FCS  Fairchild Semiconductor Intern...

Exchange

NYSE

Sector

Technology

Industry

Semiconductors

Market Cap.

2.28B

Vuru Grade

28.14/100

Current Price

$19.86
-19.86 (-100.00%)

Growth Price

$11.08
Overvalued by 44.20%

Stability Price

$12.79
Overvalued by 35.61%

Company Metrics

  • P/E 354.64
  • P/S 1.71
  • P/B 2.02
  • EPS 0.06
  • Cash ROIC 6.30%
  • Cash Ratio 1.24
  • Dividend 0 / 0%
  • Avg. Vol. 909,620.00
  • Shares 114.80M
  • Market Cap. 2.28B

Company Description

Fairchild Semiconductor International, Inc. designs, develops, manufactures, and sells power analog, power discrete, and non-power semiconductor solutions worldwide. The company operates through three segments: Mobile, Computing, Consumer, and Communication (MCCC); Power Conversion, Industrial, and Automotive (PCIA); and Standard Discrete and Standard Linear (SDT). The MCCC segment provides analog... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

ON Semiconductor Corp. Buys Fairchild Semiconductor Intl. Inc.
Motley Fool - Nov 18, 2015
In a somewhat convoluted financing maneuver, the $2.4 billion deal will be financed by cash from both Fairchild's and ON's balance sheets plus $2.4 billion of new debt.
ON Semiconductor Corp To Acquire Fairchild Semiconductor For $2.4 Billion - Bidness ETC
ON Semiconductor to Acquire Fairchild Semiconductor for $2.4 Billion in Cash - Business Wire (press release)
ON Semiconductor To Sell Ignition IGBT Unit To Clear FTC Requirements For ...
Benzinga - Aug 25, 2016
ON Semiconductor Corp (NASDAQ: ON) agreed to divest its Ignition IGBT unit to get clearance from the Federal Trade Commission on its planned acquisition of Fairchild Semiconductor Intl Inc (NASDAQ: FCS) for $2.4 billion. This has increased the chances ...
China Resources to Revise Offer Terms for Fairchild Semiconductor Intl
China Business News - Dec 30, 2015
In an attempt to get hold of Fairchild Semiconductor International Inc (NASDAQ:FCS), China Resource Holdings Co and Hua Capital management, have improved the buyout offer, the group announced today.
Fairchild Semiconductor: China Resources Sweetens Its $21.70-Per-Share Offer - Bidness ETC
Fairchild Semiconductor: Bidder revises $21.70 offer - CNBC
Technical Roundup on Semiconductor Stocks -- InvenSense, Microsemi, Fairchild ...
PR Newswire (press release) - Sep 9, 2016
Pre-market, Stock-Callers.com has lined up four Semiconductor Integrated Circuits equities for assessment: InvenSense Inc. (NYSE: INVN), Microsemi Corp.
Fairchild Semiconductor Intl Inc (FCS) Jumps After $2.5 Billion Mystery Buyout Bid
Bidness ETC - Dec 8, 2015
Fairchild Semiconductor Intl Inc. (NASDAQ:FCS) stock surged today after announcement of a new unsolicited takeover bid received from an unnamed buyer.
Fairchild Semiconductor (FSC) Stock Surges On Takeover Proposal - TheStreet.com
China Resources Offers to Buy Fairchild for $2.4 billion - China Business News
Power Integrations, Inc. v. Fairchild Semiconductor Intl., Nos. 2015-1329 and ...
Lexology (registration) - Feb 22, 2017
The plaintiff brought a suit against a competitor alleging infringement of four of its patents. The defendant brought counterclaims of infringement for two of its patents.
The Fight for Fairchild Semiconductor: China Resources to Place New Bid Today
Bidness ETC - Jan 5, 2016
Fairchild Semiconductor Intl Inc. (NASDAQ:FCS) expects a revised, superior acquisition bid on Tuesday from China Resources Holdings Co.
Why Fairchild Semiconductor (FCS) Stock is Gaining Today - TheStreet.com
Fairchild Semiconductor Intl Inc (NASDAQ:FCS) Breaks Critical Support Levels
USA Stock Report - Apr 22, 2014
Boston, MA, 04/22/2014 (usastockreport) - The stock remained flat on Monday after a very volatile intraday trading. The stock managed to sustain above its intraday low of $12.71 and close at $12.90.
Hedge Funds Are Buying Fairchild Semiconductor Intl Inc (FCS)
Insider Monkey (blog) - Jun 11, 2013
When looking at the hedgies we track, Chuck Royce's Royce & Associates had the most valuable position in Fairchild Semiconductor Intl Inc (NYSE:FCS), worth close to $186.6 million, comprising 0.6% of its total 13F portfolio. The second largest stake is ...
Hedge Funds Are Betting On Fairchild Semiconductor Intl Inc (FCS) – RF Micro ...
Insider Monkey (blog) - Apr 10, 2013
Of the funds we track, Chuck Royce's Royce & Associates had the largest position in Fairchild Semiconductor Intl Inc (NYSE:FCS), worth close to $198.4 million, accounting for 0.6% of its total 13F portfolio. Coming in second is Citadel Investment Group ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for FCS to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate FCS's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$19.86 Current Price

$11.08 Growth Price (DCF)

Overvalued by 44.20%


Growth Rate Assumed by Market: 49.01%


Future Free Cash Flow Growth Rate: 3.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.79 Stability Price (EPV)

Overvalued by 35.61%


Discount Rate: 15.0%

$2.41 NCA Price

Overvalued by 87.84%

$13.84 Book Price

Overvalued by 30.31%


Poor Cash Return on Invested Capital over the past 5 years

FCS has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

FCS has only created $6.30 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 78.60M 28.90M 98.80M 137.50M 23.90M
divided by
Invested Capital 1.26B 1.27B 1.19B 1.10B 1.08B
Cash ROIC 6.26% 2.27% 8.27% 12.46% 2.21%

Poor Return on Equity over the past 5 years

FCS has shown an inability to deliver strong results for shareholders. This could be due to poor management, FCS operating in a highly competitive industry, or having a weak business in general.

FCS has only generated $1.77 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 145.50M 24.60M 5.00M -35.20M -15.10M
divided by
Stockholders' Equity 1.32B 1.37B 1.36B 1.19B 1.10B
Return on Equity 11.00% 1.80% 0.37% -2.95% -1.38%

Excellent Business Performance over the past 10 years

FCS has been able to maintain profitability in good times and bad. This could mean FCS has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

FCS has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 71.00M 48.50M 11.00M 128.60M 174.50M 78.60M 28.90M 98.80M 137.50M 23.90M

Strong Balance Sheet

FCS is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 584.30M 411.10M 352.30M 415.90M 404.70M 423.50M 406.00M 417.90M 353.00M 279.60M
Current Assets 1.03B 885.50M 778.90M 781.20M 843.10M 853.00M 832.00M 824.60M 785.30M 766.90M
Total Assets 2.05B 2.13B 1.85B 1.76B 1.85B 1.94B 1.88B 1.80B 1.69B 1.59B
Current Liabilities 262.50M 444.80M 194.10M 195.50M 282.00M 258.20M 204.90M 183.80M 235.80M 226.20M
Total Liabilities 913.40M 914.10M 792.70M 735.80M 672.80M 614.70M 516.80M 435.50M 498.00M 489.70M
Stockholder' Equity 1.13B 1.22B 1.06B 1.03B 1.18B 1.32B 1.37B 1.36B 1.19B 1.10B
Current Ratio 3.92 1.99 4.01 4.00 2.99 3.30 4.06 4.49 3.33 3.39
TL-to-TA 0.45 0.43 0.43 0.42 0.36 0.32 0.27 0.24 0.29 0.31

Low or No Reinvestment of Profits over the past 10 years

FCS has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to FCS operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings -182.50M -116.60M -284.00M -340.70M -187.50M -42.00M -17.40M -12.40M -47.60M -62.70M
Retained Earnings Growth - 36.11% -143.57% -19.96% 44.97% 77.60% 58.57% 28.74% -283.87% -31.72%

Highly Competitive Industry over the past 10 years

It's likely that FCS is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely FCS invests heavily in R&D and Sales, General & Administrative expenses.

Only $1.05 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 83.40M 64.00M -167.40M -60.20M 153.20M 145.50M 24.60M 5.00M -35.20M -15.10M
divided by
Revenue 1.65B 1.67B 1.57B 1.19B 1.60B 1.59B 1.41B 1.41B 1.43B 1.37B
Net Profit Margin 5.05% 3.83% -10.63% -5.07% 9.58% 9.16% 1.75% 0.36% -2.46% -1.10%

Inconsistent Gross Profit Margins over the past 10 years

FCS has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$36.39 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 496.80M 490.50M 455.40M 290.30M 563.00M 1.44B 442.00M 416.50M 465.60M 437.80M
divided by
Revenue 1.65B 1.67B 1.57B 1.19B 1.60B 1.59B 1.41B 1.41B 1.43B 1.37B
Gross Margin 30.09% 29.37% 28.93% 24.45% 35.19% 90.34% 31.44% 29.64% 32.48% 31.95%

High Capital Intensity over the past 10 years

FCS spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

460.91% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 113.90M 142.10M 174.40M 59.80M 158.00M 189.90M 154.30M 77.30M 56.20M 70.50M
divided by
Net Income 83.40M 64.00M -167.40M -60.20M 153.20M 145.50M 24.60M 5.00M -35.20M -15.10M
Capital Expenditure Ratio 136.57% 222.03% -104.18% -99.34% 103.13% 130.52% 627.24% 1,546.00% -159.66% -466.89%

No Dividend History over the past 10 years

FCS has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 124.40M 126.30M 124.30M 123.80M 128.00M 130.30M 129.00M 128.70M 121.40M 115.40M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 16.81 14.41 4.70 10.16 15.97 12.04 14.07 13.34 17.14 20.75
Dividend Yield - - - - - - - - - -

Strong History of Stock Buybacks over the past 10 years

FCS has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 124.40M 126.30M 124.30M 123.80M 128.00M 130.30M 129.00M 128.70M 121.40M 115.40M
Stock Bought Back - -1.50% 1.61% 0.40% -3.28% -1.77% 1.01% 0.23% 6.01% 5.20%
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