Dr. Wu Skincare (TPEX:6523) - Share price, News & Analysis

Q: What is the Fair Price of 6523 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6523 (NT$81.6) is trading below our estimate of [[fair value]] (NT$141.06)

6523 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	2/6

6523 Stock Overview

Dr. Wu Skincare Co., Ltd. develops and sells skincare and cosmetics products in Taiwan and internationally.

Rewards

Trading at 42.2% below our estimate of its fair value

Risk Analysis

Dividend of 13.75% is not well covered by earnings or forecast to be in the next 3 years

Profit margins (28.6%) are lower than last year (84.9%)

Dr. Wu Skincare Competitors

Jourdeness Group

TWSE:4190

NT$4.2b

Maxigen Biotech

TWSE:1783

NT$3.2b

Taisun Int'l (Holding)

TWSE:8480

NT$2.5b

Maywufa

TWSE:1731

NT$2.4b

Price History & Performance

Summary of all time highs, changes and price drops for Dr. Wu Skincare
Historical stock prices
Current Share Price	NT$81.60
52 Week High	NT$152.50
52 Week Low	NT$69.40
Beta	0.82
1 Month Change	2.00%
3 Month Change	2.13%
1 Year Change	11.63%
3 Year Change	32.47%
5 Year Change	-37.23%
Change since IPO	-55.49%

Shareholder Returns

	6523	TW Personal Products	TW Market
7D	-0.9%	-2.8%	1.3%
1Y	11.6%	-17.6%	-13.2%

Return vs Industry: 6523 exceeded the TW Personal Products industry which returned -17.6% over the past year.

Return vs Market: 6523 exceeded the TW Market which returned -13.2% over the past year.

Price Volatility

Is 6523's price volatile compared to industry and market?
6523 volatility
6523 Average Weekly Movement	4.2%
Personal Products Industry Average Movement	4.6%
Market Average Movement	5.1%
10% most volatile stocks in TW Market	8.4%
10% least volatile stocks in TW Market	2.5%

Stable Share Price: 6523 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6523's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	n/a	Eric Wu	https://www.drwu.com

Dr. Wu Skincare Co., Ltd. develops and sells skincare and cosmetics products in Taiwan and internationally. The company offers cleansers, masks, toners, serums, lotion/cream/gel, UV/DD creams, and eye care products, as well as makeup and body products. It also provides products for acne and pores, blackheads, dry skin, signs of aging, dull and spotty skin, sensitive skin, whitening, and emergency care.

Dr. Wu Skincare Fundamentals Summary

How do Dr. Wu Skincare's earnings and revenue compare to its market cap?
6523 fundamental statistics
Market Cap	NT$3.68b
Earnings (TTM)	NT$322.54m
Revenue (TTM)	NT$1.13b

11.4x

P/E Ratio

3.3x

P/S Ratio

Is 6523 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6523 income statement (TTM)
Revenue	NT$1.13b
Cost of Revenue	NT$415.45m
Gross Profit	NT$710.43m
Other Expenses	NT$387.89m
Earnings	NT$322.54m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	7.16
Gross Margin	63.10%
Net Profit Margin	28.65%
Debt/Equity Ratio	0%

How did 6523 perform over the long term?

See historical performance and comparison

Dividends

13.7%

Current Dividend Yield

157%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6523 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6523?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6523. This is calculated by dividing 6523's market cap by their current preferred multiple.
What is 6523's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$3.68b

6523 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2x
Enterprise Value/EBITDA	5.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 6523's PE Ratio compare to its peers?

6523 PE Ratio vs Peers

The above table shows the PE ratio for 6523 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	19x
4190 Jourdeness Group	18.1x	n/a	NT$4.2b
1783 Maxigen Biotech	32.7x	n/a	NT$3.2b
8480 Taisun Int'l (Holding)	10.9x	n/a	NT$2.5b
1731 Maywufa	14.1x	n/a	NT$2.4b
6523 Dr. Wu Skincare	11.4x	n/a	NT$3.7b

Price-To-Earnings vs Peers: 6523 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (19x).

Price to Earnings Ratio vs Industry

How does 6523's PE Ratio compare vs other companies in the Asian Personal Products Industry?

Price-To-Earnings vs Industry: 6523 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the TW Personal Products industry average (19.2x)

Price to Earnings Ratio vs Fair Ratio

What is 6523's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6523 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6523's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 6523 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6523 (NT$81.6) is trading below our estimate of fair value (NT$141.06)

Significantly Below Fair Value: 6523 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Dr. Wu Skincare forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.6%

Forecasted Household 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 Dr. Wu Skincare 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.

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Examine whether Dr. Wu Skincare is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Dr. Wu Skincare performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

32.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6523 has high quality earnings.

Growing Profit Margin: 6523's current net profit margins (28.6%) are lower than last year (84.9%).

Past Earnings Growth Analysis

Earnings Trend: 6523's earnings have grown significantly by 32.8% per year over the past 5 years.

Accelerating Growth: 6523's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6523 had negative earnings growth (-53.6%) over the past year, making it difficult to compare to the Personal Products industry average (-29.7%).

Return on Equity

High ROE: 6523's Return on Equity (20.8%) is considered high.

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Financial Health

How is Dr. Wu Skincare's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6523's short term assets (NT$1.7B) exceed its short term liabilities (NT$302.2M).

Long Term Liabilities: 6523's short term assets (NT$1.7B) exceed its long term liabilities (NT$15.9M).

Debt to Equity History and Analysis

Debt Level: 6523 is debt free.

Reducing Debt: 6523 had no debt 5 years ago.

Debt Coverage: 6523 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6523 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Dr. Wu Skincare current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

13.75%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6523's dividend (13.75%) is higher than the bottom 25% of dividend payers in the TW market (2.53%).

High Dividend: 6523's dividend (13.75%) is in the top 25% of dividend payers in the TW market (6.58%)

Stability and Growth of Payments

Stable Dividend: 6523 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6523's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (156.7%), 6523's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (169.1%), 6523's dividend payments are not well covered by cash flows.

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Management

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

2.3yrs

Average management tenure

CEO

Eric Wu

no data

Tenure

Dr. Yi-Ju Wu, also known as Eric, is a Founder of Dr. Wu Skincare Co., Ltd and serves as its Chairman and has been its Director since February 27, 2003 and serves as its Chief Executive Officer.

Leadership Team

Experienced Management: 6523's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: 6523's board of directors are considered experienced (4.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/11 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31