TSEC:5515

Stock Analysis Report

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Chien Kuo Construction

Executive Summary

Chien Kuo Construction Co., Ltd., together with its subsidiaries, engages in the construction business in Taiwan and China. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Chien Kuo Construction's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5515 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 5515's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.0%

5515

0.8%

TW Construction

-0.04%

TW Market


1 Year Return

-2.2%

5515

18.6%

TW Construction

17.8%

TW Market

Return vs Industry: 5515 underperformed the TW Construction industry which returned 18.6% over the past year.

Return vs Market: 5515 underperformed the TW Market which returned 17.8% over the past year.


Shareholder returns

5515IndustryMarket
7 Day2.0%0.8%-0.04%
30 Day5.9%2.4%6.2%
90 Day4.5%7.8%7.0%
1 Year27.1%-2.2%24.6%18.6%22.0%17.8%
3 Year23.8%-13.1%59.2%37.0%42.1%26.4%
5 Year88.9%18.2%101.4%57.2%93.0%59.1%

Long-Term Price Volatility Vs. Market

How volatile is Chien Kuo Construction's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chien Kuo Construction 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: 5515 (NT$12.65) is trading below our estimate of fair value (NT$113.11)

Significantly Below Fair Value: 5515 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 5515 is good value based on its PE Ratio (8.2x) compared to the TW Construction industry average (15.8x).

PE vs Market: 5515 is good value based on its PE Ratio (8.2x) compared to the TW market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5515's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 5515 is good value based on its PB Ratio (0.8x) compared to the TW Construction industry average (1.1x).


Next Steps

Future Growth

How is Chien Kuo Construction forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.6%

Forecasted Capital Goods 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 Chien Kuo Construction 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.


Next Steps

Past Performance

How has Chien Kuo Construction performed over the past 5 years?

53.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5515 has high quality earnings.

Growing Profit Margin: 5515's current net profit margins (5.1%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: 5515 has become profitable over the past 5 years, growing earnings by 53.1% per year.

Accelerating Growth: 5515's earnings growth over the past year (108.6%) exceeds its 5-year average (53.1% per year).

Earnings vs Industry: 5515 earnings growth over the past year (108.6%) exceeded the Construction industry 6.7%.


Return on Equity

High ROE: 5515's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Chien Kuo Construction's financial position?


Financial Position Analysis

Short Term Liabilities: 5515's short term assets (NT$8.2B) exceed its short term liabilities (NT$3.4B).

Long Term Liabilities: 5515's short term assets (NT$8.2B) exceed its long term liabilities (NT$1.2B).


Debt to Equity History and Analysis

Debt Level: 5515's debt to equity ratio (15.8%) is considered satisfactory.

Reducing Debt: 5515's debt to equity ratio has reduced from 25.3% to 15.8% over the past 5 years.

Debt Coverage: 5515's debt is well covered by operating cash flow (159.8%).

Interest Coverage: 5515 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Chien Kuo Construction current dividend yield, its reliability and sustainability?

3.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5515's dividend (3.95%) is higher than the bottom 25% of dividend payers in the TW market (2.15%).

High Dividend: 5515's dividend (3.95%) is low compared to the top 25% of dividend payers in the TW market (5.24%).


Stability and Growth of Payments

Stable Dividend: 5515's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5515's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.5%), 5515's dividend payments are well 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?

5.3yrs

Average board tenure


CEO

Chang-shiou Wu

6.08yrs

Tenure

Mr. Chang-shiou Wu serves as Chairman of the Board at Chien Kuo Construction Co., Ltd since June 29, 2018 and also serves as its Director since June 18, 2012. He serves as General Manager at Chien Kuo Cons...


Board Members

NamePositionTenureCompensationOwnership
Chang-shiou Wu
Chairman & GM6.08yrsno datano data
Chi-Te Chen
Vice Chairman of the Board2.42yrsno datano data
Chin-Pao Tsai
Independent Director2.42yrsno datano data
Pang-Yen Yang
Director14.42yrsno datano data
Jui-Hsing Tsai
Director5.42yrsno datano data
Tzu-Chiang Yang
Director8.42yrsno datano data
Pai-Tso Sun
Director5.25yrsno datano data
Chung Cheng
Director17.5yrsno datano data
Chu-Hsin Lee
Director11.42yrsno datano data
Yu-Jui Chang
Director11.42yrsno datano data
Chi-Hsin Chen
Director4.42yrsno datano data
Chen-Yu Feng
Independent Director2.42yrsno datano data

5.3yrs

Average Tenure

Experienced Board: 5515's board of directors are considered experienced (5.3 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

Chien Kuo Construction Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chien Kuo Construction Co., Ltd.
  • Ticker: 5515
  • Exchange: TSEC
  • Founded: 1931
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: NT$3.257b
  • Shares outstanding: 257.44m
  • Website: https://www.ckgroup.com.tw

Location

  • Chien Kuo Construction Co., Ltd.
  • No. 67, Dunhua South Road
  • 20th Floor
  • Taipei
  • 106
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5515TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDSep 1999

Biography

Chien Kuo Construction Co., Ltd., together with its subsidiaries, engages in the construction business in Taiwan and China. The company offers construction services for residential buildings, factory and o...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 08:32
End of Day Share Price2020/11/26 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.