DB:AU7A

Stock Analysis Report

Executive Summary

AU Optronics Corp. designs, develops, manufactures, assembles, and sells thin film transistor liquid crystal displays and other flat panel displays.


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AU7A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

AU7A

-1.9%

DE Electronic

-0.9%

DE Market


1 Year Return

-3.5%

AU7A

8.5%

DE Electronic

12.8%

DE Market

Return vs Industry: AU7A underperformed the German Electronic industry which returned 8.5% over the past year.

Return vs Market: AU7A underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

AU7AIndustryMarket
7 Day-5.0%-1.9%-0.9%
30 Day-2.5%8.2%-0.4%
90 Day34.2%8.8%2.3%
1 Year0.1%-3.5%10.9%8.5%16.3%12.8%
3 Year-4.0%-17.3%49.7%44.8%15.8%5.7%
5 Year-17.5%-32.2%114.5%99.2%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AU7A (€3.06) is trading above our estimate of fair value (€1.14)

Significantly Below Fair Value: AU7A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AU7A is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: AU7A is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AU7A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AU7A is good value based on its PB Ratio (0.6x) compared to the DE Electronic industry average (1.9x).


Next Steps

Future Growth

How is AU Optronics forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

77.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AU7A is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AU7A is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AU7A is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AU7A's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: AU7A's revenue is forecast to decline over the next 3 years (-1.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AU7A is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has AU Optronics performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AU7A is currently unprofitable.

Growing Profit Margin: AU7A is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AU7A is unprofitable, and losses have increased over the past 5 years at a rate of -9.2% per year.

Accelerating Growth: Unable to compare AU7A's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AU7A is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-3.9%).


Return on Equity

High ROE: AU7A has a negative Return on Equity (-11.49%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AU Optronics's financial position?


Financial Position Analysis

Short Term Liabilities: AU7A's short term assets (NT$143.2B) exceed its short term liabilities (NT$90.5B).

Long Term Liabilities: AU7A's short term assets (NT$143.2B) exceed its long term liabilities (NT$119.1B).


Debt to Equity History and Analysis

Debt Level: AU7A's debt to equity ratio (54.5%) is considered high.

Reducing Debt: AU7A's debt to equity ratio has reduced from 81.8% to 54.5% over the past 5 years.


Balance Sheet

Inventory Level: AU7A has a high level of physical assets or inventory.

Debt Coverage by Assets: AU7A's debt is covered by short term assets (assets are 1.4x 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: AU7A has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: AU7A has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

4.76%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years0.2%

Current dividend yield vs market & industry

Notable Dividend: AU7A's dividend (4.76%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: AU7A's dividend (4.76%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: AU7A's dividend payments have been volatile in the past 10 years.

Growing Dividend: AU7A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: AU7A is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AU7A's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Paul Peng (60yo)

4.3yrs

Tenure

0

Mr. Shuang-Lang Peng, also known as Paul, has been the Chief Executive Officer of AU Optronics Corp. since November 1, 2015. Mr. Peng served as the President of AU Optronics Corp. since January 1, 2012 unt ...


Leadership Team

NamePositionTenureCompensationOwnership
Shuang-Lang Peng
Chairman & CEO4.3yrsno data0.059% NT$1.8m
Fu-Jen Ko
President0.4yrsno datano data
Benjamin Tseng
CFO, Chief Accounting Officer & VP4.3yrsno data0.013% NT$394.2k
Wei-Lung Liau
CTO & Senior VP1.3yrsno data0.016% NT$497.1k
Julia Chao
Head of IR Department0yrsno datano data
Hong-Shiung Chen
Vice President of Corporate Development Office4.3yrsno datano data
Amy Ku
Chief Sustainability Officer & VP2yrsno data0.016% NT$489.5k
Tien-Yu Lin
VP & GM of Mobile Solutions Business Group0yrsno datano data
Ting-Li Lin
Vice President0yrsno data0.0062% NT$187.9k

3.1yrs

Average Tenure

51yo

Average Age

Experienced Management: AU7A's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shuang-Lang Peng
Chairman & CEO4.3yrsno data0.059% NT$1.8m
Fu-Jen Ko
President0.4yrsno datano data
Kuen-Yao Lee
Director24.1yrsno data0.11% NT$3.3m
Chin-Bing Peng
Independent Director7.1yrsno data0.0010% NT$30.9k
Chi-Hong Chen
Director3.7yrsno datano data
Yen-Shiang Shih
Independent Director4.1yrsno datano data
Mei-Yueh Ho
Independent Director9.7yrsno datano data
Yen-Hsueh Su
Independent Director0yrsno datano data
Jang-Lin Chen
Independent Director0yrsno datano data

4.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: AU7A's board of directors are considered experienced (4.8 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

AU Optronics Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AU Optronics Corp.
  • Ticker: AU7A
  • Exchange: DB
  • Founded: 1996
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: NT$99.898b
  • Listing Market Cap: NT$3.026b
  • Shares outstanding: 9.51b
  • Website: https://www.auo.com

Number of Employees


Location

  • AU Optronics Corp.
  • Hsinchu Science Park
  • No. 1, Li-Hsin Road 2
  • Hsinchu
  • 30078
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2409TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDSep 2000
AUOT.YOTCPK (Pink Sheets LLC)ADS EACH REPR 10 ORD TWD10 SHS (SPON)USUSDMay 2002
AU7ADB (Deutsche Boerse AG)ADS EACH REPR 10 ORD TWD10 SHS (SPON)DEEURMay 2002

Biography

AU Optronics Corp. designs, develops, manufactures, assembles, and sells thin film transistor liquid crystal displays and other flat panel displays. The company operates through two segments, Display and Energy. The Display segment designs, develops, manufactures, assembles, and markets flat panel displays for use in televisions, monitors, mobile PCs and devices, automobiles, industrial PCs, automated teller machines, point of sale terminals, pachinko machines, medical equipment, etc. This segment serves original equipment manufacturing service providers; and brand companies. The Energy segment manufactures and sells solar materials, including ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. This segment sells its ingot and solar wafer products primarily to solar cell manufacturers; and solar modules to installers, solar system integrators, property developers, and other value-added resellers. The company also sells and leases content management system and hardware; plans, designs, and develops construction for environmental protection and related project management; manufactures and sells TV sets, backlight modules, and related parts, as well as automotive parts; precision metal parts, precision plastic parts, and motorized treadmills; and develops and sells software and hardware for health care industry. It operates in the People’s Republic of China, Taiwan, Japan, Singapore, and internationally. AU Optronics Corp. was founded in 1996 and is headquartered in Hsinchu, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 21:43
End of Day Share Price2020/02/21 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.