AP Memory Technology (TWSE:6531) - Share price, News & Analysis

Q: What is the Fair Price of 6531 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6531 (NT$193) is trading above our estimate of [[fair value]] (NT$160.92)

6531 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

6531 Stock Overview

AP Memory Technology Corporation engages in designing, licensing, manufacturing, and selling customized memory chip products and technologies in Taiwan and internationally.

Rewards

Price-To-Earnings ratio (13x) is below the TW market (14.3x)

Earnings are forecast to grow 1.77% per year

Earnings grew by 60.5% over the past year

Risk Analysis

Highly volatile share price over the past 3 months

High level of non-cash earnings

Unstable dividend track record

Shareholders have been diluted in the past year

AP Memory Technology Competitors

ELAN Microelectronics

TWSE:2458

NT$28.9b

Xintec

TPEX:3374

NT$35.1b

Taiwan Surface Mounting Technology

TWSE:6278

NT$25.6b

ENNOSTAR

TWSE:3714

NT$32.8b

Price History & Performance

Summary of all time highs, changes and price drops for AP Memory Technology
Historical stock prices
Current Share Price	NT$193.00
52 Week High	NT$625.00
52 Week Low	NT$183.50
Beta	2.64
1 Month Change	-4.69%
3 Month Change	-19.92%
1 Year Change	-47.84%
3 Year Change	896.13%
5 Year Change	478.84%
Change since IPO	312.19%

Shareholder Returns

	6531	TW Semiconductor	TW Market
7D	-4.0%	1.1%	0.1%
1Y	-47.8%	-20.2%	-14.4%

Return vs Industry: 6531 underperformed the TW Semiconductor industry which returned -20.2% over the past year.

Return vs Market: 6531 underperformed the TW Market which returned -14.4% over the past year.

Price Volatility

Is 6531's price volatile compared to industry and market?
6531 volatility
6531 Average Weekly Movement	8.8%
Semiconductor Industry Average Movement	6.5%
Market Average Movement	5.1%
10% most volatile stocks in TW Market	8.4%
10% least volatile stocks in TW Market	2.5%

Stable Share Price: 6531 is more volatile than 90% of TW stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 6531's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of TW stocks.

About the Company

Founded	Employees	CEO	Website
2011	n/a	Wen-Liang Chen	https://www.apmemory.com

AP Memory Technology Corporation engages in designing, licensing, manufacturing, and selling customized memory chip products and technologies in Taiwan and internationally. It designs, manufactures, and sells memory-related IC products for use in functional cell phones and Internet of Things related products, including Prseudo SRAM for wearable devices application; and DRAM for use in ultra-low-power, ultra-high-bandwidth, and logic in-memory, as well as offers technical consulting services. The company was incorporated in 2011 and is headquartered in Zhubei, Taiwan.

AP Memory Technology Fundamentals Summary

How do AP Memory Technology's earnings and revenue compare to its market cap?
6531 fundamental statistics
Market Cap	NT$31.15b
Earnings (TTM)	NT$2.40b
Revenue (TTM)	NT$6.84b

13.0x

P/E Ratio

4.6x

P/S Ratio

Is 6531 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6531 income statement (TTM)
Revenue	NT$6.84b
Cost of Revenue	NT$3.76b
Gross Profit	NT$3.08b
Other Expenses	NT$685.91m
Earnings	NT$2.40b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	14.86
Gross Margin	45.09%
Net Profit Margin	35.06%
Debt/Equity Ratio	0%

How did 6531 perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

39%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6531 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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 6531?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6531. This is calculated by dividing 6531's market cap by their current preferred multiple.
What is 6531's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$31.15b

6531 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	3.4x
Enterprise Value/EBITDA	9.7x
PEG Ratio	7.3x

Price to Earnings Ratio vs Peers

How does 6531's PE Ratio compare to its peers?

6531 PE Ratio vs Peers

The above table shows the PE ratio for 6531 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.1x
2458 ELAN Microelectronics	6x	-7.6%	NT$28.9b
3374 Xintec	21.4x	4.1%	NT$35.1b
6278 Taiwan Surface Mounting Technology	5.6x	17.0%	NT$25.6b
3714 ENNOSTAR	11.4x	-3.3%	NT$32.8b
6531 AP Memory Technology	13x	1.8%	NT$31.2b

Price-To-Earnings vs Peers: 6531 is expensive based on its Price-To-Earnings Ratio (13x) compared to the peer average (11.1x).

Price to Earnings Ratio vs Industry

How does 6531's PE Ratio compare vs other companies in the TW Semiconductor Industry?

Price-To-Earnings vs Industry: 6531 is expensive based on its Price-To-Earnings Ratio (13x) compared to the TW Semiconductor industry average (12.3x)

Price to Earnings Ratio vs Fair Ratio

What is 6531'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.

6531 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13x
Fair PE Ratio	14.1x

Price-To-Earnings vs Fair Ratio: 6531 is good value based on its Price-To-Earnings Ratio (13x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).

Share Price vs Fair Value

What is the Fair Price of 6531 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6531 (NT$193) is trading above our estimate of fair value (NT$160.92)

Significantly Below Fair Value: 6531 is trading above our estimate of fair value.

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 AP Memory Technology forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

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

1.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6531's forecast earnings growth (1.8% per year) is above the savings rate (0.7%).

Earnings vs Market: 6531's earnings (1.8% per year) are forecast to grow slower than the TW market (5.8% per year).

High Growth Earnings: 6531's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6531's revenue (15.2% per year) is forecast to grow faster than the TW market (7.3% per year).

High Growth Revenue: 6531's revenue (15.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 6531's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has AP Memory Technology performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

55.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6531 has a high level of non-cash earnings.

Growing Profit Margin: 6531's current net profit margins (35.1%) are higher than last year (31.8%).

Past Earnings Growth Analysis

Earnings Trend: 6531's earnings have grown significantly by 55% per year over the past 5 years.

Accelerating Growth: 6531's earnings growth over the past year (60.5%) exceeds its 5-year average (55% per year).

Earnings vs Industry: 6531 earnings growth over the past year (60.5%) exceeded the Semiconductor industry 56.5%.

Return on Equity

High ROE: 6531's Return on Equity (23.5%) is considered high.

Discover strong past performing companies

Financial Health

How is AP Memory Technology'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: 6531's short term assets (NT$11.4B) exceed its short term liabilities (NT$2.2B).

Long Term Liabilities: 6531's short term assets (NT$11.4B) exceed its long term liabilities (NT$78.9M).

Debt to Equity History and Analysis

Debt Level: 6531 is debt free.

Reducing Debt: 6531 has no debt compared to 5 years ago when its debt to equity ratio was 5.6%.

Debt Coverage: 6531 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6531 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is AP Memory Technology 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

3.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6531's dividend (3.11%) is higher than the bottom 25% of dividend payers in the TW market (2.55%).

High Dividend: 6531's dividend (3.11%) is low compared to the top 25% of dividend payers in the TW market (6.64%).

Stability and Growth of Payments

Stable Dividend: 6531 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6531's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (38.5%), 6531's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (55.5%), 6531'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?

1.0yrs

Average board tenure

CEO

Wen-Liang Chen

no data

Tenure

Mr. Wen-Liang Chen serves as Chief Executive Officer, Chief Technology Officer at AP Memory Technology Corporation and served as its President and also serves as its Chairman since March 4, 2021. Mr. Chen...

Board Members

Experienced Board: 6531's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.

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 9%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31