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6525

GEM Services TWSE:6525 Stock Report

Last Price

NT$69.00

Market Cap

NT$8.9b

7D

-6.9%

1Y

-24.8%

Updated

01 Oct, 2022

Data

Company Financials
6525 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends3/6

6525 Stock Overview

GEM Services, Inc., a semiconductor assembly and test contractor, provides manufacturing services for power management semiconductors.

GEM Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for GEM Services
Historical stock prices
Current Share PriceNT$69.00
52 Week HighNT$115.50
52 Week LowNT$67.10
Beta0.77
1 Month Change-10.97%
3 Month Change-12.44%
1 Year Change-24.84%
3 Year Change-3.50%
5 Year Change35.98%
Change since IPO38.00%

Recent News & Updates

Shareholder Returns

6525TW SemiconductorTW Market
7D-6.9%-6.9%-5.0%
1Y-24.8%-29.8%-18.0%

Return vs Industry: 6525 exceeded the TW Semiconductor industry which returned -29.8% over the past year.

Return vs Market: 6525 underperformed the TW Market which returned -18% over the past year.

Price Volatility

Is 6525's price volatile compared to industry and market?
6525 volatility
6525 Average Weekly Movement3.7%
Semiconductor Industry Average Movement6.2%
Market Average Movement5.1%
10% most volatile stocks in TW Market8.3%
10% least volatile stocks in TW Market2.4%

Stable Share Price: 6525 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6525's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1998n/aYan Qiang Tanghttps://www.gemservices.com

GEM Services, Inc., a semiconductor assembly and test contractor, provides manufacturing services for power management semiconductors. The company offers assembly services, including wafer probe, assembly, and test; packaging development; and electrical testing services, such as wafer probe, electrical test, data-log, and characterization testing. It also provides reliability testing services comprising reliability testing capability and failure analysis services; and logistic services consisting of drop shipment services and shipping directly to the end customers.

GEM Services Fundamentals Summary

How do GEM Services's earnings and revenue compare to its market cap?
6525 fundamental statistics
Market CapNT$8.90b
Earnings (TTM)NT$985.50m
Revenue (TTM)NT$5.18b

9.0x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6525 income statement (TTM)
RevenueNT$5.18b
Cost of RevenueNT$3.82b
Gross ProfitNT$1.36b
Other ExpensesNT$376.62m
EarningsNT$985.50m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.64
Gross Margin26.31%
Net Profit Margin19.03%
Debt/Equity Ratio0%

How did 6525 perform over the long term?

See historical performance and comparison

Dividends

8.0%

Current Dividend Yield

72%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6525 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 6525?

Other financial metrics that can be useful for relative valuation.

6525 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/Revenue1.4x
Enterprise Value/EBITDA5x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 6525's PE Ratio compare to its peers?

6525 PE Ratio vs Peers
The above table shows the PE ratio for 6525 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.2x
6411 Amazing Microelectronic
8xn/aNT$8.1b
3675 Eris Technology
19.7xn/aNT$8.5b
6138 Anpec Electronics
6.6xn/aNT$8.1b
5471 Sonix TechnologyLtd
6.5xn/aNT$8.2b
6525 GEM Services
9xn/aNT$8.9b

Price-To-Earnings vs Peers: 6525 is good value based on its Price-To-Earnings Ratio (9x) compared to the peer average (10.2x).


Price to Earnings Ratio vs Industry

How does 6525's PE Ratio compare vs other companies in the TW Semiconductor Industry?

Price-To-Earnings vs Industry: 6525 is good value based on its Price-To-Earnings Ratio (9x) compared to the TW Semiconductor industry average (10.7x)


Price to Earnings Ratio vs Fair Ratio

What is 6525'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.

6525 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6525's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 6525 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6525 (NT$69) is trading below our estimate of fair value (NT$83.43)

Significantly Below Fair Value: 6525 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: Insufficient data to show price forecast.


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Future Growth

How is GEM Services forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.8%

Forecasted Semiconductors industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as GEM Services has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine whether GEM Services is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has GEM Services performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6525 has a high level of non-cash earnings.

Growing Profit Margin: 6525's current net profit margins (19%) are higher than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: 6525's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: 6525's earnings growth over the past year (31.4%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: 6525 earnings growth over the past year (31.4%) underperformed the Semiconductor industry 49.8%.


Return on Equity

High ROE: 6525's Return on Equity (25%) is considered high.


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Financial Health

How is GEM Services'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: 6525's short term assets (NT$3.7B) exceed its short term liabilities (NT$2.8B).

Long Term Liabilities: 6525's short term assets (NT$3.7B) exceed its long term liabilities (NT$599.3M).


Debt to Equity History and Analysis

Debt Level: 6525 is debt free.

Reducing Debt: 6525 had no debt 5 years ago.

Debt Coverage: 6525 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6525 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


7.97%

Current Dividend Yield

Dividend Yield vs Market

GEM Services Dividend Yield vs Market
How does GEM Services dividend yield compare to the market?
SegmentDividend Yield
Company (GEM Services)8.0%
Market Bottom 25% (TW)2.6%
Market Top 25% (TW)7.0%
Industry Average (Semiconductor)4.3%
Analyst forecast in 3 Years (GEM Services)n/a

Notable Dividend: 6525's dividend (7.97%) is higher than the bottom 25% of dividend payers in the TW market (2.59%).

High Dividend: 6525's dividend (7.97%) is in the top 25% of dividend payers in the TW market (7%)


Stability and Growth of Payments

Stable Dividend: 6525 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6525's dividend payments have increased, but the company has only paid a dividend for 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (72%), 6525's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 6525 is paying a dividend but the company has no free cash flows.


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Management

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


CEO

Yan Qiang Tang

no data

Tenure

Yan Qiang Tang serves as the President of GEM Services, Inc. Yan Qiang Tang served as an Engineering Associate of Elite Advanced Laser Corporation. Yan Qiang Tang served as Plant Director of Lite-on Electr...


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

What is the ownership structure of 6525?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders2,438,7521.9%
Institutions9,457,4387.3%
General Public47,367,36136.7%
Public Companies69,783,83354.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 5 shareholders own 1.98% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
1.3%
Grandeur Peak Global Advisors, LLC
1,679,000NT$115.9m0%0.08%
0.63%
Dimensional Fund Advisors LP
816,069NT$56.3m0.41%no data
0.02%
State Street Global Advisors, Inc.
25,879NT$1.8m0%no data
0.014%
GAM Holding AG
17,490NT$1.2m0%no data
0.01%
American Century Investment Management Inc
13,000NT$897.0k0%no data

Company Information

GEM Services, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: GEM Services, Inc.
  • Ticker: 6525
  • Exchange: TWSE
  • Founded: 1998
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: NT$8.904b
  • Shares outstanding: 129.05m
  • Website: https://www.gemservices.com

Number of Employees


Location

  • GEM Services, Inc.
  • NO.35, Qiao'an Street
  • 10th Floor
  • New Taipei City
  • 235
  • Taiwan


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6525TWSE (Taiwan Stock Exchange)YesCommon StockTWTWDApr 2016

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.