- FY2022: 9.2%

- FY2023: -9.5%

- FY2024: 1.2%

- FY2025: 5.0%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 34% since Jun 2026 · "Silicon Motion Technology (SIMO) Is Up 8.4% After AI-Driven Earnings Beat And Analyst Optimism" (finance.yahoo.com, Jun 2026) · sales +10.2%

Story as of 2026-10-16T09:59:34.975Z; price observation 2026-10-15.

Price needs cash profits to grow 16.7% a year for ten years

- 2025-07-31: Silicon Motion earnings beat by $0.16, revenue topped estimates ([investing.com](https://www.investing.com/news/earnings/silicon-motion-earnings-beat-by-016-revenue-topped-estimates-4161622))

- 2026-02-05: Silicon Motion Record Growth And Dividend Shape Storage Controller Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/silicon-motion-record-growth-dividend-171535084.html))

- 2026-04-29: SIMO Q1 Earnings Beat Estimates on Strong Controller Demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/simo-q1-earnings-beat-estimates-142300306.html))

- 2026-06-14: Silicon Motion Technology (SIMO) Is Up 8.4% After AI-Driven Earnings Beat And Analyst Optimism ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/silicon-motion-technology-simo-8-101039309.html))

### Sales · FY2024–2025

sales +10.2%; source https://www.sec.gov/Archives/edgar/data/1329394/000119312526197184/d17718d20f.htm; observed 2026-04-30.

- FY2016: $556M 

- FY2017: $523M 

- FY2018: $530M 

- FY2019: $457M 

- FY2020: $540M 

- FY2021: $922M 

- FY2022: $946M 

- FY2023: $639M 

- FY2024: $804M 

- FY2025: $886M 

### Gross margin · FY2025

gross margin 48.3%; source https://www.sec.gov/Archives/edgar/data/1329394/000119312526197184/d17718d20f.htm; observed 2026-04-30.

- FY2016: 49.4% 

- FY2017: 48.0% 

- FY2018: 49.2% 

- FY2019: 48.6% 

- FY2020: 48.2% 

- FY2021: 50.0% 

- FY2022: 49.2% 

- FY2023: 42.3% 

- FY2024: 45.9% 

- FY2025: 48.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductors; annual sales are USD 885.6 million.

- Source: https://www.sec.gov/Archives/edgar/data/1329394/000119312526197184/d17718d20f.htm (filed 2026-04-30); FY2025: revenue 885627000; grossProfit 427509000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SIMO.US: Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices and related devices in China, Japan, Singapore, Taiwan, Korea, the United States, and internationally. It offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in enterprise and hyperscale data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. The company markets its controllers under the SMI brand; and single-chip SSDs under the FerriSSD, Ferri-eMMC, and Ferri-UFS brands. It markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs. Silicon Motion Technology Corporation was founded in 1995 and is based in Hong Kong, Hong Kong.

### Why customers stay

Margins ranged from 42.3% to 48.3% during 2023–25; it earns 36.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); FY2023: grossProfit / revenue = 42.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); FY2024: grossProfit / revenue = 45.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1329394/000119312526197184/d17718d20f.htm (filed 2026-04-30); FY2025: grossProfit / revenue = 48.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); 10-year return on capital observations [[2016,0.9053893294938266],[2017,0.8388346053330334],[2018,0.383204706615204],[2019,0.3233002070759152],[2020,0.4925905379096899],[2021,0.634630240837927],[2022,0.3447064075557608],[2023,0.0808215952166826],[2024,0.15142456215326794],[2025,0.12894010548448315]]; median 0.36395555708548244. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 14.9% of cash earnings on expansion; earns 3.3% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); FY2016: growth capex 635000; upkeep 11585000; owner earnings 110940000. Growth capex / owner earnings = 0.005723814674598883.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); FY2017: growth capex 0; upkeep 11683000; cash acquisitions 2865000; owner earnings 76483000. Growth capex plus acquisitions / owner earnings = 0.03745930468208621.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); FY2018: growth capex 886041.4166557044; upkeep 73966958.5833443; owner earnings 41102041.416655704. Growth capex / owner earnings = 0.021557114588879166.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); FY2019: growth capex 0; upkeep 10325000; owner earnings 67287000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); FY2020: growth capex 5222000; upkeep 13562000; owner earnings 79746000. Growth capex / owner earnings = 0.0654829082336418.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); FY2021: growth capex 9673000; upkeep 17160000; cash acquisitions 0; owner earnings 200002000. Growth capex plus acquisitions / owner earnings = 0.04836451635483645.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); FY2022: growth capex 4265927.522332281; upkeep 28510072.47766772; owner earnings 162930927.52233228. Growth capex / owner earnings = 0.02618242949453269.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); FY2023: growth capex 0; upkeep 50313000; owner earnings 24370000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); FY2024: growth capex 19020000; upkeep 25331000; owner earnings 89249000. Growth capex / owner earnings = 0.213111631502874.

- Source: https://www.sec.gov/Archives/edgar/data/1329394/000119312526197184/d17718d20f.htm (filed 2026-04-30); FY2025: growth capex 17173221.278885677; upkeep 37891778.72111432; owner earnings 114989695.27888568. Growth capex / owner earnings = 0.14934574126173036.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); Incremental return on capital 0.03342928383511471, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); Dividend observations: [[2016,22899000],[2017,32120000],[2018,43281000],[2019,44029000],[2020,48901000],[2021,54039000],[2022,49941000],[2023,16690000],[2024,67255000],[2025,67200000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1329394/000119312526197184/d17718d20f.htm (filed 2026-04-30); FY2025: cash repurchases 24312000 USD.

### Are managers owners

Insiders own 3.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SIMO.US SharesStats.PercentInsiders = 3.4479999999999995 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 16.7% yearly over ten years; actual growth was 8.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-30); Ten-year compound average after fade. Initial solved rate 0.2286691679071745. Price 218.39; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.3877253132082814 → FY2025 0.8535585094707885. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $40.61 per share

- 2016-11: $45.99 per share

- 2016-12: $42.48 per share

- 2017-01: $39.10 per share

- 2017-02: $40.59 per share

- 2017-03: $46.75 per share

- 2017-04: $48.55 per share

- 2017-05: $52.25 per share

- 2017-06: $48.23 per share

- 2017-07: $41.11 per share

- 2017-08: $45.61 per share

- 2017-09: $48.03 per share

- 2017-10: $48.42 per share

- 2017-11: $51.76 per share

- 2017-12: $52.96 per share

- 2018-01: $49.68 per share

- 2018-02: $46.87 per share

- 2018-03: $48.12 per share

- 2018-04: $45.21 per share

- 2018-05: $48.63 per share

- 2018-06: $52.89 per share

- 2018-07: $53.37 per share

- 2018-08: $58.90 per share

- 2018-09: $53.70 per share

- 2018-10: $37.59 per share

- 2018-11: $35.87 per share

- 2018-12: $34.50 per share

- 2019-01: $38.97 per share

- 2019-02: $41.08 per share

- 2019-03: $39.64 per share

- 2019-04: $38.24 per share

- 2019-05: $38.11 per share

- 2019-06: $44.38 per share

- 2019-07: $36.20 per share

- 2019-08: $32.27 per share

- 2019-09: $35.35 per share

- 2019-10: $42.05 per share

- 2019-11: $44.30 per share

- 2019-12: $50.71 per share

- 2020-01: $45.89 per share

- 2020-02: $37.22 per share

- 2020-03: $36.66 per share

- 2020-04: $43.94 per share

- 2020-05: $45.07 per share

- 2020-06: $48.77 per share

- 2020-07: $41.37 per share

- 2020-08: $37.91 per share

- 2020-09: $37.78 per share

- 2020-10: $37.74 per share

- 2020-11: $39.68 per share

- 2020-12: $48.15 per share

- 2021-01: $49.41 per share

- 2021-02: $59.44 per share

- 2021-03: $59.39 per share

- 2021-04: $71.82 per share

- 2021-05: $65.97 per share

- 2021-06: $64.10 per share

- 2021-07: $74.99 per share

- 2021-08: $74.66 per share

- 2021-09: $68.98 per share

- 2021-10: $71.41 per share

- 2021-11: $69.03 per share

- 2021-12: $95.03 per share

- 2022-01: $79.00 per share

- 2022-02: $72.54 per share

- 2022-03: $66.82 per share

- 2022-04: $75.93 per share

- 2022-05: $90.31 per share

- 2022-06: $83.70 per share

- 2022-07: $85.31 per share

- 2022-08: $77.11 per share

- 2022-09: $65.19 per share

- 2022-10: $53.49 per share

- 2022-11: $63.10 per share

- 2022-12: $64.99 per share

- 2023-01: $64.10 per share

- 2023-02: $67.22 per share

- 2023-03: $65.52 per share

- 2023-04: $63.64 per share

- 2023-05: $61.24 per share

- 2023-06: $71.86 per share

- 2023-07: $63.40 per share

- 2023-08: $54.31 per share

- 2023-09: $51.25 per share

- 2023-10: $53.58 per share

- 2023-11: $58.80 per share

- 2023-12: $61.27 per share

- 2024-01: $62.98 per share

- 2024-02: $70.79 per share

- 2024-03: $76.94 per share

- 2024-04: $73.81 per share

- 2024-05: $78.09 per share

- 2024-06: $80.99 per share

- 2024-07: $69.44 per share

- 2024-08: $63.57 per share

- 2024-09: $60.74 per share

- 2024-10: $53.81 per share

- 2024-11: $53.07 per share

- 2024-12: $54.05 per share

- 2025-01: $54.61 per share

- 2025-02: $56.10 per share

- 2025-03: $50.56 per share

- 2025-04: $49.50 per share

- 2025-05: $61.20 per share

- 2025-06: $75.17 per share

- 2025-07: $76.54 per share

- 2025-08: $79.68 per share

- 2025-09: $94.81 per share

- 2025-10: $98.11 per share

- 2025-11: $88.96 per share

- 2025-12: $92.70 per share

- 2026-01: $118.93 per share

- 2026-02: $129.23 per share

- 2026-03: $112.29 per share

- 2026-04: $218.78 per share

- 2026-05: $276.87 per share

- 2026-06: $333.33 per share

- 2026-07: $253.60 per share

- 2026-08: $246.84 per share

- 2026-09: $280.00 per share

- 2026-10: $218.39 per share

## Annual estimated value (USD per share)

- FY2016: low $8.54 per share, central $9.59 per share, high $10.84 per share

- FY2017: low $8.45 per share, central $9.27 per share, high $10.37 per share

- FY2018: low $7.93 per share, central $8.76 per share, high $9.87 per share

- FY2019: low $7.45 per share, central $8.17 per share, high $9.12 per share

- FY2020: low $10.09 per share, central $13.39 per share, high $15.32 per share

- FY2021: low $15.62 per share, central $21.27 per share, high $24.56 per share

- FY2022: low $15.83 per share, central $21.93 per share, high $25.48 per share

- FY2023: low $10.15 per share, central $11.47 per share, high $12.98 per share

- FY2024: low $11.55 per share, central $12.88 per share, high $14.65 per share

- FY2025: low $10.70 per share, central $11.98 per share, high $13.70 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1329394/000119312526197184/d17718d20f.htm); period 2025-12-31, filed 2026-04-30.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.