# SILEX Systems (SLX.AU)

Canonical: https://gigainvestors.com/s/SLX.AU

Analysis as of: 2026-10-16T07:45:41.127Z. Financial observations: FY1998–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

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

Share price: AUD 3.48 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

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

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 10

- Operating margin variation: 0.88×

Chart: Operating margin; fiscal year observations.

- FY2017: -4.93×

- FY2018: -10.47×

- FY2019: -3.72×

- FY2020: -4.80×

- FY2021: -3.16×

- FY2022: -0.62×

- FY2023: -0.97×

- FY2024: -1.66×

- FY2025: -1.89×

- FY2026: -0.33×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 35.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: -126.9%

- ROIC, second-lowest year: -454.8%

- Typical minus recent gross margin: 35.0 pp

- Typical gross margin (annual median): -48.4%

- Recent gross margin (lower of latest and 3-year median): -83.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.0%

- ROIC including acquisitions, ten-year median: -189.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -151.3%

- FY2018: -162.2%

- FY2019: -454.8%

- FY2020: -1081.2%

- FY2021: -217.9%

- FY2022: -41.3%

- FY2023: -60.0%

- FY2024: -49.5%

- FY2025: -102.5%

- FY2026: -16.8%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD -130M

- Net income, five-year total: AUD -131M

- Return on incremental invested capital: 30.7%

- Working capital / revenue, annual change: -15.8 pp

- Working capital / revenue, change between three-year averages: -117.4 pp

- Working capital / revenue, final three-year average: 79.3%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: AUD -9.3M

- FY2023: AUD -17M

- FY2024: AUD -23M

- FY2025: AUD -42M

- FY2026: AUD -38M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -162.2% vs -49.5%

- Per-share earnings: -0.03 to -0.14 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.1%

- Ordinary dilution, 5-year annual growth: 8.4%

- Market cap gain: AUD 1.4B

- Cumulative retained earnings: AUD -157M

- Diluted shares, 10-year annual growth: 5.1%

- Diluted shares, 5-year annual growth: 8.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: AUD -0.11

- Per-share value, starting three-year median: AUD -0.03

- Per-share value, ending three-year median: AUD -0.14

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 0

- Cumulative net income, 10 years: AUD -165M

- ROIC, first three-year median: -162.2%

- ROIC, last three-year median: -49.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD -0.06

- FY2018: AUD -0.03

- FY2019: AUD -0.03

- FY2020: AUD -0.05

- FY2021: AUD -0.04

- FY2022: AUD -0.05

- FY2023: AUD -0.07

- FY2024: AUD -0.10

- FY2025: AUD -0.16

- FY2026: AUD -0.14

### accounting: pass

- Sloan accruals: -22.5%

- Receivables to sales index (DSRI): 0.64×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.1%

- FY2018: 12.4%

- FY2019: 4.9%

- FY2020: -3.3%

- FY2021: -9.0%

- FY2022: -18.3%

- FY2023: -9.9%

- FY2024: -20.4%

- FY2025: -46.1%

- FY2026: -22.5%

## Holders

## Price story

Down 66% since Oct 2025 · sales +101.8%

Story as of 2026-10-16T10:00:13.481Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +101.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 2.6M 

- FY2018: AUD 1.2M 

- FY2019: AUD 1.5M 

- FY2020: AUD 1.6M 

- FY2021: AUD 1.9M 

- FY2022: AUD 4.2M 

- FY2023: AUD 6.8M 

- FY2024: AUD 6.1M 

- FY2025: AUD 6.8M 

- FY2026: AUD 14M 

### Gross margin · FY2020

gross margin 78.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 98.9% 

- FY2019: 96.5% 

- FY2020: 78.3% 

## Owner memo

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

### How it makes money

Operates in semiconductors; annual sales are AUD 13.7 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:41.127Z); FY2026: revenue 13708525; grossProfit -502719; margin = grossProfit / revenue.

### Where the cash goes

Paid no dividends in 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:41.127Z); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 20.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SLX.AU SharesStats.PercentInsiders = 20.538999999999998 percentage points; cache date 2026-10-16.

### What the price says

The price is 70.7 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:41.127Z); Closing price 3.48 AUD; reporting-to-trading FX 1; FY2026 annual sales per share 0.04923361836356564; price multiple 70.68340933834968. FY2026 cash earnings/share -0.13773672802915404. Closing-price date 2026-10-15.

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

- 2016-10: AUD 0.34 per share

- 2016-11: AUD 0.40 per share

- 2016-12: AUD 0.40 per share

- 2017-01: AUD 0.70 per share

- 2017-02: AUD 0.67 per share

- 2017-03: AUD 0.54 per share

- 2017-04: AUD 0.45 per share

- 2017-05: AUD 0.40 per share

- 2017-06: AUD 0.37 per share

- 2017-07: AUD 0.37 per share

- 2017-08: AUD 0.36 per share

- 2017-09: AUD 0.33 per share

- 2017-10: AUD 0.30 per share

- 2017-11: AUD 0.44 per share

- 2017-12: AUD 0.48 per share

- 2018-01: AUD 0.40 per share

- 2018-02: AUD 0.34 per share

- 2018-03: AUD 0.31 per share

- 2018-04: AUD 0.30 per share

- 2018-05: AUD 0.26 per share

- 2018-06: AUD 0.20 per share

- 2018-07: AUD 0.24 per share

- 2018-08: AUD 0.22 per share

- 2018-09: AUD 0.24 per share

- 2018-10: AUD 0.21 per share

- 2018-11: AUD 0.18 per share

- 2018-12: AUD 0.18 per share

- 2019-01: AUD 0.17 per share

- 2019-02: AUD 0.34 per share

- 2019-03: AUD 0.32 per share

- 2019-04: AUD 0.38 per share

- 2019-05: AUD 0.39 per share

- 2019-06: AUD 0.40 per share

- 2019-07: AUD 0.44 per share

- 2019-08: AUD 0.35 per share

- 2019-09: AUD 0.38 per share

- 2019-10: AUD 0.41 per share

- 2019-11: AUD 0.33 per share

- 2019-12: AUD 0.39 per share

- 2020-01: AUD 0.35 per share

- 2020-02: AUD 0.31 per share

- 2020-03: AUD 0.25 per share

- 2020-04: AUD 0.30 per share

- 2020-05: AUD 0.35 per share

- 2020-06: AUD 0.78 per share

- 2020-07: AUD 0.66 per share

- 2020-08: AUD 0.58 per share

- 2020-09: AUD 0.57 per share

- 2020-10: AUD 0.55 per share

- 2020-11: AUD 0.61 per share

- 2020-12: AUD 0.89 per share

- 2021-01: AUD 1.13 per share

- 2021-02: AUD 1.20 per share

- 2021-03: AUD 1.19 per share

- 2021-04: AUD 1.08 per share

- 2021-05: AUD 0.97 per share

- 2021-06: AUD 0.90 per share

- 2021-07: AUD 0.97 per share

- 2021-08: AUD 1.25 per share

- 2021-09: AUD 1.30 per share

- 2021-10: AUD 1.32 per share

- 2021-11: AUD 1.32 per share

- 2021-12: AUD 1.33 per share

- 2022-01: AUD 1.07 per share

- 2022-02: AUD 1.15 per share

- 2022-03: AUD 1.22 per share

- 2022-04: AUD 1.39 per share

- 2022-05: AUD 1.40 per share

- 2022-06: AUD 2.10 per share

- 2022-07: AUD 3.27 per share

- 2022-08: AUD 4.09 per share

- 2022-09: AUD 2.98 per share

- 2022-10: AUD 2.96 per share

- 2022-11: AUD 2.85 per share

- 2022-12: AUD 3.20 per share

- 2023-01: AUD 4.63 per share

- 2023-02: AUD 3.97 per share

- 2023-03: AUD 3.90 per share

- 2023-04: AUD 3.35 per share

- 2023-05: AUD 3.92 per share

- 2023-06: AUD 3.94 per share

- 2023-07: AUD 3.61 per share

- 2023-08: AUD 3.20 per share

- 2023-09: AUD 3.50 per share

- 2023-10: AUD 3.21 per share

- 2023-11: AUD 3.24 per share

- 2023-12: AUD 4.35 per share

- 2024-01: AUD 5.14 per share

- 2024-02: AUD 5.00 per share

- 2024-03: AUD 5.13 per share

- 2024-04: AUD 5.10 per share

- 2024-05: AUD 6.04 per share

- 2024-06: AUD 5.33 per share

- 2024-07: AUD 4.69 per share

- 2024-08: AUD 3.89 per share

- 2024-09: AUD 4.30 per share

- 2024-10: AUD 5.25 per share

- 2024-11: AUD 5.61 per share

- 2024-12: AUD 5.05 per share

- 2025-01: AUD 6.20 per share

- 2025-02: AUD 4.11 per share

- 2025-03: AUD 3.61 per share

- 2025-04: AUD 3.09 per share

- 2025-05: AUD 3.60 per share

- 2025-06: AUD 4.22 per share

- 2025-07: AUD 4.25 per share

- 2025-08: AUD 4.15 per share

- 2025-09: AUD 6.57 per share

- 2025-10: AUD 10.34 per share

- 2025-11: AUD 8.61 per share

- 2025-12: AUD 8.63 per share

- 2026-01: AUD 6.98 per share

- 2026-02: AUD 6.90 per share

- 2026-03: AUD 5.29 per share

- 2026-04: AUD 5.57 per share

- 2026-05: AUD 6.17 per share

- 2026-06: AUD 5.30 per share

- 2026-07: AUD 4.61 per share

- 2026-08: AUD 5.14 per share

- 2026-09: AUD 4.21 per share

- 2026-10: AUD 3.70 per share

## Annual estimated value (AUD 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

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.