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SIMO

Silicon Motion Technology Corp – Semiconductor and Related Device Manufacturing
Silicon Motion is the global leader in supplying NAND flash controllers for solid state storage devices and the merchant leader in supplying SSD controllers. Silicon Motion has the broadest portfolio of controller technologies and our controllers are widely used in storage products such as SSDs and eMMC+UFS devices, which are found in data centers, PCs, smartphones, and commercial and industrial applications. Silicon Motion has shipped over six billion NAND controllers in the last ten years, more than any other company in the world. The Company also supplies customized high-performance hyperscale data center and industrial SSD solutions. Its customers includes most of the NAND flash vendors, storage device module makers and leading OEMs.
Analysis Results
Intrinsic Value $822.62
Latest Price $63.94
Relative Value 92% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 47.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 47.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.342 0.32
2023 0.506 0.444
2024 0.748 0.615
2025 1.11 0.852
2026 1.63 1.18
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 35.2 billion. This corresponds to a present value of 23.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.41 billion. Adding in the terminal value gives a total present value of 27.2 billion.

There are presently 33.0 million outstanding shares, so the intrinsic value per share is 822.62.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 818,112,000
Current Cash 360,082,000
Current Liabilities 281,519,000
Current Debt 0
Non-Cash Working Capital (NCWC) 176,511,000
Change in NCWC 60,123,000
EBIT 245,869,000
Tax Provision 47,262,000
Depreciation and Amortization 17,160,000
Capital Expenditure -24,657,000
Unlevered Free Cash Flow 251,499,640
Current Assets 618,093,000
Current Cash 342,961,000
Current Liabilities 158,744,000
Current Debt 0
Non-Cash Working Capital (NCWC) 116,388,000
Change in NCWC 7,853,000
EBIT 97,963,000
Tax Provision 5,812,000
Depreciation and Amortization 13,562,000
Capital Expenditure -19,545,000
Unlevered Free Cash Flow 93,178,321
Current Assets 565,199,000
Current Cash 325,176,000
Current Liabilities 131,488,000
Current Debt 0
Non-Cash Working Capital (NCWC) 108,535,000
Change in NCWC 11,975,000
EBIT 68,115,000
Tax Provision 7,676,000
Depreciation and Amortization 13,213,000
Capital Expenditure -11,015,000
Unlevered Free Cash Flow 75,033,640
Current Assets 498,490,000
Current Cash 288,598,000
Current Liabilities 113,651,000
Current Debt 319,000
Non-Cash Working Capital (NCWC) 96,560,000
Change in NCWC 45,835,000
EBIT 108,430,000
Tax Provision 11,791,000
Depreciation and Amortization 14,796,000
Capital Expenditure -74,853,000
Unlevered Free Cash Flow 82,570,584
Current Assets 568,797,000
Current Cash 366,394,000
Current Liabilities 177,244,000
Current Debt 25,566,000
Non-Cash Working Capital (NCWC) 50,725,000
Change in NCWC -27,644,000
EBIT 103,806,000
Tax Provision 24,046,000
Depreciation and Amortization 13,133,000
Capital Expenditure -11,683,000
Unlevered Free Cash Flow 52,398,930
Current Assets 476,900,000
Current Cash 277,785,000
Current Liabilities 145,986,000
Current Debt 25,240,000
Non-Cash Working Capital (NCWC) 78,369,000
Change in NCWC 36,410,000
EBIT 137,260,000
Tax Provision 27,690,000
Depreciation and Amortization 11,585,000
Capital Expenditure -12,220,000
Unlevered Free Cash Flow 145,618,644
Current Assets 315,176,000
Current Cash 185,200,000
Current Liabilities 88,287,000
Current Debt 270,000
Non-Cash Working Capital (NCWC) 41,959,000
Change in NCWC 2,409,000
EBIT 76,433,000
Tax Provision 18,249,000
Depreciation and Amortization 8,987,000
Capital Expenditure -23,664,000
Unlevered Free Cash Flow 46,396,518
Current Assets 290,440,000
Current Cash 194,914,000
Current Liabilities 56,454,000
Current Debt 478,000
Non-Cash Working Capital (NCWC) 39,550,000
Change in NCWC -4,067,000
EBIT 59,070,000
Tax Provision 16,101,000
Depreciation and Amortization 6,917,000
Capital Expenditure -11,596,000
Unlevered Free Cash Flow 34,621,218

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