Silicom Ltd

Silicom Ltd designs and manufactures networking and data infrastructure solutions. The company offers server network interface cards, smart cards, and other products. Products include redirector and switching cards, encryption and compression hardware acceleration cards, and more. Smart platforms offered are virtualized customer-premises equipment and universal customer-premises equipment. Edge devices are provided for SD-WAN, SASE, telco dedicated routers, and NFV deployments. The company sells to original equipment manufacturing, cloud, telco mobile, and service provider markets. Silicom Ltd was incorporated in 1987 and is headquartered in Israel.

Overview

Sector

Communication Equipment

Target Price

4.7 USD

Current Price

15.4 USD

Potential

-70%

Strengths

Price to book ratio (0.71) is lower than the sector mean (13.64).
The company has high returns. ROIC (13.62%) is higher than the sector mean (6.61%).
Price to free cash flow (5.32) is lower than the sector mean.

Weaknesses

With a depreciation Potential of -70.26%, based on our fundamental analysis, it suggests the stock may be overvalued.
Current Price to Earnings Ratio (100.00) is significantly higher than the sector mean (71.24).
Analysts expect revenues to decline in the coming year.
The company has high debt. Net Debt to EBITDA Ratio (4.29) is higher than the sector mean.
EV/EBITDA (100.00) is significantly higher than the sector mean (63.50).
EBITDA Margin (0.00%) appears relatively low.

Key Financial Data

Indicator	Value
PER	100.0
EV/EBITDA	100.0
Price/Free Cash Flow'	5.2
ROIC	13.6%
Net Debt/EBITDA	4.3