Silicom: The Market Is Still Pricing In A Cycle That Already Ended
2026-05-31 09:25:55 ET
Priced for a Trough That No Longer Exists
I am initiating coverage of Silicom Ltd. ( SILC ) with a Buy rating. Based on the $63 million in cash and marketable securities mentioned in the Q1 2026 conference call, SILC currently trades at an enterprise value of ~$193 million, which works out to 2.36x management's $82-83 million NTM revenue guidance. When I compare this to the peer group median of 9.51x, I can't find anything in the fundamentals to justify a 75% discount, let alone the 33% YoY growth posted in Q1 2026, with Q2 guided at 40% on the top end. The supply chain inventory cycle, which collapsed Silicom's revenue 61% from $150.6 million (FY2022) to $58.1 million (FY2024), seems to be over. The cycle has turned. The stock has not....
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Silicom: The Market Is Still Pricing In A Cycle That Already Ended
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