TSEC:2337

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Macronix International

Executive Summary

Macronix International Co., Ltd., an investment holding company, engages in the design, manufacture, and supply of integrated circuits and memory chips in Taiwan, China, and internationally. More Details


Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Macronix International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2337 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2337's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.7%

2337

2.8%

TW Semiconductor

1.6%

TW Market


1 Year Return

9.0%

2337

54.3%

TW Semiconductor

19.0%

TW Market

Return vs Industry: 2337 underperformed the TW Semiconductor industry which returned 55.4% over the past year.

Return vs Market: 2337 underperformed the TW Market which returned 19.7% over the past year.


Shareholder returns

2337IndustryMarket
7 Day6.7%2.8%1.6%
30 Day9.1%9.2%6.7%
90 Day21.9%13.9%7.2%
1 Year13.1%9.0%59.0%54.3%23.3%19.0%
3 Year-10.8%-20.2%109.1%87.7%43.1%27.2%
5 Year325.6%280.8%259.7%200.8%94.0%59.9%

Long-Term Price Volatility Vs. Market

How volatile is Macronix International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Macronix International undervalued compared to its fair value and its price relative to the market?

40.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2337 (NT$35.9) is trading below our estimate of fair value (NT$60.43)

Significantly Below Fair Value: 2337 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2337 is good value based on its PE Ratio (13.4x) compared to the TW Semiconductor industry average (23.1x).

PE vs Market: 2337 is good value based on its PE Ratio (13.4x) compared to the TW market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: 2337 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 2337 is good value based on its PB Ratio (1.9x) compared to the TW Semiconductor industry average (2.1x).


Next Steps

Future Growth

How is Macronix International forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2337's forecast earnings growth (20.4% per year) is above the savings rate (0.9%).

Earnings vs Market: 2337's earnings (20.4% per year) are forecast to grow faster than the TW market (15.9% per year).

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

Revenue vs Market: 2337's revenue (3.8% per year) is forecast to grow slower than the TW market (8.7% per year).

High Growth Revenue: 2337's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2337's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

How has Macronix International performed over the past 5 years?

46.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2337 has high quality earnings.

Growing Profit Margin: 2337's current net profit margins (12.6%) are lower than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: 2337 has become profitable over the past 5 years, growing earnings by 46.8% per year.

Accelerating Growth: 2337's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2337 had negative earnings growth (-3.5%) over the past year, making it difficult to compare to the Semiconductor industry average (12%).


Return on Equity

High ROE: 2337's Return on Equity (14.2%) is considered low.


Next Steps

Financial Health

How is Macronix International's financial position?


Financial Position Analysis

Short Term Liabilities: 2337's short term assets (NT$27.6B) exceed its short term liabilities (NT$15.2B).

Long Term Liabilities: 2337's short term assets (NT$27.6B) exceed its long term liabilities (NT$12.6B).


Debt to Equity History and Analysis

Debt Level: 2337's debt to equity ratio (41.8%) is considered high.

Reducing Debt: 2337's debt to equity ratio has reduced from 68.6% to 41.8% over the past 5 years.

Debt Coverage: 2337's debt is well covered by operating cash flow (59.6%).

Interest Coverage: 2337's interest payments on its debt are well covered by EBIT (52.9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2337's dividend (3.34%) is higher than the bottom 25% of dividend payers in the TW market (2.14%).

High Dividend: 2337's dividend (3.34%) is low compared to the top 25% of dividend payers in the TW market (5.25%).


Stability and Growth of Payments

Stable Dividend: 2337's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2337's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.8%), 2337's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2337's dividends in 3 years are forecast to be well covered by earnings (27.4% payout ratio).


Next Steps

Management

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

13.8yrs

Average management tenure


CEO

Miin Chyou Wu (71 yo)

31.17yrs

Tenure

NT$69,339,000

Compensation

Mr. Miin Chyou Wu serves as the Chief Financial Officer of GRAVIS Computervertriebsgesellschaft mbH. Mr. Wu founded Macronix International Co. Ltd. and has been its Chairman since March 7, 2005 and Chief E...


CEO Compensation Analysis

Compensation vs Market: Miin Chyou's total compensation ($USD2.43M) is above average for companies of similar size in the TW market ($USD345.04K).

Compensation vs Earnings: Miin Chyou's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Miin Chyou Wu
Founder31.17yrsNT$69.34m0.69%
NT$ 457.4m
Chih-Yuan Lu
President & Director17.58yrsNT$38.74m0.14%
NT$ 90.5m
Pei-Fu Yeh
VP of Finance Center & Director4.42yrsNT$3.14m0.14%
NT$ 95.9m
Dang-Hsing Yiu
Chief Marketing Officer25.42yrsNT$15.98m0.42%
NT$ 282.7m
Ful-Long Ni
VP & Director13.42yrsNT$21.97m0.11%
NT$ 76.4m
Ke-Zhong Wang
Chief Scientistno datano datano data
Y. Lin
Associate Vice President of Administration Centerno datano datano data
Ruby Yim
Managing Director of Investor Relations - Hong Kongno datano datano data
Hui-Chi Li
Project Executive Directorno datano data0.017%
NT$ 11.2m
Arthur Yang
President of Macronix America Incno datano datano data
Chuan-Hsien Wen
Project Executive Directorno datano data0.000040%
NT$ 26.6k

13.8yrs

Average Tenure

67yo

Average Age

Experienced Management: 2337's management team is seasoned and experienced (13.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Miin Chyou Wu
Founder31.17yrsNT$69.34m0.69%
NT$ 457.4m
Chih-Yuan Lu
President & Director17.58yrsNT$38.74m0.14%
NT$ 90.5m
Pei-Fu Yeh
VP of Finance Center & Director4.42yrsNT$3.14m0.14%
NT$ 95.9m
Dang-Hsing Yiu
Chief Marketing Officer25.42yrsNT$15.98m0.42%
NT$ 282.7m
Ful-Long Ni
VP & Director13.42yrsNT$21.97m0.11%
NT$ 76.4m
Cheng-Yi Fang
Director19.58yrsNT$3.14m0.026%
NT$ 17.3m
Shigeki Matsuoka
Director9.25yrsNT$9.19mno data
Chiang Kao
Independent Director13.42yrsNT$3.72mno data
Guei-Min Lee
Director4.42yrsNT$9.19mno data
Chow Chen
Independent Director13.42yrsNT$3.72mno data
Che-Ho Wei
Director4.42yrsNT$3.14mno data
Yan-Kuin Su
Independent Director13.42yrsNT$3.72mno data

13.4yrs

Average Tenure

68.5yo

Average Age

Experienced Board: 2337's board of directors are seasoned and experienced ( 13.4 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

Macronix International Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Macronix International Co., Ltd.
  • Ticker: 2337
  • Exchange: TSEC
  • Founded: 1989
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$66.571b
  • Shares outstanding: 1.85b
  • Website: https://www.macronix.com

Location

  • Macronix International Co., Ltd.
  • No. 16, Li-Hsin Road
  • Science Park
  • Hsinchu City
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2337TSEC (Taiwan Stock Exchange)YesCommon SharesTWTWDFeb 1995

Biography

Macronix International Co., Ltd., an investment holding company, engages in the design, manufacture, and supply of integrated circuits and memory chips in Taiwan, China, and internationally. The company pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 14:45
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.