TSEC:1216

Stock Analysis Report

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Executive Summary

Uni-President Enterprises Corp. manufactures, processes, and sells soft drinks, foods, animal feeds, and flour in Taiwan, China, and internationally.


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Uni-President Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1216 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

1216

2.0%

TW Food

4.7%

TW Market


1 Year Return

-9.0%

1216

-3.1%

TW Food

10.4%

TW Market

Return vs Industry: 1216 underperformed the TW Food industry which returned -3.1% over the past year.

Return vs Market: 1216 underperformed the TW Market which returned 10.4% over the past year.


Shareholder returns

1216IndustryMarket
7 Day1.5%2.0%4.7%
30 Day5.4%4.7%7.0%
90 Day1.7%2.8%1.9%
1 Year-6.1%-9.0%0.3%-3.1%15.4%10.4%
3 Year44.6%25.7%36.9%20.8%26.2%11.5%
5 Year78.9%47.2%74.1%44.9%50.5%23.1%

Price Volatility Vs. Market

How volatile is Uni-President Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Uni-President Enterprises undervalued compared to its fair value and its price relative to the market?

35.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1216 (NT$73.9) is trading below our estimate of fair value (NT$113.78)

Significantly Below Fair Value: 1216 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1216 is poor value based on its PE Ratio (23.1x) compared to the Food industry average (18.5x).

PE vs Market: 1216 is poor value based on its PE Ratio (23.1x) compared to the TW market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: 1216 is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: 1216 is overvalued based on its PB Ratio (3.8x) compared to the TW Food industry average (1.8x).


Next Steps

Future Growth

How is Uni-President Enterprises forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1216's forecast earnings growth (5.8% per year) is above the savings rate (0.9%).

Earnings vs Market: 1216's earnings (5.8% per year) are forecast to grow slower than the TW market (15.2% per year).

High Growth Earnings: 1216's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1216's revenue (3.8% per year) is forecast to grow slower than the TW market (7.4% per year).

High Growth Revenue: 1216's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1216's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Uni-President Enterprises performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1216 has high quality earnings.

Growing Profit Margin: 1216's current net profit margins (4.1%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: 1216's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: 1216's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1216 had negative earnings growth (-1.3%) over the past year, making it difficult to compare to the Food industry average (-0.3%).


Return on Equity

High ROE: 1216's Return on Equity (15.2%) is considered low.


Next Steps

Financial Health

How is Uni-President Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: 1216's short term assets (NT$161.7B) exceed its short term liabilities (NT$148.2B).

Long Term Liabilities: 1216's short term assets (NT$161.7B) exceed its long term liabilities (NT$145.9B).


Debt to Equity History and Analysis

Debt Level: 1216's debt to equity ratio (53.5%) is considered high.

Reducing Debt: 1216's debt to equity ratio has reduced from 91.3% to 53.5% over the past 5 years.

Debt Coverage: 1216's debt is well covered by operating cash flow (62.2%).

Interest Coverage: 1216 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Uni-President Enterprises's current dividend yield, its reliability and sustainability?

3.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1216's dividend (3.38%) is higher than the bottom 25% of dividend payers in the TW market (2.46%).

High Dividend: 1216's dividend (3.38%) is low compared to the top 25% of dividend payers in the TW market (5.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1216 has been paying a dividend for less than 10 years.

Growing Dividend: 1216's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.1%), 1216's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1216's dividends in 3 years are forecast to be covered by earnings (76.1% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Jau-Ka Hwang

1

Tenure

Mr. Jau-Ka Hwang has been President of Uni-President Enterprises Corp. since June 26, 2019. Mr. Hwang served as Senior Vice President of Uni-President Enterprises Corporation since July 1, 2011 until 2019. ...


Leadership Team

NamePositionTenureCompensationOwnership
Chih-Hsien Lo
Chairman & Group Chief Strategy Officerno dataNT$125.12m0.071% NT$300.0m
Jau-Ka Hwang
President1yrno datano data
Ching-Tien Li
President1.42yrsno datano data
Kuo-Hui Chen
VP & CFO2.92yrsno datano data
Tsung-Pin Wu
Chief Accounting Officer & VP6.83yrsno datano data
Alice Ou
Head of IRno datano datano data
Tsung-Ming Su
Senior Vice President12.08yrsno datano data
Lung-Yi Lin
Vice Chief Executive Officer13yrsNT$3.10mno data
Fu-Jung Lai
Chief Corporate Governance Officer & VPno datano datano data

3.8yrs

Average Tenure

62yo

Average Age

Experienced Management: 1216's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chih-Hsien Lo
Chairman & Group Chief Strategy Officerno dataNT$125.12m0.071% NT$300.0m
Chung-Ho Wu
Representative Director21yrsNT$27.37m0.65% NT$2.7b
Chang-Sheng Lin
Director40yrsNT$27.37m0.93% NT$3.9b
Po-Ming Hou
Director28yrsNT$27.37m2.6% NT$10.9b
Ping-Chih Wu
Representative Director28yrsNT$27.37m0.83% NT$3.5b
Yun Lin
Independent Director7yrsNT$1.41mno data
Chao-Tang Yue
Independent Director7yrsNT$1.41mno data
Shiow-Ling Kao
Representative Director7yrsno data1.64% NT$6.9b
Po-Yu Hou
Director10yrsNT$27.37m2.27% NT$9.5b
Hong-Te Lu
Independent Director5yrsNT$1.41mno data

10.0yrs

Average Tenure

69yo

Average Age

Experienced Board: 1216's board of directors are seasoned and experienced ( 10 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

Uni-President Enterprises Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Uni-President Enterprises Corp.
  • Ticker: 1216
  • Exchange: TSEC
  • Founded: 1967
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: NT$419.901b
  • Shares outstanding: 5.68b
  • Website: https://www.uni-president.com.tw

Number of Employees


Location

  • Uni-President Enterprises Corp.
  • No. 301, Zhongzheng Road
  • Yongkang Disctrict
  • Tainan City
  • 71001
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1216TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDJan 1992

Biography

Uni-President Enterprises Corp. manufactures, processes, and sells soft drinks, foods, animal feeds, and flour in Taiwan, China, and internationally. The company provides edible oils, instant noodles, dairy products, tea beverages, coffee drinks, baking products, ice cream products, frozen prepared foods, meat products, healthy food products, sauce and seasoning, flour, animal and aquatic feeds, soft drinks, rice, juices, bottled water, dessert, and vegetables. It also offers tinplate and cans, PET bottles, containers, and glass products for packaging; information services; cosmetics; elevators; and cleaning instruments, as well as researches, manufactures, distributes, and sells, pharmaceutical products. In addition, the company engages in construction of buildings; wholesale and retail of food; advertising activities; management of professional baseball team; entertainment business; operation of shopping malls, department stores, international trades, etc.; construction, development, and operation of an MRT stations; car rental activities; tourist agency business; and manufacture of chemical materials, instruments, etc. Further, it is involved in sales and leasing of real estate properties; enterprise management consultancy business; delivery of magazines, etc.; personal and property insurance activities; arts and culture activities; operation of gymnasiums and spas, fast food and coffee chain restaurants, and electronic tickets and electronic related business; wholesale of medicines and medical appliances; and professional investment activities. Additionally, the company operates gas stations, retail channels and distribution centers, book stores, etc., as well as acts as a collection agent for government institutions. Uni-President Enterprises Corp. was founded in 1967 and is headquartered in Tainan City, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 16:15
End of Day Share Price2020/06/05 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.