Rating Change #2
Siliconware Precision Industries Co Ltd (SPIL) has been upgraded by TheStreet Ratings from hold to buy. The company's strongest point has been its expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- SILICONWARE PRECISION INDS reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, SILICONWARE PRECISION INDS reported lower earnings of $0.26 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($0.36 versus $0.26).
- The revenue fell significantly faster than the industry average of 25.7%. Since the same quarter one year prior, revenues fell by 17.6%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- In its most recent trading session, SPIL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.
- The gross profit margin for SILICONWARE PRECISION INDS is rather low; currently it is at 16.00%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 7.50% significantly trails the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has decreased by 18.6% when compared to the same quarter one year ago, dropping from $48.40 million to $39.41 million.
Siliconware Precision Industries Co., Ltd. provides semiconductor packaging and testing services worldwide. The company has a P/E ratio of 21.6, above the average electronics industry P/E ratio of 19.9 and above the S&P 500 P/E ratio of 17.7. Siliconware Precision has a market cap of $3.42 billion and is part of the technology sector and electronics industry. Shares are up 37.4% year to date as of the close of trading on Tuesday.You can view the full Siliconware Precision Ratings Report or get investment ideas from our investment research center.
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