Silicom Ltd. (SILC) AI Stock Analysis

Silicom Ltd., founded in 1987 and headquartered in Kfar Sava, Israel, designs, manufactures, markets, and supports networking and data infrastructure solutions. Its product line features server network interface cards (NICs) and smart cards offering capabilities such as redirector, switching, data compression hardware acceleration, forward error correction, and time synchronization. Silicom also delivers solutions for virtualized and universal customer-premises equipment (uCPE), edge devices for SD-WAN and NFV deployments, and distributed units for 5G mobile infrastructure. The company serves original equipment manufacturers, cloud providers, telecommunications companies, and mobile operators across North America, Israel, Europe, and the Asia Pacific.

Silicom recorded revenue of $150.6M and net income of $18.3M in FY2022 before revenue fell 17.6% to $124.1M in FY2023 and declined 53.2% to $58.1M in FY2024. In FY2025, revenue rose 6.6% to $61.9M, with a gross margin of 30.6%, an operating margin of -19.8%, and a net loss of -$11.5M. Across the 5-year period from FY2020 to FY2025, revenue registered a CAGR of -10.4%. Over the trailing twelve months, revenue totaled $75.4M with an operating margin of -8.4% and EPS of -$1.71. In the latest quarter ended June 30, 2026, quarterly revenue grew 58.5% year-over-year, while quarterly earnings declined 79.6%.

As of June 30, 2026, Silicom held $31.3M in cash and short-term investments against total debt of $6.4M, resulting in net cash of $24.9M. Total assets stood at $162.9M and shareholders' equity was $114.8M. Liquidity is supported by a current ratio of 3.06 and a debt-to-equity ratio of 0.06. In FY2025, operating cash flow was -$2.2M and free cash flow was -$3.3M. Capital expenditures reached $1.2M and share buybacks totaled $1.7M, contributing to a 5-year share count change of -17.0%.

Silicom has a market capitalization of $232.0M and an enterprise value of $254.3M. The stock trades at a forward P/E of 10.7x, below the 18.8x median of its US-listed Technology peers. Its enterprise value to EBITDA ratio is 11.2x compared to the peer median of 16.6x, and its price-to-sales multiple is 3.1x versus the peer median of 2.8x. Over the past year, SILC gained 136.4%, outperforming the S&P 500 return of 16.8%. Over a 5-year period, the stock fell 2.8%, compared to an 83.0% return for the S&P 500.

Wall Street coverage includes 1 Buy rating and 0 Strong Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $60.00, representing a 48.6% upside compared to the last close of $40.37 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $94.2M and EPS of -$0.45. For the next fiscal year, 1 analyst projects revenue of $113.1M and EPS of $0.24. Silicom beat EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for October 29, 2026.

This page is an AI-written research summary of Silicom Ltd. (SILC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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