Industry Analysts Just Upgraded Their Taiwan Cement Corp. (TWSE:1101) Revenue Forecasts By 16%

Celebrations may be in order for Taiwan Cement Corp. (TWSE:1101) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the five analysts covering Taiwan Cement are now predicting revenues of NT$144b in 2024. If met, this would reflect a major 33% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 38% to NT$1.50. Before this latest update, the analysts had been forecasting revenues of NT$124b and earnings per share (EPS) of NT$1.36 in 2024. The forecasts seem more optimistic now, with a solid increase in revenue and a modest lift to earnings per share estimates.

Check out our latest analysis for Taiwan Cement

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Taiwan Cement is forecast to grow faster in the future than it has in the past, with revenues expected to display 46% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.8% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 0.09% per year. So it looks like Taiwan Cement is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Taiwan Cement.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Taiwan Cement that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.