TSEC:2727

Stock Analysis Report

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Executive Summary

Wowprime Corp. provides catering services in Taiwan, China, and internationally. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2727 is more volatile than 75% of TW stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 2727's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of TW stocks.


Market Performance


7 Day Return

4.7%

2727

-0.2%

TW Hospitality

-0.7%

TW Market


1 Year Return

145.6%

2727

19.7%

TW Hospitality

39.3%

TW Market

Return vs Industry: 2727 exceeded the TW Hospitality industry which returned 19.7% over the past year.

Return vs Market: 2727 exceeded the TW Market which returned 39.3% over the past year.


Shareholder returns

2727IndustryMarket
7 Day4.7%-0.2%-0.7%
30 Day40.9%11.6%1.0%
90 Day24.2%3.7%10.8%
1 Year160.1%145.6%23.3%19.7%44.2%39.3%
3 Year50.7%28.0%-5.9%-14.6%61.9%43.7%
5 Year37.5%13.6%6.4%-8.8%116.6%78.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2727 (NT$167) is trading below our estimate of fair value (NT$314.18)

Significantly Below Fair Value: 2727 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2727 is poor value based on its PE Ratio (51.2x) compared to the TW Hospitality industry average (34.5x).

PE vs Market: 2727 is poor value based on its PE Ratio (51.2x) compared to the TW market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: 2727 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 2727 is overvalued based on its PB Ratio (3.9x) compared to the TW Hospitality industry average (2.5x).


Next Steps

Future Growth

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

85.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2727's forecast earnings growth (85.8% per year) is above the savings rate (0.8%).

Earnings vs Market: 2727's earnings (85.8% per year) are forecast to grow faster than the TW market (18.1% per year).

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

Revenue vs Market: 2727's revenue (13% per year) is forecast to grow faster than the TW market (10.9% per year).

High Growth Revenue: 2727's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2727's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Wowprime performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2727 has a large one-off loss of NT$131.4M impacting its September 30 2020 financial results.

Growing Profit Margin: 2727's current net profit margins (1.7%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: 2727's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: 2727's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2727 had negative earnings growth (-28.3%) over the past year, making it difficult to compare to the Hospitality industry average (-28.3%).


Return on Equity

High ROE: 2727's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is Wowprime's financial position?


Financial Position Analysis

Short Term Liabilities: 2727's short term assets (NT$5.7B) exceed its short term liabilities (NT$5.5B).

Long Term Liabilities: 2727's short term assets (NT$5.7B) exceed its long term liabilities (NT$2.8B).


Debt to Equity History and Analysis

Debt Level: 2727's debt to equity ratio (5.3%) is considered satisfactory.

Reducing Debt: 2727's debt to equity ratio has increased from 2.3% to 5.3% over the past 5 years.

Debt Coverage: 2727's debt is well covered by operating cash flow (1063.6%).

Interest Coverage: 2727's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Wowprime current dividend yield, its reliability and sustainability?

2.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2727's dividend (2.69%) is higher than the bottom 25% of dividend payers in the TW market (2.01%).

High Dividend: 2727's dividend (2.69%) is low compared to the top 25% of dividend payers in the TW market (4.99%).


Stability and Growth of Payments

Stable Dividend: 2727 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2727 has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (136.4%), 2727'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?

3.6yrs

Average management tenure


CEO

Zheng Chen

0.58

Tenure

Cheng-Hui Chen serves as legal representative and director at Shanghai Xiti Food Management Co., Ltd. and Wowprime Food (Beijing) Co., Ltd. Cheng-Hui Chen serves as Chairman at HOPPIME LTD. Cheng-Hui Chen ...


Leadership Team

NamePositionTenureCompensationOwnership
Zheng Chen
Chairman0.58yrno data5.07%
NT$ 643.4m
Guo Xiong Wang
Vice Chairman and President10yrsno datano data
Chien-Lun Chiu
Financial & Accounting Officer3.58yrsno datano data
Rong-Hui Zheng
Vice Presidentno datano data0.039%
NT$ 5.0m
Yi-Shan Wang
Vice Presidentno datano data0.015%
NT$ 1.9m

3.6yrs

Average Tenure

Experienced Management: 2727's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zheng Chen
Chairman0.58yrno data5.07%
NT$ 643.4m
Guo Xiong Wang
Vice Chairman and President10yrsno datano data
Yuan Zhang Cao
Director10yrsno datano data
Yu Fang Hong
Member of Supervisory Boardno datano datano data
Cai Qing Liu
Member of the Supervisory Boardno datano datano data
Sen Bin Li
Director10yrsno data3.68%
NT$ 467.6m
Xiu Hui Yang
Director0.083yrno data2.58%
NT$ 326.9m
Sheng Xiang Zhang
Director9yrsno data0.98%
NT$ 124.0m
Yu Min Wang
Supervisorno datano datano data
Yong Du Wei
Director9yrsno datano data
Wen Qin Wu
Independent Director9yrsno datano data
Sen-Pin Lee
Vice President of the Board0.58yrno datano data

9.0yrs

Average Tenure

Experienced Board: 2727's board of directors are considered experienced (9 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

Wowprime Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wowprime Corp.
  • Ticker: 2727
  • Exchange: TSEC
  • Founded: 1993
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: NT$12.691b
  • Shares outstanding: 76.00m
  • Website: https://www.wowprime.com

Location

  • Wowprime Corp.
  • No.218, Taiwan Boulevard
  • 29th Floor
  • Taichung
  • 403
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2727TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDApr 2011

Biography

Wowprime Corp. provides catering services in Taiwan, China, and internationally. The company offers Western steak, Japanese style cuisine, original grilled, Hokkaido kelp hotpot, teppanyaki, Japanese pork ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 08:46
End of Day Share Price2021/03/05 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.