Risk factor
Very high price volatility
Profitability factor
Very poor margins and returns
About
Stars Microelectronics (Thailand) Public Company Limited, an enterprise headquartered in Phra Nakhon Si Ayutthaya, Thailand, with operations extending to the United States, delivers a broad spectrum of electronics manufacturing services (EMS). The company organizes its activities into two principal segments: Microelectronics Module Assembly and Integrated Circuit (IC) Packaging. Its extensive portfolio includes the production and distribution of integrated circuit boards and radio frequency identification (RFID) tags. SMT is also involved in the fabrication and supply of equipment designed for generating electricity from solar or other alternative energy sources. Furthermore, the company actively participates in the generation and distribution of such power, alongside its trading ventures. SMT provides comprehensive services spanning IC packaging and testing, as well as print circuit board assembly (PCBA) and full product box builds. These capabilities support diverse applications across various sectors, including the Internet of Things (IoT), medical devices, industrial control modules, energy management systems, and automotive components. Additionally, the company develops fiber optic devices for critical applications such as data centers, broadcasting, and LiDAR technology. Serving a wide array of clients, including original equipment manufacturers (OEMs), original design manufacturers (ODMs), and outsourced assembly and test (OSAT) providers (particularly for IC packaging), SMT caters to industries like semiconductor, optics and telecommunication, industrial, automotive, professional audio and video, and medical devices. The company was established in 1995.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. Specifically, the stock is overvalued on EV/EBITDA.