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MHC

MegaChips DB:MHC Stock Report

Last Price

JP¥23.80

Market Cap

JP¥445.3m

7D

-1.7%

1Y

-17.9%

Updated

30 Apr, 2022

Data

Company Financials +
MHC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends2/6

MHC Stock Overview

MegaChips Corporation designs, develops, manufactures, and sells semiconductor related products in Japan and internationally.

MegaChips Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MegaChips
Historical stock prices
Current Share PriceJP¥23.80
52 Week HighJP¥40.80
52 Week LowJP¥22.60
Beta0.60
1 Month Change-11.85%
3 Month Change-22.22%
1 Year Change-17.93%
3 Year Change105.17%
5 Year Change-0.11%
Change since IPO-66.00%

Recent News & Updates

Shareholder Returns

MHCDE SemiconductorDE Market
7D-1.7%-0.9%-0.8%
1Y-17.9%-16.5%-10.4%

Return vs Industry: MHC underperformed the German Semiconductor industry which returned -16.5% over the past year.

Return vs Market: MHC underperformed the German Market which returned -10.4% over the past year.

Price Volatility

Is MHC's price volatile compared to industry and market?
MHC volatility
MHC Average Weekly Movement5.9%
Semiconductor Industry Average Movement7.3%
Market Average Movement6.3%
10% most volatile stocks in DE Market10.2%
10% least volatile stocks in DE Market3.3%

Stable Share Price: MHC is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MHC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1990379Tetsuo Hikawahttps://www.megachips.co.jp

MegaChips Corporation designs, develops, manufactures, and sells semiconductor related products in Japan and internationally. It offers application specific integrated circuits that are used in various electronic devices and automobiles, as well as in infrastructure systems, such as wired and wireless communication networks; automotive ethernet PHY; and wired communication networks for urban infrastructure, such as building and factories. The company was founded in 1990 and is headquartered in Osaka, Japan.

MegaChips Fundamentals Summary

How do MegaChips's earnings and revenue compare to its market cap?
MHC fundamental statistics
Market CapJP¥60.91b
Earnings (TTM)JP¥43.99b
Revenue (TTM)JP¥75.89b

1.4x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MHC income statement (TTM)
RevenueJP¥75.89b
Cost of RevenueJP¥62.68b
Gross ProfitJP¥13.20b
Other Expenses-JP¥30.79b
EarningsJP¥43.99b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 13, 2022

Earnings per share (EPS)2.43k
Gross Margin17.40%
Net Profit Margin57.97%
Debt/Equity Ratio8.1%

How did MHC perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

2%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MHC (€23.8) is trading below our estimate of fair value (€67.58)

Significantly Below Fair Value: MHC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MHC is good value based on its PE Ratio (1.4x) compared to the German Semiconductor industry average (24.2x).

PE vs Market: MHC is good value based on its PE Ratio (1.4x) compared to the German market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: MHC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MHC is good value based on its PB Ratio (0.9x) compared to the DE Semiconductor industry average (3x).


Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-65.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MHC's earnings are forecast to decline over the next 3 years (-65.5% per year).

Earnings vs Market: MHC's earnings are forecast to decline over the next 3 years (-65.5% per year).

High Growth Earnings: MHC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MHC's revenue (0.01% per year) is forecast to grow slower than the German market (5.4% per year).

High Growth Revenue: MHC's revenue (0.01% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MHC's Return on Equity is forecast to be low in 3 years time (7.8%).


Past Performance

How has MegaChips performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


76.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MHC has a high level of non-cash earnings.

Growing Profit Margin: MHC's current net profit margins (58%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: MHC has become profitable over the past 5 years, growing earnings by 76.4% per year.

Accelerating Growth: MHC's earnings growth over the past year (1337.7%) exceeds its 5-year average (76.4% per year).

Earnings vs Industry: MHC earnings growth over the past year (1337.7%) exceeded the Semiconductor industry 115.9%.


Return on Equity

High ROE: MHC's Return on Equity (65.1%) is considered outstanding.


Financial Health

How is MegaChips's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MHC's short term assets (¥64.7B) exceed its short term liabilities (¥27.4B).

Long Term Liabilities: MHC's short term assets (¥64.7B) exceed its long term liabilities (¥413.0M).


Debt to Equity History and Analysis

Debt Level: MHC has more cash than its total debt.

Reducing Debt: MHC's debt to equity ratio has reduced from 140.5% to 8.1% over the past 5 years.

Debt Coverage: MHC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MHC's interest payments on its debt are well covered by EBIT (135.4x coverage).


Balance Sheet


Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.04%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MHC's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: MHC's dividend (1.04%) is low compared to the top 25% of dividend payers in the German market (4.02%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (1.7%), MHC's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: MHC is paying a dividend but the company has no free cash flows.


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

Tetsuo Hikawa

2.83yrs

Tenure

Mr. Tetsuo Hikawa serves as President & CEO of MegaChips Corp. since 2019. Mr. Tetsuo Hikawa served as the President of MegaChips System Solutions Inc., a subsidiary of Megachips Corp. Mr. Hikawa serves as...


Board Members

Experienced Board: MHC's board of directors are considered experienced (3.3 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

MegaChips Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: MegaChips Corporation
  • Ticker: MHC
  • Exchange: DB
  • Founded: 1990
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: JP¥60.906b
  • Listing Market Cap: JP¥445.277m
  • Shares outstanding: 18.10m
  • Website: https://www.megachips.co.jp

Number of Employees


Location

  • MegaChips Corporation
  • Shin-Osaka Hankyu Building
  • 1-1-1 Miyahara
  • Osaka
  • 532-0003
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/04/30 00:00
End of Day Share Price2022/04/29 00:00
Earnings2021/12/31
Annual Earnings2021/03/31


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.