Vanguard International Semiconductor (TPEX:5347) - Share price, News & Analysis

Q: What is the Fair Price of 5347 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

5347 (NT$74.9) is trading below our estimate of [[fair value]] (NT$159.94)

5347 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	5/6
Financial Health	5/6
Dividends	5/6

5347 Stock Overview

Rewards

Trading at 53.2% below our estimate of its fair value

Earnings grew by 95.8% over the past year

Pays a reliable dividend of 6.01%

Risk Analysis

Earnings are forecast to decline by an average of 14.6% per year for the next 3 years

High level of non-cash earnings

Volatile share price over the past 3 months

Vanguard International Semiconductor Competitors

Powerchip Semiconductor Manufacturing

TWSE:6770

NT$123.0b

Nanya Technology

TWSE:2408

NT$164.8b

eMemory Technology

TPEX:3529

NT$88.0b

Parade Technologies

TPEX:4966

NT$71.5b

Price History & Performance

Summary of all time highs, changes and price drops for Vanguard International Semiconductor
Historical stock prices
Current Share Price	NT$74.90
52 Week High	NT$177.00
52 Week Low	NT$65.30
Beta	1.34
1 Month Change	7.46%
3 Month Change	-30.33%
1 Year Change	-47.62%
3 Year Change	21.79%
5 Year Change	42.13%
Change since IPO	62.44%

Shareholder Returns

	5347	TW Semiconductor	TW Market
7D	4.0%	1.1%	0.1%
1Y	-47.6%	-20.2%	-14.4%

Return vs Industry: 5347 underperformed the TW Semiconductor industry which returned -20.2% over the past year.

Return vs Market: 5347 underperformed the TW Market which returned -14.4% over the past year.

Price Volatility

Is 5347's price volatile compared to industry and market?
5347 volatility
5347 Average Weekly Movement	6.7%
Semiconductor Industry Average Movement	6.5%
Market Average Movement	5.1%
10% most volatile stocks in TW Market	8.4%
10% least volatile stocks in TW Market	2.5%

Stable Share Price: 5347 is more volatile than 75% of TW stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 5347's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of TW stocks.

About the Company

Founded	Employees	CEO	Website
1994	n/a	Leuh Fang	https://www.vis.com.tw

Vanguard International Semiconductor Corporation, together with its subsidiaries, engages in manufacturing, selling, packaging, testing, and computer-aided design of integrated circuits and other semiconductor devices in Taiwan and internationally. The company offers a range of foundry process technologies, including high voltage, ultra-high voltage, bipolar CMOS DMOS (BCD), silicon on insulator (SOI), discrete, mixed-signal, analog, and embedded flash technologies, as well as manufactures and sells masks. Its services include multiple project wafer services; mask services comprising frame generation, mask making, and mask repairing; backend services, including front-side metallization, backside grinding and metallization, chip probe, gallium nitride compound semiconductor material, WLCSP and RDL, and backend solutions; and automotive services, as well as provides intelligent manufacturing and management services.

Vanguard International Semiconductor Fundamentals Summary

How do Vanguard International Semiconductor's earnings and revenue compare to its market cap?
5347 fundamental statistics
Market Cap	NT$122.76b
Earnings (TTM)	NT$15.98b
Revenue (TTM)	NT$53.41b

7.7x

P/E Ratio

2.3x

P/S Ratio

Is 5347 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
5347 income statement (TTM)
Revenue	NT$53.41b
Cost of Revenue	NT$27.74b
Gross Profit	NT$25.67b
Other Expenses	NT$9.69b
Earnings	NT$15.98b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	9.75
Gross Margin	48.07%
Net Profit Margin	29.92%
Debt/Equity Ratio	31.6%

How did 5347 perform over the long term?

See historical performance and comparison

Dividends

6.0%

Current Dividend Yield

46%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 5347 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 5347?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 5347. This is calculated by dividing 5347's market cap by their current preferred multiple.
What is 5347's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$122.76b

5347 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	1.9x
Enterprise Value/EBITDA	4.2x
PEG Ratio	-0.5x

Price to Earnings Ratio vs Peers

How does 5347's PE Ratio compare to its peers?

5347 PE Ratio vs Peers

The above table shows the PE ratio for 5347 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	22x
6770 Powerchip Semiconductor Manufacturing	5.1x	-31.7%	NT$123.0b
2408 Nanya Technology	6.1x	0.3%	NT$164.8b
3529 eMemory Technology	65.7x	16.4%	NT$88.0b
4966 Parade Technologies	11.2x	9.8%	NT$71.5b
5347 Vanguard International Semiconductor	7.7x	-14.6%	NT$122.8b

Price-To-Earnings vs Peers: 5347 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (22x).

Price to Earnings Ratio vs Industry

How does 5347's PE Ratio compare vs other companies in the TW Semiconductor Industry?

Price-To-Earnings vs Industry: 5347 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the TW Semiconductor industry average (12.2x)

Price to Earnings Ratio vs Fair Ratio

What is 5347'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.

5347 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.7x
Fair PE Ratio	10.8x

Price-To-Earnings vs Fair Ratio: 5347 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the estimated Fair Price-To-Earnings Ratio (10.8x).

Share Price vs Fair Value

What is the Fair Price of 5347 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5347 (NT$74.9) is trading below our estimate of fair value (NT$159.94)

Significantly Below Fair Value: 5347 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: Target price is less than 20% higher than the current share price.

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Future Growth

How is Vanguard International Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 17 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

-14.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5347's earnings are forecast to decline over the next 3 years (-14.6% per year).

Earnings vs Market: 5347's earnings are forecast to decline over the next 3 years (-14.6% per year).

High Growth Earnings: 5347's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 5347's revenue (4.2% per year) is forecast to grow slower than the TW market (7.2% per year).

High Growth Revenue: 5347's revenue (4.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 5347's Return on Equity is forecast to be high in 3 years time (24.9%)

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Past Performance

How has Vanguard International Semiconductor 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

22.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 5347 has a high level of non-cash earnings.

Growing Profit Margin: 5347's current net profit margins (29.9%) are higher than last year (22.4%).

Past Earnings Growth Analysis

Earnings Trend: 5347's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: 5347's earnings growth over the past year (95.8%) exceeds its 5-year average (22.8% per year).

Earnings vs Industry: 5347 earnings growth over the past year (95.8%) exceeded the Semiconductor industry 56.5%.

Return on Equity

High ROE: 5347's Return on Equity (42.2%) is considered outstanding.

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Financial Health

How is Vanguard International Semiconductor's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: 5347's short term assets (NT$55.2B) exceed its short term liabilities (NT$28.5B).

Long Term Liabilities: 5347's short term assets (NT$55.2B) exceed its long term liabilities (NT$36.1B).

Debt to Equity History and Analysis

Debt Level: 5347 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 5347's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 5347's debt is well covered by operating cash flow (280.7%).

Interest Coverage: 5347 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Vanguard International Semiconductor current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

6.01%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 5347's dividend (6.01%) is higher than the bottom 25% of dividend payers in the TW market (2.55%).

High Dividend: 5347's dividend (6.01%) is low compared to the top 25% of dividend payers in the TW market (6.64%).

Stability and Growth of Payments

Stable Dividend: 5347's dividends per share have been stable in the past 10 years.

Growing Dividend: 5347's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (46.2%), 5347's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (60.8%), 5347's dividend payments are covered by cash flows.

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Management

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

2.9yrs

Average management tenure

CEO

Leuh Fang

13.5yrs

Tenure

Mr. Leuh Fang has been the President at Vanguard International Semiconductor Corporation since February 20, 2009 and also its Director since November 10, 1994. He is Director and President of VIS Associate...

Leadership Team

Experienced Management: 5347's management team is considered experienced (2.9 years average tenure).

Board Members

Experienced Board: 5347's board of directors are seasoned and experienced ( 11.2 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/06 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31