GTSM:5530

Stock Analysis Report

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Executive Summary

Lungyen Life Service Corporation provides funeral services in Taiwan.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Lungyen Life Service's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5530 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

5530

-0.0009%

TW Consumer Services

1.1%

TW Market


1 Year Return

-11.6%

5530

-12.9%

TW Consumer Services

4.7%

TW Market

Return vs Industry: 5530 exceeded the TW Consumer Services industry which returned -12.9% over the past year.

Return vs Market: 5530 underperformed the TW Market which returned 4.7% over the past year.


Shareholder returns

5530IndustryMarket
7 Day-0.7%-0.0009%1.1%
30 Day1.6%2.9%2.7%
90 Day-6.3%-6.0%-2.2%
1 Year-7.3%-11.6%-9.1%-12.9%9.6%4.7%
3 Year-6.6%-16.1%-4.2%-14.2%21.6%7.4%
5 Year-16.4%-29.7%-2.6%-17.3%43.1%17.0%

Price Volatility Vs. Market

How volatile is Lungyen Life Service's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lungyen Life Service undervalued compared to its fair value and its price relative to the market?

12.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 5530 (NT$56.9) is trading above our estimate of fair value (NT$52.67)

Significantly Below Fair Value: 5530 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 5530 is good value based on its PE Ratio (12.3x) compared to the Consumer Services industry average (14.5x).

PE vs Market: 5530 is good value based on its PE Ratio (12.3x) compared to the TW market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5530's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 5530 is good value based on its PB Ratio (1.3x) compared to the TW Consumer Services industry average (1.5x).


Next Steps

Future Growth

How is Lungyen Life Service forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

30.6%

Forecasted Consumer Services 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 Lungyen Life Service 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 Lungyen Life Service performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5530 has high quality earnings.

Growing Profit Margin: 5530's current net profit margins (47.2%) are higher than last year (44.7%).


Past Earnings Growth Analysis

Earnings Trend: 5530's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: 5530's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 5530 had negative earnings growth (-17.4%) over the past year, making it difficult to compare to the Consumer Services industry average (9.4%).


Return on Equity

High ROE: 5530's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Lungyen Life Service's financial position?


Financial Position Analysis

Short Term Liabilities: 5530's short term assets (NT$44.0B) do not cover its short term liabilities (NT$45.3B).

Long Term Liabilities: 5530's short term assets (NT$44.0B) exceed its long term liabilities (NT$83.8M).


Debt to Equity History and Analysis

Debt Level: 5530's debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: 5530's debt to equity ratio has reduced from 33.5% to 0.7% over the past 5 years.

Debt Coverage: 5530's debt is well covered by operating cash flow (1106.3%).

Interest Coverage: 5530 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Lungyen Life Service's current dividend yield, its reliability and sustainability?

5.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5530's dividend (5.27%) is higher than the bottom 25% of dividend payers in the TW market (2.52%).

High Dividend: 5530's dividend (5.27%) is low compared to the top 25% of dividend payers in the TW market (5.71%).


Stability and Growth of Payments

Stable Dividend: 5530 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 5530's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65%), 5530'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?

2.6yrs

Average management tenure


CEO

Wei-Lung Liu

2.08yrs

Tenure

NT$45,031,000

Compensation

Mr. Wei-Lung Liu serves as the President of Lungyen Life Service Corporation since April 01, 2018 and served as General Manager since March 27, 2018. Mr. Liu has been Chairman of the Board of Lungyen Life  ...


CEO Compensation Analysis

Compensation vs Market: Wei-Lung's total compensation ($USD1.50M) is above average for companies of similar size in the TW market ($USD398.80K).

Compensation vs Earnings: Insufficient data to compare Wei-Lung's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Wei-Lung Liu
Chairman & President2.08yrsNT$45.03mno data
Shu-Juan Chan
Executive VPno datano datano data
I-Ping Chou
Vice President of Investment Division5.08yrsno datano data
Chi-Yong Wang
Director of Information Divisionno datano datano data
Ming Fu
Vice President of Administration Division1.83yrsno datano data
An-Tzu Niu
Vice President of Marketing Division7.08yrsno datano data
Yung-Cheng Chen
Assistant Vice President of Sales Administration Division3.17yrsno datano data
Shu-Hui Lee
Chief Auditor2yrsno datano data
Jian-Yun Liang
Secretary & Corporate Governance Directorno datano datano data

2.6yrs

Average Tenure

Experienced Management: 5530's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wei-Lung Liu
Chairman & President2.08yrsNT$45.03mno data
Shu Yeh
Independent Director7.92yrsNT$2.97mno data
Fujibayashi Ichiro
Representative Director6.92yrsNT$12.94mno data
Huai Wang
Independent Director1.92yrsNT$2.07mno data
Anthony Lee
Director1.92yrsNT$12.34mno data
Tsen-Seng Chao
Director1.92yrsNT$12.34mno data
Chun-Chung Wang
Independent Director1.92yrsNT$966.00kno data

1.9yrs

Average Tenure

Experienced Board: 5530's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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

Lungyen Life Service Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lungyen Life Service Corporation
  • Ticker: 5530
  • Exchange: GTSM
  • Founded: 1987
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: NT$23.903b
  • Shares outstanding: 420.08m
  • Website: https://www.lungyengroup.com.tw

Number of Employees


Location

  • Lungyen Life Service Corporation
  • No.111, Dongshi Street
  • Xizhi District
  • New Taipei City
  • 221
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5530GTSM (Taipei Exchange)YesCommon StockTWTWDOct 2000

Biography

Lungyen Life Service Corporation provides funeral services in Taiwan. It is also involved in the development and lease of interment premises; sale and rental of residence and business buildings; invests in securities; provision of architecture and civil engineering services; and sale of cremated remains storage facilities. The company was formerly known as Dahan Development Corp. Lungyen Life Service Corporation was founded in 1987 and is based in New Taipei City, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 15:13
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
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.