OTCPK:MEGP.F

Stock Analysis Report

Executive Summary

MegaChips Corporation designs, develops, and manufactures MEMS timing devices and LSIs for use in analog, digital, and MEMS technology in Japan, Taiwan, and internationally The company offers LSIs, such as custom memories for storing game software for use in game consoles; LSIs for game consoles and their peripherals; LSIs for digital cameras and other image processing; and LSIs for liquid crystal panels.

Snowflake

Fundamentals

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:MEGP.F

2.0%

US Semiconductor

1.2%

US Market


1 Year Return

n/a

OTCPK:MEGP.F

10.9%

US Semiconductor

1.7%

US Market

No trading data on MEGP.F.

No trading data on MEGP.F.


Share holder returns

MEGP.FIndustryMarket
7 Day0%2.0%1.2%
30 Day0%10.8%4.9%
90 Dayn/a17.2%3.7%
1 Yearn/a13.0%10.9%3.9%1.7%
3 Yearn/a83.8%73.0%47.2%37.7%
5 Yearn/a122.5%100.0%60.0%42.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is MegaChips undervalued based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

MegaChips's share price is below the future cash flow value, but not at a moderate discount (< 20%).

MegaChips's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

MegaChips is loss making, we can't compare its value to the US Semiconductor industry average.

MegaChips is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for MegaChips, we can't assess if its growth is good value.


Price Based on Value of Assets

MegaChips is good value based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is MegaChips expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

86.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MegaChips's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

MegaChips's earnings are expected to grow significantly at over 20% yearly.

MegaChips's revenue growth is positive but not above the United States of America market average.

MegaChips's earnings growth is expected to exceed the United States of America market average.

MegaChips's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

MegaChips is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has MegaChips performed over the past 5 years?

-22.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MegaChips does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare MegaChips's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare MegaChips's 1-year growth to the US Semiconductor industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if MegaChips has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if MegaChips has efficiently used its assets last year compared to the US Semiconductor industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if MegaChips improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is MegaChips's financial position?


Financial Position Analysis

MegaChips is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

MegaChips's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

MegaChips's level of debt (224.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (12% vs 224.5% today).

Operating cash flow is negative therefore debt is not well covered.

MegaChips is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

1.35%

Expected Dividend Yield


Dividend Yield and Payments Analysis

MegaChips's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

MegaChips's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of MegaChips's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

Tetsuo Hikawa 0

0.3yrs

Tenure

0

Mr. Tetsuo Hikawa serves as President & CEO of MegaChips Corp. since 2019. Mr. Tetsuo Hikawa served as the President of MegaChips System Solutions Inc., a subsidiary of Megachips Corp. Mr. Hikawa serves as ...


Board Age and Tenure

2.3yrs

Average Tenure

62yo

Average Age

The average tenure for the MegaChips board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Tetsuo Hikawa

    President

    • Tenure: 0.3yrs
  • Akira Takata (62yo)

    Senior MD & Director

    • Tenure: 8.3yrs

Board Members

  • Tetsuo Hikawa

    President

    • Tenure: 0.3yrs
  • Yoshimasa Hayashi (62yo)

    Director

    • Tenure: 0yrs
  • Masahiro Shindo

    Chairman

    • Tenure: 0.7yrs
  • Akira Takata (62yo)

    Senior MD & Director

    • Tenure: 8.3yrs
  • Keiichi Kitano (57yo)

    Outside Auditor

    • Tenure: 17.3yrs
  • Koichi Akeyama

    Director

    • Tenure: 2.3yrs
  • Yasuto Shimomae

    Director

    • Tenure: 0yrs
  • Jiun-Hao Lai

    Outside Director

    • Tenure: 2.3yrs
  • Junko Nagata

    Outside Director

    • Tenure: 0.7yrs
  • Ikuo Yamaguchi

    Director

    • Tenure: 0.7yrs

Company Information

MegaChips Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MegaChips Corporation
  • Ticker: MEGP.F
  • Exchange: OTCPK
  • Founded: 1967
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: JP¥36.845b
  • Listing Market Cap: JP¥340.881m
  • Shares outstanding: 21.76m
  • Website: https://www.megachips.co.jp

Number of Employees


Location

  • MegaChips Corporation
  • Shin-Osaka Hankyu Building 1-1-1 Miyahara
  • Yodogawa-ku
  • Osaka
  • 532-0003
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MHCDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1998
6875TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYAug 1998
MEGP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1998

Biography

MegaChips Corporation designs, develops, and manufactures MEMS timing devices and LSIs for use in analog, digital, and MEMS technology in Japan, Taiwan, and internationally The company offers LSIs, such as ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 00:34
End of Day Share Price2019/08/08 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.