TSEC:2421

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Sunonwealth Electric Machine Industry

Executive Summary

Sunonwealth Electric Machine Industry Co., Ltd., together with its subsidiaries, manufactures and sells precision motors, mini fans, and thermal modules worldwide. More Details


Snowflake Analysis

Outstanding track record with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Sunonwealth Electric Machine Industry's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2421 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2421's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

2421

2.9%

TW Machinery

0.7%

TW Market


1 Year Return

28.0%

2421

19.0%

TW Machinery

20.2%

TW Market

Return vs Industry: 2421 exceeded the TW Machinery industry which returned 19% over the past year.

Return vs Market: 2421 exceeded the TW Market which returned 20.2% over the past year.


Shareholder returns

2421IndustryMarket
7 Day1.3%2.9%0.7%
30 Day-3.5%8.4%10.3%
90 Day-16.7%5.6%8.7%
1 Year33.1%28.0%22.4%19.0%24.5%20.2%
3 Year23.7%6.2%21.7%10.5%45.9%29.7%
5 Year319.5%218.6%107.1%74.3%96.6%62.2%

Long-Term Price Volatility Vs. Market

How volatile is Sunonwealth Electric Machine Industry's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sunonwealth Electric Machine Industry undervalued compared to its fair value and its price relative to the market?

2.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2421 (NT$54.8) is trading below our estimate of fair value (NT$56.13)

Significantly Below Fair Value: 2421 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2421 is good value based on its PE Ratio (15x) compared to the TW Machinery industry average (17.5x).

PE vs Market: 2421 is good value based on its PE Ratio (15x) compared to the TW market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: 2421 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 2421 is overvalued based on its PB Ratio (3.1x) compared to the TW Machinery industry average (1.8x).


Next Steps

Future Growth

How is Sunonwealth Electric Machine Industry forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2421's forecast earnings growth (21% per year) is above the savings rate (0.9%).

Earnings vs Market: 2421's earnings (21% per year) are forecast to grow faster than the TW market (16.7% per year).

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

Revenue vs Market: 2421's revenue (10% per year) is forecast to grow faster than the TW market (9.4% per year).

High Growth Revenue: 2421's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2421's Return on Equity is forecast to be high in 3 years time (25.6%)


Next Steps

Past Performance

How has Sunonwealth Electric Machine Industry performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2421 has high quality earnings.

Growing Profit Margin: 2421's current net profit margins (7.2%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: 2421's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: 2421's earnings growth over the past year (51.4%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: 2421 earnings growth over the past year (51.4%) exceeded the Machinery industry -10.4%.


Return on Equity

High ROE: 2421's Return on Equity (20.8%) is considered high.


Next Steps

Financial Health

How is Sunonwealth Electric Machine Industry's financial position?


Financial Position Analysis

Short Term Liabilities: 2421's short term assets (NT$7.0B) exceed its short term liabilities (NT$4.8B).

Long Term Liabilities: 2421's short term assets (NT$7.0B) exceed its long term liabilities (NT$880.4M).


Debt to Equity History and Analysis

Debt Level: 2421's debt to equity ratio (29.6%) is considered satisfactory.

Reducing Debt: 2421's debt to equity ratio has increased from 13% to 29.6% over the past 5 years.

Debt Coverage: 2421's debt is well covered by operating cash flow (108%).

Interest Coverage: 2421's interest payments on its debt are well covered by EBIT (206.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Sunonwealth Electric Machine Industry current dividend yield, its reliability and sustainability?

3.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2421's dividend (3.65%) is higher than the bottom 25% of dividend payers in the TW market (2.1%).

High Dividend: 2421's dividend (3.65%) is low compared to the top 25% of dividend payers in the TW market (5.17%).


Stability and Growth of Payments

Stable Dividend: 2421's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2421's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.7%), 2421's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2421's dividends in 3 years are forecast to be covered by earnings (65.7% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Ching-Shen Hong

9.75yrs

Tenure

Mr. Ching-Shen Hong has been Director of Sunonwealth Electric Machine Industry Company Limited since May 27, 2009. Mr. Hong has been President of Sunonwealth Electric Machine Industry Company Limited since...


Leadership Team

NamePositionTenureCompensationOwnership
Yin-Su Hong
Chairman & CTOno datano data4.17%
NT$ 573.0m
Ching-Shen Hong
President & Director9.75yrsno datano data
William Li
VP & Director of Finance Department4.92yrsno datano data
Li-Ju Chen
Director of the Strategic Purchasing Department & Director2.58yrsno datano data
Chien-Yuan Tseng
President of the Business Department2.67yrsno datano data
Ling-Wen Huang
Special Assistant & Secretariat of the Boardno datano datano data

7.3yrs

Average Tenure

Experienced Management: 2421's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yin-Su Hong
Chairman & CTOno datano data4.17%
NT$ 573.0m
Ching-Shen Hong
President & Director9.75yrsno datano data
Li-Ju Chen
Director of the Strategic Purchasing Department & Director2.58yrsno datano data
Chen Fu-Ing Hong
Director40.17yrsno data5.85%
NT$ 803.9m
Chun-Hao Xin
Independent Director5.5yrsno data0.062%
NT$ 8.6m
Ching-Liang Chen
Director8.58yrsno datano data
Mei-Hsiang Pai
Independent Director5.5yrsno datano data
Chih-Ming Chen
Independent Director5.5yrsno datano data
Tseng-Cheng Lin
Director5.5yrsno datano data

5.5yrs

Average Tenure

Experienced Board: 2421's board of directors are considered experienced (5.5 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.


Top Shareholders

Company Information

Sunonwealth Electric Machine Industry Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sunonwealth Electric Machine Industry Co., Ltd.
  • Ticker: 2421
  • Exchange: TSEC
  • Founded: 1980
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: NT$13.751b
  • Shares outstanding: 250.93m
  • Website: https://www.sunon.com

Location

  • Sunonwealth Electric Machine Industry Co., Ltd.
  • No. 30 Xinya Road
  • Lane 296
  • Kaohsiung
  • 806
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2421TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDAug 1999

Biography

Sunonwealth Electric Machine Industry Co., Ltd., together with its subsidiaries, manufactures and sells precision motors, mini fans, and thermal modules worldwide. The company offers DC fans and blowers, A...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 08:32
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.