Silicom Ltd. Stock Price and Value Analysis

Should you buy Silicom Ltd. stock? (NasdaqGS:SILC). Let's see how it does in our automated value investing analysis system.

SILC Free Cash Flow Trend

Free Cash Flow trendline for SILC
Free Cash Flow trendline for Silicom Ltd.

Based on historical returns, we believe that Silicom Ltd. can grow its free cash at a rate of about 3%. That's positive!

AdvantagesDisadvantagesNeutral
  • This company has stable growth.
  • This company is making money at a modest rate.
  • This stock looks overpriced.
  • This company is less known than others.
  • This company pays no dividend.

Inside the SILC Numbers

SILC Price
(Silicom Ltd. stock price per share)
$48.57
[?] SILC Fair Price
(based on intrinsic value)
$33.64
[?] SILC Safety Price (based on a variable margin of safety) $20.18
[?] PE Ratio versus Sector 269% higher than other Technology stocks
[?] PE Ratio versus Industry 141% higher than other Communication Equipment stocks
[?] Cash Yield 3.82%
[?] Free Cash Flow Jitter 24%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 22,190 shares shorted. With 5,715,063 shares available for purchase and an average trading volume over the past 10 trading days of 106,114, it would take at least 0.209 days for all of the short holders to cover their shorts.

Is Silicom Ltd. Stock on Sale?

We believe that Silicom Ltd. may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Silicom Ltd. looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy SILC Stock?

Does Silicom Ltd. have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.