Silicon Motion Technology CORP

SIMOdata completeness 88%16 fiscal years on file
The thesis, from the filings

Silicon Motion Technology CORP earns about 30% on invested capital, far above its ~9% cost of capital, and has bought back 4% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $4.71 and $9.43 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$922.1M1$945.9M2$639.1M3$803.6M3$885.6M3
Net income$200M4$172.5M5$52.9M6$89.2M6$122.6M6
Operating cash flow$174.7M7$83.9M8$149.1M9$77.1M9$61.4M9
Capital expenditure$24.7M10$32.9M11$50.3M12$44.4M12$55.1M12
Free cash flow (derived)$150M7$51M8$98.8M9$32.7M9$6.3M9
Total debt$013
Cash & equivalents$360.1M14$232.2M15$314.3M16$276.1M17$201.8M17
Diluted shares140.0M133.6M133.9M134.9M134.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$61.66
your share of equity
Profit it earned you last year
$9.1
Free cash flow it threw off
$0.47
Debt you’d be carrying

10 shares is a claim on $61.66 of net worth that earned you $9.1 and generated $0.47 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
30% avg · 5y
FY21 67%FY22 34%FY23 13%FY24 18%FY25 20%

It earned about 30% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−4% shares · 5y

Share count is down 4% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $4.71 and $9.43 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$4.71
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$32.7M
DCF · Growth Exit 5Y
$4.97
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$32.7M
Earnings Power Value
$9.43
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$122.6M
  • growthAssumed0.0%
Graham Number
$11.24
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $4.97
The three cases
Bear0.0%$4.97
Base0.0%$4.97
Bull5.0%$5.81

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001193125-24-125110 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2022-12-31 · accession 0001193125-25-107157 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 20-F · period ending 2023-12-31 · accession 0001193125-26-197184 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 20-F · period ending 2021-12-31 · accession 0001193125-24-125110 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001193125-25-107157 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001193125-26-197184 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001193125-24-125110 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001193125-25-107157 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001193125-26-197184 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001193125-24-125110 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001193125-25-107157 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001193125-26-197184 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2023-12-31 · accession 0001193125-25-107157 (ShortTermBorrowings)
  14. 20-F · period ending 2021-12-31 · accession 0001193125-23-126868 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2022-12-31 · accession 0001193125-24-125110 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2023-12-31 · accession 0001193125-25-107157 (CashAndCashEquivalentsAtCarryingValue)
  17. 20-F · period ending 2024-12-31 · accession 0001193125-26-197184 (CashAndCashEquivalentsAtCarryingValue)