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Samsung Electro-Mechanics Co Ltd 009150

Morningstar Rating
KRW 170,500.00 +8,000.00 (4.92%)
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Company Report

MLCC For Non-IT Applications and Solid Camera Module Shipments to Offset Weakness on PCs and Servers

Samsung Electro-Mechanics is the global second supplier of multilayer ceramic capacitors, which account for about 40% of Semco’s revenue and 70% of operating income. MLCCs are necessary to stabilize and control electric flow, and thus necessary for all electronic circuits. We believe the robust demand for MLCCs, mainly from smartphone and automotive manufacturers, will be the driver of Semco’s growth in the midterm.

Price vs Fair Value

009150 is trading at a 448% premium.
Price
KRW 170,500.00
Fair Value
KRW 516,235.00
Uncertainty
High
1-Star Price
KRW 435,923.00
5-Star Price
KRW 759,315.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Semco will be one of the beneficiaries of the increasing high-end MLCC demand from the smartphone, auto, and information infrastructure industries.

Bears

Competition with Taiwanese and Chinese suppliers may intensify as the technological gap narrows, and Semco may struggle from the price decline of MLCCs.

Is it the right time to buy, sell, or hold?
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Trading Information

Previous Close Price
KRW 162,500.00
Day Range
KRW 162,900.00171,000.00
52-Week Range
KRW 119,100.00171,000.00
Bid/Ask
KRW 170,300.00 / KRW 170,500.00
Market Cap
KRW 12.88 Tril
Volume/Avg
1.8 Mil / 437,497

Key Statistics

Price/Earnings (Normalized)
24.84
Price/Sales
1.30
Dividend Yield (Trailing)
0.67%
Dividend Yield (Forward)
0.67%
Total Yield
0.67%

Company Profile

Samsung Electro-Mechanics, or Semco, manufactures various electronic components. The company operates three major segments; component solution, optics & communication solution, and package solution, and its main products are multilayer ceramic capacitors, or MLCCs, camera modules, semiconductor packages and substrates. Semco is the global second MLCC supplier. Samsung Electronics, one of the largest consumer electronics and semiconductor companies, is Semco's largest shareholder.
Sector
Technology
Industry
Electronic Components
Stock Style Box
Large Value
Total Number of Employees
11,970

Competitors

Valuation

Metric
009150
6981
2327
Price/Earnings (Normalized)
24.8432.6824.63
Price/Book Value
1.612.652.32
Price/Sales
1.304.122.94
Price/Cash Flow
8.6917.4311.80
Price/Earnings
009150
6981
2327

Financial Strength

Metric
009150
6981
2327
Quick Ratio
1.052.940.89
Current Ratio
1.754.721.16
Interest Coverage
9.45145.449.61
Quick Ratio
009150
6981
2327

Profitability

Metric
009150
6981
2327
Return on Assets (Normalized)
5.35%7.36%5.65%
Return on Equity (Normalized)
7.91%8.83%13.57%
Return on Invested Capital (Normalized)
6.48%8.00%6.44%
Return on Assets
009150
6981
2327
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