Sunday, 30. April 2017  
17.01.2017 22:37
Author: Nic Wright

STOCK SCREEN: Semiconductor Stocks With Valuation Upside For A Continued Cyclical Upturn

 

Low inventories, rising chip demand and M&A drove the surge in semiconductor stocks in 2016.  The rally could continue this year, as the demand side in the sector is still intact and also the macro framework seems supportive, with US industrial production increasing 0.8% m/m in December and posting its first yr/yr gain (+0.5% yr/yr) since August 2015.

 

Additionally, if a pro-business fiscal reform is enacted, factory output in 2017 should more than reverse its 2016 decline. In particular, increased government and infrastructure spending could boost production in many areas like construction materials, capital goods, machinery and electrical equipment.

In this context, we screen the Semiconductor sector for stocks with the highest upside potential, according to a combination of our AVM’s Intrinsic Stock Value estimates.

 

Here are the filter criteria:

1. Market capitalization above 1bn.

2. Upside to Intrinsic Stock Value according to our AVM’s Mean Multiple, Graham, Greenblatt or ValueExplorer approach.

 

Here is our list of stocks matching all criteria in alphabetical order. Company names in the table below are linked to the ANALYZER, our single stock analysis tool. Intrinsic Value Model assumptions can be adapted in the MODELER, our modeling and forecasting environment:

CLICK COMPANY NAME FOR DETAILED STOCK VALUE ANALYSIS

LAST PRICE

MARKET CAP.

MEAN MULTIPLE UPSIDE [%]

GRAHAM UPSIDE [%]

GREENBLATT UPSIDE [%]

VALUEEXPLORER MODELER UPSIDE [%]

PRICE / EARNINGS

 CIRRUS LOGIC INC

57,38

3656

-16,2

-23,8

9,1

-5,0

13,6

 DIALOG SEMICONDUCTOR PLC

41,89

3399

-8,6

-23,7

48,4

87,1

16,8

 INTEL CORP

36,79

174348

-22,7

-8,7

0,7

13,4

13,3

 IPG PHOTONICS CORP

100,15

5319

-5,4

-22,1

-0,2

6,1

21,0

 KULICKE & SOFFA INDUSTRIES

17,06

1209

-31,6

-3,3

48,6

63,8

19,1

 QUALCOMM INC

66,88

98774

12,2

-15,2

-21,2

10,0

14,0

 SAMSUNG ELECTRONICS CO LTD

1848000,00

259975415

-9,2

32,9

65,3

101,1

9,0

 SK HYNIX INC

49300,00

35890517

-1,6

-32,4

52,9

60,1

15,1

 SKYWORKS SOLUTIONS INC

78,33

14555

-10,3

-30,7

1,1

14,0

12,6