Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, HD display component maker Silicon Image (Nasdaq: SIMG ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Silicon Image's business and see what CAPS investors are saying about the stock right now.
Silicon Image facts
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Headquarters (founded)
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Sunnyvale, Calif. (1995)
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Market Cap
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$646.7 million
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Industry
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Semiconductors
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Revenue
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$206 million
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Management
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CEO Camillo Martino (since 2010)
CFO Noland Granberry (since 2010)
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Return on Equity (average, past 3 years)
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(16.8%)
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Cash/Debt
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$181.6 million / $0
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Competitors
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AMD (NYSE: AMD )
Intel (Nasdaq: INTC )
NVIDIA (Nasdaq: NVDA )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 733 members who have rated Silicon Image believe the stock will outperform the S&P 500 going forward. These bulls include MoneyJungle1 and fellow Fool Anders Bylund (TMFZahrim), who is ranked in the top 5% of our community.
Just last month , MoneyJungle1 listed several of Silicon Image's positives: "Well positioned to capitalize on HD trends. Low debt. Good cash flow. Risky, lots of competition but current momentum is in the right direction."
Currently, Silicon Image even sports a cheapish PEG ratio of 0.5. That represents a clear discount to much bigger rivals AMD (0.9), Intel (0.9), and NVIDIA (1.1).
Late last year, Anders elaborated on the bull case:
It's a heck of a racket, actually. Not only does Silicon Image profit nicely from selling its own chips, but also takes a cut of the revenue whenever Texas Instruments, Analog Devices, or Cavium Networks sell an HDMI controller. I dare you to find a TV, a Blu-ray player, or some other set-top box in your favorite electronics store that doesn't feature this technology today, and Silicon Image is also looking to extend its reach into mobile devices with the new MHL standard. Like it or not, Silicon Image is doing alright. This is a sin stock for me.
What do you think about Silicon Image, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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