Buy Or Sell Opportunity • Apr 07
Now 21% overvalued Over the last 90 days, the stock has fallen 3.5% to NT$57.80. The fair value is estimated to be NT$47.90, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.6% over the last 3 years. Earnings per share has grown by 3.5%. New Risk • Mar 27
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 94% Dividend yield: 5.1% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. 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: Minor Risks High level of debt (47% net debt to equity). Dividend is not well covered by earnings (94% payout ratio). Market cap is less than US$100m (NT$2.55b market cap, or US$79.8m). Reported Earnings • Mar 11
Full year 2025 earnings released: EPS: NT$3.20 (vs NT$4.22 in FY 2024) Full year 2025 results: EPS: NT$3.20 (down from NT$4.22 in FY 2024). Revenue: NT$920.3m (down 14% from FY 2024). Net income: NT$137.4m (down 24% from FY 2024). Profit margin: 15% (down from 17% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has remained flat. Annuncio • Mar 09
Arch Meter Corporation, Annual General Meeting, Jun 18, 2026 Arch Meter Corporation, Annual General Meeting, Jun 18, 2026. Location: no,256-15, ying kuan ta ta, siangshan district, hsinchu city Taiwan New Risk • Jan 23
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 6.7% 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 High level of debt (53% net debt to equity). Share price has been volatile over the past 3 months (6.7% average weekly change). Market cap is less than US$100m (NT$3.03b market cap, or US$95.9m). Reported Earnings • Nov 08
Third quarter 2025 earnings released: EPS: NT$0.93 (vs NT$0.84 in 3Q 2024) Third quarter 2025 results: EPS: NT$0.93 (up from NT$0.84 in 3Q 2024). Revenue: NT$261.5m (up 4.2% from 3Q 2024). Net income: NT$40.1m (up 11% from 3Q 2024). Profit margin: 15% (in line with 3Q 2024). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$71.80, the stock trades at a trailing P/E ratio of 22.2x. Average trailing P/E is 22x in the Electronic industry in Taiwan. Total returns to shareholders of 102% over the past three years. Reported Earnings • Aug 11
Second quarter 2025 earnings released: EPS: NT$0.68 (vs NT$1.29 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.68 (down from NT$1.29 in 2Q 2024). Revenue: NT$204.4m (down 18% from 2Q 2024). Net income: NT$29.4m (down 47% from 2Q 2024). Profit margin: 14% (down from 22% in 2Q 2024). The decrease in margin was driven by lower revenue. New Risk • Jul 16
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$2.93b (US$99.5m) 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 High level of debt (49% net debt to equity). Market cap is less than US$100m (NT$2.93b market cap, or US$99.5m). Declared Dividend • Jun 22
Dividend of NT$3.00 announced Dividend of NT$3.00 is the same as last year. Ex-date: 10th July 2025 Payment date: 15th August 2025 Dividend yield will be 4.1%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (78% earnings payout ratio) and cash flows (69% cash payout ratio). The dividend has increased by an average of 73% per year over the past 2 years and payments have been stable during that time. Earnings per share has grown by 28% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Annuncio • Jun 21
Arch Meter Corporation Announces Cash Dividend Distribution Payable on August 15, 2025 Arch Meter Corporation announced a cash dividend distribution totaling TWD 128,955,000, with a payment of TWD 3 per share. The ex-rights (ex-dividend) trading date is set for July 10, 2025, and the ex-rights (ex-dividend) record date is July 16, 2025. The payment date for the cash dividend is scheduled for August 15, 2025. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: NT$0.27 (vs NT$0.62 in 1Q 2024) First quarter 2025 results: EPS: NT$0.27 (down from NT$0.62 in 1Q 2024). Revenue: NT$154.4m (down 37% from 1Q 2024). Net income: NT$11.4m (down 56% from 1Q 2024). Profit margin: 7.4% (down from 11% in 1Q 2024). The decrease in margin was driven by lower revenue. Valuation Update With 7 Day Price Move • May 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$76.50, the stock trades at a trailing P/E ratio of 18.3x. Average trailing P/E is 18x in the Electronic industry in Taiwan. Total loss to shareholders of 32% over the past year. Annuncio • May 01
Arch Meter Corporation to Report Q1, 2025 Results on May 09, 2025 Arch Meter Corporation announced that they will report Q1, 2025 results on May 09, 2025 Buy Or Sell Opportunity • Apr 10
Now 32% overvalued Over the last 90 days, the stock has fallen 23% to NT$63.60. The fair value is estimated to be NT$48.28, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 26% over the last 3 years. Earnings per share has grown by 18%. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$64.00, the stock trades at a trailing P/E ratio of 15.3x. Average trailing P/E is 17x in the Electronic industry in Taiwan. Total loss to shareholders of 35% over the past year. New Risk • Mar 31
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.26b (US$98.1m) 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 High level of debt (51% net debt to equity). Market cap is less than US$100m (NT$3.26b market cap, or US$98.1m). Annuncio • Mar 21
Arch Meter Corporation announced that it expects to receive TWD 400 million in funding Arch Meter Corporation announced a private placement transaction by issuing the 1st domestic unsecured convertible corporate bonds with a face value of TWD 100,000 and a total gross proceeds of TWD 400,000,000. It has been approved by the chairman in accordance with the authorization of the board of directors. The issuance of the corporate bond was approved by the Financial Supervisory Commission. Reported Earnings • Mar 12
Full year 2024 earnings released: EPS: NT$4.22 (vs NT$4.03 in FY 2023) Full year 2024 results: EPS: NT$4.22 (up from NT$4.03 in FY 2023). Revenue: NT$1.07b (up 3.3% from FY 2023). Net income: NT$179.8m (up 15% from FY 2023). Profit margin: 17% (up from 15% in FY 2023). The increase in margin was driven by higher revenue. Annuncio • Mar 10
Arch Meter Corporation, Annual General Meeting, Jun 20, 2025 Arch Meter Corporation, Annual General Meeting, Jun 20, 2025. Location: no,265-15, ying kuan ta ta, siangshan district, hsinchu city Taiwan Annuncio • Mar 01
Arch Meter Corporation to Report Fiscal Year 2024 Results on Mar 07, 2025 Arch Meter Corporation announced that they will report fiscal year 2024 results on Mar 07, 2025 New Risk • Nov 18
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.25b (US$99.9m) 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: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). High level of non-cash earnings (70% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (10% increase in shares outstanding). Market cap is less than US$100m (NT$3.25b market cap, or US$99.9m). Annuncio • Nov 01
Arch Meter Corporation to Report Q3, 2024 Results on Nov 08, 2024 Arch Meter Corporation announced that they will report Q3, 2024 results on Nov 08, 2024 Reported Earnings • Aug 17
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: NT$1.29 (down from NT$1.73 in 2Q 2023). Revenue: NT$249.8m (down 25% from 2Q 2023). Net income: NT$55.3m (down 18% from 2Q 2023). Profit margin: 22% (up from 20% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 11%. Earnings per share (EPS) exceeded analyst estimates by 32%. Annuncio • Aug 02
Arch Meter Corporation to Report Q2, 2024 Results on Aug 09, 2024 Arch Meter Corporation announced that they will report Q2, 2024 results on Aug 09, 2024 Upcoming Dividend • Jul 04
Upcoming dividend of NT$3.00 per share Eligible shareholders must have bought the stock before 11 July 2024. Payment date: 15 August 2024. Payout ratio is a comfortable 74% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Taiwanese dividend payers (4.2%). In line with average of industry peers (2.6%). Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$112, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 33% over the past year. Reported Earnings • May 17
First quarter 2024 earnings released: EPS: NT$0.62 (vs NT$0.55 in 1Q 2023) First quarter 2024 results: EPS: NT$0.62 (up from NT$0.55 in 1Q 2023). Revenue: NT$243.9m (down 4.1% from 1Q 2023). Net income: NT$26.1m (up 22% from 1Q 2023). Profit margin: 11% (up from 8.4% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Electronic industry in Taiwan. Annuncio • May 03
Arch Meter Corporation to Report Q1, 2024 Results on May 10, 2024 Arch Meter Corporation announced that they will report Q1, 2024 results on May 10, 2024 Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to NT$119, the stock trades at a trailing P/E ratio of 32.5x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 106% over the past year. Valuation Update With 7 Day Price Move • Apr 15
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$119, the stock trades at a trailing P/E ratio of 32.4x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 97% over the past year. New Risk • Mar 22
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.9% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. 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 Risks Share price has been highly volatile over the past 3 months (10% average weekly change). High level of non-cash earnings (52% accrual ratio). Minor Risks High level of debt (125% net debt to equity). Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (10% increase in shares outstanding). Reported Earnings • Mar 18
Full year 2023 earnings released: EPS: NT$4.03 (vs NT$2.73 in FY 2022) Full year 2023 results: EPS: NT$4.03 (up from NT$2.73 in FY 2022). Revenue: NT$1.04b (up 45% from FY 2022). Net income: NT$156.8m (up 52% from FY 2022). Profit margin: 15% (in line with FY 2022). Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. New Risk • Mar 18
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 125% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). High level of non-cash earnings (52% accrual ratio). Minor Risks High level of debt (125% net debt to equity). Shareholders have been diluted in the past year (10% increase in shares outstanding). Annuncio • Mar 09
Arch Meter Corporation, Annual General Meeting, Jun 21, 2024 Arch Meter Corporation, Annual General Meeting, Jun 21, 2024. Location: No. 256-15, Jingguan Blvd., Xiangshan Dist., Hsin Chu City Taiwan Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to NT$84.20, the stock trades at a trailing P/E ratio of 22.5x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 61% over the past year. New Risk • Feb 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 6.0% 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: Major Risk High level of non-cash earnings (28% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.0% average weekly change). Shareholders have been diluted in the past year (10% increase in shares outstanding). Market cap is less than US$100m (NT$2.98b market cap, or US$94.7m). New Risk • Feb 18
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 10% 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 Risk High level of non-cash earnings (28% accrual ratio). Minor Risks Shareholders have been diluted in the past year (10% increase in shares outstanding). Market cap is less than US$100m (NT$2.99b market cap, or US$95.4m). Reported Earnings • Nov 16
Third quarter 2023 earnings released: EPS: NT$0.89 (vs NT$0.56 in 3Q 2022) Third quarter 2023 results: EPS: NT$0.89 (up from NT$0.56 in 3Q 2022). Revenue: NT$244.6m (up 31% from 3Q 2022). Net income: NT$34.7m (up 59% from 3Q 2022). Profit margin: 14% (up from 12% in 3Q 2022). The increase in margin was driven by higher revenue. New Risk • Aug 14
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: 14% Last year net profit margin: 21% 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 Less than 3 years of financial data is available. Profit margins are more than 30% lower than last year (14% net profit margin). Market cap is less than US$100m (NT$3.14b market cap, or US$98.3m). Reported Earnings • Aug 14
First half 2023 earnings released: EPS: NT$2.28 (vs NT$1.63 in 1H 2022) First half 2023 results: EPS: NT$2.28 (up from NT$1.63 in 1H 2022). Revenue: NT$586.1m (up 72% from 1H 2022). Net income: NT$88.6m (up 48% from 1H 2022). Profit margin: 15% (down from 18% in 1H 2022). The decrease in margin was driven by higher expenses.