TSEC:2010

Stock Analysis Report

Chun Yuan Steel Industry

Executive Summary

Chun Yuan Steel Industry Co., Ltd. provides metal solutions primarily in Taiwan.

Rewards

Trading at 68.7% below its fair value

Risk Analysis

Earnings have declined by -17.47% per year over past 5 years

Debt is not well covered by operating cash flow

Dividend of 5.57% is not well covered by earnings

Profit margins (1%) are lower than last year (2%)



Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Chun Yuan Steel Industry's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2010 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

2010

0.7%

TW Metals and Mining

1.9%

TW Market


1 Year Return

-1.5%

2010

-9.1%

TW Metals and Mining

16.3%

TW Market

Return vs Industry: 2010 exceeded the TW Metals and Mining industry which returned -9.1% over the past year.

Return vs Market: 2010 underperformed the TW Market which returned 16.3% over the past year.


Shareholder returns

2010IndustryMarket
7 Day0%0.7%1.9%
30 Day-1.5%-2.8%-2.2%
90 Day-1.5%0.5%2.4%
1 Year3.9%-1.5%-5.4%-9.1%21.5%16.3%
3 Year-5.0%-19.0%2.8%-7.7%34.5%19.1%
5 Year12.0%-13.0%13.9%-4.0%50.3%23.5%

Price Volatility Vs. Market

How volatile is Chun Yuan Steel Industry's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chun Yuan Steel Industry undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2010 (NT$10.05) is trading below our estimate of fair value (NT$32.15)

Significantly Below Fair Value: 2010 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2010 is poor value based on its PE Ratio (39.2x) compared to the Metals and Mining industry average (16.8x).

PE vs Market: 2010 is poor value based on its PE Ratio (39.2x) compared to the TW market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2010's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2010 is good value based on its PB Ratio (0.6x) compared to the TW Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Chun Yuan Steel Industry forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.0%

Forecasted Materials 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 Chun Yuan Steel Industry 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.


Next Steps

Past Performance

How has Chun Yuan Steel Industry performed over the past 5 years?

-17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2010 has high quality earnings.

Growing Profit Margin: 2010's current net profit margins (1%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: 2010's earnings have declined by -17.5% per year over the past 5 years.

Accelerating Growth: 2010's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2010 had negative earnings growth (-55.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (-24.4%).


Return on Equity

High ROE: 2010's Return on Equity (1.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chun Yuan Steel Industry's financial position?


Financial Position Analysis

Short Term Liabilities: 2010's short term assets (NT$11.5B) exceed its short term liabilities (NT$6.2B).

Long Term Liabilities: 2010's short term assets (NT$11.5B) exceed its long term liabilities (NT$985.1M).


Debt to Equity History and Analysis

Debt Level: 2010's debt to equity ratio (42.5%) is considered high.

Reducing Debt: 2010's debt to equity ratio has increased from 38.7% to 42.5% over the past 5 years.

Debt Coverage: 2010's debt is not well covered by operating cash flow (12.1%).

Interest Coverage: 2010's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: 2010 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2010's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

What is Chun Yuan Steel Industry's current dividend yield, its reliability and sustainability?

5.57%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%2.6%markettop25%6.0%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 2010's dividend (5.57%) is higher than the bottom 25% of dividend payers in the TW market (2.64%).

High Dividend: 2010's dividend (5.57%) is low compared to the top 25% of dividend payers in the TW market (5.96%).


Stability and Growth of Payments

Stable Dividend: 2010's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2010's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (218.7%), 2010'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?


CEO

Chun Yuan Steel Industry has no CEO, or we have no data on them.


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

Chun Yuan Steel Industry Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chun Yuan Steel Industry Co., Ltd.
  • Ticker: 2010
  • Exchange: TSEC
  • Founded: 1965
  • Industry: Steel
  • Sector: Materials
  • Market Cap: NT$6.509b
  • Shares outstanding: 647.66m
  • Website: https://www.cysco.com.tw

Location

  • Chun Yuan Steel Industry Co., Ltd.
  • No. 502, Fu-Hsing North Road
  • 6th and 7th Floors
  • Taipei City
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2010TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDJan 1992

Biography

Chun Yuan Steel Industry Co., Ltd. provides metal solutions primarily in Taiwan. It operates through seven divisions: Commercials Steel, Commercials Steel Regional, Electrical Steel, Special Steel, Special Steel Strip, Automated Storage System, and Construction. The company offers hot and cold rolled steel sheets and bar coils; enamel and coated steel sheets and bar coils; aluminum and alloy-aluminum sheets and coils; magnetic steel sheets comprising motor core EI sheets and magnetic steel coils; special steel materials, such as plate/bar/round/square/angled steel; cold rolled carbon bar steel coils; and copper products, including brass and phosphor bronze. It also provides steel base and reinforced plates; machinery products; steel structures; and H-beam steel and cellular H-beam steel products for welded structures. In addition, the company offers storage equipment, including logistics equipment, 3-D automated storage systems, and shelves for heavy materials; castings, such as container angles; and stamping parts comprising autos and electric appliances parts. Further, it provides civil and construction engineering services for factory buildings, multi-storey buildings, and bridges. Chun Yuan Steel Industry Co., Ltd. was founded in 1965 and is headquartered 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 Analysis2020/02/16 14:35
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.