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6890

Ferrotec Holdings TSE:6890 Stock Report

Last Price

JP¥2.83k

Market Cap

JP¥126.7b

7D

9.2%

1Y

-17.2%

Updated

28 Jun, 2022

Data

Company Financials +
6890 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends3/6

6890 Stock Overview

Ferrotec Holdings Corporation engages in semiconductor equipment-related, electronic device, and other businesses in Japan and internationally.

Ferrotec Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ferrotec Holdings
Historical stock prices
Current Share PriceJP¥2,828.00
52 Week HighJP¥4,695.00
52 Week LowJP¥1,970.00
Beta2.2
1 Month Change-4.75%
3 Month Change2.80%
1 Year Change-17.19%
3 Year Change215.98%
5 Year Change90.95%
Change since IPO19.83%

Recent News & Updates

Shareholder Returns

6890JP SemiconductorJP Market
7D9.2%3.2%1.8%
1Y-17.2%-6.4%-4.7%

Return vs Industry: 6890 underperformed the JP Semiconductor industry which returned -6.4% over the past year.

Return vs Market: 6890 underperformed the JP Market which returned -4.7% over the past year.

Price Volatility

Is 6890's price volatile compared to industry and market?
6890 volatility
6890 Average Weekly Movement9.4%
Semiconductor Industry Average Movement6.0%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.5%
10% least volatile stocks in JP Market2.3%

Stable Share Price: 6890 is more volatile than 90% of JP stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 6890's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of JP stocks.

About the Company

FoundedEmployeesCEOWebsite
19807,380Xian Han Hehttps://www.ferrotec.co.jp

Ferrotec Holdings Corporation engages in semiconductor equipment-related, electronic device, and other businesses in Japan and internationally. The company offers vacuum seals, silicon wafers, vacuum coating systems, quartz products, ceramics products, CVD-SiC parts, silicon parts, and quartz crucibles, as well as parts cleaning services for semiconductor and FPD manufacturing equipment. It also provides ferrofluids; thermo-electric modules; power semiconductor DCB and AMB substrates; ingots, wafers, and cells for solar modules; industrial cleaning equipment; and machine blades.

Ferrotec Holdings Fundamentals Summary

How do Ferrotec Holdings's earnings and revenue compare to its market cap?
6890 fundamental statistics
Market CapJP¥126.68b
Earnings (TTM)JP¥26.66b
Revenue (TTM)JP¥133.82b

4.8x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6890 income statement (TTM)
RevenueJP¥133.82b
Cost of RevenueJP¥85.14b
Gross ProfitJP¥48.68b
Other ExpensesJP¥22.02b
EarningsJP¥26.66b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 12, 2022

Earnings per share (EPS)595.12
Gross Margin36.38%
Net Profit Margin19.92%
Debt/Equity Ratio23.3%

How did 6890 perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

5%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6890 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 6890?

Other financial metrics that can be useful for relative valuation.

6890 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/Revenue1.1x
Enterprise Value/EBITDA4.7x
PEG Ratio-2x

Price to Earnings Ratio vs Peers

How does 6890's PE Ratio compare to its peers?

6890 PE Ratio vs Peers
The above table shows the PE ratio for 6890 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.2x
7729 Tokyo Seimitsu
8.8x7.2%JP¥188.5b
4369 Tri Chemical Laboratories
16.6x7.4%JP¥73.8b
6323 Rorze
12.3x17.3%JP¥157.6b
6055 JAPAN MATERIAL
31.1x12.2%JP¥209.3b
6890 Ferrotec Holdings
4.8x-2.4%JP¥126.7b

Price-To-Earnings vs Peers: 6890 is good value based on its Price-To-Earnings Ratio (4.8x) compared to the peer average (17.2x).


Price to Earnings Ratio vs Industry

How does 6890's PE Ratio compare vs other companies in the JP Semiconductor Industry?

Price-To-Earnings vs Industry: 6890 is good value based on its Price-To-Earnings Ratio (4.8x) compared to the JP Semiconductor industry average (11.1x)


Price to Earnings Ratio vs Fair Ratio

What is 6890'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.

6890 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.8x
Fair PE Ratio12.3x

Price-To-Earnings vs Fair Ratio: 6890 is good value based on its Price-To-Earnings Ratio (4.8x) compared to the estimated Fair Price-To-Earnings Ratio (12.3x).


Share Price vs Fair Value

What is the Fair Price of 6890 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6890 (¥2828) is trading above our estimate of fair value (¥1342.75)

Significantly Below Fair Value: 6890 is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: 6890's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Ferrotec Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-2.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6890's earnings are forecast to decline over the next 3 years (-2.4% per year).

Earnings vs Market: 6890's earnings are forecast to decline over the next 3 years (-2.4% per year).

High Growth Earnings: 6890's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 6890's revenue (17.2% per year) is forecast to grow faster than the JP market (4.5% per year).

High Growth Revenue: 6890's revenue (17.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6890's Return on Equity is forecast to be low in 3 years time (14.5%).


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Past Performance

How has Ferrotec Holdings performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


51.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6890 has a high level of non-cash earnings.

Growing Profit Margin: 6890's current net profit margins (19.9%) are higher than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: 6890's earnings have grown significantly by 51.7% per year over the past 5 years.

Accelerating Growth: 6890's earnings growth over the past year (222%) exceeds its 5-year average (51.7% per year).

Earnings vs Industry: 6890 earnings growth over the past year (222%) exceeded the Semiconductor industry 98.2%.


Return on Equity

High ROE: 6890's Return on Equity (17.3%) is considered low.


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Financial Health

How is Ferrotec Holdings'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: 6890's short term assets (¥133.4B) exceed its short term liabilities (¥68.8B).

Long Term Liabilities: 6890's short term assets (¥133.4B) exceed its long term liabilities (¥35.0B).


Debt to Equity History and Analysis

Debt Level: 6890 has more cash than its total debt.

Reducing Debt: 6890's debt to equity ratio has reduced from 55.8% to 23.3% over the past 5 years.

Debt Coverage: 6890's debt is well covered by operating cash flow (47.5%).

Interest Coverage: 6890's interest payments on its debt are well covered by EBIT (40.6x coverage).


Balance Sheet


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Dividend

What is Ferrotec Holdings'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


2.48%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6890's dividend (2.48%) is higher than the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 6890's dividend (2.48%) is low compared to the top 25% of dividend payers in the JP market (3.71%).


Stability and Growth of Payments

Stable Dividend: 6890's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6890's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (4.8%), 6890's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 6890 is paying a dividend but the company has no free cash flows.


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Management

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

1.9yrs

Average management tenure


CEO

Xian Han He (65 yo)

1.92yrs

Tenure

JP¥497,092,000

Compensation

Mr. Xian Han He has been President of Shanghai Hanhong International Trading Co., Ltd. since February 2003. Mr. He has been President of Advanced Quartz Material (Hangzhou) Co., Ltd.since October 2006. He...


CEO Compensation Analysis

Compensation vs Market: Xian Han's total compensation ($USD3.68M) is above average for companies of similar size in the JP market ($USD1.54M).

Compensation vs Earnings: Xian Han's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 6890's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: 6890's board of directors are considered experienced (7 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 been diluted in the past year, with total shares outstanding growing by 20.3%.


Top Shareholders

Company Information

Ferrotec Holdings Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Ferrotec Holdings Corporation
  • Ticker: 6890
  • Exchange: TSE
  • Founded: 1980
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Implied Market Cap: JP¥126.683b
  • Shares outstanding: 44.80m
  • Website: https://www.ferrotec.co.jp

Number of Employees


Location

  • Ferrotec Holdings Corporation
  • Nihonbashi Plaza Building
  • 2-3-4 Nihonbashi
  • Tokyo
  • 103-0027
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 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.