GTSM:4580

Stock Analysis Report

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Executive Summary

Value Valves Co., Ltd. engages in the research, development, design, manufacture, inspection, and marketing of valves in Taiwan. More Details


Snowflake Analysis

Outstanding track record with excellent balance sheet.

Share Price & News

How has Value Valves's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4580 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 4580's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

4580

2.9%

TW Machinery

0.7%

TW Market


1 Year Return

-14.1%

4580

19.0%

TW Machinery

20.2%

TW Market

Return vs Industry: 4580 underperformed the TW Machinery industry which returned 19% over the past year.

Return vs Market: 4580 underperformed the TW Market which returned 20.2% over the past year.


Shareholder returns

4580IndustryMarket
7 Day1.0%2.9%0.7%
30 Day4.6%8.4%10.3%
90 Day-3.0%5.6%8.7%
1 Year-10.1%-14.1%22.4%19.0%24.5%20.2%
3 Yearn/a21.7%10.5%45.9%29.7%
5 Yearn/a107.1%74.3%96.6%62.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Value Valves undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 4580 (NT$97.5) is trading below our estimate of fair value (NT$215.56)

Significantly Below Fair Value: 4580 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 4580 is good value based on its PE Ratio (11.8x) compared to the TW Machinery industry average (17.5x).

PE vs Market: 4580 is good value based on its PE Ratio (11.8x) compared to the TW market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: 4580 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 4580 is overvalued based on its PB Ratio (2.5x) compared to the TW Machinery industry average (1.8x).


Next Steps

Future Growth

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

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4580's forecast earnings growth (5% per year) is above the savings rate (0.9%).

Earnings vs Market: 4580's earnings (5% per year) are forecast to grow slower than the TW market (16.7% per year).

High Growth Earnings: 4580's earnings are forecast to grow, but not significantly.

Revenue vs Market: 4580's revenue (3.5% per year) is forecast to grow slower than the TW market (9.4% per year).

High Growth Revenue: 4580's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4580's Return on Equity is forecast to be high in 3 years time (22%)


Next Steps

Past Performance

How has Value Valves performed over the past 5 years?

22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4580 has high quality earnings.

Growing Profit Margin: 4580's current net profit margins (13.2%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: 4580's earnings have grown significantly by 22.2% per year over the past 5 years.

Accelerating Growth: 4580's earnings growth over the past year (22.8%) exceeds its 5-year average (22.2% per year).

Earnings vs Industry: 4580 earnings growth over the past year (22.8%) exceeded the Machinery industry -10.4%.


Return on Equity

High ROE: 4580's Return on Equity (20.7%) is considered high.


Next Steps

Financial Health

How is Value Valves's financial position?


Financial Position Analysis

Short Term Liabilities: 4580's short term assets (NT$1.5B) exceed its short term liabilities (NT$770.2M).

Long Term Liabilities: 4580's short term assets (NT$1.5B) exceed its long term liabilities (NT$314.9M).


Debt to Equity History and Analysis

Debt Level: 4580's debt to equity ratio (23.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 4580's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 4580's debt is well covered by operating cash flow (77.2%).

Interest Coverage: 4580's interest payments on its debt are well covered by EBIT (59.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Value Valves's current dividend yield, its reliability and sustainability?

5.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4580's dividend (5.13%) is higher than the bottom 25% of dividend payers in the TW market (2.1%).

High Dividend: 4580's dividend (5.13%) is low compared to the top 25% of dividend payers in the TW market (5.17%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 4580 has been paying a dividend for less than 10 years.

Growing Dividend: 4580's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.3%), 4580's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 4580's dividends in 3 years are forecast to be covered by earnings (61.3% payout ratio).


Next Steps

Management

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


CEO

Value Valves 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 been diluted in the past year, with total shares outstanding growing by 10%.


Top Shareholders

Company Information

Value Valves Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Value Valves Co., Ltd.
  • Ticker: 4580
  • Exchange: GTSM
  • Founded: 1980
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: NT$3.815b
  • Shares outstanding: 39.13m
  • Website: https://www.valuevalves.com

Number of Employees


Location

  • Value Valves Co., Ltd.
  • No. 9, Chung-Shan Road
  • Tu-Chung Industrial District
  • New Taipei City
  • 236
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4580GTSM (Taipei Exchange)YesOrdinary SharesTWTWDDec 2018

Biography

Value Valves Co., Ltd. engages in the research, development, design, manufacture, inspection, and marketing of valves in Taiwan. The company offers butterfly, check, damper, ball, globe, gate, and customiz...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 08:40
End of Day Share Price2020/12/01 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.