Silicom Ltd Ordinary Shares (SILC)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and trade at sensible prices. Silicom, at the 2026-10-13 close of $54.81, does not yet meet that test. The latest reported quarter—the second quarter of 2026—showed $23.8M of revenue but a $2.1M net loss, a -8.77% net margin. FairStock calculations show a negative P/E of -32.05, P/B of 2.73, ROE of -8.28%, and ROCE of -4.30%. I see no evidence of a durable competitive moat in those returns; negative ROE and ROCE are the opposite of what a moaty business produces. The balance sheet is conservative, with debt-to-equity of 0.06 and an Altman Z-Score of 3.68, which suggests low distress risk under that model. The Piotroski F-Score is a middling 4/9. The data show positive revenue and profit growth, but I have no multi-year filed record to judge consistency; the Lynch category is none because only zero years of filed results are available. The stock has traded between $13.34 and $63.00 over the past year and now sits near the top. A $174M market cap against a quarterly net loss means the valuation depends on future profitability, not present earnings. No dividend is paid, and a beta of 1.57 suggests the shares are more volatile than the market. I would want to see margins turn positive and returns on capital improve before calling this a compelling value. For now, it is a speculative turnaround rather than a proven compounder.

In plain English: Silicom makes networking and data infrastructure products, including server network cards and smart cards. In the second quarter of 2026 it had $23.8 million in sales but lost $2.1 million, so the business is not currently profitable. At $54.81, the price looks expensive compared with current profits, though it has little debt and does not appear financially strained.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer