DB:CW31

Stock Analysis Report

China TechFaith Wireless Communication Technology

Executive Summary

China TechFaith Wireless Communication Technology Limited engages in the original design and development of specialized mobile handsets for consumers and enterprises in the People's Republic of China and internationally.


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has China TechFaith Wireless Communication Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CW31 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CW31

8.9%

DE Tech

7.3%

DE Market


1 Year Return

-69.0%

CW31

-24.4%

DE Tech

-17.7%

DE Market

Return vs Industry: CW31 underperformed the German Tech industry which returned 23.8% over the past year.

Return vs Market: CW31 underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

CW31IndustryMarket
7 Day0%8.9%7.3%
30 Day0%-16.7%-17.9%
90 Day3.9%-22.6%-25.8%
1 Year-69.0%-69.0%-23.8%-24.4%-15.1%-17.7%
3 Year-76.4%-76.4%60.4%57.0%-18.7%-25.6%
5 Year-90.0%-90.0%69.7%49.9%-17.7%-29.0%

Price Volatility Vs. Market

How volatile is China TechFaith Wireless Communication Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China TechFaith Wireless Communication Technology undervalued compared to its fair value and its price relative to the market?

0.0084x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CW31's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CW31's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CW31 is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: CW31 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 CW31's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CW31 is good value based on its PB Ratio (0x) compared to the XE Tech industry average (1.5x).


Next Steps

Future Growth

How is China TechFaith Wireless Communication Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.3%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China TechFaith Wireless Communication Technology has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has China TechFaith Wireless Communication Technology performed over the past 5 years?

-1172.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: CW31 is currently unprofitable.

Growing Profit Margin: CW31 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if CW31's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare CW31's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CW31 is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (-4.2%).


Return on Equity

High ROE: CW31 has a negative Return on Equity (-30.72%), as it is currently unprofitable.


Next Steps

Financial Health

How is China TechFaith Wireless Communication Technology's financial position?


Financial Position Analysis

Short Term Liabilities: CW31's short term assets ($85.1M) exceed its short term liabilities ($57.5M).

Long Term Liabilities: CW31's short term assets ($85.1M) exceed its long term liabilities ($11.5M).


Debt to Equity History and Analysis

Debt Level: CW31's debt to equity ratio (6.8%) is considered satisfactory.

Reducing Debt: CW31's debt to equity ratio has increased from 4.6% to 6.8% over the past 5 years.


Balance Sheet

Inventory Level: CW31 has a low level of unsold assets or inventory.

Debt Coverage by Assets: CW31's debt is covered by short term assets (assets are 7.4x 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: Insufficient data to determine if CW31 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CW31 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is China TechFaith Wireless Communication Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CW31's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CW31's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CW31's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CW31's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CW31'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?

1.5yrs

Average board tenure


CEO

Deyou Dong (45yo)

4.42s

Tenure

Mr. Deyou Dong has been the Chief Executive Officer of China Techfaith Wireless Communication Technology Limited since May 2015 and has been its Chief Operating Officer since August 2009. Mr. Dong has been ...


Board Members

NamePositionTenureCompensationOwnership
Deyou Dong
Chairman4.42yrsno data32% $366.3k
Yibo Fang
CTO & Director2.92yrsno datano data
Lichun Yang
Independent Director0.42yrno datano data
Hongwei Zhao
Independent Director3.92yrsno datano data
Qin Bin
Independent Director0.42yrno datano data

1.5yrs

Average Tenure

51yo

Average Age

Experienced Board: CW31's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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

China TechFaith Wireless Communication Technology Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China TechFaith Wireless Communication Technology Limited
  • Ticker: CW31
  • Exchange: DB
  • Founded: 2002
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$1.270m
  • Listing Market Cap: US$1.145m
  • Shares outstanding: 10.59m
  • Website: https://www.techfaithwireless.com

Number of Employees


Location

  • China TechFaith Wireless Communication Technology Limited
  • MFOX Plaza Tower D
  • Beijing Economic-Technological Development Area
  • Beijing
  • 100176
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNTF.YOTCPK (Pink Sheets LLC)YesSPON ADR EA REP 75 ORD SHS (POST SPLIT)USUSDMay 2005
CW31DB (Deutsche Boerse AG)YesSPON ADR EA REP 75 ORD SHS (POST SPLIT)DEEURMay 2005

Biography

China TechFaith Wireless Communication Technology Limited engages in the original design and development of specialized mobile handsets for consumers and enterprises in the People's Republic of China and internationally. It operates through Mobile Phone Business and Real Estate segments. The company offers handset design services through outsourcing of EMS providers who engage in assembly and manufacturing operations; and offer testing services of the assembled printed circuit boards, systems, and subsystems for Chinese mobile handset brand owners and international mobile handset brand owners. It also provides feature phones, smart phones, ruggedized phones, wireless modules, smart pads, and wireless software and applications, as well as other electronic components, such as industrial wireless devices. In addition, the company sells mobile handset products under the Tecface, 17FOX, and MOBIFOX brands. Further, it owns, develops, operates, and manages commercial real estate properties. The company was founded in 2002 and is headquartered in Beijing, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/28 20:50
End of Day Share Price2019/07/31 00:00
Earnings2018/06/30
Annual Earnings2017/12/31


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.