If Cash Is King, Is Silicom Ltd. (NasdaqGS:SILC)’s -152.01% Enough?

Investors looking to take advantage of cash heavy shares, they might look first to the cash flow of a company, and how fast that is growing.  Silicom Ltd. (NasdaqGS:SILC)  currently has one year cash flow growth of -152.01% 1yr Growth Cash Flow = 1 year percentage growth of a company’s Cash Flow from operations (Cash Flow Statement). Analyzing cash flow can alert shareholders to potential dangers that may result from a lack of liquidity. Looking at the positive or negative movement of a company’s reported free cash flow will help determine if it has the necessary funds to finance capital expenditures and keep paying dividends.

In taking a look at some other key growth stats we note that the one year Growth EBIT ratio stands at 34.13% for Silicom Ltd. (NasdaqGS:SILC) and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 27.03% which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at -344.71%. The one year growth in Net Profit after Tax is 65.29% and lastly sales growth was 25.26%.

In looking at some key ratios we note that the Piotroski F Score stands at 5 (1 to 10 scale) and the ERP5 rank holds steady at 2693. The Q.I. Value of Silicom Ltd. (NasdaqGS:SILC) currently reads 40 on the Quant scale. The Free Cash Flow score of -1.135453 is also swinging some momentum at investors. The Israel based firm is currently valued at 2583.

Some other notable ratios include the Accrual Ratio of 0.159817, the Altman Z score of 11.557199, a Montier C-Score of 3 and a Value Composite rank of 40.

Investor Target Weight

Silicom Ltd. (NasdaqGS:SILC) has a present suggested portfolio ownership rate of 0.0238 (as a decimal) ownership. Target weight is the volatility adjusted recommended position size for a stock in your portfolio. The maximum target weight is 7% for any given holding. The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly. The more recent volatility of a stock, the lower the target weight will be. The 3-month volatility stands at 47.6097 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.

Diving down into some additional near-term indicators we see that the Capex to PPE ratio stands at 0.410095 for Silicom Ltd. (NasdaqGS:SILC). The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

In addition to Capex to PPE we can look at Cash Flow to Capex. This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs. Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Silicom Ltd. (NasdaqGS:SILC)’s Cash Flow to Capex stands at 0.833136.