Realtek Semiconductor (TWSE:2379) - Share price, News & Analysis

2379 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	6/6
Financial Health	6/6
Dividends	5/6

2379 Stock Overview

Rewards

Trading at 62.5% below our estimate of its fair value

Earnings are forecast to grow 2.34% per year

Earnings grew by 85.8% over the past year

Risk Analysis

Unstable dividend track record

Realtek Semiconductor Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Realtek Semiconductor
Historical stock prices
Current Share Price	NT$375.00
52 Week High	NT$621.00
52 Week Low	NT$365.00
Beta	0.80
1 Month Change	-12.69%
3 Month Change	-12.89%
1 Year Change	-24.47%
3 Year Change	64.11%
5 Year Change	242.47%
Change since IPO	285.88%

Shareholder Returns

	2379	TW Semiconductor	TW Market
7D	-13.2%	-5.0%	-2.2%
1Y	-24.5%	-19.4%	-12.3%

Return vs Industry: 2379 underperformed the TW Semiconductor industry which returned -19.4% over the past year.

Return vs Market: 2379 underperformed the TW Market which returned -12.3% over the past year.

Price Volatility

Is 2379's price volatile compared to industry and market?
2379 volatility
2379 Average Weekly Movement	4.9%
Semiconductor Industry Average Movement	5.8%
Market Average Movement	4.7%
10% most volatile stocks in TW Market	8.1%
10% least volatile stocks in TW Market	2.2%

Stable Share Price: 2379 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2379's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	n/a	Sun-Chien Chiu	https://www.realtek.com

Realtek Semiconductor Corp., together with its subsidiaries, engages in the research, development, production, and sale of various integrated circuits (ICs) and related application software in Taiwan and internationally. It provides communications network ICs, including broadband access controllers, gateway and network interface controllers, high speed bridge controllers, digital home centers, PHYceivers, switch controllers, wireless LAN ICs, and DTV demodulators, as well as Bluetooth, GNSS, and Internet of Things products. The company also offers computer peripheral ICs, such as PC audio codecs, consumer audio codecs, card reader solutions, class-D audio amplifiers, PC camera controllers, type-c PD controllers, and USB hubs; and multimedia ICs.

Realtek Semiconductor Fundamentals Summary

How do Realtek Semiconductor's earnings and revenue compare to its market cap?
2379 fundamental statistics
Market Cap	NT$192.32b
Earnings (TTM)	NT$18.98b
Revenue (TTM)	NT$111.92b

10.1x

P/E Ratio

1.7x

P/S Ratio

Is 2379 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2379 income statement (TTM)
Revenue	NT$111.92b
Cost of Revenue	NT$53.65b
Gross Profit	NT$58.27b
Other Expenses	NT$39.28b
Earnings	NT$18.98b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	37.02
Gross Margin	52.06%
Net Profit Margin	16.96%
Debt/Equity Ratio	24.4%

How did 2379 perform over the long term?

See historical performance and comparison

Dividends

8.0%

Current Dividend Yield

81%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 2379 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
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2379?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2379. This is calculated by dividing 2379's market cap by their current preferred multiple.
What is 2379's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$192.32b

2379 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	1.3x
Enterprise Value/EBITDA	6.9x
PEG Ratio	4.3x

Price to Earnings Ratio vs Peers

How does 2379's PE Ratio compare to its peers?

2379 PE Ratio vs Peers

The above table shows the PE ratio for 2379 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13.8x

Forward PE

Price-To-Earnings vs Peers: 2379 is good value based on its Price-To-Earnings Ratio (10.1x) compared to the peer average (13.8x).

Price to Earnings Ratio vs Industry

How does 2379's PE Ratio compare vs other companies in the Taiwanese Semiconductor Industry?

Price-To-Earnings vs Industry: 2379 is good value based on its Price-To-Earnings Ratio (10.1x) compared to the TW Semiconductor industry average (13.1x)

Price to Earnings Ratio vs Fair Ratio

What is 2379'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.

2379 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.1x
Fair PE Ratio	15.2x

Price-To-Earnings vs Fair Ratio: 2379 is good value based on its Price-To-Earnings Ratio (10.1x) compared to the estimated Fair Price-To-Earnings Ratio (15.2x).

Share Price vs Fair Value

What is the Fair Price of 2379 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2379 (NT$375) is trading below our estimate of fair value (NT$999.42)

Significantly Below Fair Value: 2379 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 2379 is poor value based on its PEG Ratio (4.3x)

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Future Growth

How is Realtek Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2379's forecast earnings growth (2.3% per year) is above the savings rate (0.7%).

Earnings vs Market: 2379's earnings (2.3% per year) are forecast to grow slower than the TW market (7.2% per year).

High Growth Earnings: 2379's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2379's revenue (6.4% per year) is forecast to grow slower than the TW market (7.5% per year).

High Growth Revenue: 2379's revenue (6.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2379's Return on Equity is forecast to be very high in 3 years time (40.2%).

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Past Performance

How has Realtek Semiconductor performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

37.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2379 has high quality earnings.

Growing Profit Margin: 2379's current net profit margins (17%) are higher than last year (12%).

Past Earnings Growth Analysis

Earnings Trend: 2379's earnings have grown significantly by 37.4% per year over the past 5 years.

Accelerating Growth: 2379's earnings growth over the past year (85.8%) exceeds its 5-year average (37.4% per year).

Earnings vs Industry: 2379 earnings growth over the past year (85.8%) exceeded the Semiconductor industry 67.8%.

Return on Equity

High ROE: 2379's Return on Equity (40.9%) is considered outstanding.

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Financial Health

How is Realtek Semiconductor's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: 2379's short term assets (NT$92.5B) exceed its short term liabilities (NT$58.2B).

Long Term Liabilities: 2379's short term assets (NT$92.5B) exceed its long term liabilities (NT$3.9B).

Debt to Equity History and Analysis

Debt Level: 2379 has more cash than its total debt.

Reducing Debt: 2379's debt to equity ratio has reduced from 72.4% to 24.4% over the past 5 years.

Debt Coverage: 2379's debt is well covered by operating cash flow (219.3%).

Interest Coverage: 2379 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Realtek 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
Future Dividend Coverage

8.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2379's dividend (8%) is higher than the bottom 25% of dividend payers in the TW market (2.54%).

High Dividend: 2379's dividend (8%) is in the top 25% of dividend payers in the TW market (6.34%)

Stability and Growth of Payments

Stable Dividend: 2379's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2379's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (80.7%), 2379's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (72.8%), 2379'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?

15.3yrs

Average management tenure

CEO

Sun-Chien Chiu

22.92yrs

Tenure

Mr. Sun-Chien Chiu has been the Chairman of the Board of Directors of Realtek Semiconductor Corp. since August 09, 2021 and serves as its Chief Executive Officer. He had been the Vice Chairman of Realtek S...

Leadership Team

Experienced Management: 2379's management team is seasoned and experienced (15.3 years average tenure).

Board Members

Experienced Board: 2379's board of directors are seasoned and experienced ( 10 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	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31