Cub Elecparts (TWSE:2231) - Share price, News & Analysis

Q: What is the Fair Price of 2231 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2231 (NT$154.5) is trading below our estimate of [[fair value]] (NT$374.86)

2231 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

2231 Stock Overview

Cub Elecparts Inc. manufactures and supplies automobile electrical and electronic parts in Taiwan, China, the United States, Germany, and internationally.

Rewards

Trading at 58.8% below our estimate of its fair value

Earnings are forecast to grow 31.44% per year

Earnings grew by 41.2% over the past year

Risk Analysis

No risks detected for 2231 from our risk checks.

Cub Elecparts Competitors

Actron Technology

TPEX:8255

NT$16.9b

Depo Auto Parts Industrial

TWSE:6605

NT$13.2b

Hota Industrial Mfg

TWSE:1536

NT$21.6b

Hu Lane Associate

TPEX:6279

NT$14.6b

Price History & Performance

Summary of all time highs, changes and price drops for Cub Elecparts
Historical stock prices
Current Share Price	NT$154.50
52 Week High	NT$194.50
52 Week Low	NT$122.00
Beta	1.25
1 Month Change	10.36%
3 Month Change	4.04%
1 Year Change	0.32%
3 Year Change	-43.38%
5 Year Change	-43.92%
Change since IPO	213.90%

Shareholder Returns

	2231	TW Auto Components	TW Market
7D	15.7%	1.5%	2.5%
1Y	0.3%	3.1%	-7.1%

Return vs Industry: 2231 underperformed the TW Auto Components industry which returned 3.1% over the past year.

Return vs Market: 2231 exceeded the TW Market which returned -7.1% over the past year.

Price Volatility

Is 2231's price volatile compared to industry and market?
2231 volatility
2231 Average Weekly Movement	5.1%
Auto Components Industry Average Movement	5.8%
Market Average Movement	5.0%
10% most volatile stocks in TW Market	8.4%
10% least volatile stocks in TW Market	2.5%

Stable Share Price: 2231 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2231's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1979	n/a	San-Chuan Yu	https://www.cubelec.com.tw

Cub Elecparts Inc. manufactures and supplies automobile electrical and electronic parts in Taiwan, China, the United States, Germany, and internationally. It offers advanced driver assistance systems; aftermarket service parts comprising sensors and other parts; switches, such as ignition lock, power window, combination, and headlight; OEM products; and tire pressure monitoring sensors. Cub Elecparts Inc. was founded in 1979 and is based in Changhua, Taiwan.

Cub Elecparts Fundamentals Summary

How do Cub Elecparts's earnings and revenue compare to its market cap?
2231 fundamental statistics
Market Cap	NT$18.29b
Earnings (TTM)	NT$495.47m
Revenue (TTM)	NT$3.91b

38.0x

P/E Ratio

4.8x

P/S Ratio

Is 2231 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2231 income statement (TTM)
Revenue	NT$3.91b
Cost of Revenue	NT$2.36b
Gross Profit	NT$1.55b
Other Expenses	NT$1.06b
Earnings	NT$495.47m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.06
Gross Margin	39.68%
Net Profit Margin	12.68%
Debt/Equity Ratio	68.7%

How did 2231 perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

25%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 2231 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2231?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2231. This is calculated by dividing 2231's market cap by their current preferred multiple.
What is 2231's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$18.29b

2231 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	5.2x
Enterprise Value/EBITDA	32.2x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does 2231's PE Ratio compare to its peers?

2231 PE Ratio vs Peers

The above table shows the PE ratio for 2231 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	28.6x
8255 Actron Technology	34.6x	n/a	NT$16.9b
6605 Depo Auto Parts Industrial	8.6x	n/a	NT$13.2b
1536 Hota Industrial Mfg	52.5x	29.5%	NT$21.6b
6279 Hu Lane Associate	18.9x	18.2%	NT$14.6b
2231 Cub Elecparts	38x	31.4%	NT$18.3b

Price-To-Earnings vs Peers: 2231 is expensive based on its Price-To-Earnings Ratio (38x) compared to the peer average (28.6x).

Price to Earnings Ratio vs Industry

How does 2231's PE Ratio compare vs other companies in the TW Auto Components Industry?

Price-To-Earnings vs Industry: 2231 is expensive based on its Price-To-Earnings Ratio (38x) compared to the TW Auto Components industry average (18.1x)

Price to Earnings Ratio vs Fair Ratio

What is 2231'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.

2231 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	38x
Fair PE Ratio	22.2x

Price-To-Earnings vs Fair Ratio: 2231 is expensive based on its Price-To-Earnings Ratio (38x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

Share Price vs Fair Value

What is the Fair Price of 2231 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2231 (NT$154.5) is trading below our estimate of fair value (NT$374.86)

Significantly Below Fair Value: 2231 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.

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Future Growth

How is Cub Elecparts forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

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

31.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2231's forecast earnings growth (31.4% per year) is above the savings rate (0.7%).

Earnings vs Market: 2231's earnings (31.4% per year) are forecast to grow faster than the TW market (6.1% per year).

High Growth Earnings: 2231's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2231's revenue (11.2% per year) is forecast to grow faster than the TW market (7.3% per year).

High Growth Revenue: 2231's revenue (11.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2231's Return on Equity is forecast to be low in 3 years time (19.4%).

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Past Performance

How has Cub Elecparts performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-21.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2231 has high quality earnings.

Growing Profit Margin: 2231's current net profit margins (12.7%) are higher than last year (9.6%).

Past Earnings Growth Analysis

Earnings Trend: 2231's earnings have declined by 21.4% per year over the past 5 years.

Accelerating Growth: 2231's earnings growth over the past year (41.2%) exceeds its 5-year average (-21.4% per year).

Earnings vs Industry: 2231 earnings growth over the past year (41.2%) exceeded the Auto Components industry 4.9%.

Return on Equity

High ROE: 2231's Return on Equity (8.4%) is considered low.

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Financial Health

How is Cub Elecparts's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: 2231's short term assets (NT$6.1B) exceed its short term liabilities (NT$3.6B).

Long Term Liabilities: 2231's short term assets (NT$6.1B) exceed its long term liabilities (NT$1.1B).

Debt to Equity History and Analysis

Debt Level: 2231's net debt to equity ratio (18.7%) is considered satisfactory.

Reducing Debt: 2231's debt to equity ratio has increased from 64.4% to 68.7% over the past 5 years.

Debt Coverage: 2231's debt is well covered by operating cash flow (23.8%).

Interest Coverage: 2231's interest payments on its debt are well covered by EBIT (16x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2231's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (2.47%).

High Dividend: 2231's dividend (0.65%) is low compared to the top 25% of dividend payers in the TW market (6.47%).

Stability and Growth of Payments

Stable Dividend: 2231 is not paying a notable dividend for the TW market, therefore no need to check if payments are stable.

Growing Dividend: 2231 is not paying a notable dividend for the TW market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 2231 is not paying a notable dividend for the TW market.

Cash Payout to Shareholders

Cash Flow Coverage: 2231 is not paying a notable dividend for the TW market.

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Management

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

1.4yrs

Average management tenure

CEO

San-Chuan Yu

no data

Tenure

Mr. San-Chuan Yu serves as Chairman of the Board and President of Cub Elecparts Inc.

Leadership Team

Experienced Management: 2231's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.

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	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31