EnTie Commercial Bank (TWSE:2849) - Share price, News & Analysis

Q: What is the Fair Price of 2849 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2849 (NT$14.4) is trading below our estimate of [[fair value]] (NT$18.78)

2849 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

2849 Stock Overview

EnTie Commercial Bank Co., Ltd. provides banking products and services primarily in Taiwan.

Rewards

Trading at 23.3% below our estimate of its fair value

Earnings grew by 20.3% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

EnTie Commercial Bank Competitors

O-Bank

TWSE:2897

NT$22.5b

Far Eastern International Bank

TWSE:2845

NT$41.1b

Union Bank of Taiwan

TWSE:2838

NT$47.9b

Taichung Commercial Bank

TWSE:2812

NT$63.6b

Price History & Performance

Summary of all time highs, changes and price drops for EnTie Commercial Bank
Historical stock prices
Current Share Price	NT$14.40
52 Week High	NT$17.35
52 Week Low	NT$14.10
Beta	0.45
1 Month Change	-5.57%
3 Month Change	-4.95%
1 Year Change	-7.10%
3 Year Change	2.13%
5 Year Change	14.29%
Change since IPO	-21.17%

Shareholder Returns

	2849	TW Banks	TW Market
7D	0.3%	3.1%	2.4%
1Y	-7.1%	15.1%	-12.5%

Return vs Industry: 2849 underperformed the TW Banks industry which returned 15.1% over the past year.

Return vs Market: 2849 exceeded the TW Market which returned -12.5% over the past year.

Price Volatility

Is 2849's price volatile compared to industry and market?
2849 volatility
2849 Average Weekly Movement	2.7%
Banks Industry Average Movement	3.2%
Market Average Movement	5.1%
10% most volatile stocks in TW Market	8.4%
10% least volatile stocks in TW Market	2.5%

Stable Share Price: 2849 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 2849's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	1,508	Jeff Chang	https://www.entiebank.com.tw

EnTie Commercial Bank Co., Ltd. provides banking products and services primarily in Taiwan. The company operates through three segments: Retail Banking, Corporate Banking, and Operating Management. It offers checking accounts, demand deposits, savings accounts, time deposits, and negotiable certificates of deposit; and loans, such as corporate, mortgage, and personal loans, as well as provides overdrafts and credit cards.

EnTie Commercial Bank Fundamentals Summary

How do EnTie Commercial Bank's earnings and revenue compare to its market cap?
2849 fundamental statistics
Market Cap	NT$28.19b
Earnings (TTM)	NT$2.44b
Revenue (TTM)	NT$5.68b

11.5x

P/E Ratio

0.8x

P/B Ratio

Is 2849 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2849 income statement (TTM)
Revenue	NT$5.68b
Cost of Revenue	NT$0
Gross Profit	NT$5.68b
Other Expenses	NT$3.24b
Earnings	NT$2.44b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.25
Gross Margin	100.00%
Net Profit Margin	43.01%
Debt/Equity Ratio	24.0%

How did 2849 perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

59%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 2849 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 2849?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2849. This is calculated by dividing 2849's market cap by their current preferred multiple.
What is 2849's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$28.19b

2849 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2849's PE Ratio compare to its peers?

2849 PE Ratio vs Peers

The above table shows the PE ratio for 2849 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13.3x
2897 O-Bank	12.3x	n/a	NT$22.5b
2845 Far Eastern International Bank	14.6x	n/a	NT$41.1b
2838 Union Bank of Taiwan	13.4x	n/a	NT$47.9b
2812 Taichung Commercial Bank	13x	n/a	NT$63.6b
2849 EnTie Commercial Bank	11.5x	n/a	NT$28.2b

Price-To-Earnings vs Peers: 2849 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (13.3x).

Price to Earnings Ratio vs Industry

How does 2849's PE Ratio compare vs other companies in the Asian Banks Industry?

Price-To-Earnings vs Industry: 2849 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the TW Banks industry average (14.9x)

Price to Earnings Ratio vs Fair Ratio

What is 2849'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.

2849 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2849's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 2849 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2849 (NT$14.4) is trading below our estimate of fair value (NT$18.78)

Significantly Below Fair Value: 2849 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: Insufficient data to show price forecast.

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Future Growth

How is EnTie Commercial Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

14.9%

Forecasted Banks 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 EnTie Commercial Bank 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.

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Examine whether EnTie Commercial Bank is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has EnTie Commercial Bank 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

5.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2849 has a high level of non-cash earnings.

Growing Profit Margin: 2849's current net profit margins (43%) are higher than last year (39.2%).

Past Earnings Growth Analysis

Earnings Trend: 2849's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: 2849's earnings growth over the past year (20.3%) exceeds its 5-year average (5% per year).

Earnings vs Industry: 2849 earnings growth over the past year (20.3%) exceeded the Banks industry 10.7%.

Return on Equity

High ROE: 2849's Return on Equity (7%) is considered low.

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Financial Health

How is EnTie Commercial Bank's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: 2849's Assets to Equity ratio (9.7x) is low.

Allowance for Bad Loans: 2849 has a sufficient allowance for bad loans (318%).

Low Risk Liabilities: 96% of 2849's liabilities are made up of primarily low risk sources of funding.

Loan Level: 2849 has an appropriate level of Loans to Assets ratio (64%).

Low Risk Deposits: 2849's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: 2849 has an appropriate level of bad loans (0.7%).

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Dividend

What is EnTie Commercial Bank current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.07%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2849's dividend (5.07%) is higher than the bottom 25% of dividend payers in the TW market (2.53%).

High Dividend: 2849's dividend (5.07%) is low compared to the top 25% of dividend payers in the TW market (6.62%).

Stability and Growth of Payments

Stable Dividend: 2849's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2849's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (58.5%), 2849's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

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Management

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

3.0yrs

Average management tenure

CEO

Jeff Chang

no data

Tenure

Mr. Jeff Chang served as Acting President at EnTie Commercial Bank Co. Ltd. until March 18, 2021 and served its Chief Credit Officer and serves as its President since March 18, 2021. He served as Executive...

Leadership Team

Experienced Management: 2849's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: 2849's board of directors are considered experienced (7.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31