Silicom Stock Buy Hold or Sell Recommendation

SILC Stock  USD 15.10  0.26  1.75%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Silicom is 'Strong Hold'. Macroaxis provides Silicom buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Silicom positions.
  
Check out Silicom Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade Silicom Stock refer to our How to Trade Silicom Stock guide.
In addition, we conduct extensive research on individual companies such as Silicom and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Silicom. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.

Execute Silicom Buy or Sell Advice

The Silicom recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Silicom. Macroaxis does not own or have any residual interests in Silicom or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Silicom's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell SilicomBuy Silicom
Strong Hold

Market Performance

Very WeakDetails

Volatility

Not too volatileDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Silicom has a Risk Adjusted Performance of 0.0623, Jensen Alpha of 0.2224, Total Risk Alpha of 0.5829, Sortino Ratio of 0.1012 and Treynor Ratio of 0.6148
Our advice tool can cross-verify current analyst consensus on Silicom and to analyze the firm potential to grow in the current economic cycle. To make sure Silicom is not overpriced, please validate all Silicom fundamentals, including its price to book, total debt, target price, as well as the relationship between the ebitda and cash flow from operations . Given that Silicom has a price to earning of 18.44 X, we advise you to double-check Silicom market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Silicom Trading Alerts and Improvement Suggestions

Silicom had very high historical volatility over the last 90 days
The company reported the previous year's revenue of 124.13 M. Net Loss for the year was (26.41 M) with profit before overhead, payroll, taxes, and interest of 16.6 M.
Latest headline from finance.yahoo.com: US-Based Cyber Security Company Selects Silicom Next-Gen FPGA Smart Card for New Network Monitoring Solution

Silicom Returns Distribution Density

The distribution of Silicom's historical returns is an attempt to chart the uncertainty of Silicom's future price movements. The chart of the probability distribution of Silicom daily returns describes the distribution of returns around its average expected value. We use Silicom price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Silicom returns is essential to provide solid investment advice for Silicom.
Mean Return
0.20
Value At Risk
-5.24
Potential Upside
5.70
Standard Deviation
3.15
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Silicom historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Silicom Stock Institutional Investors

Shares
Gsa Capital Partners Llp2024-12-31
26.1 K
Two Sigma Investments Llc2024-12-31
25.9 K
Amvescap Plc.2024-12-31
23 K
Analyst Ims Investment Management Services Ltd.2024-12-31
20.7 K
Blackrock Inc2024-12-31
19 K
Arrowstreet Capital Limited Partnership2024-12-31
16.3 K
Rbf Llc
12.7 K
Ubs Group Ag2024-12-31
7.2 K
Bnp Paribas Arbitrage, Sa2024-12-31
5.4 K
Systematic Financial Management Lp2024-12-31
510.4 K
First Wilshire Securities Mgmt Inc (ca)2024-12-31
390.7 K
Note, although Silicom's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Silicom Cash Flow Accounts

202020212022202320242025 (projected)
Change To Inventory(13.3M)(33.5M)(15.3M)29.9M26.9M28.3M
Change In Cash4.2M8.6M1.4M16.2M18.7M19.6M
Free Cash Flow1.8M(5.1M)(8.8M)29.7M34.2M35.9M
Depreciation2.4M2.4M2.4M2.5M2.9M3.0M
Other Non Cash Items3.5M5.9M3.0M37.1M42.7M44.8M
Capital Expenditures3.2M6.2M4.7M2.2M2.5M1.3M
Net Income5.7M10.5M18.3M(26.4M)(30.4M)(28.9M)
End Period Cash Flow20.7M29.3M30.7M47.0M54.0M56.7M
Investments18.6M22.9M8.3M(7.5M)(8.6M)(8.2M)
Change To Netincome3.9M6.1M8.8M7.7M8.9M6.2M

Silicom Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Silicom or Communications Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Silicom's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Silicom stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.22
β
Beta against Dow Jones0.31
σ
Overall volatility
3.18
Ir
Information ratio 0.09

Silicom Volatility Alert

Silicom currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.22. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Silicom's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Silicom's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Silicom Fundamentals Vs Peers

Comparing Silicom's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Silicom's direct or indirect competition across all of the common fundamentals between Silicom and the related equities. This way, we can detect undervalued stocks with similar characteristics as Silicom or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Silicom's fundamental indicators could also be used in its relative valuation, which is a method of valuing Silicom by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Silicom to competition
FundamentalsSilicomPeer Average
Return On Equity-0.0864-0.31
Return On Asset-0.0519-0.14
Profit Margin(0.21) %(1.27) %
Operating Margin(0.25) %(5.51) %
Current Valuation24.83 M16.62 B
Shares Outstanding6.1 M571.82 M
Shares Owned By Insiders10.02 %10.09 %
Shares Owned By Institutions34.94 %39.21 %
Number Of Shares Shorted4.57 K4.71 M
Price To Earning18.44 X28.72 X
Price To Book0.70 X9.51 X
Price To Sales1.58 X11.42 X
Revenue124.13 M9.43 B
Gross Profit16.6 M27.38 B
EBITDA(616 K)3.9 B
Net Income(26.41 M)570.98 M
Cash And Equivalents28.02 M2.7 B
Cash Per Share4.18 X5.01 X
Total Debt5.95 M5.32 B
Debt To Equity0.05 %48.70 %
Current Ratio4.43 X2.16 X
Book Value Per Share22.29 X1.93 K
Cash Flow From Operations31.93 M971.22 M
Short Ratio0.27 X4.00 X
Earnings Per Share(1.99) X3.12 X
Price To Earnings To Growth1.41 X4.89 X
Target Price20.0
Beta0.98-0.15
Market Capitalization92.09 M19.03 B
Total Asset167.73 M29.47 B
Retained Earnings121.2 M9.33 B
Working Capital122.25 M1.48 B
Current Asset79.23 M9.34 B
Note: Acquisition by Sussman Robert Mark of 6700 shares of Silicom at 13.0 subject to Rule 16b-3 [view details]

Silicom Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Silicom . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Silicom Buy or Sell Advice

When is the right time to buy or sell Silicom? Buying financial instruments such as Silicom Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Silicom in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Size And Style ETFs
Size And Style ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Size And Style ETFs theme has 1205 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Size And Style ETFs Theme or any other thematic opportunities.
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When determining whether Silicom offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Silicom's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Silicom Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Silicom Stock:
Check out Silicom Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade Silicom Stock refer to our How to Trade Silicom Stock guide.
You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Silicom. If investors know Silicom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Silicom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.80)
Earnings Share
(1.99)
Revenue Per Share
9.653
Quarterly Revenue Growth
(0.23)
Return On Assets
(0.05)
The market value of Silicom is measured differently than its book value, which is the value of Silicom that is recorded on the company's balance sheet. Investors also form their own opinion of Silicom's value that differs from its market value or its book value, called intrinsic value, which is Silicom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Silicom's market value can be influenced by many factors that don't directly affect Silicom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Silicom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Silicom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Silicom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.