Raydium Semiconductor (TWSE:3592) - Share price, News & Analysis

Q: What is the Fair Price of 3592 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3592 (NT$273.5) is trading below our estimate of [[fair value]] (NT$337.9)

3592 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	6/6
Financial Health	6/6
Dividends	5/6

3592 Stock Overview

Raydium Semiconductor Corporation provides integrated circuit (IC) solutions in Taiwan and internationally.

Rewards

Trading at 19.1% below our estimate of its fair value

Earnings grew by 121.5% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 10.8% per year for the next 3 years

Unstable dividend track record

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Raydium Semiconductor Competitors

Sitronix Technology

TWSE:8016

NT$21.5b

Elite Semiconductor Microelectronics Tech

TWSE:3006

NT$21.8b

Sigurd Microelectronics

TWSE:6257

NT$23.2b

Holtek Semiconductor

TWSE:6202

NT$16.8b

Price History & Performance

Summary of all time highs, changes and price drops for Raydium Semiconductor
Historical stock prices
Current Share Price	NT$273.50
52 Week High	NT$699.00
52 Week Low	NT$243.50
Beta	0.92
1 Month Change	3.99%
3 Month Change	-45.95%
1 Year Change	-32.13%
3 Year Change	187.29%
5 Year Change	341.13%
Change since IPO	53.20%

Shareholder Returns

	3592	TW Semiconductor	TW Market
7D	7.0%	0.5%	1.7%
1Y	-32.1%	-16.4%	-9.8%

Return vs Industry: 3592 underperformed the TW Semiconductor industry which returned -16.4% over the past year.

Return vs Market: 3592 underperformed the TW Market which returned -9.8% over the past year.

Price Volatility

Is 3592's price volatile compared to industry and market?
3592 volatility
3592 Average Weekly Movement	6.8%
Semiconductor Industry Average Movement	6.5%
Market Average Movement	5.0%
10% most volatile stocks in TW Market	8.4%
10% least volatile stocks in TW Market	2.4%

Stable Share Price: 3592 is more volatile than 75% of TW stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 3592's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of TW stocks.

About the Company

Founded	Employees	CEO	Website
2003	n/a	n/a	https://www.rad-ic.com

Raydium Semiconductor Corporation provides integrated circuit (IC) solutions in Taiwan and internationally. It offers driver IC, power IC, touch control IC, and power management and timing controller IC solutions for artificial intelligence, Internet of Things, smart TVs, professional gaming, computer information, automotive, and industrial control products, as well as mobile and wearable devices. The company was founded in 2003 and is headquartered in Hsinchu City, Taiwan.

Raydium Semiconductor Fundamentals Summary

How do Raydium Semiconductor's earnings and revenue compare to its market cap?
3592 fundamental statistics
Market Cap	NT$20.57b
Earnings (TTM)	NT$5.38b
Revenue (TTM)	NT$28.12b

3.8x

P/E Ratio

0.7x

P/S Ratio

Is 3592 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3592 income statement (TTM)
Revenue	NT$28.12b
Cost of Revenue	NT$15.50b
Gross Profit	NT$12.62b
Other Expenses	NT$7.24b
Earnings	NT$5.38b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	71.46
Gross Margin	44.88%
Net Profit Margin	19.12%
Debt/Equity Ratio	0%

How did 3592 perform over the long term?

See historical performance and comparison

Dividends

16.5%

Current Dividend Yield

59%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 3592 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3592?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 3592. This is calculated by dividing 3592's market cap by their current preferred multiple.
What is 3592's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$20.57b

3592 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	0.3x
Enterprise Value/EBITDA	1.4x
PEG Ratio	-0.4x

Price to Earnings Ratio vs Peers

How does 3592's PE Ratio compare to its peers?

3592 PE Ratio vs Peers

The above table shows the PE ratio for 3592 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	5.7x
8016 Sitronix Technology	3.5x	n/a	NT$21.5b
3006 Elite Semiconductor Microelectronics Tech	4.4x	n/a	NT$21.8b
6257 Sigurd Microelectronics	6.9x	-7.8%	NT$23.2b
6202 Holtek Semiconductor	8.2x	-16.4%	NT$16.8b
3592 Raydium Semiconductor	3.8x	-10.8%	NT$20.6b

Price-To-Earnings vs Peers: 3592 is good value based on its Price-To-Earnings Ratio (3.8x) compared to the peer average (5.7x).

Price to Earnings Ratio vs Industry

How does 3592's PE Ratio compare vs other companies in the TW Semiconductor Industry?

Price-To-Earnings vs Industry: 3592 is good value based on its Price-To-Earnings Ratio (3.8x) compared to the TW Semiconductor industry average (12.4x)

Price to Earnings Ratio vs Fair Ratio

What is 3592'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.

3592 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.8x
Fair PE Ratio	9.6x

Price-To-Earnings vs Fair Ratio: 3592 is good value based on its Price-To-Earnings Ratio (3.8x) compared to the estimated Fair Price-To-Earnings Ratio (9.6x).

Share Price vs Fair Value

What is the Fair Price of 3592 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3592 (NT$273.5) is trading below our estimate of fair value (NT$337.9)

Significantly Below Fair Value: 3592 is trading below fair value, but not by a significant amount.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

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

-10.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3592's earnings are forecast to decline over the next 3 years (-10.8% per year).

Earnings vs Market: 3592's earnings are forecast to decline over the next 3 years (-10.8% per year).

High Growth Earnings: 3592's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 3592's revenue (1.9% per year) is forecast to grow slower than the TW market (7.1% per year).

High Growth Revenue: 3592's revenue (1.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 3592's Return on Equity is forecast to be high in 3 years time (38.3%)

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Past Performance

How has Raydium 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

57.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3592 has high quality earnings.

Growing Profit Margin: 3592's current net profit margins (19.1%) are higher than last year (12.4%).

Past Earnings Growth Analysis

Earnings Trend: 3592's earnings have grown significantly by 57.7% per year over the past 5 years.

Accelerating Growth: 3592's earnings growth over the past year (121.5%) exceeds its 5-year average (57.7% per year).

Earnings vs Industry: 3592 earnings growth over the past year (121.5%) exceeded the Semiconductor industry 59%.

Return on Equity

High ROE: 3592's Return on Equity (44.9%) is considered outstanding.

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Financial Health

How is Raydium 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: 3592's short term assets (NT$25.7B) exceed its short term liabilities (NT$14.4B).

Long Term Liabilities: 3592's short term assets (NT$25.7B) exceed its long term liabilities (NT$1.6B).

Debt to Equity History and Analysis

Debt Level: 3592 is debt free.

Reducing Debt: 3592 has no debt compared to 5 years ago when its debt to equity ratio was 1.2%.

Debt Coverage: 3592 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3592 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Raydium 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
Cash Flow Coverage

16.45%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3592's dividend (16.45%) is higher than the bottom 25% of dividend payers in the TW market (2.49%).

High Dividend: 3592's dividend (16.45%) is in the top 25% of dividend payers in the TW market (6.52%)

Stability and Growth of Payments

Stable Dividend: 3592's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3592's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (59.1%), 3592's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (53.2%), 3592'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?

CEO

Raydium Semiconductor has no CEO, or we have no data on them.

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 been diluted in the past year, with total shares outstanding growing by 12.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/13 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31