TSE:3436

Stock Analysis Report

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Market Cap

JP¥775.6b

Last Updated

2021/06/23 17:29 UTC

Data Sources

Company Financials +

Executive Summary

Sumco Corporation, together with its subsidiaries, manufactures and sells silicon wafers for the semiconductor industry primarily in Japan, North America, Asia, and Europe. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3436 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 3436's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

3436

-0.9%

JP Semiconductor

-0.9%

JP Market


1 Year Return

66.6%

3436

77.1%

JP Semiconductor

22.3%

JP Market

Return vs Industry: 3436 underperformed the JP Semiconductor industry which returned 77.1% over the past year.

Return vs Market: 3436 exceeded the JP Market which returned 22.3% over the past year.


Shareholder returns

3436IndustryMarket
7 Day0.6%-0.9%-0.9%
30 Day8.7%7.7%2.6%
90 Day6.6%11.8%0.5%
1 Year69.2%66.6%79.9%77.1%24.9%22.3%
3 Year27.6%19.2%113.8%102.1%20.9%12.7%
5 Year355.3%313.1%371.1%331.9%74.2%55.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3436 (¥2673) is trading below our estimate of fair value (¥4284.16)

Significantly Below Fair Value: 3436 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3436 is poor value based on its PE Ratio (31.9x) compared to the JP Semiconductor industry average (26x).

PE vs Market: 3436 is poor value based on its PE Ratio (31.9x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 3436 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 3436 is overvalued based on its PB Ratio (2.4x) compared to the JP Semiconductor industry average (2x).


Future Growth

How is Sumco forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3436's forecast earnings growth (25.5% per year) is above the savings rate (0%).

Earnings vs Market: 3436's earnings (25.5% per year) are forecast to grow faster than the JP market (12.8% per year).

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

Revenue vs Market: 3436's revenue (9.4% per year) is forecast to grow faster than the JP market (5.2% per year).

High Growth Revenue: 3436's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3436's Return on Equity is forecast to be low in 3 years time (16.1%).


Past Performance

How has Sumco performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3436 has high quality earnings.

Growing Profit Margin: 3436's current net profit margins (8.3%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: 3436's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: 3436's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3436 had negative earnings growth (-14.3%) over the past year, making it difficult to compare to the Semiconductor industry average (44.4%).


Return on Equity

High ROE: 3436's Return on Equity (7.5%) is considered low.


Financial Health

How is Sumco's financial position?


Financial Position Analysis

Short Term Liabilities: 3436's short term assets (¥337.8B) exceed its short term liabilities (¥112.3B).

Long Term Liabilities: 3436's short term assets (¥337.8B) exceed its long term liabilities (¥125.5B).


Debt to Equity History and Analysis

Debt Level: 3436's debt to equity ratio (40.5%) is considered high.

Reducing Debt: 3436's debt to equity ratio has reduced from 72.9% to 40.5% over the past 5 years.

Debt Coverage: 3436's debt is well covered by operating cash flow (57.1%).

Interest Coverage: 3436's interest payments on its debt are well covered by EBIT (50.1x coverage).


Balance Sheet


Dividend

What is Sumco current dividend yield, its reliability and sustainability?

0.94%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 24 2021Ex Dividend DateJun 29 2021Dividend Pay DateSep 04 202167 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 3436's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 3436's dividend (0.94%) is low compared to the top 25% of dividend payers in the JP market (3%).


Stability and Growth of Payments

Stable Dividend: 3436 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3436's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), 3436's dividend payments are well 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 management tenure


CEO

Mayuki Hashimoto (70 yo)

no data

Tenure

Mr. Mayuki Hashimoto serves as Chief Executive Officer at Sumco Corporation. Mr. Hashimoto served as the President of Sumco Corporation since April 2012. He served as Managing Director and Director of Mit...


Leadership Team

Experienced Management: 3436's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 3436's board of directors are considered experienced (5.3 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

Sumco Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sumco Corporation
  • Ticker: 3436
  • Exchange: TSE
  • Founded: 1999
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: JP¥775.638b
  • Shares outstanding: 290.18m
  • Website: https://www.sumcosi.com

Number of Employees


Location

  • Sumco Corporation
  • Seavans North
  • 1-2-1, Shibaura
  • Tokyo
  • 105-8634
  • Japan

Listings


Biography

Sumco Corporation, together with its subsidiaries, manufactures and sells silicon wafers for the semiconductor industry primarily in Japan, North America, Asia, and Europe. It provides monocrystalline ingo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/23 17:29
End of Day Share Price2021/06/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.