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

• Market Cap: $223.84M
• Dividend Yield: 7.45%
• Average Volume (3M): 21.65K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.56
• Revenue Growth: 9.05%
• EPS Growth: 41.96%
• Country: SG
• Employees: 495
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): 0.02
• Shares Outstanding: 139,031,890
• 10 Day Avg. Volume: 12,810
• 30 Day Avg. Volume: 21,650
• PEG Ratio: -0.50
• Price to Book (P/B): 5.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.94
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: S$2.00 ▲(24.22%Upside)

Micro-Mechanics (Holdings) scores well due to its strong financial performance, highlighted by robust profitability margins and efficient cash management. The stock's technical indicators suggest mild bullish momentum, although the negative MACD is a point of caution. Valuation appears fair with a significant dividend yield, though this may reflect limited growth prospects.

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) generates revenue through the sale of its high-precision tools and components, primarily to customers in the semiconductor industry. The company designs and manufactures these products to meet the exacting standards required for semiconductor fabrication and other high-tech applications. Revenue streams include direct sales to end-users, as well as contracts with semiconductor manufacturing companies, which require a steady supply of precision parts and tools for their operations. The company's earnings are bolstered by its strategic global presence, allowing it to serve key markets efficiently. Additionally, Micro-Mechanics may engage in partnerships or collaborations with leading tech companies to enhance its product offerings and expand its market reach, though specific partnerships are not detailed.

Micro-Mechanics (Holdings) Financial Statement Overview

Summary

Micro-Mechanics (Holdings) demonstrates strong financial health with solid profitability margins, minimal leverage, and robust cash flows. While revenue has declined recently, the company's efficient operations and strong balance sheet provide a stable foundation.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	63.42M	57.89M	67.02M	82.46M	73.73M	64.21M
Gross Profit	30.95M	27.19M	31.19M	44.04M	40.02M	34.31M
EBITDA	22.34M	18.23M	20.33M	32.24M	29.72M	25.19M
Net Income	11.30M	8.04M	9.77M	19.81M	18.06M	14.65M
Balance Sheet
Total Assets	56.55M	56.86M	58.19M	73.69M	72.33M	71.15M
Cash, Cash Equivalents and Short-Term Investments	19.23M	16.57M	14.27M	20.37M	20.61M	20.81M
Total Debt	984.75K	1.77M	2.20M	1.61M	2.49M	1.98M
Total Liabilities	9.51M	10.79M	11.75M	15.39M	14.36M	13.16M
Stockholders Equity	47.04M	46.07M	46.44M	58.30M	57.97M	57.98M
Cash Flow
Free Cash Flow	15.89M	12.12M	14.36M	20.32M	18.92M	15.09M
Operating Cash Flow	17.60M	14.58M	17.70M	25.22M	25.70M	18.80M
Investing Cash Flow	-1.63M	-2.25M	-2.42M	-4.52M	-6.72M	-3.38M
Financing Cash Flow	-9.71M	-9.93M	-20.78M	-20.75M	-19.30M	-16.42M

Micro-Mechanics (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1.61 is above the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.59, and above the 200-day MA of 1.61, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 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	74 Outperform	$223.84M	19.83	25.02%	7.45%	9.05%	41.96%
Sector *	69 Neutral	¥228.59B	14.33	7.64%	2.71%	9.13%	8.49%
UMSSF		$786.19M	<0.01	9.67%	7.61%	―	―
AWX	55 Neutral	S$454.39M	39.62	2.40%	―	-20.96%	―
BVQ		S$101.89M	258.33	0.82%	―	―	―
JLB	64 Neutral	S$332.50M	29.97	8.66%	0.31%	43.32%	96.93%
MZH	61 Neutral	S$413.85M	53.81	2.02%	1.34%	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.