SGX:5DD

Stock Analysis Report

Micro-Mechanics (Holdings)

Executive Summary

Micro-Mechanics (Holdings) Ltd. designs, manufactures, and markets high precision parts and tools used in applications for the wafer-fabrication and assembly processes of the semiconductor industry.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential and pays a dividend.

Share Price & News

How has Micro-Mechanics (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5DD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.0%

5DD

3.2%

SG Semiconductor

1.7%

SG Market


1 Year Return

-7.7%

5DD

-2.4%

SG Semiconductor

-26.9%

SG Market

Return vs Industry: 5DD underperformed the SG Semiconductor industry which returned -6.3% over the past year.

Return vs Market: 5DD exceeded the SG Market which returned -29% over the past year.


Shareholder returns

5DDIndustryMarket
7 Day4.0%3.2%1.7%
30 Day-8.8%-20.2%-18.4%
90 Day-20.0%-27.4%-25.6%
1 Year-2.1%-7.7%4.8%-2.4%-23.8%-26.9%
3 Year75.0%49.3%38.2%8.3%-19.3%-27.9%
5 Year201.5%122.9%98.3%24.1%-18.4%-32.3%

Price Volatility Vs. Market

How volatile is Micro-Mechanics (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Micro-Mechanics (Holdings) undervalued compared to its fair value and its price relative to the market?

17.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 5DD (SGD1.5) is trading above our estimate of fair value (SGD1.41)

Significantly Below Fair Value: 5DD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 5DD is poor value based on its PE Ratio (17.1x) compared to the Semiconductor industry average (8.7x).

PE vs Market: 5DD is poor value based on its PE Ratio (17.1x) compared to the SG market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 5DD is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 5DD is overvalued based on its PB Ratio (3.7x) compared to the SG Semiconductor industry average (0.9x).


Next Steps

Future Growth

How is Micro-Mechanics (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5DD's forecast earnings growth (15.4% per year) is above the savings rate (1.8%).

Earnings vs Market: 5DD's earnings (15.4% per year) are forecast to grow faster than the SG market (4.7% per year).

High Growth Earnings: 5DD's earnings are forecast to grow, but not significantly.

Revenue vs Market: 5DD's revenue (11.3% per year) is forecast to grow faster than the SG market (4% per year).

High Growth Revenue: 5DD's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5DD's Return on Equity is forecast to be high in 3 years time (28.2%)


Next Steps

Past Performance

How has Micro-Mechanics (Holdings) performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5DD has high quality earnings.

Growing Profit Margin: 5DD's current net profit margins (20.3%) are lower than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: 5DD's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: 5DD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 5DD had negative earnings growth (-22.5%) over the past year, making it difficult to compare to the Semiconductor industry average (-4.5%).


Return on Equity

High ROE: 5DD's Return on Equity (21.5%) is considered high.


Next Steps

Financial Health

How is Micro-Mechanics (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 5DD's short term assets (SGD35.5M) exceed its short term liabilities (SGD8.3M).

Long Term Liabilities: 5DD's short term assets (SGD35.5M) exceed its long term liabilities (SGD2.7M).


Debt to Equity History and Analysis

Debt Level: 5DD is debt free.

Reducing Debt: 5DD has not had any debt for past 5 years.

Debt Coverage: 5DD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 5DD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Micro-Mechanics (Holdings)'s current dividend yield, its reliability and sustainability?

7.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5DD's dividend (7.33%) is higher than the bottom 25% of dividend payers in the SG market (3.28%).

High Dividend: 5DD's dividend (7.33%) is in the top 25% of dividend payers in the SG market (7.15%)


Stability and Growth of Payments

Stable Dividend: 5DD's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5DD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114.3%), 5DD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 5DD's dividends in 3 years are forecast to be covered by earnings (80.1% payout ratio).


Next Steps

Management

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

13.5yrs

Average board tenure


CEO

Chris Borch

no data

Tenure

Mr. Christopher R. Borch, also known as Chris, founded Micro-Mechanics Holdings Ltd. in 1983 and serves as its Chief Executive Officer. Mr. Borch served as the President of Micro-Mechanics Holdings Ltd. He ...


Board Members

NamePositionTenureCompensationOwnership
Christopher Reid Borch
Founderno datano data24.81% SGD51.7m
Ming Wah Low
President23.83yrsno data5.13% SGD10.7m
Kam Wing Chow
CFO, Company Secretary & Executive Director17.25yrsno data2.02% SGD4.2m
Chin Yee Lai
Independent Director5.83yrsS$87.00k0.014% SGD30.0k
Sumitri Mirnalini Menon
Independent Non-Executive Chairman9.67yrsS$99.00k0.22% SGD450.0k
Yew Kwong Kwan
Independent Director0.83yrS$2.54kno data

13.5yrs

Average Tenure

53yo

Average Age

Experienced Board: 5DD's board of directors are seasoned and experienced ( 13.5 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

Micro-Mechanics (Holdings) Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Micro-Mechanics (Holdings) Ltd.
  • Ticker: 5DD
  • Exchange: SGX
  • Founded: 1983
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: S$208.548m
  • Shares outstanding: 139.03m
  • Website: https://www.micro-mechanics.com

Number of Employees


Location

  • Micro-Mechanics (Holdings) Ltd.
  • No. 31 Kaki Bukit Place
  • Eunos Techpark
  • Singapore
  • 416209
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5DDSGX (Singapore Exchange)YesOrdinary SharesSGSGDJun 2003
MCRN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2003

Biography

Micro-Mechanics (Holdings) Ltd. designs, manufactures, and markets high precision parts and tools used in applications for the wafer-fabrication and assembly processes of the semiconductor industry. The company operates in five segments: Singapore, Malaysia, The Philippines, USA, and China. It offers die attach - pick-up products, such as rubber tips, high-temp plastic tools, tungsten carbide tools, sensor assemblies, and vacuum wand tools; die attach - dispensing products, including dispense nozzle adaptors, dispense nozzles, pen dispense assemblies, writing pen nozzle tips, and epoxy stamping tools; and die attach - die ejection products comprising ejector needles, needle holders/pepper pots, and needle holder seals. The company also provides thermosonic bonding products that include clamps and electronic flame off products; ultrasonic bonding products comprising clamps, bearing base assemblies, anvils, and wire cutters; and encapsulation products consisting of BGA dispensing nozzles, dispensing manifolds, pump screws, and O-rings. In addition, it manufactures precision parts and assemblies on a contract basis for OEMs. Micro-Mechanics (Holdings) Ltd. was founded in 1983 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 12:54
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.