SK-ElectronicsLTD (TSE:6677) - Share price, News & Analysis

6677 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	2/6
Financial Health	5/6
Dividends	4/6

6677 Stock Overview

SK-Electronics CO.,LTD. manufactures and sells large-format photomasks in Japan and internationally.

Rewards

Trading at 97.5% below our estimate of its fair value

Earnings are forecast to grow 7.63% per year

Became profitable this year

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (¥10B)

SK-ElectronicsLTD Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SK-ElectronicsLTD
Historical stock prices
Current Share Price	JP¥934.00
52 Week High	JP¥1,178.00
52 Week Low	JP¥765.00
Beta	1.17
1 Month Change	-2.81%
3 Month Change	11.86%
1 Year Change	-11.80%
3 Year Change	-52.57%
5 Year Change	-33.90%
Change since IPO	-59.97%

Shareholder Returns

	6677	JP Semiconductor	JP Market
7D	-5.7%	-11.9%	-5.4%
1Y	-11.8%	-9.5%	-7.2%

Return vs Industry: 6677 underperformed the JP Semiconductor industry which returned -9.5% over the past year.

Return vs Market: 6677 underperformed the JP Market which returned -7.2% over the past year.

Price Volatility

Is 6677's price volatile compared to industry and market?
6677 volatility
6677 Average Weekly Movement	5.5%
Semiconductor Industry Average Movement	5.7%
Market Average Movement	4.1%
10% most volatile stocks in JP Market	8.4%
10% least volatile stocks in JP Market	2.3%

Stable Share Price: 6677 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 6677's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2001	368	Masanori Ishida	https://www.sk-el.co.jp

SK-Electronics CO.,LTD. manufactures and sells large-format photomasks in Japan and internationally. The company offers photomasks for use in display panels, including liquid crystal displays, plasma display panel, OLEDs, and TSPs; and other electronic devices, such as semiconductor packages, light guides, micro electro mechanical systems, and other components and tools for equipment inspections.

SK-ElectronicsLTD Fundamentals Summary

How do SK-ElectronicsLTD's earnings and revenue compare to its market cap?
6677 fundamental statistics
Market Cap	JP¥9.80b
Earnings (TTM)	JP¥1.76b
Revenue (TTM)	JP¥21.94b

5.6x

P/E Ratio

0.4x

P/S Ratio

Is 6677 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6677 income statement (TTM)
Revenue	JP¥21.94b
Cost of Revenue	JP¥17.37b
Gross Profit	JP¥4.57b
Other Expenses	JP¥2.81b
Earnings	JP¥1.76b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 08, 2022

Earnings per share (EPS)	167.80
Gross Margin	20.84%
Net Profit Margin	8.02%
Debt/Equity Ratio	11.0%

How did 6677 perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

12%

Payout Ratio

Does 6677 pay a reliable dividends?

See 6677 dividend history and benchmarks

When do you need to buy 6677 by to receive an upcoming dividend?
SK-ElectronicsLTD dividend dates
Ex Dividend Date	Sep 29 2022
Dividend Pay Date	Dec 20 2022
Days until Ex dividend	101 days
Days until Dividend pay date	183 days

Does 6677 pay a reliable dividends?

See 6677 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 6677 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6677?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6677. This is calculated by dividing 6677's market cap by their current preferred multiple.
What is 6677's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥9.80b

6677 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does 6677's PE Ratio compare to its peers?

6677 PE Ratio vs Peers

The above table shows the PE ratio for 6677 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	50.2x

Forward PE

Price-To-Earnings vs Peers: 6677 is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (50.2x).

Price to Earnings Ratio vs Industry

How does 6677's PE Ratio compare vs other companies in the Japanese Semiconductor Industry?

Price-To-Earnings vs Industry: 6677 is good value based on its Price-To-Earnings Ratio (5.6x) compared to the JP Semiconductor industry average (10.3x)

Price to Earnings Ratio vs Fair Ratio

What is 6677's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6677 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.6x
Fair PE Ratio	8.9x

Price-To-Earnings vs Fair Ratio: 6677 is good value based on its Price-To-Earnings Ratio (5.6x) compared to the estimated Fair Price-To-Earnings Ratio (8.9x).

Share Price vs Fair Value

What is the Fair Price of 6677 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6677 (¥934) is trading below our estimate of fair value (¥36812.03)

Significantly Below Fair Value: 6677 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 6677 is good value based on its PEG Ratio (0.7x)

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Future Growth

How is SK-ElectronicsLTD forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6677's forecast earnings growth (7.6% per year) is above the savings rate (0.02%).

Earnings vs Market: 6677's earnings (7.6% per year) are forecast to grow slower than the JP market (8.8% per year).

High Growth Earnings: 6677's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6677's revenue (7% per year) is forecast to grow faster than the JP market (4.3% per year).

High Growth Revenue: 6677's revenue (7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 6677's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has SK-ElectronicsLTD performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-17.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6677 has high quality earnings.

Growing Profit Margin: 6677 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 6677's earnings have declined by 17.1% per year over the past 5 years.

Accelerating Growth: 6677 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 6677 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (98.2%).

Return on Equity

High ROE: 6677's Return on Equity (6.9%) is considered low.

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Financial Health

How is SK-ElectronicsLTD'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: 6677's short term assets (¥22.4B) exceed its short term liabilities (¥8.8B).

Long Term Liabilities: 6677's short term assets (¥22.4B) exceed its long term liabilities (¥2.4B).

Debt to Equity History and Analysis

Debt Level: 6677 has more cash than its total debt.

Reducing Debt: 6677's debt to equity ratio has increased from 8.4% to 11% over the past 5 years.

Debt Coverage: 6677's debt is well covered by operating cash flow (283.4%).

Interest Coverage: 6677's interest payments on its debt are well covered by EBIT (176x coverage).

Balance Sheet

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Dividend

What is SK-ElectronicsLTD current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.36%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 6677's dividend (2.36%) is higher than the bottom 25% of dividend payers in the JP market (1.71%).

High Dividend: 6677's dividend (2.36%) is low compared to the top 25% of dividend payers in the JP market (3.76%).

Stability and Growth of Payments

Stable Dividend: 6677's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6677's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.9%), 6677's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (3.7%), 6677's dividend payments are thoroughly covered by cash flows.

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Management

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

8.5yrs

Average management tenure

CEO

Masanori Ishida (52 yo)

10.67yrs

Tenure

Mr. Masanori Ishida has been President at SK-Electronics Co., Ltd. since October 2011 and served as its Chief Executive Officer. Mr. Ishida served as Senior Managing Director of SK-Electronics Co. He has b...

Leadership Team

Experienced Management: 6677's management team is seasoned and experienced (8.5 years average tenure).

Board Members

Experienced Board: 6677's board of directors are considered experienced (8.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/19 00:00
End of Day Share Price	2022/06/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30