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The Screen · Technology · Semiconductors
Silicon Motion Technology Corporation
SIMO · Nasdaq · USD · Market cap $6.8B · 2,009 employees
Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices and related devices in China, Japan, Singapore, Taiwan, Korea,…
Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.30, read 2026-11-03
Ethical passes the values gate
Price201.90 USD
Fair value243.80
Ethical score70.0/100
Value readUndervaluedas of 3 Nov 2026
Our investment reviews on this name
2026-10-21Read Distribution217.24-7.1% to today ✓Markup gives way to Distribution after a 24% slide in 6 weeks
2026-09-12Read Markup284.48-29.0% to today Distribution gives way to Markup after a 6% rise in 4 weeks
2026-08-12Read Distribution267.43-24.5% to today ✓Markup gives way to Distribution
2026-07-02Read Markup280.49-28.0% to today First review on file: Markup
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Silicon Motion Technology Corporation holds its Distribution at $201.90. Consolidating, no directional conviction, held for 6 days.
As held on the ledger · 2026-11-03
Phase
Distribution · caution
Quantitative state
Consolidating, no directional conviction, held for 6 days
Price at the screen
$201.90
Valuation
23.61 trailing · 12.40 forward price to earnings
Values screen
PASS· score 70.0
Beta
1.77
The Workings
Five Screens, Shown in Full
Full pass across all five screens. This security clears the Titan Ethical Standard: its business and its balance sheet both stay inside the lines.
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
0.21%
Below 33%
Interest-bearing debt is just 0.2% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
2.43%
Below 33%
Cash held in interest-bearing accounts and securities is 2.4% of assets, under the one-third limit.
Pass
Receivables
33.81%
Below 49%
Money owed to the company is 33.8% of assets, under the 49% limit.
Pass
Revenue purity
1.09%
Below 5%
Only 1.1% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Clears, in Plain English
Silicon Motion Technology clears all five screens. Its business is in a permissible area, its debt is near-nil, and interest is about 1% of its income, under the ~5% line, so it passes.
Read as at 2026-11-04. It updates when the underlying figures move, and past reads are kept below.
Follow this verdict
Get an email when SIMO's ethical verdict changes
Today SIMO passes the screen. If new figures move it to a fail, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads Undervalued vs our fair value, as of 3 Nov 2026: it trades at roughly a 17% discount to our $243.80 fair value, 131.50% revenue growth.
Fair value range in USD, drawn from the 2026-11-03 screen. The gold marker is the market price at the same screen. A 17.2% discount to the base estimate.
Where our models see it going: fair-value estimate $243.80, with a range of $243.80 to $280.37, dated to the 2026-11-03 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
NAND chips riding a storage surge but overpriced
Picture a factory that makes the brains inside every SSD and memory card. When phone sales or data centres boom, orders flood in and revenue can double almost overnight. Silicon Motion sits in that exact spot, posting 106% revenue growth and a 20% return on equity while clearing an ethical screen with no red flags.
Yet the numbers do not support chasing the shares. The stock trades at a 35% premium to fair value with a forward multiple of 25.9 times in an industry whose earnings rise and fall with commodity memory prices. High growth today often marks the peak of a cycle rather than a durable floor.
That combination leaves no margin of safety. Cyclical peaks can flatter margins and multiples for a while, then reverse quickly when demand cools, leaving holders exposed to sharp resets in both earnings and valuation. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: it already moves more than the market on an average day; its business and earnings are exposed to Hong Kong and to currency swings.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
SIMO trades on Nasdaq (the company is based in Hong Kong). As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-04Distribution$201.90-7.1%Entry 10
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 7.1% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 12% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 282%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (10 analysts) rates it strong buy, with a mean price target of $257. Since the last review it its composite score rose.
2026-10-28Distribution$217.24+0.0%Entry 9
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is holding around 12% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 282%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (10 analysts) rates it strong buy, with a mean price target of $257.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 17.7% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 1% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 282%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (10 analysts) rates it strong buy, with a mean price target of $257.
2026-10-14Markup$263.90-4.1%Entry 7
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 4.1% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 136% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 282%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (10 analysts) rates it strong buy, with a mean price target of $257.
2026-10-02Markup$275.24-3.2%Entry 6
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 3.2% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 136% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 282%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (10 analysts) rates it strong buy, with a mean price target of $257. Since the last review it entered the Tech 100.
2026-09-12Markup · changed$284.48+6.4%Entry 5
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 6.4% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 136% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 282%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (10 analysts) rates it strong buy, with a mean price target of $257.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 4.7% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 136% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 282%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (10 analysts) rates it strong buy, with a mean price target of $257.
2026-07-18Markup$280.49+0.0%Entry 3
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 136% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 282%. Our forward projection puts the odds of a 10% gain over the next month near 44%. The street (10 analysts) rates it strong buy, with a mean price target of $257.
2026-07-03Markup$280.49+0.0%Entry 2
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markup$280.49Entry 1
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
