TSEC:2705

Stock Analysis Report

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Executive Summary

Leofoo Development Co., Ltd. engages in the tourism and travel industry in Taiwan. More Details


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Leofoo Development's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2705 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 2705's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.8%

2705

1.6%

TW Hospitality

-0.1%

TW Market


1 Year Return

67.3%

2705

20.0%

TW Hospitality

41.5%

TW Market

Return vs Industry: 2705 exceeded the TW Hospitality industry which returned 20% over the past year.

Return vs Market: 2705 exceeded the TW Market which returned 41.5% over the past year.


Shareholder returns

2705IndustryMarket
7 Day3.8%1.6%-0.1%
30 Day13.7%14.6%5.6%
90 Day3.5%3.6%15.0%
1 Year67.3%67.3%23.5%20.0%46.5%41.5%
3 Year58.4%58.4%-3.7%-12.6%67.1%48.2%
5 Year20.1%19.5%8.3%-7.2%123.0%83.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Leofoo Development undervalued compared to its fair value and its price relative to the market?

1.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2705 (NT$22) is trading below our estimate of fair value (NT$22.29)

Significantly Below Fair Value: 2705 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2705 is unprofitable, so we can't compare its PE Ratio to the TW Hospitality industry average.

PE vs Market: 2705 is unprofitable, so we can't compare its PE Ratio to the TW market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2705's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2705 is overvalued based on its PB Ratio (3.2x) compared to the TW Hospitality industry average (2.4x).


Next Steps

Future Growth

How is Leofoo Development forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

73.8%

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 Leofoo Development 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 Leofoo Development performed over the past 5 years?

-15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2705 is currently unprofitable.

Growing Profit Margin: 2705 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2705 is unprofitable, and losses have increased over the past 5 years at a rate of 15.4% per year.

Accelerating Growth: Unable to compare 2705's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2705 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-28.3%).


Return on Equity

High ROE: 2705 has a negative Return on Equity (-27.11%), as it is currently unprofitable.


Next Steps

Financial Health

How is Leofoo Development's financial position?


Financial Position Analysis

Short Term Liabilities: 2705's short term assets (NT$669.9M) do not cover its short term liabilities (NT$1.7B).

Long Term Liabilities: 2705's short term assets (NT$669.9M) do not cover its long term liabilities (NT$8.7B).


Debt to Equity History and Analysis

Debt Level: 2705's debt to equity ratio (310.1%) is considered high.

Reducing Debt: 2705's debt to equity ratio has increased from 64.2% to 310.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 2705 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 2705 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 18.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2705's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2705's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2705's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2705's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2705 is not paying a notable dividend for the TW market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2705's dividend in 3 years as they are not forecast to pay a notable one for the TW market.


Next Steps

Management

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


CEO

Leofoo Development 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Leofoo Development Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Leofoo Development Co., Ltd.
  • Ticker: 2705
  • Exchange: TSEC
  • Founded: 1968
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: NT$4.113b
  • Shares outstanding: 186.54m
  • Website: https://www.leofoo.com.tw

Location

  • Leofoo Development Co., Ltd.
  • NO. 60, Gungtzgou
  • Ren'anli
  • Hsinchu
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2705TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDJan 1992

Biography

Leofoo Development Co., Ltd. engages in the tourism and travel industry in Taiwan. It operates hotels under the Courtyard by Marriott Taipei and Leofoo Hotel brands; apartment-style boutique hotel under th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 08:44
End of Day Share Price2021/03/04 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.