|Seeking Alpha article on low valuation stocks. SIMO probably makes most low valuation metrics.|
Silicon Motion Technology Corp. ( SIMO)
Silicon Motion Technology Corporation, a fabless semiconductor company, designs, develops, and markets semiconductor solutions for the multimedia consumer electronics market. Silicon Motion Technology Corporation is headquartered in Jhubei, Taiwan.
Silicon Motion has no debt at all and it has an extremely low trailing P/E of 6.95 and a very low forward P/E of 8.11. The PEG ratio is exceptionally low at 0.35, and the current ratio is very high at 4.60. The price to free cash flow for the trailing 12 months is very low at 0.45, and the average annual earnings growth estimates for the next five years is very high at 20%. The forward annual dividend yield is very high at 5.61%, and the payout ratio is only 39%.
SIMO will report its latest quarterly financial results on July 22. SIMO is expected to post a profit of $0.28 a share, a 33% decline from the company's actual earnings for the same quarter a year ago. The reported results will probably affect the stock price in the short term.
All these factors -- the extremely low multiples and the very rich dividend -- make SIMO stock quite attractive.