TSEC:2706

Stock Analysis Report

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Executive Summary

First Hotel Company Ltd. operates a hotel under the First Hotel name in Taiwan. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

How has First Hotel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2706 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 2706's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

2706

1.6%

TW Hospitality

-0.1%

TW Market


1 Year Return

-6.4%

2706

20.0%

TW Hospitality

41.5%

TW Market

Return vs Industry: 2706 underperformed the TW Hospitality industry which returned 20% over the past year.

Return vs Market: 2706 underperformed the TW Market which returned 41.5% over the past year.


Shareholder returns

2706IndustryMarket
7 Day-1.8%1.6%-0.1%
30 Day3.0%14.6%5.6%
90 Day-0.4%3.6%15.0%
1 Year-3.3%-6.4%23.5%20.0%46.5%41.5%
3 Year0.006%-7.9%-3.7%-12.6%67.1%48.2%
5 Year-3.5%-13.0%8.3%-7.2%123.0%83.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is First Hotel undervalued compared to its fair value and its price relative to the market?

41.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2706 (NT$13.85) is trading above our estimate of fair value (NT$4.03)

Significantly Below Fair Value: 2706 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2706 is poor value based on its PE Ratio (41.7x) compared to the TW Hospitality industry average (35.1x).

PE vs Market: 2706 is poor value based on its PE Ratio (41.7x) compared to the TW market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2706's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2706 is good value based on its PB Ratio (0.8x) compared to the TW Hospitality industry average (2.4x).


Next Steps

Future Growth

How is First Hotel 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 First Hotel 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 First Hotel performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2706 has high quality earnings.

Growing Profit Margin: 2706's current net profit margins (58.9%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: 2706's earnings have declined by 3.6% per year over the past 5 years.

Accelerating Growth: 2706's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2706 had negative earnings growth (-70.8%) over the past year, making it difficult to compare to the Hospitality industry average (-28.3%).


Return on Equity

High ROE: 2706's Return on Equity (1.9%) is considered low.


Next Steps

Financial Health

How is First Hotel's financial position?


Financial Position Analysis

Short Term Liabilities: 2706's short term assets (NT$2.7B) exceed its short term liabilities (NT$354.7M).

Long Term Liabilities: 2706's short term assets (NT$2.7B) exceed its long term liabilities (NT$1.3B).


Debt to Equity History and Analysis

Debt Level: 2706 is debt free.

Reducing Debt: 2706 has not had any debt for past 5 years.

Debt Coverage: 2706 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 2706 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is First Hotel current dividend yield, its reliability and sustainability?

3.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2706's dividend (3.25%) is higher than the bottom 25% of dividend payers in the TW market (1.98%).

High Dividend: 2706's dividend (3.25%) is low compared to the top 25% of dividend payers in the TW market (4.97%).


Stability and Growth of Payments

Stable Dividend: 2706's dividends per share have been stable in the past 10 years.

Growing Dividend: 2706's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (135.6%), 2706's dividend payments are not 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?


CEO

First Hotel 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

First Hotel Company Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Hotel Company Ltd.
  • Ticker: 2706
  • Exchange: TSEC
  • Founded: NaN
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: NT$6.925b
  • Shares outstanding: 500.00m
  • Website: https://www.firsthoteltaipei.com

Number of Employees


Location

  • First Hotel Company Ltd.
  • 63 Nanking East Road
  • Section 2
  • Taipei
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2706TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDJan 1992

Biography

First Hotel Company Ltd. operates a hotel under the First Hotel name in Taiwan. The company’s hotel consists of executive, business, ADA, and meeting rooms, as well as suites, fitness center, gift shops, a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 08:43
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.