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6875

MegaChips TSE:6875 Stock Report

Last Price

JP¥3.64k

Market Cap

JP¥71.2b

7D

-0.5%

1Y

7.1%

Updated

24 May, 2022

Data

Company Financials +
6875 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends3/6

6875 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¥3,640.00
52 Week HighJP¥5,330.00
52 Week LowJP¥2,952.00
Beta0.66
1 Month Change5.20%
3 Month Change-0.82%
1 Year Change7.06%
3 Year Change192.61%
5 Year Change34.37%
Change since IPO56.56%

Recent News & Updates

Shareholder Returns

6875JP SemiconductorJP Market
7D-0.5%2.0%1.5%
1Y7.1%13.7%-2.7%

Return vs Industry: 6875 underperformed the JP Semiconductor industry which returned 13.7% over the past year.

Return vs Market: 6875 exceeded the JP Market which returned -2.7% over the past year.

Price Volatility

Is 6875's price volatile compared to industry and market?
6875 volatility
6875 Average Weekly Movement5.4%
Semiconductor Industry Average Movement6.3%
Market Average Movement4.5%
10% most volatile stocks in JP Market8.9%
10% least volatile stocks in JP Market2.5%

Stable Share Price: 6875 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6875's weekly volatility (5%) 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?
6875 fundamental statistics
Market CapJP¥71.22b
Earnings (TTM)JP¥27.54b
Revenue (TTM)JP¥75.26b

2.5x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6875 income statement (TTM)
RevenueJP¥75.26b
Cost of RevenueJP¥61.64b
Gross ProfitJP¥13.61b
Other Expenses-JP¥13.93b
EarningsJP¥27.54b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 05, 2022

Earnings per share (EPS)1.44k
Gross Margin18.09%
Net Profit Margin36.60%
Debt/Equity Ratio0.0%

How did 6875 perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

7%

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: 6875 (¥3640) is trading below our estimate of fair value (¥9091.41)

Significantly Below Fair Value: 6875 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6875 is good value based on its Price-To-Earnings Ratio (2.5x) compared to the JP Semiconductor industry average (11.8x).

PE vs Market: 6875 is good value based on its Price-To-Earnings Ratio (2.5x) compared to the JP market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: 6875's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 6875 is good value based on its Price-To-Book Ratio (1x) compared to the JP Semiconductor industry average (1.5x).


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


-57.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6875's earnings are forecast to decline over the next 3 years (-57% per year).

Earnings vs Market: 6875's earnings are forecast to decline over the next 3 years (-57% per year).

High Growth Earnings: 6875's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 6875's revenue is expected to decline over the next 3 years (-3.3% per year).

High Growth Revenue: 6875's revenue is forecast to decline over the next 3 years (-3.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6875's Return on Equity is forecast to be low in 3 years time (7.9%).


Past Performance

How has MegaChips performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


74.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6875 has a high level of non-cash earnings.

Growing Profit Margin: 6875's current net profit margins (36.6%) are higher than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: 6875 has become profitable over the past 5 years, growing earnings by 74.5% per year.

Accelerating Growth: 6875's earnings growth over the past year (31.7%) is below its 5-year average (74.5% per year).

Earnings vs Industry: 6875 earnings growth over the past year (31.7%) underperformed the Semiconductor industry 100.7%.


Return on Equity

High ROE: 6875's Return on Equity (40.8%) is considered outstanding.


Financial Health

How is MegaChips's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6875's short term assets (¥57.5B) exceed its short term liabilities (¥21.4B).

Long Term Liabilities: 6875's short term assets (¥57.5B) exceed its long term liabilities (¥1.0B).


Debt to Equity History and Analysis

Debt Level: 6875 is debt free.

Reducing Debt: 6875 has no debt compared to 5 years ago when its debt to equity ratio was 131.9%.

Debt Coverage: 6875 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6875 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is MegaChips's 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


2.47%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6875's dividend (2.47%) is higher than the bottom 25% of dividend payers in the JP market (1.64%).

High Dividend: 6875's dividend (2.47%) is low compared to the top 25% of dividend payers in the JP market (3.68%).


Stability and Growth of Payments

Stable Dividend: 6875's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6875's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (6.7%), 6875's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 6875 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

3.3yrs

Average board tenure


CEO

Tetsuo Hikawa

2.92yrs

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: 6875'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: 6875
  • Exchange: TSE
  • Founded: 1990
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: JP¥71.219b
  • Shares outstanding: 19.17m
  • 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 Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.