(SILC) Silicom - Overview
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 268m USD | Total Return: 208% in 12m
Industry Rotation: +10.0
Avg Turnover: 7.05M
EPS Trend: -86.9%
Qual. Beats: 0
Rev. Trend: -79.2%
Qual. Beats: 2
Warnings
Interest Coverage Ratio -0.5 is critical
Beneish M-Score -1.36 > -1.5 - likely earnings manipulation
Tailwinds
Supp Ema8, Supp Ema20, Leader, Tailwind
Silicom Ltd. (NASDAQ: SILC) is an Israel-based provider of high-performance networking and data infrastructure solutions. The company specializes in the design and manufacture of server network interface cards (NICs), hardware acceleration cards, and smart platforms used in edge computing and software-defined networking (SDN).
The company operates within the communications equipment sector, focusing on high-growth segments like SD-WAN, SASE, and 5G infrastructure. Silicom’s business model relies heavily on the Original Equipment Manufacturer (OEM) channel, where its components are integrated into larger systems sold by global cloud providers and telecommunications companies.
Its product portfolio includes field-programmable gate array (FPGA) based cards and encryption offloading tools, which are essential for reducing CPU overhead in data centers. For a deeper look at the companys fundamental metrics, you may find it useful to review the data on ValueRay.
Silicom maintains a global footprint with sales operations spanning North America, Europe, and the Asia Pacific. Founded in 1987, the firm serves as a critical hardware layer for service providers transitioning toward virtualized customer-premises equipment (vCPE) and network functions virtualization (NFV).
- SD-WAN and SASE adoption accelerates demand for edge networking platforms
- Shift toward software-defined infrastructure drives high-margin smart card sales
- Design wins with Tier-1 cloud and telco providers determine revenue scale
- Geopolitical stability in Israel impacts manufacturing and supply chain continuity
- Global IT infrastructure spending cycles dictate enterprise networking hardware volume
| Net Income: -11.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA -13.70 > 1.0 |
| NWC/Revenue: 121.5% < 20% (prev 195.6%; Δ -74.04% < -1%) |
| CFO/TA -0.01 > 3% & CFO -2.16m > Net Income -11.0m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 3.30 > 1.5 & < 3 |
| Outstanding Shares: last quarter (5.71m) vs 12m ago -0.51% < -2% |
| Gross Margin: 30.45% > 18% (prev 0.29%; Δ 3.02k% > 0.5%) |
| Asset Turnover: 43.20% > 50% (prev 38.84%; Δ 4.37% > 0%) |
| Interest Coverage Ratio: -0.52 > 6 (EBITDA TTM -10.9m / Interest Expense TTM 6.87m) |
| A: 0.51 (Total Current Assets 116.2m - Total Current Liabilities 35.2m) / Total Assets 158.8m |
| B: 0.59 (Retained Earnings 93.6m / Total Assets 158.8m) |
| C: -0.02 (EBIT TTM -3.59m / Avg Total Assets 154.2m) |
| D: 4.00 (Book Value of Equity 171.2m / Total Liabilities 42.8m) |
| Altman-Z'' Score: 9.31 = AAA |
| DSRI: 1.15 (Receivables 17.7m/13.4m, Revenue 66.6m/58.1m) |
| GMI: 0.95 (GM 30.45% / 28.96%) |
| AQI: 3.58 (AQ_t 0.21 / AQ_t-1 0.06) |
| SGI: 1.15 (Revenue 66.6m / 58.1m) |
| TATA: -0.06 (NI -11.0m - CFO -2.16m) / TA 158.8m) |
| Beneish M-Score: -1.36 (Cap -4..+1) = D |
Over the past week, the price has changed by +7.15%, over one month by +102.61%, over three months by +137.55% and over the past year by +208.01%.
- StrongBuy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 20 | -58.4% |
P/S = 4.0185
P/B = 2.2067
P/EG = 1.41
Revenue TTM = 66.6m USD
EBIT TTM = -3.59m USD
EBITDA TTM = -10.9m USD
Long Term Debt = 6.60m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 2.20m USD (from shortTermDebt, last quarter)
Debt = 6.60m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -28.4m USD (recalculated: Debt 6.60m - CCE 35.0m)
Enterprise Value = 239.4m USD (267.8m + Debt 6.60m - CCE 35.0m)
Interest Coverage Ratio = -0.52 (Ebit TTM -3.59m / Interest Expense TTM 6.87m)
EV/FCF = -71.48x (Enterprise Value 239.4m / FCF TTM -3.35m)
FCF Yield = -1.40% (FCF TTM -3.35m / Enterprise Value 239.4m)
FCF Margin = -5.03% (FCF TTM -3.35m / Revenue TTM 66.6m)
Net Margin = -16.57% (Net Income TTM -11.0m / Revenue TTM 66.6m)
Gross Margin = 30.45% ((Revenue TTM 66.6m - Cost of Revenue TTM 46.3m) / Revenue TTM)
Gross Margin QoQ = 29.55% (prev 29.80%)
Tobins Q-Ratio = 1.51 (Enterprise Value 239.4m / Total Assets 158.8m)
Interest Expense / Debt = 104.0% (Interest Expense 6.87m / Debt 6.60m)
Taxrate = 21.0% (US default 21%)
NOPAT = -2.83m (EBIT -3.59m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 3.30 (Total Current Assets 116.2m / Total Current Liabilities 35.2m)
Debt / Equity = 0.06 (Debt 6.60m / totalStockholderEquity, last quarter 116.0m)
Debt / EBITDA = 2.61 (negative EBITDA) (Net Debt -28.4m / EBITDA -10.9m)
Debt / FCF = 8.48 (negative FCF - burning cash) (Net Debt -28.4m / FCF TTM -3.35m)
Total Stockholder Equity = 118.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -7.16% (Net Income -11.0m / Total Assets 158.8m)
RoE = -9.30% (Net Income TTM -11.0m / Total Stockholder Equity 118.7m)
RoCE = -2.86% (EBIT -3.59m / Capital Employed (Equity 118.7m + L.T.Debt 6.60m))
RoIC = -2.39% (negative operating profit) (NOPAT -2.83m / Invested Capital 118.7m)
WACC = 9.89% (E(267.8m)/V(274.4m) * Re(10.13%) + (debt cost/tax rate unavailable))
Discount Rate = 10.13% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -82.81 | Cagr: -7.23%
[DCF] Fair Price = unknown (Cash Flow -3.35m)
EPS Correlation: -86.89 | EPS CAGR: -28.89% | SUE: 0.78 | # QB: 0
Revenue Correlation: -79.15 | Revenue CAGR: -14.36% | SUE: 2.06 | # QB: 2
EPS current Quarter (2026-06-30): EPS=-0.24 | Chg30d=+25.00% | Revisions=+20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=-0.19 | Chg30d=+38.71% | Revisions=-20% | Analysts=1
EPS current Year (2026-12-31): EPS=-0.88 | Chg30d=+30.16% | Revisions=-20% | GrowthEPS=+37.6% | GrowthRev=+33.4%
EPS next Year (2027-12-31): EPS=-0.46 | Chg30d=+55.34% | Revisions=N/A | GrowthEPS=+47.7% | GrowthRev=+15.2%