TSEC:2882

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Cathay Financial Holding

Executive Summary

Cathay Financial Holding Co., Ltd., through its subsidiaries, provides various financial services in Taiwan.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Cathay Financial Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2882 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.9%

2882

3.6%

TW Insurance

4.7%

TW Market


1 Year Return

2.1%

2882

0.4%

TW Insurance

10.4%

TW Market

Return vs Industry: 2882 exceeded the TW Insurance industry which returned 0.4% over the past year.

Return vs Market: 2882 underperformed the TW Market which returned 10.4% over the past year.


Shareholder returns

2882IndustryMarket
7 Day3.9%3.6%4.7%
30 Day7.1%6.9%7.0%
90 Day5.3%0.6%1.9%
1 Year5.8%2.1%3.8%0.4%15.4%10.4%
3 Year0.4%-11.1%6.2%-5.3%26.2%11.5%
5 Year-3.1%-22.0%-4.6%-22.2%50.5%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cathay Financial Holding undervalued compared to its fair value and its price relative to the market?

22.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2882 (NT$41.6) is trading below our estimate of fair value (NT$53.72)

Significantly Below Fair Value: 2882 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2882 is good value based on its PE Ratio (7.6x) compared to the Insurance industry average (7.9x).

PE vs Market: 2882 is good value based on its PE Ratio (7.6x) compared to the TW market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2882 is poor value based on its PEG Ratio (11.8x)


Price to Book Ratio

PB vs Industry: 2882 is good value based on its PB Ratio (0.8x) compared to the TW Insurance industry average (0.9x).


Next Steps

Future Growth

How is Cathay Financial Holding forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2882's forecast earnings growth (0.6% per year) is below the savings rate (0.9%).

Earnings vs Market: 2882's earnings (0.6% per year) are forecast to grow slower than the TW market (15.2% per year).

High Growth Earnings: 2882's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2882's revenue is expected to decline over the next 3 years (-17.4% per year).

High Growth Revenue: 2882's revenue is forecast to decline over the next 3 years (-17.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2882's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has Cathay Financial Holding performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2882 has high quality earnings.

Growing Profit Margin: 2882's current net profit margins (6.4%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: 2882's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: 2882's earnings growth over the past year (53.4%) exceeds its 5-year average (1.5% per year).

Earnings vs Industry: 2882 earnings growth over the past year (53.4%) exceeded the Insurance industry 35.9%.


Return on Equity

High ROE: 2882's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Cathay Financial Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 2882's short term assets (NT$3,621.1B) exceed its short term liabilities (NT$113.6B).

Long Term Liabilities: 2882's short term assets (NT$3,621.1B) do not cover its long term liabilities (NT$9,255.0B).


Debt to Equity History and Analysis

Debt Level: 2882's debt to equity ratio (68.6%) is considered high.

Reducing Debt: 2882's debt to equity ratio has increased from 68.4% to 68.6% over the past 5 years.

Debt Coverage: 2882's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: 2882's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Cathay Financial Holding's current dividend yield, its reliability and sustainability?

4.33%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2882's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2882'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 2882's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2882's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2882 is not paying a notable dividend for the TW market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2882'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?

9.3yrs

Average management tenure


CEO

Chang-Ken Lee (60yo)

9.33yrs

Tenure

Mr. Chang-Ken Lee has been the President of Cathay Financial Holding Co., Ltd. since February 25, 2011. He is Chairman of Financial Planning Association of Taiwan. He is Managing Director of CDIB & Partner ...


Leadership Team

NamePositionTenureCompensationOwnership
Chang-Ken Lee
President & Director9.33yrsno data0.00090% NT$5.5m
Grace Chen
CFO & Senior EVP16.42yrsno datano data
Sophia Cheng
Chief Investment Officer & Senior EVP7.92yrsno datano data
Chia-Sheng Chang
Chief Information Officer & Senior EVP5.17yrsno data0.000040% NT$244.6k
Yajou Chang
Manager of IR Departmentno datano datano data
Judie Hsu
Chief Compliance Officer & Executive VP5.25yrsno datano data
Shan-Chih Liu
Senior Vice President19.42yrsno datano data
Shu-Ying Wu
Executive Vice President7.08yrsno data0.000060% NT$367.0k
David P. Sun
Head of Marketing Planning Div. & Senior EVP12.33yrsno data0.000090% NT$550.5k
Chang-Chao Liao
Senior Vice President11.17yrsno datano data

9.3yrs

Average Tenure

55yo

Average Age

Experienced Management: 2882's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chang-Ken Lee
President & Director9.33yrsno data0.00090% NT$5.5m
Feng-Chiang Miau
Independent Director4yrsno datano data
Hong-Tu Tsai
Chairman of the Boardno datano data0.51% NT$3.1b
Tseng-Yun Tsai
Honorary Vice Chairmanno datano datano data
Ming-Ho Hsiung
Director13yrsno data0.00042% NT$2.6m
Tiao-Kuei Huang
Director9yrsno data0.0022% NT$13.3m
Cheng-Chiu Tsai
Director13yrsno data0.0042% NT$25.8m
Tsu-Pei Chen
Vice Chairman of the Boardno datano data0.0010% NT$6.4m
Jen-Ho Chang
Chairman of Cathay Venture Incno datano datano data
Yung-Do Way
Independent Director3yrsno datano data

9.5yrs

Average Tenure

67yo

Average Age

Experienced Board: 2882's board of directors are considered experienced (9.5 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 been diluted in the past year, with total shares outstanding growing by 17%.


Top Shareholders

Company Information

Cathay Financial Holding Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cathay Financial Holding Co., Ltd.
  • Ticker: 2882
  • Exchange: TSEC
  • Founded: 2001
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: NT$611.624b
  • Shares outstanding: 14.70b
  • Website: https://www.cathayholdings.com

Number of Employees


Location

  • Cathay Financial Holding Co., Ltd.
  • No.296, Ren’ai Road
  • Sec. 4
  • Taipei City
  • 106
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2882TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDDec 2001
CHYF.FOTCPK (Pink Sheets LLC)SP GDR REG SUSUSDFeb 2003
CFHSLSE (London Stock Exchange)SP GDR REG SGBUSDFeb 2003
CATFHBDL (Bourse de Luxembourg)SP GDR REG SLUUSDFeb 2003
2882ATSEC (Taiwan Stock Exchange)A PRF SHARE TWD10TWTWDJan 2017
2882BTSEC (Taiwan Stock Exchange)B PRF SHARE TWD10TWTWDAug 2018

Biography

Cathay Financial Holding Co., Ltd., through its subsidiaries, provides various financial services in Taiwan. The company operates through five segments: Banking, Life Insurance, Property Insurance, Securities, and Other. It provides foreign exchange and guarantee, foreign currency investment advisory, trust, offshore banking, and other financial services. The company also offers traditional, investment-linked, and annuity insurance products; fire insurance, marine insurance, land and air insurance, liability insurance, financial guarantee insurance, reinsurance, and other insurance products; and financial planning services and policy loan services. In addition, it provides securities brokerage, discretionary and underwriting, and security financial services, as well as other financial products. Further, the company also provides real estate investment and management, wealth management, venture capital, asset management, fund management, banking, futures, risk management software, and securities investment consulting services. Cathay Financial Holding Co., Ltd. was founded in 2001 and is based in Taipei 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 15:47
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.