Valuation Update With 7 Day Price Move • May 21
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$76.70, the stock trades at a trailing P/E ratio of 38.6x. Average trailing P/E is 21x in the Software industry in Taiwan. Total loss to shareholders of 47% over the past three years. Reported Earnings • May 19
First quarter 2026 earnings released: EPS: NT$0.60 (vs NT$0.50 in 1Q 2025) First quarter 2026 results: EPS: NT$0.60 (up from NT$0.50 in 1Q 2025). Revenue: NT$79.5m (flat on 1Q 2025). Net income: NT$19.4m (up 17% from 1Q 2025). Profit margin: 24% (up from 21% in 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 26% per year, which means it is performing significantly worse than earnings. Reported Earnings • Mar 12
Full year 2025 earnings released: EPS: NT$1.87 (vs NT$3.56 in FY 2024) Full year 2025 results: EPS: NT$1.87 (down from NT$3.56 in FY 2024). Revenue: NT$348.2m (down 12% from FY 2024). Net income: NT$61.2m (down 49% from FY 2024). Profit margin: 18% (down from 30% in FY 2024). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 25% per year, which means it is performing significantly worse than earnings. Annonce • Mar 12
Groundhog Inc., Annual General Meeting, Jun 24, 2026 Groundhog Inc., Annual General Meeting, Jun 24, 2026. Location: 3 floor no,1, sec.3 chung hsiao e. rd., da-an district, taipei city Taiwan New Risk • Feb 25
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (130% payout ratio). Share price has been volatile over the past 3 months (7.0% average weekly change). Market cap is less than US$100m (NT$2.41b market cap, or US$76.9m). Board Change • Dec 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. Director Chiann Liu was the last director to join the board, commencing their role in 2024. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 17
Third quarter 2025 earnings released: EPS: NT$0.32 (vs NT$0.93 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.32 (down from NT$0.93 in 3Q 2024). Revenue: NT$81.0m (down 22% from 3Q 2024). Net income: NT$10.3m (down 67% from 3Q 2024). Profit margin: 13% (down from 30% in 3Q 2024). The decrease in margin was driven by lower revenue. New Risk • Nov 11
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.06b (US$98.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (104% payout ratio). Market cap is less than US$100m (NT$3.06b market cap, or US$98.6m). Buy Or Sell Opportunity • Nov 06
Now 20% overvalued Over the last 90 days, the stock has fallen 20% to NT$100.00. The fair value is estimated to be NT$83.04, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.8% over the last 3 years. Earnings per share has declined by 7.0%. Reported Earnings • Aug 17
Second quarter 2025 earnings released: NT$0.26 loss per share (vs NT$0.20 profit in 2Q 2024) Second quarter 2025 results: NT$0.26 loss per share (down from NT$0.20 profit in 2Q 2024). Revenue: NT$69.0m (up 2.9% from 2Q 2024). Net loss: NT$8.50m (down 228% from profit in 2Q 2024). Upcoming Dividend • Jul 10
Upcoming dividend of NT$3.33 per share Eligible shareholders must have bought the stock before 15 July 2025. Payment date: 04 August 2025. Payout ratio is on the higher end at 92%, and the cash payout ratio is above 100%. Trailing yield: 2.5%. Lower than top quartile of Taiwanese dividend payers (5.4%). Lower than average of industry peers (3.0%). Declared Dividend • Jun 26
Dividend increased to NT$3.33 Dividend of NT$3.33 is 11% higher than last year. Ex-date: 15th July 2025 Payment date: 4th August 2025 Dividend yield will be 2.5%, which is about the same as the industry average. Sustainability & Growth Dividend is not adequately covered by earnings (92% earnings payout ratio) nor is it covered by cash flows (119% cash payout ratio). The dividend has decreased by an average of 3.0% per year over the past 2 years, but has still been somewhat stable with no excessively large reductions to payments. The company's earnings per share (EPS) would need to grow by 1.8% to bring the payout ratio under control. However, EPS has declined by 26% over the last 5 years so the company would need to reverse this trend. Annonce • Jun 24
Groundhog Inc. Approves Dividend for 2024 Groundhog Inc. at its AGM held on June 23, 2025 approved cash dividend of TWD 3.20 per share for 2024. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.50 (vs NT$0.56 in 1Q 2024) First quarter 2025 results: EPS: NT$0.50 (down from NT$0.56 in 1Q 2024). Revenue: NT$79.3m (up 2.7% from 1Q 2024). Net income: NT$16.7m (down 11% from 1Q 2024). Profit margin: 21% (down from 24% in 1Q 2024). The decrease in margin was driven by higher expenses. Annonce • May 07
Groundhog Inc. to Report Q1, 2025 Results on May 14, 2025 Groundhog Inc. announced that they will report Q1, 2025 results on May 14, 2025 Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to NT$102, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 28x in the Software industry in Asia. Total loss to shareholders of 36% over the past year. Reported Earnings • Mar 15
Full year 2024 earnings: EPS in line with expectations, revenues disappoint Full year 2024 results: EPS: NT$3.56. Revenue: NT$393.8m (up 6.1% from FY 2023). Net income: NT$119.2m (up 8.4% from FY 2023). Profit margin: 30% (in line with FY 2023). Annonce • Mar 14
Groundhog Inc., Annual General Meeting, Jun 23, 2025 Groundhog Inc., Annual General Meeting, Jun 23, 2025. Location: 2 floor no,99, fu hsing n. rd., taipei city Taiwan Valuation Update With 7 Day Price Move • Feb 06
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$156, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 32x in the Software industry in Asia. Total loss to shareholders of 20% over the past year. Reported Earnings • Nov 19
Third quarter 2024 earnings: EPS misses analyst expectations Third quarter 2024 results: EPS: NT$0.93 (down from NT$1.32 in 3Q 2023). Revenue: NT$103.6m (down 8.6% from 3Q 2023). Net income: NT$31.3m (down 23% from 3Q 2023). Profit margin: 30% (down from 36% in 3Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.1%. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Software industry in Taiwan. New Risk • Nov 14
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 8.0% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.0% average weekly change). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (9.8% increase in shares outstanding). Annonce • Nov 06
Groundhog Inc. to Report Q3, 2024 Results on Nov 14, 2024 Groundhog Inc. announced that they will report Q3, 2024 results on Nov 14, 2024 Valuation Update With 7 Day Price Move • Sep 17
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$167, the stock trades at a trailing P/E ratio of 46.6x. Average trailing P/E is 22x in the Software industry in Taiwan. Total returns to shareholders of 21% over the past year. New Risk • Aug 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 7.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.5% average weekly change). Shareholders have been diluted in the past year (9.8% increase in shares outstanding). Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to NT$155, the stock trades at a trailing P/E ratio of 43.3x. Average forward P/E is 22x in the Software industry in Taiwan. Total returns to shareholders of 8.8% over the past year. Reported Earnings • Aug 17
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: NT$0.20 (up from NT$0.07 loss in 2Q 2023). Revenue: NT$67.1m (up 41% from 2Q 2023). Net income: NT$6.63m (up NT$8.76m from 2Q 2023). Profit margin: 9.9% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 60%. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$116, the stock trades at a trailing P/E ratio of 34.8x. Average forward P/E is 22x in the Software industry in Taiwan. Total loss to shareholders of 20% over the past year. Annonce • Aug 03
Groundhog Inc. to Report Q2, 2024 Results on Aug 13, 2024 Groundhog Inc. announced that they will report Q2, 2024 results on Aug 13, 2024 Upcoming Dividend • Jul 16
Upcoming dividend of NT$3.00 per share Eligible shareholders must have bought the stock before 23 July 2024. Payment date: 16 August 2024. Payout ratio is on the higher end at 84%, and the cash payout ratio is above 100%. Trailing yield: 2.0%. Lower than top quartile of Taiwanese dividend payers (4.2%). In line with average of industry peers (1.9%). Declared Dividend • Jun 27
Dividend of NT$3.00 announced Shareholders will receive a dividend of NT$3.00. Ex-date: 23rd July 2024 Payment date: 16th August 2024 Dividend yield will be 2.0%, which is lower than the industry average of 2.5%. Sustainability & Growth Dividend is covered by earnings (84% earnings payout ratio) but not covered by cash flows (104% cash payout ratio). The company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. The company's earnings per share (EPS) would need to decline by 6.4% to shift the payout ratio to a potentially unsustainable range, which is less than the 27% EPS decline seen over the last 5 years. New Risk • Jun 20
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (45% accrual ratio). Minor Risks Dividend is not well covered by cash flows (104% cash payout ratio). Share price has been volatile over the past 3 months (6.4% average weekly change). Shareholders have been diluted in the past year (9.8% increase in shares outstanding). Reported Earnings • May 17
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: NT$0.56. Revenue: NT$77.2m (up 5.4% from 1Q 2023). Net income: NT$18.6m (up 7.5% from 1Q 2023). Profit margin: 24% (in line with 1Q 2023). Revenue missed analyst estimates by 29%. Earnings per share (EPS) also missed analyst estimates by 53%. Annonce • May 03
Groundhog Inc. to Report Q1, 2024 Results on May 14, 2024 Groundhog Inc. announced that they will report Q1, 2024 results on May 14, 2024 Annonce • Apr 05
Groundhog Inc., Annual General Meeting, Jun 24, 2024 Groundhog Inc., Annual General Meeting, Jun 24, 2024. New Risk • Mar 22
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 9.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.8% average weekly change). Dividend is not well covered by earnings and cash flows. Payout ratio: 153% Cash payout ratio: 104% Minor Risk Shareholders have been diluted in the past year (9.8% increase in shares outstanding). Reported Earnings • Mar 19
Full year 2023 earnings released: EPS: NT$3.60 (vs NT$3.80 in FY 2022) Full year 2023 results: EPS: NT$3.60 (down from NT$3.80 in FY 2022). Revenue: NT$371.2m (up 19% from FY 2022). Net income: NT$109.9m (down 5.4% from FY 2022). Profit margin: 30% (down from 37% in FY 2022). The decrease in margin was driven by higher expenses. Annonce • Mar 01
Groundhog Inc. Announces Resignation of Chiou, Pi-Huu as Director On Feb. 29, 2024, Groundhog Inc. announced that Mr. Chiou, Pi-Huu resigned as a director to allow for the by-election of female director. The resignation will be effected at the same day, and the vacancy will be filled by female director at the next shareholder meeting to strengthen gender diversity on the board. New Risk • Oct 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 5.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (210% payout ratio). Share price has been volatile over the past 3 months (5.7% average weekly change). Profit margins are more than 30% lower than last year (19% net profit margin). New Risk • Aug 19
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 19% Last year net profit margin: 41% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (210% payout ratio). Profit margins are more than 30% lower than last year (19% net profit margin). New Risk • Jul 19
New minor risk - Dividend sustainability The company has a short dividend paying track record. Less than a year of continuous dividend payments. Dividend yield: 2.2% This is considered a minor risk. For dividend focussed investors, companies that have not established a long-term track record of consistently maintaining or growing dividends are less attractive than those companies that have a long track record. Those that have a long track record have proven their underlying business is stable enough to consistently maintain or grow the dividend and that the company considers maintaining the dividend to be one of its priorities. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Short dividend paying track record (less than a year of continuous dividend payments). Annonce • Jun 28
Groundhog Inc. Approves Cash Dividends of Common Shares for 2022, Payable on August 17, 2023 Groundhog Inc. approved cash dividends of common shares: TWD 3.4 per share for 2022 at its shareholders' meeting held on June 26, 2023. The ex-rights (Ex-dividend) date is on July 25, 2023. The ex-rights (Ex-dividend) record date is on July 31, 2023. The payment date of cash dividend distribution is on August 17, 2023.