TSEC:2454

Stock Analysis Report

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Executive Summary

MediaTek Inc. researches, develops, produces, and markets integrated circuits (ICs) worldwide.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2454's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.7%

2454

6.0%

TW Semiconductor

4.7%

TW Market


1 Year Return

60.9%

2454

35.8%

TW Semiconductor

10.4%

TW Market

Return vs Industry: 2454 exceeded the TW Semiconductor industry which returned 35.8% over the past year.

Return vs Market: 2454 exceeded the TW Market which returned 10.4% over the past year.


Shareholder returns

2454IndustryMarket
7 Day6.7%6.0%4.7%
30 Day20.2%7.1%7.0%
90 Day30.5%1.8%1.9%
1 Year65.6%60.9%42.9%35.8%15.4%10.4%
3 Year118.1%97.2%63.6%45.0%26.2%11.5%
5 Year45.7%18.8%127.9%86.9%50.5%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2454 (NT$494) is trading above our estimate of fair value (NT$375.12)

Significantly Below Fair Value: 2454 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2454 is poor value based on its PE Ratio (30.6x) compared to the Semiconductor industry average (19.9x).

PE vs Market: 2454 is poor value based on its PE Ratio (30.6x) compared to the TW market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2454 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 2454 is overvalued based on its PB Ratio (2.4x) compared to the TW Semiconductor industry average (1.6x).


Next Steps

Future Growth

How is MediaTek forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2454's forecast earnings growth (21.2% per year) is above the savings rate (0.9%).

Earnings vs Market: 2454's earnings (21.2% per year) are forecast to grow faster than the TW market (15.2% per year).

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

Revenue vs Market: 2454's revenue (13.7% per year) is forecast to grow faster than the TW market (7.4% per year).

High Growth Revenue: 2454's revenue (13.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2454's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has MediaTek performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2454 has high quality earnings.

Growing Profit Margin: 2454's current net profit margins (10%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: 2454's earnings have declined by -9.2% per year over the past 5 years.

Accelerating Growth: 2454's earnings growth over the past year (17.1%) exceeds its 5-year average (-9.2% per year).

Earnings vs Industry: 2454 earnings growth over the past year (17.1%) exceeded the Semiconductor industry -4.7%.


Return on Equity

High ROE: 2454's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is MediaTek's financial position?


Financial Position Analysis

Short Term Liabilities: 2454's short term assets (NT$265.3B) exceed its short term liabilities (NT$124.4B).

Long Term Liabilities: 2454's short term assets (NT$265.3B) exceed its long term liabilities (NT$14.9B).


Debt to Equity History and Analysis

Debt Level: 2454's debt to equity ratio (15.9%) is considered satisfactory.

Reducing Debt: 2454's debt to equity ratio has reduced from 20.2% to 15.9% over the past 5 years.

Debt Coverage: 2454's debt is well covered by operating cash flow (81.9%).

Interest Coverage: 2454 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

2.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2454's dividend (2.13%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (2.46%).

High Dividend: 2454's dividend (2.13%) is low compared to the top 25% of dividend payers in the TW market (5.48%).


Stability and Growth of Payments

Stable Dividend: 2454's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2454's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65%), 2454's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2454's dividends in 3 years are forecast to be covered by earnings (65.6% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Rick Tsai (68yo)

2.33yrs

Tenure

NT$3,568,000

Compensation

Dr. Lih Shyng L. Tsai, also known as Rick, Ph.D. has been Chief Executive Officer of MediaTek Inc. since February 1, 2018 and served as its Co-Chief Executive Officer from July 1, 2017 to February 1, 2018. ...


Leadership Team

NamePositionTenureCompensationOwnership
Lih Shyng L. Tsai
CEO & Director2.33yrsNT$3.57m0.019% NT$146.4m
Joe Chen
President & COO2.5yrsno data0.018% NT$144.3m
David Ku
Corporate Executive VP8.5yrsno data0.011% NT$83.8m
Kevin Jou
Corporate Executive VP & CTO9.08yrsno datano data
Jessie Wang
Deputy Director of Investor & Analyst Relations Divisionno datano datano data
David Su
Corporate Governance Officer3.58yrsno data0.0045% NT$35.4m
Sherry Lin
Corporate VP & CHRO4yrsno data0.0053% NT$41.5m
C. Liao
Chief Representative of Mainland China Operation11.92yrsno datano data
Cheng-Te Chuang
Corporate Executive Vice Presidentno datano data0.067% NT$525.5m
Kou-Hung Loh
Corporate Senior Vice Presidentno datano datano data

4.0yrs

Average Tenure

Experienced Management: 2454's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lih Shyng L. Tsai
CEO & Director2.33yrsNT$3.57m0.019% NT$146.4m
Ming-Kai Tsai
Chairman14yrsNT$3.57m5.33% NT$41.9b
Lien-Fang Kin
Director8yrsNT$6.66mno data
Peng-Heng Chang
Independent Director8yrsNT$7.66mno data
Ming-Je Tang
Independent Director3yrsNT$7.16mno data
Ching-Jiang Hsieh
Vice Chairman14.75yrsNT$3.57m0.32% NT$2.5b
Chung-Yu Wu
Independent Director8yrsNT$7.66m0.059% NT$465.9m
Cheng-Yaw Sun
Director8yrsNT$6.64m0.0018% NT$14.4m
Gon-Wei Liang
Director2yrsNT$3.57m0.0049% NT$38.7m

8.0yrs

Average Tenure

66yo

Average Age

Experienced Board: 2454's board of directors are considered experienced (8 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

MediaTek Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MediaTek Inc.
  • Ticker: 2454
  • Exchange: TSEC
  • Founded: 1997
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$784.828b
  • Shares outstanding: 1.59b
  • Website: https://www.mediatek.com

Number of Employees


Location

  • MediaTek Inc.
  • No. 1, Dusing 1st Road
  • Hsinchu Science Park
  • Hsinchu
  • 30078
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2454TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDJul 2001
MDTK.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 2001

Biography

MediaTek Inc. researches, develops, produces, and markets integrated circuits (ICs) worldwide. It provides multimedia, computer peripherals oriented, consumer-oriented, and other application ICs. The company offers products for smartphones, such as MediaTek Helio chipsets; octa-core and quad-core system-on-chips (SoC); 32-bit chipsets; and SOCs for Google Mobile Service Express. It also provides tablet chipsets that are used in enterprise systems; streaming and traditional audio products for connected audio systems, sound bars, and other applications; chipsets for ultra high definition 4K Blu-ray, Blu-ray and DVD players, and set top boxes; multi-core smart TV SoCs and chipset for digital TVs; and products for optical disk drives. In addition, the company offers home networking and broadband Wi-Fi products, which are used in PCs, broadband gateways, digital TVs, Blu-ray players, IPTV set-top boxes, and Web cams; and automotive solutions, such as mmWave radar sensors, telematics solutions, vision advanced driver systems, and in-vehicle infotainment systems. Further, it provides chipsets for location intelligence, wearable products, smart home solutions, and machine to machine applications; Narrow-Band Internet of Things (IoT), a 3GPP standardized cellular based low power wide area technology; and IoT microcontroller for Internet connected devices. Additionally, the company is involved in the provision of software and hardware design, development, test, maintenance and repair, and technological consultation services; import and export of its products; sale and delegation of patents and circuit layout rights for its products; and investment activity. It also provides research, marketing, management, and technology services. MediaTek Inc. has collaboration agreements Oppo, Vivo, Skyworks, Qorvo, and Murata to deliver a standards-based 5G solution. The company was founded in 1997 and is headquartered in Hsinchu, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 15:28
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
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.