ENXTBR:MELE

Stock Analysis Report

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Executive Summary

Melexis NV designs, develops, tests, and markets advanced integrated semiconductor devices primarily for the automotive industry in Europe, the Middle-East, Africa, the Asia Pacific, and North and Latin America. More Details

Rewards

Earnings are forecast to grow 21.65% per year

Risk Analysis

No risks detected for MELE from our risk checks.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Melexis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MELE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

MELE

-4.1%

BE Semiconductor

-3.2%

BE Market


1 Year Return

-2.8%

MELE

35.3%

BE Semiconductor

-23.2%

BE Market

Return vs Industry: MELE underperformed the Belgian Semiconductor industry which returned 35.3% over the past year.

Return vs Market: MELE exceeded the Belgian Market which returned -23.2% over the past year.


Shareholder returns

MELEIndustryMarket
7 Day-3.6%-4.1%-3.2%
30 Day-1.2%9.7%-0.6%
90 Day0.6%1.8%-3.6%
1 Year-1.5%-2.8%40.0%35.3%-22.0%-23.2%
3 Year-15.3%-20.2%57.9%45.5%-26.8%-31.2%
5 Year67.2%51.2%179.1%140.7%-20.6%-28.7%

Price Volatility Vs. Market

How volatile is Melexis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Melexis undervalued compared to its fair value and its price relative to the market?

44.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MELE (€67.8) is trading above our estimate of fair value (€32.97)

Significantly Below Fair Value: MELE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MELE is poor value based on its PE Ratio (44.9x) compared to the XE Semiconductor industry average (39.4x).

PE vs Market: MELE is poor value based on its PE Ratio (44.9x) compared to the Belgian market (14.6x).


Price to Earnings Growth Ratio

PEG Ratio: MELE is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: MELE is overvalued based on its PB Ratio (8.3x) compared to the XE Semiconductor industry average (2.6x).


Next Steps

Future Growth

How is Melexis forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MELE's forecast earnings growth (21.7% per year) is above the savings rate (1.6%).

Earnings vs Market: MELE's earnings (21.7% per year) are forecast to grow slower than the Belgian market (28.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MELE's revenue (10.8% per year) is forecast to grow faster than the Belgian market (6.9% per year).

High Growth Revenue: MELE's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MELE's Return on Equity is forecast to be high in 3 years time (31.1%)


Next Steps

  • Explore growth companies in the Semiconductors industry.

Past Performance

How has Melexis performed over the past 5 years?

-5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MELE has high quality earnings.

Growing Profit Margin: MELE's current net profit margins (12.5%) are lower than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: MELE's earnings have declined by 5.2% per year over the past 5 years.

Accelerating Growth: MELE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MELE had negative earnings growth (-30.5%) over the past year, making it difficult to compare to the Semiconductor industry average (-20.3%).


Return on Equity

High ROE: MELE's Return on Equity (18.6%) is considered low.


Next Steps

Financial Health

How is Melexis's financial position?


Financial Position Analysis

Short Term Liabilities: MELE's short term assets (€270.4M) exceed its short term liabilities (€48.4M).

Long Term Liabilities: MELE's short term assets (€270.4M) exceed its long term liabilities (€65.5M).


Debt to Equity History and Analysis

Debt Level: MELE's debt to equity ratio (18.8%) is considered satisfactory.

Reducing Debt: MELE's debt to equity ratio has increased from 9.6% to 18.8% over the past 5 years.

Debt Coverage: MELE's debt is well covered by operating cash flow (167.7%).

Interest Coverage: MELE's interest payments on its debt are well covered by EBIT (78.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Melexis's current dividend yield, its reliability and sustainability?

1.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MELE's dividend (1.92%) isn’t notable compared to the bottom 25% of dividend payers in the Belgian market (2.15%).

High Dividend: MELE's dividend (1.92%) is low compared to the top 25% of dividend payers in the Belgian market (5.74%).


Stability and Growth of Payments

Stable Dividend: MELE's dividend payments have been volatile in the past 10 years.

Growing Dividend: MELE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86%), MELE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MELE's dividends in 3 years are forecast to be covered by earnings (78.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.5yrs

Average board tenure


CEO

Francoise Chombar (58 yo)

16.75yrs

Tenure

€336,116

Compensation

Ms. Francoise Chombar has been an Independent Director at Soitec S.A. since July 26, 2019. She has been the Chief Executive Officer of Melexis NV, since 2004 and has been its Managing Director since Februa ...


CEO Compensation Analysis

Compensation vs Market: Francoise's total compensation ($USD397.63K) is below average for companies of similar size in the Belgian market ($USD811.29K).

Compensation vs Earnings: Francoise's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Francoise Chombar
CEO, MD & Executive Director16.75yrs€336.12kno data
Roland Duchatelet
Chairmanno datano datano data
Jenny Claes
Non-Executive Independent Director11.5yrs€20.00kno data
Shiro Baba
Non-Executive Independent Director7.5yrs€33.34kno data
Martine Baelmans
Non-Executive Independent Director6.5yrs€20.00kno data

9.5yrs

Average Tenure

70yo

Average Age

Experienced Board: MELE's board of directors are considered experienced (9.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Melexis NV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Melexis NV
  • Ticker: MELE
  • Exchange: ENXTBR
  • Founded: 1988
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: €2.716b
  • Shares outstanding: 40.05m
  • Website: https://www.melexis.com

Number of Employees


Location

  • Melexis NV
  • Rozendaalstraat 12
  • Ieper
  • West Flanders
  • 8900
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MELEENXTBR (Euronext Brussels)YesOrdinary SharesBEEUROct 1997
MEXDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1997
0FA0LSE (London Stock Exchange)YesOrdinary SharesGBEUROct 1997
MLXS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1997
MELEBBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 1997

Biography

Melexis NV designs, develops, tests, and markets advanced integrated semiconductor devices primarily for the automotive industry in Europe, the Middle-East, Africa, the Asia Pacific, and North and Latin Am ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 20:54
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.