Goertek (SZSE:002241) - Share price, News & Analysis

Q: What is the Fair Price of 2241 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

002241 (CN¥33.51) is trading below our estimate of [[fair value]] (CN¥58.31)

2241 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	3/6
Financial Health	6/6
Dividends	4/6

2241 Stock Overview

Goertek Inc. researches, develops, produces, and sells electro-acoustic components, optical components, electronic accessories, and related products worldwide.

Rewards

Trading at 42.5% below our estimate of its fair value

Earnings are forecast to grow 21.18% per year

Earnings grew by 19.6% over the past year

Risk Analysis

Unstable dividend track record

Goertek Competitors

Wingtech TechnologyLtd

SHSE:600745

CN¥102.3b

Foxconn Industrial Internet

SHSE:601138

CN¥194.3b

Zhejiang Jiecang Linear Motion TechnologyLtd

SHSE:603583

CN¥12.9b

Shenzhen Kaifa Technology

SZSE:000021

CN¥17.8b

Price History & Performance

Summary of all time highs, changes and price drops for Goertek
Historical stock prices
Current Share Price	CN¥33.51
52 Week High	CN¥58.43
52 Week Low	CN¥27.38
Beta	1.11
1 Month Change	-17.48%
3 Month Change	-4.31%
1 Year Change	-18.63%
3 Year Change	252.37%
5 Year Change	80.55%
Change since IPO	2,230.38%

Shareholder Returns

	2241	CN Electronic	CN Market
7D	0.1%	3.0%	2.3%
1Y	-18.6%	-21.0%	-8.1%

Return vs Industry: 002241 exceeded the CN Electronic industry which returned -21% over the past year.

Return vs Market: 002241 underperformed the CN Market which returned -8.1% over the past year.

Price Volatility

Is 2241's price volatile compared to industry and market?
2241 volatility
2241 Average Weekly Movement	8.2%
Electronic Industry Average Movement	7.0%
Market Average Movement	7.3%
10% most volatile stocks in CN Market	10.2%
10% least volatile stocks in CN Market	5.1%

Stable Share Price: 002241 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 002241's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2001	95,780	Long Jiang	https://www.goertek.com

Goertek Inc. researches, develops, produces, and sells electro-acoustic components, optical components, electronic accessories, and related products worldwide. The company offers smart wearable products, such as smart watches and bracelets; smart viewable products, including VR HMD and panorama cameras; smart viewable peripherals; smart audio products comprising ear and headphones; smart lamps; and smart robotics, voice-controlled speakers, and unmanned aerial vehicles. It also provides components consisting of sensors, microphones, speakers and receivers, loud speakers, linear vibration motors, antennas, and optical component modules, as well as game controllers and data gloves.

Goertek Fundamentals Summary

How do Goertek's earnings and revenue compare to its market cap?
2241 fundamental statistics
Market Cap	CN¥111.99b
Earnings (TTM)	CN¥4.21b
Revenue (TTM)	CN¥84.31b

26.6x

P/E Ratio

1.3x

P/S Ratio

Is 2241 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2241 income statement (TTM)
Revenue	CN¥84.31b
Cost of Revenue	CN¥72.78b
Gross Profit	CN¥11.53b
Other Expenses	CN¥7.32b
Earnings	CN¥4.21b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.26
Gross Margin	13.68%
Net Profit Margin	4.99%
Debt/Equity Ratio	27.2%

How did 2241 perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

16%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 2241 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2241?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2241. This is calculated by dividing 2241's market cap by their current preferred multiple.
What is 2241's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥111.99b

2241 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	15.6x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does 2241's PE Ratio compare to its peers?

2241 PE Ratio vs Peers

The above table shows the PE ratio for 2241 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	29.7x
600745 Wingtech TechnologyLtd	41.6x	28.4%	CN¥102.3b
601138 Foxconn Industrial Internet	9.7x	8.5%	CN¥194.3b
603583 Zhejiang Jiecang Linear Motion TechnologyLtd	45.9x	35.3%	CN¥12.9b
000021 Shenzhen Kaifa Technology	21.8x	14.8%	CN¥17.8b
002241 Goertek	26.6x	21.2%	CN¥112.0b

Forward PE

Price-To-Earnings vs Peers: 002241 is good value based on its Price-To-Earnings Ratio (26.6x) compared to the peer average (29.7x).

Price to Earnings Ratio vs Industry

How does 2241's PE Ratio compare vs other companies in the CN Electronic Industry?

Price-To-Earnings vs Industry: 002241 is good value based on its Price-To-Earnings Ratio (26.6x) compared to the CN Electronic industry average (35.7x)

Price to Earnings Ratio vs Fair Ratio

What is 2241's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2241 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	26.6x
Fair PE Ratio	38.6x

Price-To-Earnings vs Fair Ratio: 002241 is good value based on its Price-To-Earnings Ratio (26.6x) compared to the estimated Fair Price-To-Earnings Ratio (38.6x).

Share Price vs Fair Value

What is the Fair Price of 2241 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002241 (CN¥33.51) is trading below our estimate of fair value (CN¥58.31)

Significantly Below Fair Value: 002241 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 002241 is poor value based on its PEG Ratio (1.3x)

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Future Growth

How is Goertek forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002241's forecast earnings growth (21.2% per year) is above the savings rate (3.2%).

Earnings vs Market: 002241's earnings (21.2% per year) are forecast to grow slower than the CN market (23.9% per year).

High Growth Earnings: 002241's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 002241's revenue (16.4% per year) is forecast to grow slower than the CN market (17.5% per year).

High Growth Revenue: 002241's revenue (16.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 002241's Return on Equity is forecast to be low in 3 years time (20%).

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Past Performance

How has Goertek performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 002241 has high quality earnings.

Growing Profit Margin: 002241's current net profit margins (5%) are lower than last year (5.4%).

Past Earnings Growth Analysis

Earnings Trend: 002241's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: 002241's earnings growth over the past year (19.6%) is below its 5-year average (22.4% per year).

Earnings vs Industry: 002241 earnings growth over the past year (19.6%) exceeded the Electronic industry 3.7%.

Return on Equity

High ROE: 002241's Return on Equity (14.6%) is considered low.

Discover strong past performing companies

Financial Health

How is Goertek's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 002241's short term assets (CN¥31.8B) exceed its short term liabilities (CN¥27.9B).

Long Term Liabilities: 002241's short term assets (CN¥31.8B) exceed its long term liabilities (CN¥1.8B).

Debt to Equity History and Analysis

Debt Level: 002241 has more cash than its total debt.

Reducing Debt: 002241's debt to equity ratio has reduced from 70.8% to 27.2% over the past 5 years.

Debt Coverage: 002241's debt is well covered by operating cash flow (116.3%).

Interest Coverage: 002241 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Goertek current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.60%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 002241's dividend (0.6%) is higher than the bottom 25% of dividend payers in the CN market (0.47%).

High Dividend: 002241's dividend (0.6%) is low compared to the top 25% of dividend payers in the CN market (1.92%).

Stability and Growth of Payments

Stable Dividend: 002241's dividend payments have been volatile in the past 10 years.

Growing Dividend: 002241's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (15.8%), 002241's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.9%), 002241's dividend payments are well covered by cash flows.

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Management

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

4.6yrs

Average management tenure

CEO

Long Jiang (48 yo)

7.75yrs

Tenure

CN¥1,800,000

Compensation

Mr. Long Jiang serves as the President and Vice Chairman of the Board at GoerTek Inc. since July 27, 2007 and October 30, 2014, respectively and served as its Executive Deputy General Manager and Vice Pres...

Leadership Team

Experienced Management: 002241's management team is considered experienced (4.6 years average tenure).

Board Members

Experienced Board: 002241's board of directors are considered experienced (6.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31