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

• Market Cap: $251.65M
• Dividend Yield: 3.31%
• Average Volume (3M): 79.91K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.81
• Revenue Growth: 12.65%
• EPS Growth: 54.33%
• Country: SG
• Employees: 495
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.02
• Shares Outstanding: 139,031,890
• 10 Day Avg. Volume: 84,610
• 30 Day Avg. Volume: 79,913
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 3.13
• Enterprise Value/Gross Profit: 6.33
• Enterprise Value/Ebitda: 9.00
• 1Y Price Target: $2.00
• Price Target Upside: 10.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: S$2.00 ▲(10.50% Upside)

Micro-Mechanics (Holdings) achieves a strong overall score due to its robust financial performance, characterized by solid revenue growth, profitability, and cash flow. The technical analysis suggests a stable trend, while the valuation is fair with an attractive dividend yield. These factors collectively support a positive outlook for the stock.

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 primarily through the sale of its precision tools and consumables. The company's revenue model is built on both direct sales and long-term contracts with key customers in the semiconductor sector, which contributes to a steady stream of income. Significant revenue streams include the sale of dicing blades, wafer handling equipment, and custom-engineered solutions. Additionally, Micro-Mechanics benefits from strategic partnerships with major semiconductor companies, which not only bolster its market presence but also provide opportunities for collaboration and co-development of new products. The company's commitment to research and development ensures a continuous pipeline of innovative products that meet the evolving needs of its clients, further enhancing its revenue potential.

Micro-Mechanics (Holdings) Financial Statement Overview

Summary

Micro-Mechanics (Holdings) demonstrates strong financial health with consistent revenue growth, robust profitability margins, a solid balance sheet with minimal leverage, and effective cash flow generation. These factors position the company well for future growth and stability in the semiconductor industry.

Income Statement

Micro-Mechanics (Holdings) shows a strong income statement with consistent revenue growth and robust profitability margins. The TTM data indicates a Gross Profit Margin of 48.80% and a Net Profit Margin of 17.81%, both of which are healthy for the semiconductor industry. The EBIT and EBITDA margins are also strong at 24.05% and 35.23%, respectively. Revenue growth has rebounded to 2.82% after a decline in the previous periods, indicating a positive trajectory.

Balance Sheet

The balance sheet reflects a solid financial position with a low Debt-to-Equity Ratio of 0.02, indicating minimal leverage and financial risk. The Return on Equity (ROE) is impressive at 23.74%, showcasing efficient use of equity to generate profits. The Equity Ratio stands at 80.89%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow metrics are robust, with a Free Cash Flow Growth Rate of 6.23% in the TTM period, indicating effective cash generation. The Operating Cash Flow to Net Income Ratio is 2.48, showing strong cash flow relative to net income. The Free Cash Flow to Net Income Ratio is 0.90, reflecting efficient conversion of net income into free cash flow.

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: Positive
• Last Price: 1.81
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.81 is above the 20-day moving average (MA) of 1.81, below the 50-day MA of 1.81, and above the 200-day MA of 1.67, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 71.67 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	$251.65M	20.29	25.77%	3.31%	12.65%	54.33%
558	70 Outperform	$1.03B	24.79	9.87%	3.14%	0.96%	-20.30%
AWX	65 Neutral	S$582.88M	42.76	2.87%	―	4.60%	―
JLB	64 Neutral	S$317.24M	32.58	7.60%	0.32%	47.45%	51.05%
MZH	64 Neutral	S$498.57M	38.25	3.50%	0.90%	22.66%	83.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.