MegaChips Corporation designs, develops, and manufactures MEMS timing devices and LSIs for use in analog, digital, and MEMS technology in Japan, Taiwan, and internationally.
Reasonable growth potential and fair value.
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: 6875's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 6875 underperformed the JP Semiconductor industry which returned 10.6% over the past year.
Return vs Market: 6875 underperformed the JP Market which returned -12.1% over the past year.
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
Is MegaChips undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 6875 (¥1555) is trading below our estimate of fair value (¥2185.18)
Significantly Below Fair Value: 6875 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 6875 is unprofitable, so we can't compare its PE Ratio to the Semiconductor industry average.
PE vs Market: 6875 is unprofitable, so we can't compare its PE Ratio to the JP market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 6875's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 6875 is good value based on its PB Ratio (1.2x) compared to the JP Semiconductor industry average (1.3x).
How is MegaChips forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 6875 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.09%).
Earnings vs Market: 6875 is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: 6875's is expected to become profitable in the next 3 years.
Revenue vs Market: 6875's revenue (10.6% per year) is forecast to grow faster than the JP market (3.3% per year).
High Growth Revenue: 6875's revenue (10.6% per year) is forecast to grow slower than 20% 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 (4.2%).
How has MegaChips performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 6875 is currently unprofitable.
Growing Profit Margin: 6875 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: 6875 is unprofitable, and losses have increased over the past 5 years at a rate of -29% per year.
Accelerating Growth: Unable to compare 6875's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: 6875 is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-33.4%).
Return on Equity
High ROE: 6875 has a negative Return on Equity (-11.23%), as it is currently unprofitable.
How is MegaChips's financial position?
Financial Position Analysis
Short Term Liabilities: 6875's short term assets (¥57.9B) exceed its short term liabilities (¥37.9B).
Long Term Liabilities: 6875's short term assets (¥57.9B) exceed its long term liabilities (¥17.8B).
Debt to Equity History and Analysis
Debt Level: 6875's debt to equity ratio (143.6%) is considered high.
Reducing Debt: 6875's debt to equity ratio has increased from 106.4% to 143.6% over the past 5 years.
Inventory Level: 6875 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 6875's debt is covered by short term assets (assets are 1.3x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: 6875 has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: 6875 has been profitable on average in the past, therefore cash runway is not a concern.
What is MegaChips's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 6875's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.69%).
High Dividend: 6875's dividend (1.09%) is low compared to the top 25% of dividend payers in the JP market (3.87%).
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 fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: 6875 is paying a dividend but the company is unprofitable.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average board 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 ...
|President||0.83yr||no data||0.44% ¥143.6m|
|Senior MD & Director||8.83yrs||no data||0.46% ¥151.2m|
|Director||no data||no data||0.60% ¥198.1m|
|Chairman||1.25yrs||no data||2.57% ¥846.7m|
|Outside Auditor||17.83yrs||no data||0.078% ¥25.7m|
|Director||2.83yrs||no data||no data|
|Director||no data||no data||0.0092% ¥3.0m|
|Outside Director||2.83yrs||no data||no data|
|Outside Director||1.25yrs||no data||no data|
|Director||1.25yrs||no data||0.0046% ¥1.5m|
Experienced Board: 6875's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
MegaChips Corporation's company bio, employee growth, exchange listings and data sources
- Name: MegaChips Corporation
- Ticker: 6875
- Exchange: TSE
- Founded: 1967
- Industry: Semiconductors
- Sector: Semiconductors
- Market Cap: JP¥32.906b
- Shares outstanding: 21.76m
- Website: https://www.megachips.co.jp
Number of Employees
- MegaChips Corporation
- Shin-Osaka Hankyu Building 1-1-1 Miyahara
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MHC||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Aug 1998|
|6875||TSE (The Tokyo Stock Exchange)||Yes||Common Shares||JP||JPY||Aug 1998|
|MEGP.F||OTCPK (Pink Sheets LLC)||Yes||Common Shares||US||USD||Aug 1998|
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 as custom memories for storing game software for use in game consoles; LSIs for game consoles and their peripherals; LSIs for digital cameras and other image processing; and LSIs for liquid crystal panels. It also provides LCD timing controllers for various input and output interfaces, such as HDTVs and smart devices; and communication integrated circuits, as well as ASIC solutions. The company is also involved in the contract manufacturing business. MegaChips Corporation was incorporated in 1967 and is headquartered in Osaka, Japan.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/01 14:39|
|End of Day Share Price||2020/03/31 00:00|
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.