Recent News
On August 14, 2026 the company closed an upsized offering of $1,150,000,000 of 0.00% convertible senior notes due 2031. In August 2026 Silicon Motion unveiled the MonTitan™ SSD reference design kit for AI infrastructure at FMS 2026. The firm also partnered with MediaTek to showcase storage solutions for AI-ready automotive platforms in late July 2026. These items reflect simultaneous capital raising and product commercialization activity.
Technical Analysis
Directional indicators show DI+ at 25.12 with a dip-and-reversal signal and DI‑ at 25.28 with a peak-and-reversal signal; both patterns translate to bullish directional pressure while ADX at 10.81 indicates no established trend strength. This combination implies directional balance with nascent bullish bias but limited trend conviction.
MACD sits at -1.06 with the MACD line above the signal (-4.38) and a MACD dip-and-reversal pattern; the crossover above the signal line confirms a bullish momentum shift from recent weakness. Momentum looks constructive for short-term mean reversion rather than a sustained breakout given other confirmations.
MRO reads 16.9 and indicates price currently sits above the model target, implying potential downward pressure as valuation re-alignment occurs; the MRO dip-and-reversal suggests that overextension pressure may ease rather than intensify immediately.
RSI at 50.19 with a dip-and-reversal points to neutral momentum that recently reversed from weakness; neither overbought nor oversold conditions constrain near-term swings.
Price trades above the 20-day ($251.81), 50-day ($266.40), and 200-day ($185.95) averages, with the 12-day EMA at $255.33 signaling a recent recovery in shorter-term price trend. Price closed at $277.70, sitting between the upper 1x and 2x Bollinger bands ($265.95 / $280.09), indicating limited room before near-term resistance near the upper band and Ichimoku Senkou levels ($270–$280 range).
Short-term volatility and beta: 42-day beta 3.15 and 52-week beta 2.28, with elevated 42-day volatility relative to the year; volume sits near recent averages, reducing the immediacy of a volume-driven breakout.
Fundamental Analysis
Revenue reached $451,001,000 with YoY revenue growth of 64.67% and QoQ growth of 39.27%, signaling strong top-line expansion. Gross margin measured 50.16%, while operating margin and EBIT margin both stood at 22.42%, reflecting robust profitability on current revenue. EBIT totaled $200,344,000 and EBITDA $209,617,000.
Earnings per share came in at $2.43 versus an estimate of $2.11, an EPS beat of $0.32 or a 15.17% surprise. Net income reached $136,112,000 and operating cash flow showed a negative $63,780,000 for the period, producing free cash flow of -$71,513,000 and a free cash flow yield of -0.20%.
Liquidity and working capital present contrasts: cash and short-term investments totaled $74,367,000, current ratio measured 2.52, quick ratio 1.13, and cash conversion cycle at 304.9 days. Inventories remain elevated at $673,042,000 with days inventory outstanding near 300, weighing on operating cash conversion.
Return metrics: return on equity 13.00% and return on assets 9.35%; earnings growth YoY registered 258.65% while earnings growth QoQ declined slightly by 4.53%. Debt levels remain low with total debt $61,869,000 and debt-to-equity at 5.65%, producing an interest coverage ratio near 69.93x.
Valuation multiples sit at extremes: P/E ~108.0, P/S ~78.9, price-to-book ~34.0, and forward P/E ~60.9. Where industry peer mean/median values exist, the company’s EBIT margin (22.42%) sits above the industry peer mean (0.51644) and well above the industry peer low, while price multiples exceed the industry peer mean and median ranges. The current valuation as determined by WMDST classifies the stock as over-valued, reflecting a premium for growth and recent product/AI positioning despite negative free cash flow and elevated inventory.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-07-29 |
| NEXT REPORT DATE: | 2026-10-28 |
| CASH FLOW | Begin Period Cash Flow | $ 210.9 M |
| Operating Cash Flow | $ -63.78 M | |
| Capital Expenditures | $ -7.73 M | |
| Change In Working Capital | $ -156.06 M | |
| Dividends Paid | $ -16.92 M | |
| Cash Flow Delta | $ -29.08 M | |
| End Period Cash Flow | $ 181.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 451.0 M | |
| Forward Revenue | $ 445.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 224.8 M | |
| Depreciation | $ 9.3 M | |
| Depreciation and Amortization | $ 9.3 M | |
| Research and Development | $ 104.7 M | |
| Total Operating Expenses | $ 349.9 M | |
| PROFITABILITY | ||
| Gross Profit | $ 226.2 M | |
| EBITDA | $ 209.6 M | |
| EBIT | $ 200.3 M | |
| Operating Income | $ 101.1 M | |
| Interest Income | $ 1.4 M | |
| Interest Expense | — | |
| Net Interest Income | $ 1.4 M | |
| Income Before Tax | $ 176.8 M | |
| Tax Provision | $ 40.7 M | |
| Tax Rate | 23.035 % | |
| Net Income | $ 136.1 M | |
| Net Income From Continuing Operations | $ 136.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.11 | |
| EPS Actual | $ 2.43 | |
| EPS Difference | $ 0.32 | |
| EPS Surprise | 15.166 % | |
| Forward EPS | $ 3.97 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.6 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 1.0 B | |
| Total Current Assets | $ 1.2 B | |
| Cash and Short-Term Investments | $ 74.4 M | |
| Cash | $ 74.4 M | |
| Net Receivables | $ 323.6 M | |
| Inventory | $ 673.0 M | |
| Long-Term Investments | $ 6.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 103.3 M | |
| Short-Term Debt | $ 59.2 M | |
| Total Current Liabilities | $ 482.2 M | |
| Net Debt | — | |
| Total Debt | $ 61.9 M | |
| Total Liabilities | $ 558.4 M | |
| EQUITY | ||
| Total Equity | $ 1.0 B | |
| Retained Earnings | $ 670.5 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 7.72 | |
| Shares Outstanding | 135.631 M | |
| Revenue Per-Share | $ 3.33 | |
| VALUATION | Market Capitalization | $ 35.6 B |
| Enterprise Value | $ 35.6 B | |
| Enterprise Multiple | 322.325 | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | high: 457.147 SIMO: 322.325 mean: 56.83 median: 23.495 low: -212.588 |
|
| EV/R | 78.892 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.533 | |
| Asset To Liability | 2.875 | |
| Debt To Capital | 0.054 | |
| Debt To Assets | 0.037 | |
| Debt To Assets QoQ | — | |
| Debt To Assets YoY | — | |
| Debt To Assets IPRWA | high: 0.529 mean: 0.123 median: 0.048 SIMO: 0.037 low: 0.0 |
|
| Debt To Equity | 0.057 | |
| Debt To Equity QoQ | — | |
| Debt To Equity YoY | — | |
| Debt To Equity IPRWA | high: 1.588 mean: 0.239 median: 0.063 SIMO: 0.057 low: 0.0 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 34.003 | |
| Price To Book QoQ | 82.451 % | |
| Price To Book YoY | 173.962 % | |
| Price To Book IPRWA | SIMO: 34.003 high: 17.58 median: 8.494 mean: 7.5 low: 0.14 |
|
| Price To Earnings (P/E) | 108.002 | |
| Price To Earnings QoQ | 70.884 % | |
| Price To Earnings YoY | 11.047 % | |
| Price To Earnings IPRWA | high: 364.244 SIMO: 108.002 mean: 78.459 median: -0.751 low: -91.026 |
|
| PE/G Ratio | 2.008 | |
| Price To Sales (P/S) | 78.926 | |
| Price To Sales QoQ | 30.145 % | |
| Price To Sales YoY | 60.138 % | |
| Price To Sales IPRWA | high: 123.387 SIMO: 78.926 mean: 26.493 median: 20.637 low: 0.291 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 60.919 | |
| Forward PE/G | 1.132 | |
| Forward P/S | 79.841 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.943 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.31 | |
| Asset Turnover Ratio QoQ | 40.595 % | |
| Asset Turnover Ratio YoY | 57.856 % | |
| Asset Turnover Ratio IPRWA | high: 0.352 median: 0.352 SIMO: 0.31 mean: 0.251 low: 0.001 |
|
| Receivables Turnover | 1.658 | |
| Receivables Turnover Ratio QoQ | 28.594 % | |
| Receivables Turnover Ratio YoY | 78.412 % | |
| Receivables Turnover Ratio IPRWA | high: 3.675 mean: 2.016 median: 1.961 SIMO: 1.658 low: 0.937 |
|
| Inventory Turnover | 0.378 | |
| Inventory Turnover Ratio QoQ | 25.097 % | |
| Inventory Turnover Ratio YoY | -29.254 % | |
| Inventory Turnover Ratio IPRWA | high: 1.374 median: 0.76 mean: 0.719 SIMO: 0.378 low: 0.287 |
|
| Days Sales Outstanding (DSO) | 55.042 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 304.92 | |
| Cash Conversion Cycle Days QoQ | -7.848 % | |
| Cash Conversion Cycle Days YoY | 13.68 % | |
| Cash Conversion Cycle Days IPRWA | SIMO: 304.92 high: 244.6 mean: 121.19 median: 119.759 low: -60.285 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.614 | |
| CapEx To Revenue | -0.017 | |
| CapEx To Depreciation | -0.834 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.0 B | |
| Net Invested Capital | $ 1.1 B | |
| Invested Capital | $ 1.1 B | |
| Net Tangible Assets | $ 1.0 B | |
| Net Working Capital | $ 734.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.154 | |
| Current Ratio | 2.523 | |
| Current Ratio QoQ | -11.537 % | |
| Current Ratio YoY | -38.437 % | |
| Current Ratio IPRWA | high: 24.455 median: 3.425 mean: 3.291 SIMO: 2.523 low: 0.565 |
|
| Quick Ratio | 1.127 | |
| Quick Ratio QoQ | -18.609 % | |
| Quick Ratio YoY | -62.414 % | |
| Quick Ratio IPRWA | high: 19.282 median: 2.985 mean: 2.708 SIMO: 1.127 low: 0.483 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.536 | |
| Cost Of Debt | 3.603 % | |
| Interest Coverage Ratio | 69.927 | |
| Interest Coverage Ratio QoQ | 218.861 % | |
| Interest Coverage Ratio YoY | 352.837 % | |
| Interest Coverage Ratio IPRWA | high: 291.602 SIMO: 69.927 mean: 25.466 median: 14.831 low: -165.996 |
|
| Operating Cash Flow Ratio | -0.221 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 49.913 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 8.043 | |
| Dividend Payout Ratio | 0.124 | |
| Dividend Rate | $ 0.12 | |
| Dividend Yield | 0.0 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 22.817 % | |
| Revenue Growth | 31.831 % | |
| Revenue Growth QoQ | 39.268 % | |
| Revenue Growth YoY | 64.671 % | |
| Revenue Growth IPRWA | high: 73.747 % median: 52.495 % mean: 41.423 % SIMO: 31.831 % low: -8.961 % |
|
| Earnings Growth | 53.797 % | |
| Earnings Growth QoQ | -4.529 % | |
| Earnings Growth YoY | 258.647 % | |
| Earnings Growth IPRWA | high: 105.82 % median: 62.791 % mean: 62.34 % SIMO: 53.797 % low: -148.0 % |
|
| MARGINS | ||
| Gross Margin | 50.159 % | |
| Gross Margin QoQ | 2.126 % | |
| Gross Margin YoY | 5.246 % | |
| Gross Margin IPRWA | high: 84.562 % median: 81.276 % mean: 66.639 % SIMO: 50.159 % low: -24.532 % |
|
| EBIT Margin | 22.42 % | |
| EBIT Margin QoQ | 96.874 % | |
| EBIT Margin YoY | 99.484 % | |
| EBIT Margin IPRWA | high: 80.114 % median: 65.849 % mean: 51.644 % SIMO: 22.42 % low: -171.079 % |
|
| Return On Sales (ROS) | 22.42 % | |
| Return On Sales QoQ | 96.874 % | |
| Return On Sales YoY | 99.484 % | |
| Return On Sales IPRWA | high: 80.37 % median: 65.849 % mean: 50.154 % SIMO: 22.42 % low: -171.079 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -71.51 M | |
| Free Cash Flow Yield | -0.201 % | |
| Free Cash Flow Yield QoQ | -31.399 % | |
| Free Cash Flow Yield YoY | -40.0 % | |
| Free Cash Flow Yield IPRWA | high: 2.053 % median: 2.053 % mean: 1.277 % SIMO: -0.201 % low: -4.053 % |
|
| Free Cash Growth | 44.628 % | |
| Free Cash Growth QoQ | -105.361 % | |
| Free Cash Growth YoY | -124.121 % | |
| Free Cash Growth IPRWA | high: 229.3 % median: 153.333 % mean: 116.609 % SIMO: 44.628 % low: -257.59 % |
|
| Free Cash To Net Income | -0.525 | |
| Cash Flow Margin | -23.673 % | |
| Cash Flow To Earnings | -0.784 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 9.348 % | |
| Return On Assets QoQ | 147.433 % | |
| Return On Assets YoY | 480.261 % | |
| Return On Assets IPRWA | high: 10.44 % SIMO: 9.348 % mean: 2.759 % median: 2.452 % low: -11.699 % |
|
| Return On Capital Employed (ROCE) | 9.004 % | |
| Return On Equity (ROE) | 0.13 | |
| Return On Equity QoQ | 146.717 % | |
| Return On Equity YoY | 529.028 % | |
| Return On Equity IPRWA | high: 0.28 median: 0.28 mean: 0.165 SIMO: 0.13 low: -0.336 |
|
| DuPont ROE | 13.939 % | |
| Return On Invested Capital (ROIC) | 131.494 % | |
| Return On Invested Capital QoQ | -771.951 % | |
| Return On Invested Capital YoY | -1634.711 % | |
| Return On Invested Capital IPRWA | SIMO: 131.494 % high: 10.073 % mean: 3.46 % median: 2.956 % low: -20.161 % |
|