DB:HTJ

Stock Analysis Report

Executive Summary

HTC Corporation, together with its subsidiaries, designs, manufactures, assembles, processes, and sells smart mobile and virtual reality devices in Taiwan and internationally.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.5%

HTJ

-2.7%

DE Tech

0.1%

DE Market


1 Year Return

-3.4%

HTJ

14.0%

DE Tech

14.1%

DE Market

Return vs Industry: HTJ underperformed the German Tech industry which returned 14% over the past year.

Return vs Market: HTJ underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

HTJIndustryMarket
7 Day-1.5%-2.7%0.1%
30 Day-12.4%10.7%0.2%
90 Day0.5%17.4%3.3%
1 Year-2.7%-3.4%14.9%14.0%17.6%14.1%
3 Year-59.6%-60.0%152.9%147.6%14.8%4.8%
5 Year-76.1%-76.3%92.1%69.7%22.2%5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.76x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: HTJ is good value based on its PB Ratio (0.8x) compared to the XE Tech industry average (1.3x).


Next Steps

Future Growth

How is HTC forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: HTJ's revenue (10.5% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: HTJ's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HTJ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has HTC performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HTJ is currently unprofitable.

Growing Profit Margin: HTJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HTJ is unprofitable, but has reduced losses over the past 5 years at a rate of 3.9% per year.

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

Earnings vs Industry: HTJ is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (-8.4%).


Return on Equity

High ROE: HTJ has a negative Return on Equity (-30.18%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HTC's financial position?


Financial Position Analysis

Short Term Liabilities: HTJ's short term assets (NT$39.7B) exceed its short term liabilities (NT$19.3B).

Long Term Liabilities: HTJ's short term assets (NT$39.7B) exceed its long term liabilities (NT$506.1M).


Debt to Equity History and Analysis

Debt Level: HTJ is debt free.

Reducing Debt: HTJ had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: HTJ's debt is covered by short term assets (assets are 6.9771809639242E+17x 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: HTJ has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: HTJ has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -3.3% each year


Next Steps

Dividend

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

1.09%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.3%markettop25%3.6%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: HTJ's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: HTJ's dividend (1.09%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: HTJ is not forecast to pay a dividend in 3 years.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Yves Maitre (56yo)

0.4yrs

Tenure

0

Mr. Yves Maitre has been Chief Executive Officer of HTC Corporation since September 17, 2019. Mr. Maitre served as an Executive Vice President for Connected Objects and Partnerships at Orange Group. Mr. M ...


Leadership Team

NamePositionTenureCompensationOwnership
Hsiueh-Hong Wang
Co-Founder & Chairwoman12.7yrsno data3.94% NT$34.4m
Yves Maitre
Chief Executive Officer0.4yrsno datano data
Peter T. Shen
Chief Financial Officer3.7yrsno datano data
Hsiu Lai
Associate VP & Accounting Officer4.4yrsno datano data
W. Liu
Chief Technology Officer0yrsno datano data
Caleb Ou-Yang
Chief Administrative Officer1.7yrsno datano data
Marcus Woo
General Counsel5.3yrsno datano data
Peter Chou
Head of Future Development4.9yrsno datano data
Qing-Dong Liu
MD of Emerging Products5.6yrsno datano data
Manu Seth
Head of Marketing for South Asia and Senior Director5yrsno datano data

4.7yrs

Average Tenure

58.5yo

Average Age

Experienced Management: HTJ's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hsiueh-Hong Wang
Co-Founder & Chairwoman12.7yrsno data3.94% NT$34.4m
David Yoffie
Director8.7yrsNT$12.33mno data
Josef Felder
Independent Director12.7yrsNT$9.63m0.061% NT$533.0k
Wen-Chi Chen
Director20.8yrsno data2.73% NT$23.9m
Chen-Kuo Lin
Independent Director12.7yrsNT$3.50mno data
H. Cho
Director18.8yrsNT$3.50m0.012% NT$102.9k
Vincent Thai
Independent Director0yrsno datano data

12.7yrs

Average Tenure

63yo

Average Age

Experienced Board: HTJ's board of directors are seasoned and experienced ( 12.7 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

HTC Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HTC Corporation
  • Ticker: HTJ
  • Exchange: DB
  • Founded: 1997
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: NT$28.454b
  • Listing Market Cap: NT$872.909m
  • Shares outstanding: 818.81m
  • Website: https://www.htc.com

Number of Employees


Location

  • HTC Corporation
  • No. 23, Xinghua Road
  • Taoyuan District
  • Taoyuan
  • 330
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2498TSEC (Taiwan Stock Exchange)YesCommon SharesTWTWDMar 2002
HTCCOBDL (Bourse de Luxembourg)SPON GDR REP 4 ORD TWD10 REG'S'LUUSDNov 2003
HTCK.FOTCPK (Pink Sheets LLC)SPON GDR REP 4 ORD TWD10 REG'S'USUSDNov 2003
HTJDB (Deutsche Boerse AG)SPON GDR REP 4 ORD TWD10 REG'S'DEEURNov 2003
0J2BLSE (London Stock Exchange)SPON GDR REP 4 ORD TWD10 REG'S'GBUSDNov 2003

Biography

HTC Corporation, together with its subsidiaries, designs, manufactures, assembles, processes, and sells smart mobile and virtual reality devices in Taiwan and internationally. It offers PDA phones, smartphones, and handheld devices. The company also provides marketing, repair, and after sales services; and online/download media services, as well as human resources management services. In addition, it is involved in the general investing activities; design, research, and development of application software and graphics technology; design and management of cloud synchronization technology; and development and sale of digital education platform, as well as development of virtual reality contents. Further, the company provides app stores for virtual reality, where customers can explore, create, connect, and experience the content; and healthcare, 5G connectivity, blockchain, and artificial intelligence technologies. It provides its products through telecom service providers, distributors, and retailers; and retail stores, as well as through online. HTC Corporation was founded in 1997 and is headquartered in Taoyuan, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 22:03
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.