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2886

Mega Financial Holding TWSE:2886 Stock Report

Last Price

NT$35.75

Market Cap

NT$498.3b

7D

-1.5%

1Y

16.5%

Updated

17 Aug, 2022

Data

Company Financials +
2886 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health6/6
Dividends5/6

2886 Stock Overview

Mega Financial Holding Co., Ltd., provides various financial services in Taiwan and internationally.

Mega Financial Holding Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mega Financial Holding
Historical stock prices
Current Share PriceNT$35.75
52 Week HighNT$44.29
52 Week LowNT$30.29
Beta0.33
1 Month Change7.30%
3 Month Change0.12%
1 Year Change16.51%
3 Year Change30.17%
5 Year Change52.68%
Change since IPO114.56%

Recent News & Updates

Shareholder Returns

2886TW BanksTW Market
7D-1.5%1.7%2.5%
1Y16.5%19.7%-7.1%

Return vs Industry: 2886 underperformed the TW Banks industry which returned 19.7% over the past year.

Return vs Market: 2886 exceeded the TW Market which returned -7.1% over the past year.

Price Volatility

Is 2886's price volatile compared to industry and market?
2886 volatility
2886 Average Weekly Movement3.0%
Banks Industry Average Movement3.1%
Market Average Movement5.0%
10% most volatile stocks in TW Market8.4%
10% least volatile stocks in TW Market2.5%

Stable Share Price: 2886 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 2886's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20029,574David Huhttps://www.megaholdings.com.tw

Mega Financial Holding Co., Ltd., provides various financial services in Taiwan and internationally. It operates through Banking, Securities, Bills Finance, Insurance, and Other Businesses segments. The company accepts deposits, as well as offers loan and guarantee, trading financing, remittance, offshore banking, short-term bill, foreign exchange trading, safety deposit box, book-entry government bond, ATM debit card, and electronic and Internet banking services; and credit cards, consumer and student loans, home purchase and maintenance loans, car and credit insurance loans; and private banking and trust services.

Mega Financial Holding Fundamentals Summary

How do Mega Financial Holding's earnings and revenue compare to its market cap?
2886 fundamental statistics
Market CapNT$498.35b
Earnings (TTM)NT$25.56b
Revenue (TTM)NT$57.72b

19.5x

P/E Ratio

1.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2886 income statement (TTM)
RevenueNT$57.72b
Cost of RevenueNT$0
Gross ProfitNT$57.72b
Other ExpensesNT$32.16b
EarningsNT$25.56b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Sep 01, 2022

Earnings per share (EPS)1.83
Gross Margin100.00%
Net Profit Margin44.28%
Debt/Equity Ratio174.6%

How did 2886 perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

75%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2886 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 2886?

Other financial metrics that can be useful for relative valuation.

2886 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does 2886's PE Ratio compare to its peers?

2886 PE Ratio vs Peers
The above table shows the PE ratio for 2886 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.9x
2891 CTBC Financial Holding
9.8x13.3%NT$485.5b
2884 E.SUN Financial Holding Company
20.5x16.5%NT$402.7b
2892 First Financial Holding
18x15.2%NT$354.4b
5880 Taiwan Cooperative Financial Holding
19.1xn/aNT$388.7b
2886 Mega Financial Holding
19.5x16.1%NT$498.3b

Price-To-Earnings vs Peers: 2886 is expensive based on its Price-To-Earnings Ratio (19.5x) compared to the peer average (16.9x).


Price to Earnings Ratio vs Industry

How does 2886's PE Ratio compare vs other companies in the Asian Banks Industry?

Price-To-Earnings vs Industry: 2886 is expensive based on its Price-To-Earnings Ratio (19.5x) compared to the TW Banks industry average (15.1x)


Price to Earnings Ratio vs Fair Ratio

What is 2886'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.

2886 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.5x
Fair PE Ratio17.2x

Price-To-Earnings vs Fair Ratio: 2886 is expensive based on its Price-To-Earnings Ratio (19.5x) compared to the estimated Fair Price-To-Earnings Ratio (17.2x).


Share Price vs Fair Value

What is the Fair Price of 2886 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2886 (NT$35.75) is trading below our estimate of fair value (NT$38.01)

Significantly Below Fair Value: 2886 is trading below fair value, but not by a significant amount.


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 less than 20% higher than the current share price.


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Future Growth

How is Mega Financial Holding forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2886's forecast earnings growth (16.1% per year) is above the savings rate (0.7%).

Earnings vs Market: 2886's earnings (16.1% per year) are forecast to grow faster than the TW market (6.1% per year).

High Growth Earnings: 2886's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2886's revenue (11.4% per year) is forecast to grow faster than the TW market (7.3% per year).

High Growth Revenue: 2886's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2886's Return on Equity is forecast to be low in 3 years time (9.8%).


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Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-0.04%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2886 has a high level of non-cash earnings.

Growing Profit Margin: 2886's current net profit margins (44.3%) are lower than last year (46.1%).


Past Earnings Growth Analysis

Earnings Trend: 2886's earnings have declined by 0.04% per year over the past 5 years.

Accelerating Growth: 2886's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2886 had negative earnings growth (-12.8%) over the past year, making it difficult to compare to the Banks industry average (10.7%).


Return on Equity

High ROE: 2886's Return on Equity (7.8%) is considered low.


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Financial Health

How is Mega Financial Holding'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: 2886's Assets to Equity ratio (13.4x) is moderate.

Allowance for Bad Loans: 2886 has a sufficient allowance for bad loans (742%).

Low Risk Liabilities: 82% of 2886's liabilities are made up of primarily low risk sources of funding.

Loan Level: 2886 has an appropriate level of Loans to Assets ratio (52%).

Low Risk Deposits: 2886's Loans to Deposits ratio (68%) is appropriate.

Level of Bad Loans: 2886 has an appropriate level of bad loans (0.2%).


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Dividend

What is Mega Financial Holding current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.82%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2886's dividend (3.82%) is higher than the bottom 25% of dividend payers in the TW market (2.47%).

High Dividend: 2886's dividend (3.82%) is low compared to the top 25% of dividend payers in the TW market (6.47%).


Stability and Growth of Payments

Stable Dividend: 2886's dividends per share have been stable in the past 10 years.

Growing Dividend: 2886's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (74.5%), 2886's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2886's dividends in 3 years are forecast to be covered by earnings (76.4% payout ratio).


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Management

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

4.9yrs

Average management tenure


CEO

David Hu

4.5yrs

Tenure

Mr. Kuang-Hua Hu, also known as David, serves as Director at Mega International Commercial Bank Co., Ltd. since February 7, 2018. He served as an Executive Vice President of Taiwan Cooperative Bank Co., Lt...


Leadership Team

Experienced Management: 2886's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: 2886's board of directors are not considered experienced ( 2.3 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

Mega Financial Holding Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Mega Financial Holding Co., Ltd.
  • Ticker: 2886
  • Exchange: TWSE
  • Founded: 2002
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: NT$498.349b
  • Shares outstanding: 13.94b
  • Website: https://www.megaholdings.com.tw

Number of Employees


Location

  • Mega Financial Holding Co., Ltd.
  • No. 123, Jhongsiao East Road
  • 14th Floor, 16-20th Floors
  • Taipei
  • 100
  • Taiwan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.