Telechips (KOSDAQ:A054450) - Share price, News & Analysis

A054450 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	1/6
Financial Health	4/6
Dividends	1/6

A054450 Stock Overview

Telechips Inc. operates as a fabless semiconductor company in South Korea and internationally.

Rewards

Trading at 40% below our estimate of its fair value

Earnings are forecast to grow 28.58% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Telechips Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Telechips
Historical stock prices
Current Share Price	₩14,050.00
52 Week High	₩22,950.00
52 Week Low	₩13,050.00
Beta	0.93
1 Month Change	-21.94%
3 Month Change	-23.85%
1 Year Change	-26.25%
3 Year Change	7.25%
5 Year Change	40.50%
Change since IPO	160.93%

Shareholder Returns

	A054450	KR Semiconductor	KR Market
7D	-10.8%	-6.1%	-3.7%
1Y	-26.2%	-27.6%	-27.5%

Return vs Industry: A054450 exceeded the KR Semiconductor industry which returned -27.6% over the past year.

Return vs Market: A054450 exceeded the KR Market which returned -27.4% over the past year.

Price Volatility

Is A054450's price volatile compared to industry and market?
A054450 volatility
A054450 Average Weekly Movement	6.8%
Semiconductor Industry Average Movement	6.1%
Market Average Movement	6.1%
10% most volatile stocks in KR Market	10.9%
10% least volatile stocks in KR Market	3.8%

Stable Share Price: A054450 is not significantly more volatile than the rest of KR stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: A054450's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	312	Jangkyu Lee	https://www.telechips.com

Telechips Inc. operates as a fabless semiconductor company in South Korea and internationally. The company provides a solution of chipset, development environment, hardware design reference, and core technology, as well as security solution and low power technology. It offers intelligent automotive solution for driving and entertainment, including evolutionary smart cockpit, premium display audio, IVI and cluster, car AVN, and audio solutions; and smart home solution with low power and enhanced security, such as set top box, Internet of Things, and smart home solutions.

Telechips Fundamentals Summary

How do Telechips's earnings and revenue compare to its market cap?
A054450 fundamental statistics
Market Cap	₩176.65b
Earnings (TTM)	₩10.50b
Revenue (TTM)	₩145.97b

16.8x

P/E Ratio

1.2x

P/S Ratio

Is A054450 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A054450 income statement (TTM)
Revenue	₩145.97b
Cost of Revenue	₩92.23b
Gross Profit	₩53.74b
Other Expenses	₩43.24b
Earnings	₩10.50b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	835.33
Gross Margin	36.82%
Net Profit Margin	7.20%
Debt/Equity Ratio	52.0%

How did A054450 perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

14%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is A054450 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 A054450?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for A054450. This is calculated by dividing A054450's market cap by their current preferred multiple.
What is A054450's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₩176.65b

A054450 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	1.4x
Enterprise Value/EBITDA	8.8x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does A054450's PE Ratio compare to its peers?

A054450 PE Ratio vs Peers

The above table shows the PE ratio for A054450 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.4x

Forward PE

Price-To-Earnings vs Peers: A054450 is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the peer average (9.4x).

Price to Earnings Ratio vs Industry

How does A054450's PE Ratio compare vs other companies in the South Korean Semiconductor Industry?

Price-To-Earnings vs Industry: A054450 is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the KR Semiconductor industry average (10.3x)

Price to Earnings Ratio vs Fair Ratio

What is A054450'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.

A054450 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.8x
Fair PE Ratio	15.1x

Price-To-Earnings vs Fair Ratio: A054450 is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).

Share Price vs Fair Value

What is the Fair Price of A054450 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: A054450 (₩14050) is trading below our estimate of fair value (₩23417.95)

Significantly Below Fair Value: A054450 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: A054450 is good value based on its PEG Ratio (0.6x)

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

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

28.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: A054450's forecast earnings growth (28.6% per year) is above the savings rate (3.5%).

Earnings vs Market: A054450's earnings (28.6% per year) are forecast to grow faster than the KR market (13.9% per year).

High Growth Earnings: A054450's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: A054450's revenue (16.9% per year) is forecast to grow faster than the KR market (9.1% per year).

High Growth Revenue: A054450's revenue (16.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: A054450's Return on Equity is forecast to be low in 3 years time (16.6%).

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Past Performance

How has Telechips performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

-25.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: A054450 has a high level of non-cash earnings.

Growing Profit Margin: A054450 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: A054450's earnings have declined by 25.6% per year over the past 5 years.

Accelerating Growth: A054450 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: A054450 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (45.4%).

Return on Equity

High ROE: A054450's Return on Equity (9.8%) is considered low.

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Financial Health

How is Telechips's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: A054450's short term assets (₩83.7B) exceed its short term liabilities (₩38.3B).

Long Term Liabilities: A054450's short term assets (₩83.7B) exceed its long term liabilities (₩70.5B).

Debt to Equity History and Analysis

Debt Level: A054450's net debt to equity ratio (30.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if A054450's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: A054450's debt is not well covered by operating cash flow (0.6%).

Interest Coverage: A054450's interest payments on its debt are well covered by EBIT (15x coverage).

Balance Sheet

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Dividend

What is Telechips's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

0.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A054450's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the KR market (1.02%).

High Dividend: A054450's dividend (0.85%) is low compared to the top 25% of dividend payers in the KR market (3.24%).

Stability and Growth of Payments

Stable Dividend: A054450 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: A054450 has only been paying a dividend for 3 years, and since then payments have not increased.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.4%), A054450's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: A054450 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?

CEO

Jangkyu Lee (58 yo)

no data

Tenure

Mr. JangKyu Lee serves as Chairman, Chief Executive Officer and President of Telechips, Inc. Mr. Lee served as Vice President of Leading Marketing of Telechips, Inc. and serves as its and Director. He hold...

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	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31