Aerospace Industrial Development (TWSE:2634) - Share price, News & Analysis

Q: What is the Fair Price of 2634 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2634 (NT$32.35) is trading above our estimate of [[fair value]] (NT$27.21)

2634 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	5/6
Past Performance	4/6
Financial Health	4/6
Dividends	0/6

2634 Stock Overview

Rewards

Price-To-Earnings ratio (29.7x) is below the Aerospace & Defense industry average (37x)

Earnings are forecast to grow 56.48% per year

Earnings grew by 1220.4% over the past year

Risk Analysis

Has a high level of debt

Volatile share price over the past 3 months

Aerospace Industrial Development Competitors

Evergreen Aviation Technologies

TPEX:2645

NT$25.0b

Drewloong Precision

TWSE:4572

NT$4.4b

Air Asia

TWSE:2630

NT$2.5b

Magnate Technology

TPEX:4541

NT$1.8b

Price History & Performance

Summary of all time highs, changes and price drops for Aerospace Industrial Development
Historical stock prices
Current Share Price	NT$32.35
52 Week High	NT$39.50
52 Week Low	NT$27.20
Beta	0.43
1 Month Change	-5.13%
3 Month Change	10.22%
1 Year Change	11.55%
3 Year Change	-5.13%
5 Year Change	-6.16%
Change since IPO	11.82%

Shareholder Returns

	2634	TW Aerospace & Defense	TW Market
7D	3.9%	2.0%	-0.5%
1Y	11.6%	8.9%	-13.8%

Return vs Industry: 2634 exceeded the TW Aerospace & Defense industry which returned 8.9% over the past year.

Return vs Market: 2634 exceeded the TW Market which returned -13.8% over the past year.

Price Volatility

Is 2634's price volatile compared to industry and market?
2634 volatility
2634 Average Weekly Movement	6.4%
Aerospace & Defense Industry Average Movement	6.2%
Market Average Movement	4.7%
10% most volatile stocks in TW Market	8.2%
10% least volatile stocks in TW Market	2.3%

Stable Share Price: 2634 is more volatile than 75% of TW stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2634's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of TW stocks.

About the Company

Founded	Employees	CEO	Website
1969	n/a	Wan-June Ma	https://www.aidc.com.tw

Aerospace Industrial Development Corporation engages in the development, manufacturing, integration, assembly, and testing and verification of aircraft systems and parts in Taiwan and internationally. The company provides military aircrafts and helicopters, commercial aviation, and aero/industrial engines. It engages in the manufacturing maintenance and upgradation of military aircrafts, commercial maintenance of air fleets, and production of military hardware, as well as military aircraft engines.

Aerospace Industrial Development Fundamentals Summary

How do Aerospace Industrial Development's earnings and revenue compare to its market cap?
2634 fundamental statistics
Market Cap	NT$30.47b
Earnings (TTM)	NT$1.03b
Revenue (TTM)	NT$24.84b

29.7x

P/E Ratio

1.2x

P/S Ratio

Is 2634 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2634 income statement (TTM)
Revenue	NT$24.84b
Cost of Revenue	NT$22.67b
Gross Profit	NT$2.17b
Other Expenses	NT$1.15b
Earnings	NT$1.03b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.09
Gross Margin	8.74%
Net Profit Margin	4.13%
Debt/Equity Ratio	117.3%

How did 2634 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

32%

Payout Ratio

Does 2634 pay a reliable dividends?

See 2634 dividend history and benchmarks

When do you need to buy 2634 by to receive an upcoming dividend?
Aerospace Industrial Development dividend dates
Ex Dividend Date	Jul 12 2022
Dividend Pay Date	Aug 04 2022
Days until Ex dividend	11 days
Days until Dividend pay date	34 days

Does 2634 pay a reliable dividends?

See 2634 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 2634 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2634?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2634. This is calculated by dividing 2634's market cap by their current preferred multiple.
What is 2634's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$30.47b

2634 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/Revenue	1.9x
Enterprise Value/EBITDA	23.6x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does 2634's PE Ratio compare to its peers?

2634 PE Ratio vs Peers

The above table shows the PE ratio for 2634 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	45.7x
2645 Evergreen Aviation Technologies	28.4x	n/a	NT$25.0b
4572 Drewloong Precision	51.8x	n/a	NT$4.4b
2630 Air Asia	65.2x	n/a	NT$2.5b
4541 Magnate Technology	35.2x	n/a	NT$1.8b
2634 Aerospace Industrial Development	29.7x	56.5%	NT$30.5b

Forward PE

Price-To-Earnings vs Peers: 2634 is good value based on its Price-To-Earnings Ratio (29.7x) compared to the peer average (45.7x).

Price to Earnings Ratio vs Industry

How does 2634's PE Ratio compare vs other companies in the Asian Aerospace & Defense Industry?

Price-To-Earnings vs Industry: 2634 is good value based on its Price-To-Earnings Ratio (29.7x) compared to the TW Aerospace & Defense industry average (37x)

Price to Earnings Ratio vs Fair Ratio

What is 2634'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.

2634 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	29.7x
Fair PE Ratio	39.4x

Price-To-Earnings vs Fair Ratio: 2634 is good value based on its Price-To-Earnings Ratio (29.7x) compared to the estimated Fair Price-To-Earnings Ratio (39.4x).

Share Price vs Fair Value

What is the Fair Price of 2634 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2634 (NT$32.35) is trading above our estimate of fair value (NT$27.21)

Significantly Below Fair Value: 2634 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: 2634 is good value based on its PEG Ratio (0.5x)

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Future Growth

How is Aerospace Industrial Development forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

56.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2634's forecast earnings growth (56.5% per year) is above the savings rate (0.7%).

Earnings vs Market: 2634's earnings (56.5% per year) are forecast to grow faster than the TW market (7.4% per year).

High Growth Earnings: 2634's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2634's revenue (23.7% per year) is forecast to grow faster than the TW market (7.7% per year).

High Growth Revenue: 2634's revenue (23.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 2634's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Aerospace Industrial Development performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-24.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2634 has high quality earnings.

Growing Profit Margin: 2634's current net profit margins (4.1%) are higher than last year (0.4%).

Past Earnings Growth Analysis

Earnings Trend: 2634's earnings have declined by 24.5% per year over the past 5 years.

Accelerating Growth: 2634's earnings growth over the past year (1220.4%) exceeds its 5-year average (-24.5% per year).

Earnings vs Industry: 2634 earnings growth over the past year (1220.4%) exceeded the Aerospace & Defense industry 14.7%.

Return on Equity

High ROE: 2634's Return on Equity (7%) is considered low.

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Financial Health

How is Aerospace Industrial Development's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2634's short term assets (NT$25.8B) exceed its short term liabilities (NT$15.0B).

Long Term Liabilities: 2634's short term assets (NT$25.8B) exceed its long term liabilities (NT$10.1B).

Debt to Equity History and Analysis

Debt Level: 2634's net debt to equity ratio (104.7%) is considered high.

Reducing Debt: 2634's debt to equity ratio has increased from 97.4% to 117.3% over the past 5 years.

Debt Coverage: 2634's debt is well covered by operating cash flow (31.7%).

Interest Coverage: 2634's interest payments on its debt are well covered by EBIT (6.4x coverage).

Balance Sheet

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Dividend

What is Aerospace Industrial Development current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.08%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 2634's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (2.57%).

High Dividend: 2634's dividend (1.08%) is low compared to the top 25% of dividend payers in the TW market (6.35%).

Stability and Growth of Payments

Stable Dividend: 2634 is not paying a notable dividend for the TW market, therefore no need to check if payments are stable.

Growing Dividend: 2634 is not paying a notable dividend for the TW market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 2634 is not paying a notable dividend for the TW market.

Cash Payout to Shareholders

Cash Flow Coverage: 2634 is not paying a notable dividend for the TW market.

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Management

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

3.8yrs

Average management tenure

CEO

Wan-June Ma

3.25yrs

Tenure

Mr. Wan-June Ma serves as Executive Director and President at Aerospace Industrial Development Corporation since March 18, 2019.

Leadership Team

Experienced Management: 2634's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: 2634's board of directors are considered experienced (3.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31