TSEC:1717

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Eternal Materials

Executive Summary

Eternal Materials Co., Ltd. manufactures and sells resin, high performance, and electronic materials. More Details


Snowflake Analysis

Adequate balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1717 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1717's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.6%

1717

0.5%

TW Chemicals

0.9%

TW Market


1 Year Return

33.5%

1717

-3.5%

TW Chemicals

18.7%

TW Market

Return vs Industry: 1717 exceeded the TW Chemicals industry which returned -4% over the past year.

Return vs Market: 1717 exceeded the TW Market which returned 17.8% over the past year.


Shareholder returns

1717IndustryMarket
7 Day2.6%0.5%0.9%
30 Day5.5%8.2%7.1%
90 Day3.0%9.9%8.2%
1 Year39.1%33.5%0.6%-3.5%23.0%18.7%
3 Year33.5%21.6%6.7%-7.5%44.9%28.8%
5 Year66.8%39.0%45.9%15.1%94.4%60.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1717 (NT$35.5) is trading above our estimate of fair value (NT$25.68)

Significantly Below Fair Value: 1717 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1717 is good value based on its PE Ratio (19.1x) compared to the TW Chemicals industry average (19.4x).

PE vs Market: 1717 is poor value based on its PE Ratio (19.1x) compared to the TW market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1717's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1717 is overvalued based on its PB Ratio (2.1x) compared to the TW Chemicals industry average (1.2x).


Next Steps

Future Growth

How is Eternal Materials forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 1717's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if 1717's earnings are forecast to grow faster than the TW market

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

Revenue vs Market: 1717's revenue (3.9% per year) is forecast to grow slower than the TW market (8.7% per year).

High Growth Revenue: 1717's revenue (3.9% 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 1717's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Eternal Materials performed over the past 5 years?

-7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1717 has high quality earnings.

Growing Profit Margin: 1717's current net profit margins (6.3%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: 1717's earnings have declined by 7.9% per year over the past 5 years.

Accelerating Growth: 1717's earnings growth over the past year (9%) exceeds its 5-year average (-7.9% per year).

Earnings vs Industry: 1717 earnings growth over the past year (9%) exceeded the Chemicals industry 5.9%.


Return on Equity

High ROE: 1717's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Eternal Materials's financial position?


Financial Position Analysis

Short Term Liabilities: 1717's short term assets (NT$30.2B) exceed its short term liabilities (NT$13.4B).

Long Term Liabilities: 1717's short term assets (NT$30.2B) exceed its long term liabilities (NT$18.3B).


Debt to Equity History and Analysis

Debt Level: 1717's debt to equity ratio (93.7%) is considered high.

Reducing Debt: 1717's debt to equity ratio has increased from 78.3% to 93.7% over the past 5 years.

Debt Coverage: 1717's debt is well covered by operating cash flow (23.9%).

Interest Coverage: 1717's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Eternal Materials's current dividend yield, its reliability and sustainability?

3.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1717's dividend (3.94%) is higher than the bottom 25% of dividend payers in the TW market (2.15%).

High Dividend: 1717's dividend (3.94%) is low compared to the top 25% of dividend payers in the TW market (5.24%).


Stability and Growth of Payments

Stable Dividend: 1717's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1717's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.2%), 1717's payments are 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?

1.7yrs

Average management tenure


CEO

Kuo-Lun Kao

no data

Tenure

Mr. Kuo-Lun Kao has been Chief Executive Officer of Eternal Materials Co.,Ltd. and Director since July 15, 1992. He had been Co-Chief Executive Officer of Eternal Materials Co.,Ltd. since November 11, 201...


Leadership Team

NamePositionTenureCompensationOwnership
Kuo-Lun Kao
Chairman & CEOno datano datano data
Chin-Kun Hsieh
Vice Chairman & Chief Strategy Officerno datano datano data
Hui-Kuan Mao
President & COO1.42yrsno data0.018%
NT$ 7.6m
Bing-Cheng Liu
Finance Manager1.92yrsno datano data
Hui-Fang Su
Accounting Manager6.33yrsno datano data
Jui-Hsin Chu
Chief Administration Officer0.83yrno datano data
Heng-Ning Liao
VP & COO of Resins Materials Business Group4.25yrsno data0.020%
NT$ 8.9m
Tzu-Fei Shiao
Chief Strategy Officer & Director22.58yrsno datano data
Chin-Yuan Chen
VP & COO of High Performance Materials Business Unit1.25yrsno datano data
Chin-Cheng Pan
Chief Operating Officer of New Business Unit & High Performance Materials Specialty Materials Div.0.25yrno datano data

1.7yrs

Average Tenure

Experienced Management: 1717's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kuo-Lun Kao
Chairman & CEOno datano datano data
Chin-Kun Hsieh
Vice Chairman & Chief Strategy Officerno datano datano data
Tzu-Fei Shiao
Chief Strategy Officer & Director22.58yrsno datano data
Huai-Kung Yang
Director48.5yrsno data1.3%
NT$ 569.4m
Hong Zhang
Member of the Supervisory Board7.42yrsno datano data
Wu-Tung Huang
Director44.5yrsno data0.50%
NT$ 217.5m
Chun-Ping Ko
Director25.58yrsno datano data
Shu-Fen Yen
Director1.42yrsno datano data
Lee-Jung Hung
Independent Director4.42yrsno datano data
I-Heng Chen
Independent Director0.42yrno datano data
Ying-Chih Kao
Director10.42yrsno datano data
Li-Chun Lo
Independent Director1.42yrsno datano data

10.4yrs

Average Tenure

Experienced Board: 1717's board of directors are seasoned and experienced ( 10.4 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

Eternal Materials Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eternal Materials Co., Ltd.
  • Ticker: 1717
  • Exchange: TSEC
  • Founded: 1964
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: NT$43.658b
  • Shares outstanding: 1.24b
  • Website: https://www.eternal-group.com

Location

  • Eternal Materials Co., Ltd.
  • No. 578, Jiangong Road
  • Sanmin District
  • Kaohsiung
  • 807
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1717TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDMay 1994

Biography

Eternal Materials Co., Ltd. manufactures and sells resin, high performance, and electronic materials. The company offers resins materials, including polyester polyol, polyurethane, alkyd, solvent and water...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 08:33
End of Day Share Price2020/11/26 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.