Protec (KOSDAQ:A053610) - Share price, News & Analysis

Q: What is the Fair Price of A053610 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

A053610 (₩24600) is trading below our estimate of [[fair value]] (₩97283.62)

A053610 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

A053610 Stock Overview

Protec Co., Ltd. manufactures and sells semiconductor packaging automation equipment, and pneumatic cylinders and precision parts in South Korea.

Rewards

Trading at 74.7% below our estimate of its fair value

Earnings are forecast to grow 9.62% per year

Earnings grew by 98.5% over the past year

Risk Analysis

Unstable dividend track record

Protec Competitors

STI

KOSDAQ:A039440

₩235.0b

BCnC

KOSDAQ:A146320

₩220.3b

ZeusLtd

KOSDAQ:A079370

₩248.3b

Advanced Process Systems

KOSDAQ:A265520

₩278.7b

Price History & Performance

Summary of all time highs, changes and price drops for Protec
Historical stock prices
Current Share Price	₩24,600.00
52 Week High	₩35,150.00
52 Week Low	₩20,300.00
Beta	1.54
1 Month Change	10.31%
3 Month Change	-18.27%
1 Year Change	-9.89%
3 Year Change	30.85%
5 Year Change	64.58%
Change since IPO	1,190.53%

Shareholder Returns

	A053610	KR Semiconductor	KR Market
7D	1.4%	5.0%	2.1%
1Y	-9.9%	-14.3%	-19.3%

Return vs Industry: A053610 exceeded the KR Semiconductor industry which returned -14.3% over the past year.

Return vs Market: A053610 exceeded the KR Market which returned -19.3% over the past year.

Price Volatility

Is A053610's price volatile compared to industry and market?
A053610 volatility
A053610 Average Weekly Movement	6.4%
Semiconductor Industry Average Movement	6.4%
Market Average Movement	6.4%
10% most volatile stocks in KR Market	10.9%
10% least volatile stocks in KR Market	3.9%

Stable Share Price: A053610 is not significantly more volatile than the rest of KR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: A053610's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	222	Seung-Hwan Choi	https://www.protec21.co.kr

Protec Co., Ltd. manufactures and sells semiconductor packaging automation equipment, and pneumatic cylinders and precision parts in South Korea. Its products include dispensing systems, die bonders, and attach systems; and general, precision guide, pick up, block, slide, rotary, swing, and special cylinders, as well as general hands, swivel units, check valves, and rotary joints. The company was incorporated in 1997 and is headquartered in Incheon, South Korea.

Protec Fundamentals Summary

How do Protec's earnings and revenue compare to its market cap?
A053610 fundamental statistics
Market Cap	₩236.04b
Earnings (TTM)	₩47.27b
Revenue (TTM)	₩183.20b

4.9x

P/E Ratio

1.3x

P/S Ratio

Is A053610 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A053610 income statement (TTM)
Revenue	₩183.20b
Cost of Revenue	₩112.58b
Gross Profit	₩70.62b
Other Expenses	₩23.35b
Earnings	₩47.27b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.06k
Gross Margin	38.55%
Net Profit Margin	25.80%
Debt/Equity Ratio	1.7%

How did A053610 perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

8%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is A053610 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for A053610?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for A053610. This is calculated by dividing A053610's market cap by their current preferred multiple.
What is A053610's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₩236.04b

A053610 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	0.8x
Enterprise Value/EBITDA	2.8x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does A053610's PE Ratio compare to its peers?

A053610 PE Ratio vs Peers

The above table shows the PE ratio for A053610 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.7x
A039440 STI	9x	33.2%	₩235.0b
A146320 BCnC	32.7x	n/a	₩220.3b
A079370 ZeusLtd	15.8x	41.9%	₩248.3b
A265520 Advanced Process Systems	5x	-4.6%	₩278.7b
A053610 Protec	4.9x	9.6%	₩236.0b

Price-To-Earnings vs Peers: A053610 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (15.7x).

Price to Earnings Ratio vs Industry

How does A053610's PE Ratio compare vs other companies in the KR Semiconductor Industry?

Price-To-Earnings vs Industry: A053610 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the KR Semiconductor industry average (10.5x)

Price to Earnings Ratio vs Fair Ratio

What is A053610'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.

A053610 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.9x
Fair PE Ratio	10.3x

Price-To-Earnings vs Fair Ratio: A053610 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).

Share Price vs Fair Value

What is the Fair Price of A053610 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: A053610 (₩24600) is trading below our estimate of fair value (₩97283.62)

Significantly Below Fair Value: A053610 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Protec forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

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

9.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: A053610's forecast earnings growth (9.6% per year) is above the savings rate (3.6%).

Earnings vs Market: A053610's earnings (9.6% per year) are forecast to grow slower than the KR market (16.5% per year).

High Growth Earnings: A053610's earnings are forecast to grow, but not significantly.

Revenue vs Market: A053610's revenue (13.2% per year) is forecast to grow faster than the KR market (10% per year).

High Growth Revenue: A053610's revenue (13.2% 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 A053610's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Protec performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

8.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: A053610 has high quality earnings.

Growing Profit Margin: A053610's current net profit margins (25.8%) are higher than last year (23%).

Past Earnings Growth Analysis

Earnings Trend: A053610's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: A053610's earnings growth over the past year (98.5%) exceeds its 5-year average (8.5% per year).

Earnings vs Industry: A053610 earnings growth over the past year (98.5%) exceeded the Semiconductor industry 48%.

Return on Equity

High ROE: A053610's Return on Equity (18.3%) is considered low.

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Financial Health

How is Protec'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: A053610's short term assets (₩188.9B) exceed its short term liabilities (₩38.5B).

Long Term Liabilities: A053610's short term assets (₩188.9B) exceed its long term liabilities (₩1.6B).

Debt to Equity History and Analysis

Debt Level: A053610 has more cash than its total debt.

Reducing Debt: A053610's debt to equity ratio has reduced from 11.6% to 1.7% over the past 5 years.

Debt Coverage: A053610's debt is well covered by operating cash flow (564.5%).

Interest Coverage: A053610 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Protec 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
Cash Flow Coverage

1.63%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A053610's dividend (1.63%) is higher than the bottom 25% of dividend payers in the KR market (0.93%).

High Dividend: A053610's dividend (1.63%) is low compared to the top 25% of dividend payers in the KR market (2.95%).

Stability and Growth of Payments

Stable Dividend: A053610 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: A053610's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8.3%), A053610's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.9%), A053610's dividend payments are well covered by cash flows.

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Management

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

CEO

Seung-Hwan Choi (67 yo)

no data

Tenure

Mr. Seung-Hwan Choi serves as the Chief Executive Officer, President and Chairman of Protec Co. Ltd. Mr. Choi served as Chief Executive Officer of Daehong Enterprise Co., Ltd. and Kisung Industrial Co. L...

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	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31