Is Silicon Motion Technology CORP (SIMO) Halal?

NASDAQ Technology Hong Kong $3.7B
✓ HALAL
Confidence: 83/100
Silicon Motion Technology CORP (SIMO) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.1% against the AAOIFI threshold of 30%, Silicon Motion Technology CORP comfortably passes the key financial ratio tests. The company operates in the Technology sector (Semiconductors), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.1%
/ 30%
6.9%
/ 30%
5.8%
/ 30%
N/A ✓ HALAL
DJIM 0.1%
/ 33%
6.9%
/ 33%
5.8%
/ 33%
N/A ✓ HALAL
MSCI 0.2%
/ 33%
26.8%
/ 33%
22.7%
/ 33%
N/A ✓ HALAL
S&P 0.1%
/ 33%
6.9%
/ 33%
5.8%
/ 33%
N/A ✓ HALAL
FTSE 0.2%
/ 33%
26.8%
/ 33%
22.7%
/ 50%
N/A ✓ HALAL

Financial Highlights

P/E Ratio
30.2
Forward: 16.0
EPS
$3.64
Dividend Yield
182.0%
Payout: 54.9%
P/B Ratio
4.4
EV/EBITDA
118.3
EV: $14.6B
Beta
1.0
Average volatility
Current Ratio
2.8

Profitability

Gross Margin 48.3%
Operating Margin 11.4%
Net Margin 13.8%
Return on Equity (ROE) 15.3%
Return on Assets (ROA) 5.2%

Cash Flow & Balance Sheet

Operating Cash Flow$77M
Free Cash Flow$33M
Total Debt$3M
Current Ratio2.8
Total Assets$1.0B

Price & Trading

Last Close$111.23
50-Day MA$124.15
200-Day MA$95.31
Avg Volume649K
Beta1.0
52-Week Range
$37.21
$146.85

About Silicon Motion Technology CORP (SIMO)

CEO
Mr. Chia-Chang Kou
Sector
Technology
Industry
Semiconductors
Country
Hong Kong
Exchange
NASDAQ
Market Cap
$3.7B
Currency
USD

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices and related devices in Taiwan, the United States, Korea, China, Malaysia, Singapore, and internationally. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in enterprise and hyperscale data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. It markets its controllers under the SMI brand; and single-chip SSDs under the FerriSSD, Ferri-eMMC, and Ferri-UFS brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs. Silicon Motion Technology Corporation was founded in 1995 and is based in Hong Kong, Hong Kong.

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Frequently Asked Questions

Is Silicon Motion Technology CORP (SIMO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Silicon Motion Technology CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Silicon Motion Technology CORP's debt ratio?

Silicon Motion Technology CORP's debt ratio is 0.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.2%.

What are Silicon Motion Technology CORP's key financial metrics?

Silicon Motion Technology CORP has a market capitalization of $3.7B, trailing P/E ratio of 30.2. The company maintains a gross margin of 48.3% and a net margin of 13.8%. Return on equity stands at 15.3%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.