Micro-Mechanics (Holdings) (5DD) AI Stock Analysis

• Market Cap: $255.82M
• Dividend Yield: 3.26%
• Average Volume (3M): 51.46K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.71
• Revenue Growth: 9.05%
• EPS Growth: 41.96%
• Country: SG
• Employees: 495
• Sector: Technology
• Sector Strength: 91
• Industry: Semiconductors
• EPS (TTM): 0.02
• Shares Outstanding: 139,031,890
• 10 Day Avg. Volume: 124,010
• 30 Day Avg. Volume: 51,456
• PEG Ratio: 1.49
• Price to Book (P/B): 4.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.50
• Price Target Upside: -18.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: S$2.00 ▲(8.70%Upside)

The strong financial performance of Micro-Mechanics (Holdings) is a significant positive, backed by excellent profitability and financial stability. However, technical indicators suggest caution due to overbought conditions, and valuation metrics indicate moderate pricing. The absence of recent earnings call guidance or significant corporate events keeps the focus on the fundamentals and technicals.

Micro-Mechanics (Holdings) Business Overview & Revenue Model

Company Description

Micro-Mechanics (Holdings) Ltd. designs, manufactures, and markets high precision parts and tools used in applications for the wafer-fabrication and assembly processes of the semiconductor industry. It operates through five segments: Singapore, Malaysia, The Philippines, USA, and China. The company offers die attach - pick-up products, such as rubber tips, high-temp plastic tools, tungsten carbide tools, sensor assemblies, and vacuum wand tools; die attach - dispensing products, including dispense nozzle adaptors, dispense nozzles, pen dispense assemblies, writing pen nozzle tips, and epoxy stamping tools; and die attach - die ejection products comprising ejector needles, needle holders/pepper pots, and needle holder seals. It also provides thermosonic bonding products that include clamps and electronic flame off products; ultrasonic bonding products comprising clamps, bearing base assemblies, anvils, and wire cutters; and encapsulation products consisting of BGA dispensing nozzles, dispensing manifolds, pump screws, and O-rings. In addition, the company manufactures precision parts and assemblies on a contract basis for OEMs. Micro-Mechanics (Holdings) Ltd. was founded in 1983 and is based in Singapore.

How the Company Makes Money

Micro-Mechanics (Holdings) Ltd generates revenue primarily through the sale of its high-precision tools and parts to customers in the semiconductor industry, which is a significant market for the company. These products include die attach tools, wire bonding tools, and other consumable parts essential for semiconductor manufacturing equipment. The company's revenue model is largely based on the sale of these consumables, which are required regularly due to the wear and tear experienced during semiconductor production. Additionally, the company serves other high-tech industries such as medical and aerospace by providing precision machining services and custom engineering solutions. Micro-Mechanics enhances its earnings through strategic partnerships and maintaining a strong focus on quality and innovation, which allows it to command premium pricing for its specialized and reliable products.

Micro-Mechanics (Holdings) Financial Statement Overview

Summary

Micro-Mechanics (Holdings) demonstrates strong financial health with solid profitability margins, minimal leverage, and robust cash flows. The income statement reveals effective cost management with a strong net profit margin, although revenue has declined. The balance sheet is robust, and cash flow metrics are impressive, indicating efficient cash management.

Income Statement

The income statement reveals a strong gross profit margin of 48.8% and a healthy net profit margin of 17.8% for TTM, indicating effective cost management. However, the revenue growth rate is negative at -6.1%, reflecting a decline in sales from the previous period, which could be concerning if the trend continues. The EBIT margin stands at 26.6% and the EBITDA margin at 35.2%, both showcasing solid operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.02, suggesting minimal leverage and financial stability. Return on equity (ROE) is healthy at 24.0%, indicating effective use of shareholder funds to generate profits. The equity ratio is strong at 83.2%, reflecting a high proportion of assets financed by equity, which minimizes financial risk.

Cash Flow

Cash flow analysis shows a significant free cash flow growth rate of 31.1%, highlighting the company's ability to generate cash effectively. The operating cash flow to net income ratio is at 1.56, indicating strong cash conversion. The free cash flow to net income ratio of 1.41 further supports the company's efficient cash management and profitability.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	57.89M	67.02M	82.46M	73.73M	64.21M
Gross Profit	27.19M	31.19M	44.04M	40.02M	34.31M
EBITDA	18.23M	20.33M	32.24M	29.72M	25.19M
Net Income	8.04M	9.77M	19.81M	18.06M	14.65M
Balance Sheet
Total Assets	56.86M	58.19M	73.69M	72.33M	71.15M
Cash, Cash Equivalents and Short-Term Investments	16.57M	14.27M	20.37M	20.61M	20.81M
Total Debt	1.77M	2.20M	1.61M	2.49M	1.98M
Total Liabilities	10.79M	11.75M	15.39M	14.36M	13.16M
Stockholders Equity	46.07M	46.44M	58.30M	57.97M	57.98M
Cash Flow
Free Cash Flow	12.12M	14.36M	20.32M	18.92M	15.09M
Operating Cash Flow	14.58M	17.70M	25.22M	25.70M	18.80M
Investing Cash Flow	-2.25M	-2.42M	-4.52M	-6.72M	-3.38M
Financing Cash Flow	-9.93M	-20.78M	-20.75M	-19.30M	-16.42M

Micro-Mechanics (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5DD, the sentiment is Positive. The current price of 1.84 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.63, and above the 200-day MA of 1.62, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 74.83 is Negative, neither overbought nor oversold. The STOCH value of 79.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:5DD.

Micro-Mechanics (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5DD	67 Neutral	$255.82M	22.66	25.02%	3.26%	9.05%	41.96%
Sector *	57 Neutral	$901.02M	11.57	-16.27%	2.26%	10.33%	-39.65%
UMSSF	―	$863.78M	<0.01	9.67%	4.65%	―	―
AWX	57 Neutral	S$529.61M	46.99	2.40%	―	-20.96%	―
BVQ	―	S$105.18M	262.50	0.82%	―	―	―
JLB	64 Neutral	S$312.15M	28.13	8.66%	0.32%	43.32%	96.93%
MZH	64 Neutral	S$508.35M	66.10	2.02%	0.85%	15.39%	140.82%

Micro-Mechanics (Holdings) Corporate Events

Micro-Mechanics Appoints New CEO to Drive Growth

Micro-Mechanics (Holdings) Ltd. has announced the appointment of Kyle Borch as the new CEO, effective from 1 July 2025. This leadership transition is part of the company’s strategy to ensure continuity and support long-term growth, with Borch previously leading initiatives that strengthened the company’s operational excellence. The transition is expected to position Micro-Mechanics for sustained growth and enhance its standing as a leading supplier in the semiconductor industry.