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

• Market Cap: $246.09M
• Dividend Yield: 3.64%
• Average Volume (3M): 84.50K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.86
• Revenue Growth: 12.70%
• EPS Growth: 48.43%
• Country: SG
• Employees: 495
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.02
• Shares Outstanding: 139,031,890
• 10 Day Avg. Volume: 79,160
• 30 Day Avg. Volume: 84,500
• PEG Ratio: 0.33
• Price to Book (P/B): 4.58
• Price to Sales (P/S): 3.45
• P/FCF Ratio: 13.38
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 3.13
• Enterprise Value/Gross Profit: 6.33
• Enterprise Value/Ebitda: 9.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: S$2.00 ▲(21.21% Upside)

Micro-Mechanics (Holdings) demonstrates strong financial performance with robust profitability and low leverage, which significantly contributes to its overall score. The technical analysis indicates a neutral trend with some bearish signals, while the valuation suggests the stock is fairly valued with an attractive dividend yield. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong Financial Profile

The company's strong profitability, low leverage, and positive cash flow trends indicate a robust financial position, supporting sustainable growth and resilience against market fluctuations.

Corporate Governance

Recognition for excellence in corporate governance and investor relations underscores the company's commitment to transparency and stakeholder value, fostering trust and long-term stability.

Revenue Growth

Consistent revenue growth and healthy margins demonstrate effective market positioning and operational efficiency, supporting long-term business expansion.

Negative Factors

Margin Pressure

Decreasing margins indicate potential cost management challenges, which could impact profitability if not addressed, affecting long-term financial health.

Cash Flow Sustainability

While cash flow trends are positive, the need for sustained growth highlights potential risks in maintaining cash generation, crucial for funding future initiatives.

Operational Efficiency

Slightly decreased EBIT and EBITDA margins suggest inefficiencies that could hinder operational performance, impacting long-term competitiveness and profitability.

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 generates revenue through the sale of its precision tools and equipment, which are essential in various stages of semiconductor manufacturing. The company's revenue model is primarily based on direct sales to customers in the semiconductor industry, allowing for high margins on specialized products. Key revenue streams include the sale of manufacturing equipment, maintenance services, and replacement parts. Additionally, the company benefits from long-term partnerships with leading semiconductor firms, which provide a steady demand for its products. The continuous growth of the semiconductor market, driven by advancements in technology and increasing demand for electronic devices, further contributes to Micro-Mechanics' earnings.

Micro-Mechanics (Holdings) Financial Statement Overview

Summary

Micro-Mechanics (Holdings) presents a solid financial profile with strong profitability, low leverage, and positive cash flow trends. The company has successfully increased revenue and maintained healthy margins, although there is potential for further improvement in cost management. The balance sheet is stable with minimal debt, and cash flows are robust, supporting the company's growth trajectory.

Income Statement

Micro-Mechanics (Holdings) has demonstrated consistent revenue growth with a 2.82% increase in the latest year, recovering from previous declines. The company maintains strong profitability with a gross profit margin of 49.41% and a net profit margin of 19.01%. EBIT and EBITDA margins are healthy at 25.24% and 34.69%, respectively, indicating efficient operations. However, the margins have slightly decreased compared to previous years, suggesting room for improvement in cost management.

Balance Sheet

The balance sheet of Micro-Mechanics (Holdings) is robust, with a low debt-to-equity ratio of 0.042, indicating minimal leverage and financial risk. The return on equity is strong at 25.19%, reflecting effective use of shareholder funds to generate profits. The equity ratio stands at 80.89%, showcasing a solid capital structure with a high proportion of equity financing. Overall, the company maintains a stable financial position with low debt levels.

Cash Flow

The company exhibits positive cash flow trends with a 5.92% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 2.17, suggesting strong cash conversion efficiency. The free cash flow to net income ratio is 0.92, reflecting a good balance between cash generation and profitability. Despite these strengths, the company should focus on sustaining and enhancing cash flow growth to support future investments and operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	65.21M	65.21M	57.89M	67.02M	82.46M	73.73M
Gross Profit	32.21M	32.22M	27.19M	31.19M	44.04M	40.02M
EBITDA	22.66M	22.62M	18.23M	20.33M	32.24M	29.72M
Net Income	12.40M	12.40M	8.04M	9.77M	19.81M	18.06M
Balance Sheet
Total Assets	60.84M	60.84M	56.86M	58.19M	73.69M	72.33M
Cash, Cash Equivalents and Short-Term Investments	23.28M	23.28M	16.57M	14.27M	20.37M	20.61M
Total Debt	2.06M	2.06M	1.77M	2.20M	1.61M	2.49M
Total Liabilities	11.63M	11.63M	10.79M	11.75M	15.39M	14.36M
Stockholders Equity	49.21M	49.21M	46.07M	46.44M	58.30M	57.97M
Cash Flow
Free Cash Flow	16.88M	16.83M	12.12M	14.36M	20.32M	18.92M
Operating Cash Flow	18.33M	18.28M	14.58M	17.70M	25.22M	25.70M
Investing Cash Flow	-1.49M	-1.23M	-2.25M	-2.42M	-4.52M	-6.72M
Financing Cash Flow	-9.85M	-9.90M	-9.93M	-20.78M	-20.75M	-19.30M

Micro-Mechanics (Holdings) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5DD, the sentiment is Negative. The current price of 1.65 is below the 20-day moving average (MA) of 1.70, below the 50-day MA of 1.73, and below the 200-day MA of 1.66, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.33 is Neutral, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:5DD.

Micro-Mechanics (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
558	73 Outperform	$1.09B	26.32	9.60%	4.05%	1.24%	-10.12%
5DD	72 Outperform	$246.09M	19.71	24.01%	3.64%	12.70%	48.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JLB	61 Neutral	S$317.24M	32.58	7.60%	0.32%	47.45%	51.05%
MZH	56 Neutral	S$446.43M	34.25	3.50%	1.04%	22.66%	83.49%
AWX	52 Neutral	S$579.75M	42.53	2.87%	―	4.60%	―

Micro-Mechanics (Holdings) Corporate Events

Micro-Mechanics Honored for Excellence in Corporate Governance and Investor Relations

Micro-Mechanics has been awarded the Gold Award for Best Investor Relations at the Singapore Corporate Awards 2025, marking its third Gold and ninth overall recognition in this category. The company also maintained its top 30 ranking in the Singapore Governance and Transparency Index, highlighting its dedication to strong governance and transparency, which are integral to delivering sustainable long-term value for stakeholders.