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Silicom

Nasdaq:SILC
Snowflake Description

Undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SILC
Nasdaq
$250M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for a range of servers, server based systems, and communications devices in North America, Europe, and the Asia Pacific. The last earnings update was 10 days ago. More info.


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SILC Share Price and Events
7 Day Returns
-1.4%
NasdaqGS:SILC
4.7%
US Communications
0.9%
US Market
1 Year Returns
-19.6%
NasdaqGS:SILC
1.1%
US Communications
10.5%
US Market
SILC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Silicom (SILC) -1.4% 3.6% 6.2% -19.6% -17% -1.7%
US Communications 4.7% 5.9% -3.8% 1.1% 42.8% 65.8%
US Market 0.9% 5.2% 5.4% 10.5% 40.1% 45%
1 Year Return vs Industry and Market
  • SILC underperformed the Communications industry which returned 1.1% over the past year.
  • SILC underperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
SILC
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Silicom undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Silicom to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Silicom.

NasdaqGS:SILC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SILC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 23%) (1.37%))
1.096
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.096 * 5.96%)
9.26%

Discounted Cash Flow Calculation for NasdaqGS:SILC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Silicom is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:SILC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.26%)
2020 37.91 Est @ 3.44% 34.69
2021 39.13 Est @ 3.23% 32.78
2022 40.34 Est @ 3.08% 30.92
2023 41.54 Est @ 2.98% 29.15
2024 42.74 Est @ 2.9% 27.45
2025 43.96 Est @ 2.85% 25.84
2026 45.20 Est @ 2.81% 24.31
2027 46.46 Est @ 2.79% 22.87
2028 47.75 Est @ 2.77% 21.51
2029 49.06 Est @ 2.76% 20.23
Present value of next 10 years cash flows $269.00
NasdaqGS:SILC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $49.06 × (1 + 2.73%) ÷ (9.26% – 2.73%)
$771.67
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $771.67 ÷ (1 + 9.26%)10
$318.24
NasdaqGS:SILC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $269.00 + $318.24
$587.24
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $587.24 / 7.60
$77.27
NasdaqGS:SILC Discount to Share Price
Calculation Result
Value per share (USD) From above. $77.27
Current discount Discount to share price of $32.92
= -1 x ($32.92 - $77.27) / $77.27
57.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Silicom is available for.
Intrinsic value
>50%
Share price is $32.92 vs Future cash flow value of $77.27
Current Discount Checks
For Silicom to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Silicom's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Silicom's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Silicom's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Silicom's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SILC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $2.34
NasdaqGS:SILC Share Price ** NasdaqGS (2019-11-08) in USD $32.92
United States of America Communications Industry PE Ratio Median Figure of 30 Publicly-Listed Communications Companies 24.34x
United States of America Market PE Ratio Median Figure of 2,915 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Silicom.

NasdaqGS:SILC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SILC Share Price ÷ EPS (both in USD)

= 32.92 ÷ 2.34

14.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Silicom is good value based on earnings compared to the US Communications industry average.
  • Silicom is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Silicom's expected growth come at a high price?
Raw Data
NasdaqGS:SILC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
-0.9%per year
United States of America Communications Industry PEG Ratio Median Figure of 19 Publicly-Listed Communications Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Silicom, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Silicom's assets?
Raw Data
NasdaqGS:SILC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $21.76
NasdaqGS:SILC Share Price * NasdaqGS (2019-11-08) in USD $32.92
United States of America Communications Industry PB Ratio Median Figure of 61 Publicly-Listed Communications Companies 1.85x
United States of America Market PB Ratio Median Figure of 5,041 Publicly-Listed Companies 1.74x
NasdaqGS:SILC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SILC Share Price ÷ Book Value per Share (both in USD)

= 32.92 ÷ 21.76

1.51x

* Primary Listing of Silicom.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Silicom is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess Silicom's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Silicom has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Silicom expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

  • No analysts cover Silicom, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Silicom expected to grow at an attractive rate?
  • Silicom's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Silicom's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Silicom's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SILC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SILC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts -0.9%
NasdaqGS:SILC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 2.9%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SILC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SILC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 122 1
2019-12-31 105 1
NasdaqGS:SILC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 125 18
2019-06-30 132 39 20
2019-03-31 134 20
2018-12-31 134 46 15
2018-09-30 126 15
2018-06-30 127 21 16
2018-03-31 130 18
2017-12-31 126 1 22
2017-09-30 116 16
2017-06-30 109 3 14
2017-03-31 104 14
2016-12-31 100 -3 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Silicom's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Silicom's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SILC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Silicom Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SILC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
NasdaqGS:SILC Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 2.34
2019-06-30 2.58
2019-03-31 2.61
2018-12-31 1.94
2018-09-30 2.00
2018-06-30 2.11
2018-03-31 2.36
2017-12-31 2.91
2017-09-30 2.14
2017-06-30 1.96
2017-03-31 1.88
2016-12-31 1.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Silicom will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Silicom's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Silicom has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Silicom performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Silicom's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Silicom's year on year earnings growth rate has been positive over the past 5 years.
  • Silicom's 1-year earnings growth exceeds its 5-year average (17.3% vs 4.5%)
  • Silicom's earnings growth has not exceeded the US Communications industry average in the past year (17.3% vs 21.7%).
Earnings and Revenue History
Silicom's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Silicom Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SILC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 125.26 17.69 10.89 15.43
2019-06-30 132.26 19.56 10.88 15.22
2019-03-31 134.46 19.72 10.79 15.21
2018-12-31 133.75 14.64 10.59 14.82
2018-09-30 126.01 15.07 10.66 14.27
2018-06-30 127.21 15.92 10.92 14.15
2018-03-31 129.87 17.68 10.84 13.83
2017-12-31 125.69 21.71 11.23 13.92
2017-09-30 116.24 15.90 10.74 14.02
2017-06-30 108.60 14.49 10.63 13.61
2017-03-31 104.33 13.83 10.73 13.15
2016-12-31 100.35 13.14 10.39 12.66
2016-09-30 99.46 13.06 14.12 11.97
2016-06-30 94.21 16.92 10.24 11.02
2016-03-31 85.33 15.44 9.51 10.43
2015-12-31 82.74 16.52 9.26 9.70
2015-09-30 78.13 16.82 5.01 8.53
2015-06-30 74.58 12.27 8.06 8.02
2015-03-31 75.38 13.54 7.64 7.32
2014-12-31 75.62 14.61 7.22 6.48
2014-09-30 78.14 16.55 6.86 6.28
2014-06-30 79.48 18.06 6.80 5.92
2014-03-31 77.27 18.02 6.57 5.68
2013-12-31 73.30 17.08 6.39 5.47
2013-09-30 64.64 13.44 6.39 5.18
2013-06-30 58.96 12.00 6.05 4.91
2013-03-31 53.66 11.00 5.75 4.55
2012-12-31 48.73 9.87 5.45 4.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Silicom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Silicom used its assets more efficiently than the US Communications industry average last year based on Return on Assets.
  • Silicom's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Silicom's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Silicom has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Silicom's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Silicom's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Silicom is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Silicom's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Silicom's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are -2.187578482999E+17x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Silicom Company Filings, last reported 1 month ago.

NasdaqGS:SILC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 163.32 0.00 38.30
2019-06-30 164.19 0.00 33.89
2019-03-31 162.50 0.00 26.64
2018-12-31 158.15 0.00 28.41
2018-09-30 147.40 0.00 20.67
2018-06-30 142.94 0.00 32.68
2018-03-31 139.84 0.00 28.47
2017-12-31 140.80 0.00 24.77
2017-09-30 129.46 0.00 36.95
2017-06-30 122.50 0.00 30.76
2017-03-31 124.75 0.00 37.59
2016-12-31 121.39 0.00 28.18
2016-09-30 116.49 0.00 32.57
2016-06-30 112.47 0.00 26.49
2016-03-31 115.69 0.00 39.09
2015-12-31 112.83 0.00 26.81
2015-09-30 107.59 0.00 28.33
2015-06-30 100.09 0.00 26.06
2015-03-31 104.93 0.00 31.96
2014-12-31 100.73 0.00 37.06
2014-09-30 95.09 0.00 35.02
2014-06-30 92.15 0.00 30.62
2014-03-31 95.67 0.00 33.98
2013-12-31 90.69 0.00 30.87
2013-09-30 83.39 0.00 28.10
2013-06-30 79.20 0.00 28.95
2013-03-31 79.66 0.00 29.26
2012-12-31 74.97 0.00 28.42
  • Silicom's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Silicom's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Silicom has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Silicom's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Silicom has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Silicom's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Silicom dividends.
If you bought $2,000 of Silicom shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Silicom's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Silicom's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SILC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1944 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SILC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
NasdaqGS:SILC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-29 0.000 0.000
2019-03-19 0.000 0.000
2019-01-31 0.000 0.000
2018-10-25 0.000 0.000
2018-08-09 0.000 0.000
2018-07-26 0.000 0.000
2018-04-30 0.000 0.000
2018-03-15 0.000 0.000
2017-03-15 1.000 1.775
2016-03-21 1.000 2.873
2015-03-23 1.000 3.239
2014-03-18 1.000 2.660
2013-03-18 0.550 1.440

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Silicom has not reported any payouts.
  • Unable to verify if Silicom's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Silicom's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Silicom has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Silicom's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Silicom afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Silicom has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Silicom's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Shaike Orbach
COMPENSATION $884,846
AGE 67
TENURE AS CEO 18.6 years
CEO Bio

Mr. Yeshayahu Orbach, also known as Shaike, has been the President and Chief Executive Officer of Silicom Ltd. since April 2001. In December, 2001. Mr. Orbach served as the President and Chief Executive Officer of OPGAL Ltd., a High-tech subsidiary of Israel’s Rafael and El-op Corporations. Previously, he served as General Manager of Edusoft, an Israeli Company the Shares of which were traded on the Nasdaq National Market and Managing Director of Tecsys Ltd. He has been a Director of Silicom Ltd. since December 2001. He holds a B.sc degree in Mechanical Engineering from the Technion.

CEO Compensation
  • Shaike's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Shaike's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Silicom management team in years:

18.6
Average Tenure
62
Average Age
  • The average tenure for the Silicom management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Avi Eizenman

TITLE
Co-Founder & Chairman
COMPENSATION
$1M
AGE
62
TENURE
32.8 yrs

Shaike Orbach

TITLE
CEO, President & Director
COMPENSATION
$885K
AGE
67
TENURE
18.6 yrs

Eran Gilad

TITLE
CFO & Company Secretary
COMPENSATION
$322K
AGE
52
TENURE
14.5 yrs

Elad Blatt

TITLE
Chief Strategy & Business Development Officer
COMPENSATION
$451K

David Castiel

TITLE
Vice President of Engineering
COMPENSATION
$382K
Board of Directors Tenure

Average tenure and age of the Silicom board of directors in years:

9.3
Average Tenure
62
Average Age
  • The tenure for the Silicom board of directors is about average.
Board of Directors

Avi Eizenman

TITLE
Co-Founder & Chairman
COMPENSATION
$1M
AGE
62
TENURE
18.6 yrs

Shaike Orbach

TITLE
CEO, President & Director
COMPENSATION
$885K
AGE
67
TENURE
17.9 yrs

Ilan Erez

TITLE
External Director
AGE
52
TENURE
9.3 yrs

Ayelet Hayak

TITLE
External Director
AGE
49
TENURE
6.3 yrs

Eli Doron

TITLE
Director
AGE
66
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • Silicom individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
16. Jan 19 Sell Zohar Zisapel Individual 12. Oct 18 01. Oct 19 -79,075 $38.30 $-3,028,573
26. Nov 18 Sell Lomsha Ltd. Company 06. Nov 18 21. Nov 18 -121,948 $44.62 $-5,296,546
X
Management checks
We assess Silicom's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Silicom has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Looking At Silicom Ltd. (NASDAQ:SILC) From All Angles

Looking at the company as a whole, as a potential stock investment, I believe SILC has a lot to offer. … According to my intrinsic value of the stock, which is driven by analyst consensus forecast of SILC's earnings, investors now have the opportunity to buy into the stock to reap capital gains. … We aim to bring you long-term focused research analysis driven by fundamental data.

Simply Wall St -

Should You Be Excited About Silicom Ltd.'s (NASDAQ:SILC) 12% Return On Equity?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Silicom: 12% = US$20m ÷ US$164m (Based on the trailing twelve months to June 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … A company that can achieve a high return on equity without debt could be considered a high quality business. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

How Much is Silicom Ltd.'s (NASDAQ:SILC) CEO Getting Paid?

In 2001 Shaike Orbach was appointed CEO of Silicom Ltd. … Check out our latest analysis for Silicom How Does Shaike Orbach's Compensation Compare With Similar Sized Companies? … Shaike Orbach is paid around the same as most CEOs of similar size companies.

Simply Wall St -

Read This Before Buying Silicom Ltd. (NASDAQ:SILC) Shares

View our latest analysis for Silicom The Last 12 Months Of Insider Transactions At Silicom In the last twelve months, the biggest single sale by an insider was when the , Zohar Zisapel, sold US$13m worth of shares at a price of US$44.87 per share. … NasdaqGS:SILC Recent Insider Trading, July 18th 2019 Insider Ownership of Silicom Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. … Still, the insider transactions at Silicom in the last 12 months are not very heartening.

Simply Wall St -

Do Insiders Own Lots Of Shares In Silicom Ltd. (NASDAQ:SILC)?

As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' Silicom is a smaller company with a market capitalization of US$244m, so it may still be flying under the radar of many institutional investors. … Taking a look at our data on the ownership groups (below), it's seems that institutions are noticeable on the share registry. … Insider Ownership Of Silicom The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

Here's Why We Think Silicom (NASDAQ:SILC) Is Well Worth Watching

But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' So if you're like me, you might be more interested in profitable, growing companies, like Silicom (NASDAQ:SILC). … Although Silicom certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

What Does Silicom Ltd.'s (NASDAQ:SILC) Share Price Indicate?

In addition to this, it seems like Silicom’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. … NasdaqGS:SILC Past and Future Earnings, June 2nd 2019 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Here's What Silicom Ltd.'s (NASDAQ:SILC) P/E Ratio Is Telling Us

View our latest analysis for Silicom How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Silicom: P/E of 11.59 = $30.21 ÷ $2.61 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … NasdaqGS:SILC Price Estimation Relative to Market, May 23rd 2019 This suggests that market participants think Silicom will underperform other companies in its industry.

Simply Wall St -

Should You Be Concerned About Silicom Ltd.'s (NASDAQ:SILC) Historical Volatility?

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.

Simply Wall St -

Are Silicom Ltd.’s Returns On Capital Worth Investigating?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Company Info

Description

Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for a range of servers, server based systems, and communications devices in North America, Europe, and the Asia Pacific. The company offers server network interface cards with and without bypass for the server networking industry. It also provides intelligent and programmable cards, including redirector and switching cards; encryption and data compression hardware acceleration cards; full field programmable gate array (FPGA) based packet processing cards; and compute blades. In addition, the company offers virtualized and universal customer premise equipment edge networking devices for SD-WAN and NFV deployments; networking targeted appliances; and bypass switches and intelligent bypass switches. It serves original equipment manufacturing, cloud, telco, and service provider customers. The company was founded in 1987 and is headquartered in Kfar Sava, Israel.

Details
Name: Silicom Ltd.
SILC
Exchange: NasdaqGS
Founded: 1987
$250,196,016
7,600,122
Website: http://www.silicom-usa.com
Address: Silicom Ltd.
14 Atir Yeda Street,
Kfar Sava,
4464323,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SILC Ordinary Shares Nasdaq Global Select US USD 18. Feb 1994
DB S1L Ordinary Shares Deutsche Boerse AG DE EUR 18. Feb 1994
Number of employees
Current staff
Staff numbers
0
Silicom employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/10 23:45
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/10/31
Last earnings filing: 2019/10/31
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.