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Cathay Financial Holding

LSE:CFHS
Snowflake Description

Established dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CFHS
LSE
NT$555B
Market Cap
  1. Home
  2. GB
  3. Insurance
Company description

Cathay Financial Holding Co., Ltd., through its subsidiaries, provides various financial services in Taiwan. The last earnings update was 17 days ago. More info.


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CFHS Share Price and Events
7 Day Returns
0%
LSE:CFHS
4.5%
GB Insurance
1%
GB Market
1 Year Returns
0%
LSE:CFHS
-4.1%
GB Insurance
1.6%
GB Market
CFHS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cathay Financial Holding (CFHS) 0% 0% 0% 0% 29.2% 8.8%
GB Insurance 4.5% 3.4% 13% -4.1% 14.6% 24.5%
GB Market 1% 2.3% 8.6% 1.6% 14% 5.9%
1 Year Return vs Industry and Market
  • CFHS outperformed the Insurance industry which returned -4.1% over the past year.
  • CFHS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.6% over the past year.
Price Volatility
CFHS
Industry
5yr Volatility vs Market

CFHS Value

 Is Cathay Financial Holding undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cathay Financial Holding to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cathay Financial Holding.

LSE:CFHS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= NT$48.75 * 9.4%
NT$4.57
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. NT$48.75
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:CFHS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.726 (1 + (1- 20%) (62.33%))
1.059
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.059 * 5.96%)
7.54%

Discounted Cash Flow Calculation for LSE:CFHS using Excess Returns Model Model

The calculations below outline how an intrinsic value for Cathay Financial Holding is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:CFHS Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9.4% – 7.54%) * NT$48.75)
NT$0.89
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= NT$0.89 / (7.54% - 1.23%)
NT$14.13
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= NT$48.75 + NT$14.13
NT$62.88
LSE:CFHS Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:CFHS represents 0.34502x of TSEC:2882
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.34502x
Value per Share
(Listing Adjusted, USD)
= Value per Share (TWD) x Listing Adjustment Factor
= NT$ 62.88 x 0.34502
$21.69
Value per share (USD) From above. $21.69
Current discount Discount to share price of $15.25
= -1 x ($15.25 - $21.69) / $21.69
29.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Cathay Financial Holding is available for.
Intrinsic value
30%
Share price is $15.25 vs Future cash flow value of $21.69
Current Discount Checks
For Cathay Financial Holding to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cathay Financial Holding's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Cathay Financial Holding's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cathay Financial Holding's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cathay Financial Holding's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:CFHS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in TWD NT$3.95
TSEC:2882 Share Price ** TSEC (2019-04-18) in TWD NT$44.2
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 19 Publicly-Listed Insurance Companies 16x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 795 Publicly-Listed Companies 16.28x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cathay Financial Holding.

LSE:CFHS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSEC:2882 Share Price ÷ EPS (both in TWD)

= 44.2 ÷ 3.95

11.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cathay Financial Holding is good value based on earnings compared to the GB Insurance industry average.
  • Cathay Financial Holding is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Cathay Financial Holding's expected growth come at a high price?
Raw Data
LSE:CFHS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
7.1%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 16 Publicly-Listed Insurance Companies 1.58x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 563 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

LSE:CFHS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.2x ÷ 7.1%

1.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cathay Financial Holding is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cathay Financial Holding's assets?
Raw Data
LSE:CFHS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in TWD NT$40.15
TSEC:2882 Share Price * TSEC (2019-04-18) in TWD NT$44.2
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 24 Publicly-Listed Insurance Companies 2.14x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,365 Publicly-Listed Companies 1.52x
LSE:CFHS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSEC:2882 Share Price ÷ Book Value per Share (both in TWD)

= 44.2 ÷ 40.15

1.1x

* Primary Listing of Cathay Financial Holding.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cathay Financial Holding is good value based on assets compared to the GB Insurance industry average.
X
Value checks
We assess Cathay Financial Holding's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Cathay Financial Holding has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CFHS Future Performance

 How is Cathay Financial Holding expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cathay Financial Holding expected to grow at an attractive rate?
  • Cathay Financial Holding's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Cathay Financial Holding's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Cathay Financial Holding's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:CFHS Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:CFHS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 7.1%
LSE:CFHS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts -17.2%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.7%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.1%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:CFHS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in TWD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:CFHS Future Estimates Data
Date (Data in TWD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 623,560 60,519 1
2020-12-31 579,816 57,578 2
2019-12-31 505,015 51,962 5
LSE:CFHS Past Financials Data
Date (Data in TWD Millions) Revenue Cash Flow Net Income *
2018-12-31 836,518 -86,526 49,567
2017-12-31 718,366 121,639 56,182
2016-12-31 595,788 -32,067 47,619
2016-09-30 675,275 39,071
2016-06-30 754,747 30,523
2016-03-31 735,085 44,018

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cathay Financial Holding's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
  • Cathay Financial Holding's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:CFHS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Cathay Financial Holding Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CFHS Future Estimates Data
Date (Data in TWD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.82 4.82 4.82 2.00
2020-12-31 4.61 4.91 3.93 8.00
2019-12-31 4.42 4.45 4.38 4.00
LSE:CFHS Past Financials Data
Date (Data in TWD Millions) EPS *
2018-12-31 3.95
2017-12-31 4.47
2016-12-31 3.79
2016-09-30 3.11
2016-06-30 2.43
2016-03-31 3.50

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cathay Financial Holding is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Cathay Financial Holding's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cathay Financial Holding has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CFHS Past Performance

  How has Cathay Financial Holding performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cathay Financial Holding's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cathay Financial Holding's year on year earnings growth rate has been positive over the past 5 years.
  • Cathay Financial Holding's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Cathay Financial Holding's 1-year earnings growth is negative, it can't be compared to the GB Insurance industry average.
Earnings and Revenue History
Cathay Financial Holding's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cathay Financial Holding Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CFHS Past Revenue, Cash Flow and Net Income Data
Date (Data in TWD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 836,517.83 49,567.32 73,931.63
2017-12-31 718,366.40 56,182.15 70,101.33
2016-12-31 595,787.89 47,618.81 70,018.12
2016-09-30 675,274.99 39,070.69 69,506.37
2016-06-30 754,746.85 30,522.57 68,951.80
2016-03-31 735,084.85 44,018.07 65,188.80
2015-12-31 397,114.54 57,513.57 61,425.80
2015-09-30 442,715.99 54,257.51 60,458.55
2015-06-30 731,799.09 60,207.45 56,905.66
2015-03-31 780,194.55 57,854.37 56,880.65
2014-12-31 353,575.35 49,369.16 54,952.06
2014-09-30 640,565.48 44,498.91 54,945.54
2014-06-30 526,615.79 51,290.65 54,219.35
2014-03-31 611,308.81 34,016.69 51,876.25
2013-12-31 370,829.36 37,816.04 51,369.30
2013-09-30 581,805.91 32,100.10 48,591.46
2013-06-30 337,773.08 27,932.66 48,825.45
2013-03-31 346,294.76 21,229.62 48,192.52
2012-12-31 425,315.44 16,115.63 47,323.77
2012-09-30 309,913.14 12,343.09 46,639.46
2012-06-30 131,565.79 9,747.26 44,340.07

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cathay Financial Holding has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cathay Financial Holding used its assets less efficiently than the GB Insurance industry average last year based on Return on Assets.
  • Cathay Financial Holding's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cathay Financial Holding's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cathay Financial Holding has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CFHS Health

 How is Cathay Financial Holding's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cathay Financial Holding's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cathay Financial Holding's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Cathay Financial Holding's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cathay Financial Holding's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cathay Financial Holding Company Filings, last reported 3 months ago.

LSE:CFHS Past Debt and Equity Data
Date (Data in TWD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 529,289.00 346,106.50 473,493.47
2017-12-31 608,470.54 407,009.75 780,503.43
2016-12-31 529,824.02 269,690.83 508,952.50
2016-09-30 529,824.02 293,253.97 509,032.60
2016-06-30
2016-03-31 461,062.20 272,560.78 591,174.96
2015-12-31 461,062.20 244,827.19 593,144.32
2015-09-30 461,062.20 244,827.19 593,144.32
2015-06-30
2015-03-31 438,320.98 300,659.32 785,367.63
2014-12-31 439,120.45 289,574.84 816,166.01
2014-09-30 400,731.56 268,402.73 841,914.58
2014-06-30 394,761.02 241,258.94 774,882.89
2014-03-31 394,761.02 241,258.94 774,882.89
2013-12-31 379,510.20 223,377.34 683,699.21
2013-09-30
2013-06-30 241,197.05 211,586.13 552,432.11
2013-03-31 255,475.72 131,430.32 456,598.37
2012-12-31 248,149.16 177,397.75 539,360.99
2012-09-30 246,116.01 189,305.85 874,903.38
2012-06-30 220,460.57 101,870.46 757,809.62
  • Cathay Financial Holding's level of debt (65.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (58.9% vs 65.4% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Cathay Financial Holding's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cathay Financial Holding has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CFHS Dividends

 What is Cathay Financial Holding's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.66%
Current annual income from Cathay Financial Holding dividends. Estimated to be 4.6% next year.
If you bought $2,000 of Cathay Financial Holding shares you are expected to receive $113 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cathay Financial Holding's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Cathay Financial Holding's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.12%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:CFHS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Insurance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:CFHS Future Dividends Estimate Data
Date (Data in NT$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.12 4.00
2020-12-31 2.16 11.00
2019-12-31 1.89 12.00
LSE:CFHS Past Annualized Dividends Data
Date (Data in NT$) Dividend per share (annual) Avg. Yield (%)
2018-04-26 2.500 5.059
2017-05-31 2.000 3.926
2016-05-30 2.000 4.643
2016-04-28 2.000 5.579
2015-06-01 2.000 4.599
2015-04-30 2.000 3.653
2014-11-28 1.429 2.991
2014-05-30 1.429 2.962
2014-05-06 1.429 3.333
2014-04-22 1.429 3.457
2013-04-30 0.624 1.564
2012-03-30 0.425 1.532
2011-06-10 0.500 1.663
2010-04-30 0.397 1.003
2010-01-15 0.397 0.936
2009-04-20 1.889 4.603

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Cathay Financial Holding's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Cathay Financial Holding's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cathay Financial Holding afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cathay Financial Holding has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CFHS Management

 What is the CEO of Cathay Financial Holding's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chang-Ken Lee
AGE 59
TENURE AS CEO 8.2 years
CEO Bio

Mr. Chang-Ken Lee has been the President of Cathay Financial Holding Co., Ltd. since February 25, 2011. Mr. Lee served as a Director of Cathay United Bank Co., Ltd., a subsidiary of Cathay Financial Holding Company Ltd until 2018. He served as the Chief Strategy Officer, Executive Vice President and Divisional Head of Cathay Financial Holdings Company Ltd. He has been a Director of Cathay Financial Holding Co., Ltd. since June 18, 2010 and Cathay Securities Corporation since June 20, 2016. He serves as a Director of Cathay United Bank Co., Ltd. Mr. Lee holds an MBA from University of Pennsylvania.

CEO Compensation
  • Insufficient data for Chang-Ken to compare compensation growth.
  • Insufficient data for Chang-Ken to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Cathay Financial Holding management team in years:

8.2
Average Tenure
54
Average Age
  • The average tenure for the Cathay Financial Holding management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Chang-Ken Lee

TITLE
President & Director
AGE
59
TENURE
8.2 yrs

Grace Chen

TITLE
CFO & Senior EVP
AGE
54
TENURE
15.3 yrs

Sophia Cheng

TITLE
Chief Investment Officer & Senior EVP
TENURE
6.8 yrs

Chia-Sheng Chang

TITLE
Chief Information Officer & Senior EVP
TENURE
4 yrs

Yajou Chang

TITLE
Manager of IR Department

Judie Hsu

TITLE
Chief Compliance Officer & Executive VP
TENURE
4.1 yrs

Shan-Chih Liu

TITLE
Senior Vice President
TENURE
8.6 yrs

Shu-Ying Wu

TITLE
Executive Vice President
TENURE
5.9 yrs

David P. Sun

TITLE
Head of Marketing Planning Div. & Senior EVP
AGE
54
TENURE
11.2 yrs

Chang-Chao Liao

TITLE
Senior Vice President
TENURE
10 yrs
Board of Directors Tenure

Average tenure and age of the Cathay Financial Holding board of directors in years:

8.3
Average Tenure
67.5
Average Age
  • The tenure for the Cathay Financial Holding board of directors is about average.
Board of Directors

Hong-Tu Tsai

TITLE
Chairman of the Board
AGE
66

Chang-Ken Lee

TITLE
President & Director
AGE
59
TENURE
8.8 yrs

Tsu-Pei Chen

TITLE
Vice Chairman of the Board
AGE
76

Tseng-Yun Tsai

TITLE
Honorary Vice Chairman

Jen-Ho Chang

TITLE
Chairman of Cathay Venture Inc

Jung-Hsien Hsu

TITLE
Chairman of Cathay Insurance Company Limited (China)
TENURE
6 yrs

Ming-Ho Hsiung

TITLE
Director
AGE
66
TENURE
11.8 yrs

Tsing-Yuan Hwang

TITLE
Independent Director
AGE
69
TENURE
11.8 yrs

Edward Way

TITLE
Independent Director
TENURE
1.8 yrs

Tiao-Kuei Huang

TITLE
Director
AGE
69
TENURE
7.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Cathay Financial Holding's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cathay Financial Holding has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CFHS News

Simply Wall St News

CFHS Company Info

Description

Cathay Financial Holding Co., Ltd., through its subsidiaries, provides various financial services in Taiwan. The company’s Banking segment provides foreign exchange and guarantee, foreign currency investment advisory, trust, offshore banking, and other financial services. Its Life Insurance segment sells traditional insurance policies, investment-linked insurance policies, and floating-rate annuity insurance products. The company’s Properties Insurance segment offers fire insurance, marine insurance, land and air insurance, liability insurance, bonding insurance, reinsurance, and other insurance services. Its Securities segment provides services for securities brokerage, discretionary and underwriting, and innovation and development of financial products and services. The company also provides real estate investment and management; and wealth management services, as well as office equipment leasing, risk management software, and investment consulting services. It has approximately 730 branches. Cathay Financial Holding Co., Ltd. was founded in 2001 and is based in Taipei, Taiwan.

Details
Name: Cathay Financial Holding Co., Ltd.
CFHS
Exchange: LSE
Founded: 2001
NT$18,021,415,701
12,563,210,000
Website: http://www.cathayholdings.com
Address: Cathay Financial Holding Co., Ltd.
296, Ren Ai Road,
Sec. 4,
Taipei,
10633,
Taiwan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSEC 2882 Common Stock Taiwan Stock Exchange TW TWD 31. Dec 2001
LSE CFHS SPON GDR REP 10 ORD TWD10 REG'S' London Stock Exchange GB USD 24. Feb 2003
TSEC 2882A A PRF SHARE TWD10 Taiwan Stock Exchange TW TWD 17. Jan 2017
TSEC 2882B B PRF SHARE TWD10 Taiwan Stock Exchange TW TWD 08. Aug 2018
BDL CATFH SPON GDR REP 10 ORD TWD10 REG'S' Bourse de Luxembourg LU USD 24. Feb 2003
Number of employees
Current staff
Staff numbers
54,520
Cathay Financial Holding employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 20:33
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/16
Last earnings filing: 2019/04/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.