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Novatek Microelectronics

Market Cap

NT$356.6b

Last Updated

2021/04/14 08:32 UTC

Data Sources

Company Financials +

Executive Summary

Novatek Microelectronics Corp., together with its subsidiaries, research, develop, manufacture, and sell integrated circuit chips for speech, communication, computer peripheral, LCD driver IC system, embedded MCU, DSP, and system applications. More Details


Snowflake Analysis

Outstanding track record with flawless balance sheet.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3034 is more volatile than 75% of TW stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 3034's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of TW stocks.


Market Performance


7 Day Return

-4.5%

3034

-0.7%

TW Semiconductor

0.7%

TW Market


1 Year Return

217.7%

3034

112.4%

TW Semiconductor

63.5%

TW Market

Return vs Industry: 3034 exceeded the TW Semiconductor industry which returned 112.4% over the past year.

Return vs Market: 3034 exceeded the TW Market which returned 63.5% over the past year.


Shareholder returns

3034IndustryMarket
7 Day-4.5%-0.7%0.7%
30 Day19.0%1.7%4.2%
90 Day50.4%3.7%7.7%
1 Year229.9%217.7%117.8%112.4%69.1%63.5%
3 Year441.3%370.9%163.6%135.0%73.3%53.6%
5 Year611.5%442.2%332.2%259.1%133.7%92.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

43.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3034 (NT$591) is trading below our estimate of fair value (NT$1054.37)

Significantly Below Fair Value: 3034 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3034 is poor value based on its PE Ratio (30.4x) compared to the TW Semiconductor industry average (29x).

PE vs Market: 3034 is poor value based on its PE Ratio (30.4x) compared to the TW market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 3034 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 3034 is overvalued based on its PB Ratio (9x) compared to the TW Semiconductor industry average (2.9x).


Future Growth

How is Novatek Microelectronics forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

25.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3034's forecast earnings growth (25.6% per year) is above the savings rate (0.8%).

Earnings vs Market: 3034's earnings (25.6% per year) are forecast to grow faster than the TW market (16.1% per year).

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

Revenue vs Market: 3034's revenue (14.2% per year) is forecast to grow faster than the TW market (10.1% per year).

High Growth Revenue: 3034's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3034's Return on Equity is forecast to be high in 3 years time (36.7%)


Past Performance

How has Novatek Microelectronics performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3034 has high quality earnings.

Growing Profit Margin: 3034's current net profit margins (14.8%) are higher than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: 3034's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: 3034's earnings growth over the past year (49%) exceeds its 5-year average (15% per year).

Earnings vs Industry: 3034 earnings growth over the past year (49%) exceeded the Semiconductor industry 27.5%.


Return on Equity

High ROE: 3034's Return on Equity (29.6%) is considered high.


Financial Health

How is Novatek Microelectronics's financial position?


Financial Position Analysis

Short Term Liabilities: 3034's short term assets (NT$45.0B) exceed its short term liabilities (NT$17.5B).

Long Term Liabilities: 3034's short term assets (NT$45.0B) exceed its long term liabilities (NT$694.8M).


Debt to Equity History and Analysis

Debt Level: 3034 is debt free.

Reducing Debt: 3034 has no debt compared to 5 years ago when its debt to equity ratio was 12.3%.

Debt Coverage: 3034 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3034 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

1.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3034's dividend (1.78%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (2%).

High Dividend: 3034's dividend (1.78%) is low compared to the top 25% of dividend payers in the TW market (4.78%).


Stability and Growth of Payments

Stable Dividend: 3034's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3034's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.1%), 3034's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3034's dividends in 3 years are forecast to be covered by earnings (80% payout ratio).


Next Steps

Management

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

8.8yrs

Average board tenure


CEO

Steve Wang

19.5yrs

Tenure

NT$1,500,000

Compensation

Mr. Steve Wang has been the President of Novatek Microelectronics Corp. since October 24, 2001. Mr. Ho served as Vice President of AU Optronics Corp. He serves as the Chairman of Novatek (Suzhou). He serve...


Board Members

Experienced Board: 3034's board of directors are considered experienced (8.8 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

Novatek Microelectronics Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Novatek Microelectronics Corp.
  • Ticker: 3034
  • Exchange: TSEC
  • Founded: 1997
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$356.588b
  • Shares outstanding: 608.51m
  • Website: https://www.novatek.com.tw

Number of Employees


Location

  • Novatek Microelectronics Corp.
  • No. 13, Innovation Road I
  • 2nd Floor
  • Hsinchu City
  • 30076
  • Taiwan

Listings


Biography

Novatek Microelectronics Corp., together with its subsidiaries, research, develop, manufacture, and sell integrated circuit chips for speech, communication, computer peripheral, LCD driver IC system, embed...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/14 08:32
End of Day Share Price2021/04/14 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.