DB:MHC

Stock Analysis Report

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Executive Summary

MegaChips Corporation designs, develops, and manufactures MEMS timing devices and LSIs for use in analog, digital, and MEMS technology in Japan, Taiwan, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MHC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.6%

MHC

-3.3%

DE Semiconductor

-1.9%

DE Market


1 Year Return

34.9%

MHC

39.4%

DE Semiconductor

0.2%

DE Market

Return vs Industry: MHC underperformed the German Semiconductor industry which returned 39.4% over the past year.

Return vs Market: MHC exceeded the German Market which returned 0.2% over the past year.


Shareholder returns

MHCIndustryMarket
7 Day-2.6%-3.3%-1.9%
30 Day0%14.5%1.5%
90 Day36.5%16.6%-0.5%
1 Year36.5%34.9%41.2%39.4%3.4%0.2%
3 Year-15.2%-17.8%12.4%8.0%-0.2%-9.0%
5 Year172.7%154.2%124.9%112.6%21.4%4.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

91.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MHC (€22.8) is trading above our estimate of fair value (€8.53)

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


Price To Earnings Ratio

PE vs Industry: MHC is poor value based on its PE Ratio (91.4x) compared to the DE Semiconductor industry average (28.4x).

PE vs Market: MHC is poor value based on its PE Ratio (91.4x) compared to the German market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: MHC is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: MHC is overvalued based on its PB Ratio (2.1x) compared to the DE Semiconductor industry average (2x).


Next Steps

Future Growth

How is MegaChips forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MHC's forecast earnings growth (20.7% per year) is above the savings rate (0.2%).

Earnings vs Market: MHC's earnings (20.7% per year) are forecast to grow slower than the German market (26.2% per year).

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

Revenue vs Market: MHC's revenue is expected to decline over the next 3 years (-3.8% per year).

High Growth Revenue: MHC's revenue is forecast to decline over the next 3 years (-3.8% 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 (7.1%).


Next Steps

Past Performance

How has MegaChips performed over the past 5 years?

-16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MHC has a large one-off loss of ¥729.0M impacting its June 30 2020 financial results.

Growing Profit Margin: MHC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MHC's earnings have declined by 16.7% per year over the past 5 years.

Accelerating Growth: MHC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MHC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (-54.5%).


Return on Equity

High ROE: MHC's Return on Equity (1.4%) is considered low.


Next Steps

Financial Health

How is MegaChips's financial position?


Financial Position Analysis

Short Term Liabilities: MHC's short term assets (¥48.8B) exceed its short term liabilities (¥37.1B).

Long Term Liabilities: MHC's short term assets (¥48.8B) exceed its long term liabilities (¥2.4B).


Debt to Equity History and Analysis

Debt Level: MHC's debt to equity ratio (80.6%) is considered high.

Reducing Debt: MHC's debt to equity ratio has increased from 77.7% to 80.6% over the past 5 years.

Debt Coverage: MHC's debt is well covered by operating cash flow (106.7%).

Interest Coverage: MHC's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

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

0.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MHC's dividend (0.59%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: MHC's dividend (0.59%) is low compared to the top 25% of dividend payers in the German market (3.77%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.7%), MHC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

Tetsuo Hikawa

1.33yrs

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

NamePositionTenureCompensationOwnership
Tetsuo Hikawa
President1.33yrsno data0.44%
¥ 2.2m
Yoshimasa Hayashi
Directorno datano data0.60%
¥ 3.1m
Masahiro Shindo
Chairman1.75yrsno data2.53%
¥ 12.8m
Keiichi Kitano
Outside Auditor18.33yrsno data0.078%
¥ 396.5k
Yasuto Shimomae
Directorno datano data0.018%
¥ 93.3k
Jiun-Hao Lai
Independent Outside Director3.33yrsno datano data
Tomoyoshi Furukawa
Outside Auditor1.75yrsno datano data
Junko Nagata
Independent Outside Director1.75yrsno datano data
Makiko Yamakawa
Standing Statutory Auditor1.75yrsno datano data
Ikuo Yamaguchi
Director1.75yrsno data0.0046%
¥ 23.3k
Ikuo Iwama
Director0.75yrno datano data
Hirofumi Nagai
Independent Outside Director0.75yrno datano data

1.8yrs

Average Tenure

Experienced Board: MHC's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MegaChips Corporation
  • Ticker: MHC
  • Exchange: DB
  • Founded: 1967
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: JP¥62.960b
  • Listing Market Cap: JP¥507.634m
  • Shares outstanding: 21.76m
  • Website: https://www.megachips.co.jp

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MHCDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1998
6875TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYAug 1998
MEGP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1998

Biography

MegaChips Corporation designs, develops, and manufactures MEMS timing devices and LSIs for use in analog, digital, and MEMS technology in Japan, Taiwan, and internationally. The company offers LSIs, such a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 20:38
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.