On February 13, 2025, Systematic Financial Management LP made a strategic move by increasing its stake in Silicom Ltd (NASDAQ: SILC). The firm added 20,728 shares to its portfolio, purchasing them at a price of $16.66 per share. This transaction resulted in a 0.01% increase in the firm's portfolio, bringing the total number of shares held to 510,358. Post-transaction, Silicom Ltd now represents 0.22% of Systematic Financial Management LP's total holdings.
Transaction Details and Portfolio Impact
The recent acquisition of 20,728 shares in Silicom Ltd by Systematic Financial Management LP was executed at a trade price of $16.66 per share. This addition reflects a minor yet strategic increase in the firm's portfolio, now holding a total of 510,358 shares. The transaction has positioned Silicom Ltd as 0.22% of the firm's total holdings, indicating a calculated approach to portfolio diversification.
About Systematic Financial Management LP
Founded in 1982, Systematic Financial Management LP is renowned for its Free Cash Flow Value methodology. The firm manages over $13 billion in assets across 710 discretionary accounts, employing a fundamental and quantitative analysis approach with a bottom-up stock picking strategy. Systematic Financial Management LP primarily focuses on the financial services and industrial sectors, with top holdings including First Citizens BancShares Inc (FCNCA, Financial) and EMCOR Group Inc (EME, Financial). The firm operates as a subsidiary of Affiliated Managers Group and is based in Teaneck, New Jersey, with additional offices in California and Florida.
Silicom Ltd: Company Overview
Silicom Ltd, a company in the hardware industry, specializes in designing and manufacturing networking and data infrastructure solutions. The company serves various markets, including North America, Europe, and Asia-Pacific. With a market capitalization of $99.411 million, Silicom Ltd is a significant player in its field. The company's current stock price is $16.30, and it is considered fairly valued with a GF Value of $16.22, resulting in a Price to GF Value ratio of 1.00.
Financial Metrics and Valuation
Silicom Ltd's financial metrics indicate a stable investment opportunity. The company has a GF Score of 77/100, suggesting likely average performance. The Balance Sheet Rank is 8/10, and the Profitability Rank is 7/10, while the Growth Rank is 2/10. The company's Altman Z score is 3.96, and it maintains a strong cash to debt ratio of 11.16. Over the past three years, Silicom Ltd has achieved a revenue growth of 7.30%.
Performance and Growth Indicators
Silicom Ltd's financial health is further supported by its Balance Sheet Rank of 8/10 and Profitability Rank of 7/10. However, the Growth Rank is relatively low at 2/10, indicating potential challenges in growth. The company's Piotroski F-Score is 5, and its Operating Margin growth remains stagnant. Despite these challenges, the company's revenue growth over the past three years stands at 7.30%.
Conclusion
Systematic Financial Management LP's decision to increase its stake in Silicom Ltd reflects confidence in the company's potential. Despite current growth challenges, the investment aligns with the firm's focus on financial and industrial sectors. Silicom Ltd's valuation and financial metrics suggest a stable, albeit cautious, investment opportunity. The transaction underscores Systematic Financial Management LP's strategic approach to portfolio diversification and long-term value creation.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
