GTSM:4506

Stock Analysis Report

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Executive Summary

Golden Friends Corporation, together with its subsidiaries, manufactures and sells elevators, escalators, and generators in Taiwan. More Details

Rewards

PE ratio (13.9x) is below the TW market (18.6x)

Earnings grew by 6.8% over the past year

Pays a reliable dividend of 4.74%

Risk Analysis

No risks detected for 4506 from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 4506 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: 4506's weekly volatility (1%) has been stable over the past year.


Market Performance


7 Day Return

-0.4%

4506

2.3%

TW Machinery

1.9%

TW Market


1 Year Return

-5.3%

4506

19.9%

TW Machinery

21.4%

TW Market

Return vs Industry: 4506 underperformed the TW Machinery industry which returned 19% over the past year.

Return vs Market: 4506 underperformed the TW Market which returned 20.2% over the past year.


Shareholder returns

4506IndustryMarket
7 Day-0.4%2.3%1.9%
30 Day-0.2%8.6%10.9%
90 Day2.3%5.4%9.4%
1 Year-0.8%-5.3%23.4%19.9%25.7%21.4%
3 Year22.0%5.6%22.2%10.9%49.9%33.2%
5 Year160.9%99.2%111.2%77.5%101.8%66.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 4506 (NT$57) is trading above our estimate of fair value (NT$37.82)

Significantly Below Fair Value: 4506 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 4506 is good value based on its PE Ratio (13.9x) compared to the TW Machinery industry average (17.5x).

PE vs Market: 4506 is good value based on its PE Ratio (13.9x) compared to the TW market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 4506's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 4506 is overvalued based on its PB Ratio (2.3x) compared to the TW Machinery industry average (1.8x).


Next Steps

Future Growth

How is Golden Friends forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 4506's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if 4506's earnings are forecast to grow faster than the TW market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 4506's revenue (2.2% per year) is forecast to grow slower than the TW market (9.4% per year).

High Growth Revenue: 4506's revenue (2.2% 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 4506's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Golden Friends performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4506 has high quality earnings.

Growing Profit Margin: 4506's current net profit margins (16.1%) are higher than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: 4506's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: 4506's earnings growth over the past year (6.8%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: 4506 earnings growth over the past year (6.8%) exceeded the Machinery industry -10.4%.


Return on Equity

High ROE: 4506's Return on Equity (16.8%) is considered low.


Next Steps

Financial Health

How is Golden Friends's financial position?


Financial Position Analysis

Short Term Liabilities: 4506's short term assets (NT$4.6B) exceed its short term liabilities (NT$2.9B).

Long Term Liabilities: 4506's short term assets (NT$4.6B) exceed its long term liabilities (NT$26.1M).


Debt to Equity History and Analysis

Debt Level: 4506's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: 4506's debt to equity ratio has reduced from 4.1% to 0.4% over the past 5 years.

Debt Coverage: 4506's debt is well covered by operating cash flow (4335.4%).

Interest Coverage: 4506 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

4.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4506's dividend (4.74%) is higher than the bottom 25% of dividend payers in the TW market (2.1%).

High Dividend: 4506's dividend (4.74%) is low compared to the top 25% of dividend payers in the TW market (5.17%).


Stability and Growth of Payments

Stable Dividend: 4506's dividends per share have been stable in the past 10 years.

Growing Dividend: 4506's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.8%), 4506'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 and that it will be covered by earnings.


Next Steps

Management

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


CEO

Golden Friends has no CEO, or we have no data on them.


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

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


Key Information

  • Name: Golden Friends Corporation
  • Ticker: 4506
  • Exchange: GTSM
  • Founded: 1974
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: NT$10.090b
  • Shares outstanding: 177.01m
  • Website: https://www.gfc.com.tw

Number of Employees


Location

  • Golden Friends Corporation
  • No. 88, Nanjing East Road
  • 13th Floor
  • Taipei
  • 10457
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4506GTSM (Taipei Exchange)YesCommon StockTWTWDOct 1999

Biography

Golden Friends Corporation, together with its subsidiaries, manufactures and sells elevators, escalators, and generators in Taiwan. It operates in three segments: Sales, Maintenance, and GFC Shanghai. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 02:02
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.