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3034

Novatek MicroelectronicsTWSE:3034 Stock Report

Market Cap

NT$244.0b

7D

7.8%

1Y

42.2%

Updated

19 Oct, 2021

Data

Company Financials +
3034 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends4/6

3034 Overview

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.

Novatek Microelectronics Competitors

MediaTek

TWSE:2454

NT$1.4t

Silergy

TWSE:6415

NT$386.0b

Realtek Semiconductor

TWSE:2379

NT$244.1b

eMemory Technology

TPEX:3529

NT$163.6b

Price History & Performance

Summary of all time highs, changes and price drops for Novatek Microelectronics
Historical stock prices
Current Share PriceNT$401.00
52 Week HighNT$259.00
52 Week LowNT$656.00
Beta0.78
1 Month Change-6.42%
3 Month Change-16.20%
1 Year Change42.20%
3 Year Change197.04%
5 Year Change234.17%
Change since IPO928.10%

Recent News & Updates

Shareholder Returns

3034TW SemiconductorTW Market
7D7.8%3.8%2.6%
1Y42.2%38.0%31.0%

Return vs Industry: 3034 exceeded the TW Semiconductor industry which returned 34.3% over the past year.

Return vs Market: 3034 exceeded the TW Market which returned 29.1% over the past year.

Price Volatility

Is 3034's price volatile compared to industry and market?
3034 volatility
3034 Beta0.78
Industry Beta1.01
Market Beta1

Stable Share Price: 3034 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 3034's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19972,653Steve Wanghttps://www.novatek.com.tw

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. The company offers display driver ICs for LCD displays, televisions (TVs), notebook computers, desktop monitors, cameras, tablet PCs, automotive display screens, smart phones, and wearable products; and system on chips products for digital and smart TVs, notebook computers, desktop monitors, set-top boxes, mobile phones, tablet PCs, camera modules, dashcam recording, IP cams, car backup camera modules, automotive safety assistance systems, and multimedia and mobile phone camera module applications. It is also involved in the trading and consulting of electronic spare parts; and provision of design, development, amendment, testing, and related consulting services for multimedia VLSI software.

Novatek Microelectronics Fundamentals Summary

How do Novatek Microelectronics's earnings and revenue compare to its market cap?
3034 fundamental statistics
Market CapNT$244.01b
Earnings (TTM)NT$22.71b
Revenue (TTM)NT$104.93b

10.7x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3034 income statement (TTM)
RevenueNT$104.93b
Cost of RevenueNT$60.14b
Gross ProfitNT$44.79b
ExpensesNT$22.08b
EarningsNT$22.71b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)37.32
Gross Margin42.69%
Net Profit Margin21.64%
Debt/Equity Ratio16.1%

How did 3034 perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

42%

Payout Ratio

Valuation

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

48.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3034 (NT$401) is trading below our estimate of fair value (NT$771.44)

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


Price To Earnings Ratio

PE vs Industry: 3034 is good value based on its PE Ratio (10.7x) compared to the TW Semiconductor industry average (19x).

PE vs Market: 3034 is good value based on its PE Ratio (10.7x) compared to the TW market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: 3034 is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: 3034 is overvalued based on its PB Ratio (5.3x) compared to the TW Semiconductor industry average (2.7x).


Future Growth

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

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3034's forecast earnings growth (2.1% per year) is above the savings rate (0.8%).

Earnings vs Market: 3034's earnings (2.1% per year) are forecast to grow slower than the TW market (9% per year).

High Growth Earnings: 3034's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3034's revenue (5.3% per year) is forecast to grow slower than the TW market (9.8% per year).

High Growth Revenue: 3034's revenue (5.3% 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 very high in 3 years time (50%).


Past Performance

How has Novatek Microelectronics performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3034 has a high level of non-cash earnings.

Growing Profit Margin: 3034's current net profit margins (21.6%) are higher than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: 3034's earnings have grown significantly by 27.7% per year over the past 5 years.

Accelerating Growth: 3034's earnings growth over the past year (164.1%) exceeds its 5-year average (27.7% per year).

Earnings vs Industry: 3034 earnings growth over the past year (164.1%) exceeded the Semiconductor industry 58%.


Return on Equity

High ROE: 3034's Return on Equity (48.9%) is considered outstanding.


Financial Health

How is Novatek Microelectronics's financial position?


Financial Position Analysis

Short Term Liabilities: 3034's short term assets (NT$69.4B) exceed its short term liabilities (NT$41.2B).

Long Term Liabilities: 3034's short term assets (NT$69.4B) exceed its long term liabilities (NT$668.0M).


Debt to Equity History and Analysis

Debt Level: 3034's debt to equity ratio (16.1%) is considered satisfactory.

Reducing Debt: 3034's debt to equity ratio has increased from 10.9% to 16.1% over the past 5 years.

Debt Coverage: 3034's debt is well covered by operating cash flow (316.4%).

Interest Coverage: 3034 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

3.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3034's dividend (3.89%) is higher than the bottom 25% of dividend payers in the TW market (2.03%).

High Dividend: 3034's dividend (3.89%) is low compared to the top 25% of dividend payers in the TW market (5.31%).


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 reasonably low payout ratio (41.8%), 3034's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3034's dividends in 3 years are forecast to be covered by earnings (78.6% payout ratio).


Next Steps

Management

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

3.8yrs

Average board tenure


CEO

Steve Wang

20yrs

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 (3.8 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 employee growth, exchange listings and data sources


Key Information

  • Name: Novatek Microelectronics Corp.
  • Ticker: 3034
  • Exchange: TWSE
  • Founded: 1997
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$244.013b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:41
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
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.