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.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

5DD

-1.2%

SG Semiconductor

0.9%

SG Market


1 Year Return

15.1%

5DD

46.9%

SG Semiconductor

2.1%

SG Market

Return vs Industry: 5DD underperformed the SG Semiconductor industry which returned 49.1% over the past year.

Return vs Market: 5DD exceeded the SG Market which returned 2.1% over the past year.


Shareholder returns

5DDIndustryMarket
7 Day0.5%-1.2%0.9%
30 Day3.2%8.8%2.4%
90 Day9.1%37.9%4.5%
1 Year21.8%15.1%62.9%46.9%6.3%2.1%
3 Year158.7%119.5%188.9%123.8%17.4%4.8%
5 Year339.3%223.7%274.4%142.7%12.8%-6.1%

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?

22.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 5DD (SGD1.9) is trading above our estimate of fair value (SGD1.33)

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 (22.6x) compared to the Semiconductor industry average (15.4x).

PE vs Market: 5DD is poor value based on its PE Ratio (22.6x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: 5DD is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 5DD is overvalued based on its PB Ratio (4.3x) compared to the SG Semiconductor industry average (0.8x).


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?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5DD's forecast earnings growth (15.3% per year) is above the savings rate (1.8%).

Earnings vs Market: 5DD's earnings (15.3% per year) are forecast to grow faster than the SG market (6.6% per year).

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

Revenue vs Market: 5DD's revenue (10.8% per year) is forecast to grow faster than the SG market (5.6% per year).

High Growth Revenue: 5DD's revenue (10.8% 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 (27.4%)


Next Steps

Past Performance

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

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5DD has high quality earnings.

Growing Profit Margin: 5DD's current net profit margins (19.9%) are lower than last year (25.6%).


Past Earnings Growth Analysis

Earnings Trend: 5DD's earnings have grown by 7.9% 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 (-28.9%) over the past year, making it difficult to compare to the Semiconductor industry average (-5.9%).


Return on Equity

High ROE: 5DD's Return on Equity (18.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 5DD's short term assets (SGD40.5M) exceed its short term liabilities (SGD8.5M).

Long Term Liabilities: 5DD's short term assets (SGD40.5M) exceed its long term liabilities (SGD2.6M).


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

Inventory Level: 5DD has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 5DD's debt is covered by short term assets.


Next Steps

Dividend

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

5.24%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%2.4%markettop25%5.4%industryaverage3.7%forecastin3Years5.4%

Current dividend yield vs market & industry

Notable Dividend: 5DD's dividend (5.26%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: 5DD's dividend (5.26%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


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 (106.8%), 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 (83.7% payout ratio).


Next Steps

Management

What is the CEO of Micro-Mechanics (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

13.2yrs

Average board tenure


CEO

Chris Borch 0

0yrs

Tenure

0

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 Age and Tenure

13.2yrs

Average Tenure

53yo

Average Age

Experienced Board: 5DD's board of directors are seasoned and experienced ( 13.2 years average tenure).


Insider Trading

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.


Management Team

  • Kam Wing Chow (60yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 17yrs
  • Beng Lim Tan

    General Manager of Micro-Mechanics Technology Sdn. Bhd. Malaysia

    • Ming Wah Low

      President

      • Tenure: 23.6yrs
    • Chris Borch

      Founder


      Board Members

      • Kam Wing Chow (60yo)

        CFO, Company Secretary & Executive Director

        • Tenure: 17yrs
      • Chin Yee Lai (53yo)

        Independent Director

        • Tenure: 5.6yrs
        • Compensation: S$87.00k
      • Rabia Menon

        Independent Non-Executive Chairman

        • Tenure: 9.4yrs
        • Compensation: S$99.00k
      • Ming Wah Low

        President

        • Tenure: 23.6yrs
      • Chris Borch

        Founder

        • Kenny Kwan (49yo)

          Independent Director

          • Tenure: 0.6yrs
          • Compensation: S$2.54k

        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$265.551m
        • 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 Analysis2020/01/20 12:51
        End of Day Share Price2020/01/20 00:00
        Earnings2019/09/30
        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.