WBAG:AC5G

Stock Analysis Report

Executive Summary

Acer Incorporated researches, designs, markets, and services personal computers (PCs), information technology (IT) products, and tablet products in the United States, Mainland China, Taiwan, and internationally.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Acer's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AC5G has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.4%

AC5G

4.8%

AT Tech

0.7%

AT Market


1 Year Return

-16.0%

AC5G

-8.6%

AT Tech

-32.6%

AT Market

Return vs Industry: AC5G underperformed the Austrian Tech industry which returned -10.5% over the past year.

Return vs Market: AC5G exceeded the Austrian Market which returned -32% over the past year.


Shareholder returns

AC5GIndustryMarket
7 Day5.4%4.8%0.7%
30 Day-4.1%-2.3%-24.4%
90 Day-8.5%-14.5%-33.3%
1 Year-13.8%-16.0%-6.9%-8.6%-30.2%-32.6%
3 Yearn/a2.1%-3.9%-16.9%-24.3%
5 Yearn/a62.2%42.9%-0.7%-14.7%

Price Volatility Vs. Market

How volatile is Acer's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Acer undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AC5G (€2.36) is trading below our estimate of fair value (€4.8)

Significantly Below Fair Value: AC5G is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AC5G is poor value based on its PE Ratio (18x) compared to the Tech industry average (15.3x).

PE vs Market: AC5G is poor value based on its PE Ratio (18x) compared to the Austrian market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: AC5G is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: AC5G is good value based on its PB Ratio (0.8x) compared to the XE Tech industry average (1.4x).


Next Steps

Future Growth

How is Acer forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AC5G's forecast earnings growth (9.5% per year) is above the savings rate (-0.1%).

Earnings vs Market: AC5G's earnings (9.5% per year) are forecast to grow slower than the Austrian market (9.9% per year).

High Growth Earnings: AC5G's earnings are forecast to grow, but not significantly.

Revenue vs Market: AC5G's revenue (0.4% per year) is forecast to grow slower than the Austrian market (2% per year).

High Growth Revenue: AC5G's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AC5G's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Acer performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AC5G has high quality earnings.

Growing Profit Margin: AC5G's current net profit margins (1.1%) are lower than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: AC5G has become profitable over the past 5 years, growing earnings by 20.4% per year.

Accelerating Growth: AC5G's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AC5G had negative earnings growth (-14%) over the past year, making it difficult to compare to the Tech industry average (7.9%).


Return on Equity

High ROE: AC5G's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Acer's financial position?


Financial Position Analysis

Short Term Liabilities: AC5G's short term assets (NT$121.7B) exceed its short term liabilities (NT$84.5B).

Long Term Liabilities: AC5G's short term assets (NT$121.7B) exceed its long term liabilities (NT$12.4B).


Debt to Equity History and Analysis

Debt Level: AC5G's debt to equity ratio (12.4%) is considered satisfactory.

Reducing Debt: AC5G's debt to equity ratio has reduced from 28.1% to 12.4% over the past 5 years.


Balance Sheet

Inventory Level: AC5G has a high level of physical assets or inventory.

Debt Coverage by Assets: AC5G's debt is covered by short term assets (assets are 16.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AC5G is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: AC5G is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Acer's current dividend yield, its reliability and sustainability?

4.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AC5G's dividend (4.92%) is higher than the bottom 25% of dividend payers in the Austrian market (1.97%).

High Dividend: AC5G's dividend (4.92%) is low compared to the top 25% of dividend payers in the Austrian market (6.29%).


Stability and Growth of Payments

Stable Dividend: AC5G's dividend payments have been volatile in the past 10 years.

Growing Dividend: AC5G's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.6%), AC5G's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AC5G's dividends in 3 years are forecast to be covered by earnings (71.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Jason Chen (58yo)

6.25s

Tenure

Mr. Chun Shen Chen, also known as Jason, has been the Chairman and Chief Executive Officer of Acer Incorporated since June 21, 2017 and January 1, 2014 respectively and served as its and Corporate Presiden ...


Leadership Team

NamePositionTenureCompensationOwnership
Chun Chen
Chairman & CEO6.25yrsno data0.088% NT$1.3m
Shao-Hua Huang
Co-Founder & Director5.83yrsno data0.33% NT$4.7m
Meggy Chen
Corp. CFO2.75yrsno data0.0069% NT$99.4k
Zi Huang
President of Corporate Marketing1.42yrsno data0.017% NT$240.0k
Jerry Kao
Co-COO & President of BYOC Products Business1.42yrsno data0.016% NT$234.5k
Yu-Ling Chen
Accounting Officer2.75yrsno data0.00042% NT$6.0k
R. Chang
Chief Technology Officer4.58yrsno data0.0091% NT$130.9k
Lydia Wu
General Counsel & Corporate Governance Officer10.25yrsno datano data
Harish Kohli
Managing Director of Acer India8.33yrsno datano data
Chandrahas Panigrahi
Business Head for Consumer Business Group - India4.92yrsno datano data

4.6yrs

Average Tenure

56yo

Average Age

Experienced Management: AC5G's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chun Chen
Chairman & CEO6.25yrsno data0.088% NT$1.3m
Shao-Hua Huang
Co-Founder & Director5.83yrsno data0.33% NT$4.7m
Fan Tseng
Independent Director8.83yrsno datano data
Stan Shih
Director40.75yrsno data1.18% NT$17.0m
Chin-Bing Peng
Representative Director14.83yrsno data0.053% NT$755.8k
Ji-Ren Lee
Independent Director5.83yrsno datano data
Maverick Shih
Director0.75yrno data0.77% NT$11.1m
Ching-Hsiang Hsu
Independent Director2.83yrsno datano data

5.8yrs

Average Tenure

66yo

Average Age

Experienced Board: AC5G's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Acer Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Acer Incorporated
  • Ticker: AC5G
  • Exchange: WBAG
  • Founded: 1976
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: NT$46.967b
  • Listing Market Cap: NT$1.438b
  • Shares outstanding: 3.00b
  • Website: https://www.acer-group.com

Number of Employees


Location

  • Acer Incorporated
  • No. 88, Xintai 5th Road
  • 8th Floor
  • New Taipei City
  • 221
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2353TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDSep 1996
ACEY.YOTCPK (Pink Sheets LLC)GDR EACH REPR 5 ORD TWD10 REG S (CIT)USUSDMar 2002
ACIDLSE (London Stock Exchange)GDR EACH REPR 5 ORD TWD10 REG S (CIT)GBUSDMar 2002
AC5GDB (Deutsche Boerse AG)GDR EACH REPR 5 ORD TWD10 REG S (CIT)DEEURMar 2002
AC5GWBAG (Wiener Boerse AG)GDR EACH REPR 5 ORD TWD10 REG S (CIT)ATEURMar 2002

Biography

Acer Incorporated researches, designs, markets, and services personal computers (PCs), information technology (IT) products, and tablet products in the United States, Mainland China, Taiwan, and internationally. The company offers notebook and desktop PCs, LCD monitors, projectors, servers, gaming products, gadgets, mixed reality devices, cloud services and edge-computing devices, e-business and services, commercial software, and digital signage solutions. It also provides electronic information, insurance captive, cloud technology, professional, professional seminars and courses, system development and integration, property development, software defined storage, online payment, technical, social networking, cyber security, data center, and real estate services; cloud ticketing systems and electronic books; intelligent transportation and electronic ticketing programs and services; and investment funds. In addition, the company repairs and maintains IT products; researches, designs, and develops Internet of Things platform; sells communication products; operates platform for client service and products sale; and develops Internet of Beings and cloud technology; integrates cloud technology, software, and hardware. Further, it researches, develops, and sells batteries and smart bicycle speedometers; sells commercial and cloud application software and services; and designs, develops, and sells computer software and hardware, as well as provides B2B virtual reality and advisory related services. Acer Incorporated was founded in 1976 and is headquartered in New Taipei City, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 23:44
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.