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6770

Powerchip Semiconductor Manufacturing TWSE:6770 Stock Report

Last Price

NT$28.55

Market Cap

NT$117.0b

7D

-8.8%

1Y

-55.9%

Updated

28 Sep, 2022

Data

Company Financials +

Powerchip Semiconductor Manufacturing Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Powerchip Semiconductor Manufacturing
Historical stock prices
Current Share PriceNT$28.55
52 Week HighNT$80.30
52 Week LowNT$29.15
Beta0
1 Month Change-15.78%
3 Month Change-28.80%
1 Year Change-55.87%
3 Year Changen/a
5 Year Changen/a
Change since IPO-48.74%

Recent News & Updates

Shareholder Returns

6770TW SemiconductorTW Market
7D-8.8%-6.4%-5.1%
1Y-55.9%-29.4%-19.0%

Return vs Industry: 6770 underperformed the TW Semiconductor industry which returned -29.4% over the past year.

Return vs Market: 6770 underperformed the TW Market which returned -19% over the past year.

Price Volatility

Is 6770's price volatile compared to industry and market?
6770 volatility
6770 Average Weekly Movement6.2%
Semiconductor Industry Average Movement6.2%
Market Average Movement5.1%
10% most volatile stocks in TW Market8.3%
10% least volatile stocks in TW Market2.5%

Stable Share Price: 6770 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 6770's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20087,022Frank Chongrenhttps://www.powerchip.com

Powerchip Semiconductor Manufacturing Corporation provides chip design and manufacturing services. It offers foundry, design, overhaul, manufacturing, and memory wafer testing services. The company was formerly known as Maxchip Electronics Corp and changed its name to Powerchip Semiconductor Manufacturing Corporation in September 2018.

Powerchip Semiconductor Manufacturing Fundamentals Summary

How do Powerchip Semiconductor Manufacturing's earnings and revenue compare to its market cap?
6770 fundamental statistics
Market CapNT$117.02b
Earnings (TTM)NT$24.26b
Revenue (TTM)NT$79.59b

4.6x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6770 income statement (TTM)
RevenueNT$79.59b
Cost of RevenueNT$40.81b
Gross ProfitNT$38.78b
Other ExpensesNT$14.51b
EarningsNT$24.26b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.15
Gross Margin48.72%
Net Profit Margin30.49%
Debt/Equity Ratio26.9%

How did 6770 perform over the long term?

See historical performance and comparison

Dividends

6.7%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6770 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 6770?

Other financial metrics that can be useful for relative valuation.

6770 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/Revenue1.2x
Enterprise Value/EBITDA2.7x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does 6770's PE Ratio compare to its peers?

6770 PE Ratio vs Peers
The above table shows the PE ratio for 6770 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.5x
5347 Vanguard International Semiconductor
6.7x-15.1%NT$106.5b
2379 Realtek Semiconductor
7.2x2.7%NT$148.2b
3034 Novatek Microelectronics
3x-20.0%NT$136.0b
3529 eMemory Technology
61.3x14.9%NT$82.1b
6770 Powerchip Semiconductor Manufacturing
4.6x-35.5%NT$117.0b

Price-To-Earnings vs Peers: 6770 is good value based on its Price-To-Earnings Ratio (4.6x) compared to the peer average (19.5x).


Price to Earnings Ratio vs Industry

How does 6770's PE Ratio compare vs other companies in the TW Semiconductor Industry?

Price-To-Earnings vs Industry: 6770 is good value based on its Price-To-Earnings Ratio (4.6x) compared to the TW Semiconductor industry average (11.2x)


Price to Earnings Ratio vs Fair Ratio

What is 6770'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.

6770 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.6x
Fair PE Ratio6.5x

Price-To-Earnings vs Fair Ratio: 6770 is good value based on its Price-To-Earnings Ratio (4.6x) compared to the estimated Fair Price-To-Earnings Ratio (6.5x).


Share Price vs Fair Value

What is the Fair Price of 6770 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6770 (NT$28.55) is trading above our estimate of fair value (NT$16.18)

Significantly Below Fair Value: 6770 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: Target price is less than 20% higher than the current share price.


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Future Growth

How is Powerchip Semiconductor Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 4 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


-35.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6770's earnings are forecast to decline over the next 3 years (-35.5% per year).

Earnings vs Market: 6770's earnings are forecast to decline over the next 3 years (-35.5% per year).

High Growth Earnings: 6770's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 6770's revenue is expected to decline over the next 3 years (-4.3% per year).

High Growth Revenue: 6770's revenue is forecast to decline over the next 3 years (-4.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6770's Return on Equity is forecast to be low in 3 years time (11.5%).


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Past Performance

How has Powerchip Semiconductor Manufacturing 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


70.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6770 has high quality earnings.

Growing Profit Margin: 6770's current net profit margins (30.5%) are higher than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: 6770's earnings have grown significantly by 70.3% per year over the past 5 years.

Accelerating Growth: 6770's earnings growth over the past year (234.4%) exceeds its 5-year average (70.3% per year).

Earnings vs Industry: 6770 earnings growth over the past year (234.4%) exceeded the Semiconductor industry 50.5%.


Return on Equity

High ROE: 6770's Return on Equity (31.6%) is considered high.


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Financial Health

How is Powerchip Semiconductor Manufacturing's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6770's short term assets (NT$75.3B) exceed its short term liabilities (NT$30.0B).

Long Term Liabilities: 6770's short term assets (NT$75.3B) exceed its long term liabilities (NT$42.5B).


Debt to Equity History and Analysis

Debt Level: 6770 has more cash than its total debt.

Reducing Debt: 6770's debt to equity ratio has increased from 22.2% to 26.9% over the past 5 years.

Debt Coverage: 6770's debt is well covered by operating cash flow (159.4%).

Interest Coverage: 6770's interest payments on its debt are well covered by EBIT (54.9x coverage).


Balance Sheet


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Dividend

What is Powerchip Semiconductor Manufacturing 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


6.69%

Current Dividend Yield

Dividend Yield vs Market

Powerchip Semiconductor Manufacturing Dividend Yield vs Market
How does Powerchip Semiconductor Manufacturing dividend yield compare to the market?
SegmentDividend Yield
Company (Powerchip Semiconductor Manufacturing)6.7%
Market Bottom 25% (TW)2.5%
Market Top 25% (TW)6.9%
Industry Average (Semiconductor)4.1%
Analyst forecast in 3 Years (Powerchip Semiconductor Manufacturing)3.7%

Notable Dividend: 6770's dividend (6.69%) is higher than the bottom 25% of dividend payers in the TW market (2.51%).

High Dividend: 6770's dividend (6.69%) is low compared to the top 25% of dividend payers in the TW market (6.91%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 6770's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 6770's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.6%), 6770's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.7%), 6770's dividend payments are well covered by cash flows.


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Management

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

3.3yrs

Average management tenure


CEO

Frank Chongren

no data

Tenure

Mr. Huang Chongren, also known as Frank, is the Chairman at Powerchip Semiconductor Manufacturing Corp. and serves as its CEO since May 1, 2019.


Leadership Team

Experienced Management: 6770's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: 6770's board of directors are not considered experienced ( 1.6 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

What is the ownership structure of 6770?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders105,969,2752.7%
Institutions162,509,3334.1%
General Public3,678,121,13493.2%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.9%.


Top Shareholders

Top 25 shareholders own 5.97% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
2.69%
Huang Chongren
105,969,275NT$3.0b0%no data
1.82%
BlackRock, Inc.
71,649,825NT$2.0b23.33%no data
0.48%
JPMorgan Chase & Co, Brokerage and Securities Investments
19,103,726NT$545.4m0%0.02%
0.31%
Dimensional Fund Advisors LP
12,400,251NT$354.0m38%no data
0.26%
Fubon Asset Management Co., Ltd.
10,394,920NT$296.8m0%0.26%
0.091%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
3,580,000NT$102.2m0%no data
0.068%
Credit Suisse Asset Management (Switzerland)
2,667,034NT$76.1m7.67%no data
0.051%
Amundi Asset Management
2,025,922NT$57.8m0%no data
0.032%
Grantham Mayo Van Otterloo & Co. LLC
1,256,000NT$35.9m0%no data
0.028%
Aviva Investors Global Services Limited
1,098,000NT$31.3m0%no data
0.027%
UBS Asset Management
1,055,000NT$30.1m0%no data
0.021%
Northern Trust Global Investments
816,000NT$23.3m3.42%no data
0.016%
HSBC Global Asset Management (UK) Limited
640,599NT$18.3m6.16%no data
0.015%
Deutsche Asset & Wealth Management
601,601NT$17.2m299.47%no data
0.009%
AllianceBernstein L.P.
356,672NT$10.2m1625.39%no data
0.0084%
BNY Mellon Asset Management
331,000NT$9.5m4.42%no data
0.0075%
ABN AMRO Investment Solutions
294,852NT$8.4m0%0.01%
0.0069%
DBX Advisors LLC
273,553NT$7.8m0%no data
0.0069%
Voya Investment Management LLC
271,000NT$7.7m0%no data
0.0065%
abrdn plc
257,000NT$7.3m0%no data
0.0043%
Eaton Vance Management
168,508NT$4.8m171.79%no data
0.0034%
Lincoln Investment Advisors Corporation
135,000NT$3.9m0%no data
0.0028%
Janus Henderson Group plc
111,179NT$3.2m0%no data
0.0027%
Harding Loevner LP
105,944NT$3.0m0%no data
0.0014%
CIBC Asset Management Inc.
53,775NT$1.5m0%no data

Company Information

Powerchip Semiconductor Manufacturing Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Powerchip Semiconductor Manufacturing Corp.
  • Ticker: 6770
  • Exchange: TWSE
  • Founded: 2008
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: NT$117.017b
  • Shares outstanding: 3.95b
  • Website: https://www.powerchip.com

Number of Employees


Location

  • Powerchip Semiconductor Manufacturing Corp.
  • Hsinchu Science Park
  • No. 18, Li-Hsin Road 1
  • Hsinchu City
  • 300
  • Taiwan


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6770TWSE (Taiwan Stock Exchange)YesCommon SharesTWTWDDec 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 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.