OTCPK:MPAD

Stock Analysis Report

Micropac Industries

Executive Summary

Micropac Industries, Inc. designs, manufactures, and distributes various types of microelectronic circuits.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

MPAD

-2.3%

US Electronic

0.06%

US Market


1 Year Return

72.3%

MPAD

7.7%

US Electronic

19.4%

US Market

Return vs Industry: MPAD exceeded the US Electronic industry which returned 7.7% over the past year.

Return vs Market: MPAD exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

MPADIndustryMarket
7 Day0%-2.3%0.06%
30 Day13.3%-6.2%1.1%
90 Day23.9%1.1%8.9%
1 Year73.6%72.3%8.8%7.7%21.9%19.4%
3 Year93.2%87.4%34.4%30.8%48.9%39.3%
5 Year97.7%87.4%66.6%58.5%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MPAD ($16.4) is trading below our estimate of fair value ($66.66)

Significantly Below Fair Value: MPAD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MPAD is good value based on its PE Ratio (11.4x) compared to the Electronic industry average (19.6x).

PE vs Market: MPAD is good value based on its PE Ratio (11.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MPAD is good value based on its PB Ratio (1.5x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

21.6%

Forecasted Tech 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 Micropac Industries 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

  • Examine whether Micropac Industries 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.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Micropac Industries's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Micropac Industries performed over the past 5 years?

24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPAD has high quality earnings.

Growing Profit Margin: MPAD's current net profit margins (14.6%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: MPAD's earnings have grown significantly by 24.5% per year over the past 5 years.

Accelerating Growth: MPAD's earnings growth over the past year (157.7%) exceeds its 5-year average (24.5% per year).

Earnings vs Industry: MPAD earnings growth over the past year (157.7%) exceeded the Electronic industry 14.6%.


Return on Equity

High ROE: MPAD's Return on Equity (13.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Micropac Industries's financial position?


Financial Position Analysis

Short Term Liabilities: MPAD's short term assets ($27.5M) exceed its short term liabilities ($2.9M).

Long Term Liabilities: MPAD's short term assets ($27.5M) exceed its long term liabilities ($20.0K).


Debt to Equity History and Analysis

Debt Level: MPAD is debt free.

Reducing Debt: MPAD has not had any debt for past 5 years.

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

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


Balance Sheet

Inventory Level: MPAD has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MPAD's debt is covered by short term assets.


Next Steps

Dividend

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

0.61%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: MPAD's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MPAD's dividend (0.61%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: MPAD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MPAD is not paying a notable dividend for the US market, therefore no need to check if payments are 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 MPAD'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?

4.3yrs

Average board tenure


CEO

Mark King (64yo)

14.3yrs

Tenure

US$337,651

Compensation

Mr. Mark W. King has been Chief Executive Officer and President of Micropac Industries Inc. since October 12, 2005. Mr. King served as Chief Operating Officer and Executive Vice President of Micropac Indus ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD337.65K) is below average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Mark King
Chairman14.3yrsUS$337.65k0.55% $231.2k
Richard Hoesterey
Secretary & Independent Director9.3yrsUS$20.50kno data
Heinz-Werner Hempel
Director23yrsUS$2.25k75.73% $32.0m
Shaunna Black
Independent Director0.2yrsno datano data
Christine Dittrich
Independent Director4.3yrsUS$20.50kno data
Gerald Tobey
Independent Director2.7yrsUS$20.50kno data
Donald Robinson
Independent Director0.2yrsno datano data

4.3yrs

Average Tenure

65yo

Average Age

Experienced Board: MPAD's board of directors are considered experienced (4.3 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Micropac Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Micropac Industries, Inc.
  • Ticker: MPAD
  • Exchange: OTCPK
  • Founded: 1963
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$42.284m
  • Shares outstanding: 2.58m
  • Website: https://www.micropac.com

Number of Employees


Location

  • Micropac Industries, Inc.
  • 905 East Walnut Street
  • Garland
  • Texas
  • 75040
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPADOTCPK (Pink Sheets LLC)YesCommon StockUSUSDFeb 1975

Biography

Micropac Industries, Inc. designs, manufactures, and distributes various types of microelectronic circuits. The company’s products and technologies include custom design hybrid microelectronic circuits; solid state relays and power controllers; custom optoelectronic assemblies and components; optocouplers; light-emitting diodes; hall-effect sensors; displays; power operational amplifiers; fiber optic components and assemblies; high temperature products; and radiation tolerant electronics. Its products are used as components in a range of military, space, and industrial systems, including aircraft instrumentation and navigation systems, satellite systems, power supplies, electronic controls, computers, medical devices, and high-temperature products. The company markets its products through a direct technical sales staff, independent representatives, and independent stocking distributors in the United States and Western Europe, primarily to original equipment manufacturers and contractors. Micropac Industries, Inc. was founded in 1963 and is based in Garland, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:02
End of Day Share Price2020/02/18 00:00
Earnings2019/11/30
Annual Earnings2019/11/30


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.