NasdaqCM:GIGM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

GigaMedia Limited provides digital entertainment services in Taiwan and Hong Kong.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has GigaMedia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GIGM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

GIGM

4.8%

US Entertainment

2.2%

US Market


1 Year Return

15.7%

GIGM

35.5%

US Entertainment

16.2%

US Market

Return vs Industry: GIGM underperformed the US Entertainment industry which returned 30.5% over the past year.

Return vs Market: GIGM matched the US Market which returned 15.9% over the past year.


Shareholder returns

GIGMIndustryMarket
7 Day1.0%4.8%2.2%
30 Day-2.6%5.9%4.9%
90 Day25.5%26.7%17.8%
1 Year15.7%15.7%36.4%35.5%18.7%16.2%
3 Year-0.01%-0.01%57.1%53.1%41.1%32.0%
5 Year-9.5%-9.5%96.1%87.7%74.5%55.7%

Price Volatility Vs. Market

How volatile is GigaMedia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

0.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GIGM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GIGM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GIGM is unprofitable, so we can't compare its PE Ratio to the US Entertainment industry average.

PE vs Market: GIGM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GIGM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GIGM is good value based on its PB Ratio (0.6x) compared to the US Entertainment industry average (2.7x).


Next Steps

Future Growth

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

40.3%

Forecasted Media 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 GigaMedia 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.


Next Steps

Past Performance

How has GigaMedia performed over the past 5 years?

-4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GIGM is currently unprofitable.

Growing Profit Margin: GIGM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GIGM is unprofitable, and losses have increased over the past 5 years at a rate of 4.4% per year.

Accelerating Growth: Unable to compare GIGM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GIGM is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (14.6%).


Return on Equity

High ROE: GIGM has a negative Return on Equity (-2.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is GigaMedia's financial position?


Financial Position Analysis

Short Term Liabilities: GIGM's short term assets ($57.7M) exceed its short term liabilities ($3.4M).

Long Term Liabilities: GIGM's short term assets ($57.7M) exceed its long term liabilities ($3.7K).


Debt to Equity History and Analysis

Debt Level: GIGM is debt free.

Reducing Debt: GIGM has no debt compared to 5 years ago when its debt to equity ratio was 6%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GIGM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: GIGM has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 38.2% each year


Next Steps

Dividend

What is GigaMedia current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GIGM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GIGM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GIGM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GIGM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GIGM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

James Huang (64 yo)

3.25yrs

Tenure

Mr. Cheng-Ming Huang, also known as James, has been Chairman, Chief Executive Officer and Chief Financial Officer at GigaMedia Limited since May 5, 2017. Mr. Huang serves as Executive Director of AK Enterp ...


Leadership Team

NamePositionTenureCompensationOwnership
Cheng-Ming Huang
Chairman3.25yrsno data8.9%
$ 2.9m
Shih-Chin Huang
Head of Finance Departmentno datano datano data
Cherng-Shiun Lee
Chief Executive Officer of GigaCloud6.75yrsno datano data
Li Zhong Tang
Special Advisor8.5yrsno datano data

6.8yrs

Average Tenure

57yo

Average Age

Experienced Management: GIGM's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Cheng-Ming Huang
Chairman3.25yrsno data8.9%
$ 2.9m
Chin Fock Hong
Independent Non-Executive Director6.83yrsno datano data
Ping Chang Huang
Independent Non-Executive Director9.58yrsno datano data
Chia-En Liu
Independent Non-Executive Director9.42yrsno datano data
Kuo Chong Tung
Independent Non-Executive Director8.75yrsno datano data
Bing-Yuan Huang
Independent Non-Executive Director7.33yrsno datano data

8.0yrs

Average Tenure

66yo

Average Age

Experienced Board: GIGM's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GIGM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

GigaMedia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GigaMedia Limited
  • Ticker: GIGM
  • Exchange: NasdaqCM
  • Founded: 1998
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: US$32.494m
  • Shares outstanding: 11.05m
  • Website: https://www.gigamedia.com

Number of Employees


Location

  • GigaMedia Limited
  • No. 22, Tiding Boulevard
  • 8th Floor
  • Taipei
  • 114
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GIGMNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDFeb 2000
GIFNDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2000

Biography

GigaMedia Limited provides digital entertainment services in Taiwan and Hong Kong. The company operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games through -br ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 23:57
End of Day Share Price2020/08/04 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.