Universal Cement (TWSE:1104) - Share price, News & Analysis

Q: What is the Fair Price of 1104 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1104 (NT$21.6) is trading below our estimate of [[fair value]] (NT$27.97)

1104 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	1/6
Financial Health	5/6
Dividends	5/6

1104 Stock Overview

Universal Cement Corporation engages in the manufacture and sale of cement, ready-mixed concrete, gypsum board panels, and other building materials in Taiwan.

Rewards

Trading at 22.8% below our estimate of its fair value

Earnings are forecast to grow 13.87% per year

Pays a reliable dividend of 4.63%

Risk Analysis

No risks detected for 1104 from our risk checks.

Universal Cement Competitors

Chia Hsin Cement

TWSE:1103

NT$13.7b

CHC Resources

TWSE:9930

NT$11.7b

Southeast Cement

TWSE:1110

NT$10.3b

Goldsun Building Materials

TWSE:2504

NT$29.1b

Price History & Performance

Summary of all time highs, changes and price drops for Universal Cement
Historical stock prices
Current Share Price	NT$21.60
52 Week High	NT$22.60
52 Week Low	NT$19.50
Beta	0.47
1 Month Change	-3.57%
3 Month Change	2.37%
1 Year Change	-4.64%
3 Year Change	14.89%
5 Year Change	-6.09%
Change since IPO	-14.66%

Shareholder Returns

	1104	TW Basic Materials	TW Market
7D	0%	1.6%	1.7%
1Y	-4.6%	-8.8%	-9.8%

Return vs Industry: 1104 exceeded the TW Basic Materials industry which returned -8.8% over the past year.

Return vs Market: 1104 exceeded the TW Market which returned -9.8% over the past year.

Price Volatility

Is 1104's price volatile compared to industry and market?
1104 volatility
1104 Average Weekly Movement	2.3%
Basic Materials Industry Average Movement	2.8%
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: 1104 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 1104's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1959	n/a	Johnson Hou	https://www.ucctw.com

Universal Cement Corporation engages in the manufacture and sale of cement, ready-mixed concrete, gypsum board panels, and other building materials in Taiwan. It operates through Building Materials Business and Assets Management Center segments. The company also offers pressure-sensing electronic technology products, such as flexible electronic pressure sensors, pressure sensor modules, and flexible microelectromechanical pressure sensing instruments for use in computer, communication and consumer electronics, industrial and semiconductor equipment, smart warehouse, and medical monitoring industries.

Universal Cement Fundamentals Summary

How do Universal Cement's earnings and revenue compare to its market cap?
1104 fundamental statistics
Market Cap	NT$14.12b
Earnings (TTM)	NT$1.39b
Revenue (TTM)	NT$6.17b

10.1x

P/E Ratio

2.3x

P/S Ratio

Is 1104 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1104 income statement (TTM)
Revenue	NT$6.17b
Cost of Revenue	NT$5.00b
Gross Profit	NT$1.17b
Other Expenses	-NT$220.15m
Earnings	NT$1.39b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.13
Gross Margin	19.01%
Net Profit Margin	22.58%
Debt/Equity Ratio	15.2%

How did 1104 perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

47%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1104 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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 1104?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1104. This is calculated by dividing 1104's market cap by their current preferred multiple.
What is 1104's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$14.12b

1104 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	2.4x
Enterprise Value/EBITDA	17.2x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does 1104's PE Ratio compare to its peers?

1104 PE Ratio vs Peers

The above table shows the PE ratio for 1104 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	27.2x
1103 Chia Hsin Cement	19.5x	n/a	NT$13.7b
9930 CHC Resources	15.7x	n/a	NT$11.7b
1110 Southeast Cement	66.7x	n/a	NT$10.3b
2504 Goldsun Building Materials	6.7x	-19.2%	NT$29.1b
1104 Universal Cement	10.1x	13.9%	NT$14.1b

Price-To-Earnings vs Peers: 1104 is good value based on its Price-To-Earnings Ratio (10.1x) compared to the peer average (27.2x).

Price to Earnings Ratio vs Industry

How does 1104's PE Ratio compare vs other companies in the Asian Basic Materials Industry?

Price-To-Earnings vs Industry: 1104 is good value based on its Price-To-Earnings Ratio (10.1x) compared to the TW Basic Materials industry average (16x)

Price to Earnings Ratio vs Fair Ratio

What is 1104'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.

1104 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.1x
Fair PE Ratio	15.1x

Price-To-Earnings vs Fair Ratio: 1104 is good value based on its Price-To-Earnings Ratio (10.1x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).

Share Price vs Fair Value

What is the Fair Price of 1104 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1104 (NT$21.6) is trading below our estimate of fair value (NT$27.97)

Significantly Below Fair Value: 1104 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 Universal Cement forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

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

13.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1104's forecast earnings growth (13.9% per year) is above the savings rate (0.7%).

Earnings vs Market: 1104's earnings (13.9% per year) are forecast to grow faster than the TW market (5.8% per year).

High Growth Earnings: 1104's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1104's revenue (15.2% per year) is forecast to grow faster than the TW market (7.1% per year).

High Growth Revenue: 1104's revenue (15.2% 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 1104's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Universal Cement performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

-3.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1104 has high quality earnings.

Growing Profit Margin: 1104's current net profit margins (22.6%) are lower than last year (25.5%).

Past Earnings Growth Analysis

Earnings Trend: 1104's earnings have declined by 3.2% per year over the past 5 years.

Accelerating Growth: 1104's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1104 had negative earnings growth (-2.6%) over the past year, making it difficult to compare to the Basic Materials industry average (-15.7%).

Return on Equity

High ROE: 1104's Return on Equity (6.8%) is considered low.

Discover strong past performing companies

Financial Health

How is Universal Cement's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: 1104's short term assets (NT$5.3B) exceed its short term liabilities (NT$4.3B).

Long Term Liabilities: 1104's short term assets (NT$5.3B) exceed its long term liabilities (NT$1.6B).

Debt to Equity History and Analysis

Debt Level: 1104 has more cash than its total debt.

Reducing Debt: 1104's debt to equity ratio has increased from 10.6% to 15.2% over the past 5 years.

Debt Coverage: 1104's debt is well covered by operating cash flow (38.5%).

Interest Coverage: 1104 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Universal Cement current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

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

4.63%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1104's dividend (4.63%) is higher than the bottom 25% of dividend payers in the TW market (2.5%).

High Dividend: 1104's dividend (4.63%) is low compared to the top 25% of dividend payers in the TW market (6.52%).

Stability and Growth of Payments

Stable Dividend: 1104's dividends per share have been stable in the past 10 years.

Growing Dividend: 1104's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (46.9%), 1104's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (62.7%), 1104's dividend payments are covered by cash flows.

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Management

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

3.6yrs

Average management tenure

CEO

Johnson Hou

2.08yrs

Tenure

Dr. Chih-Sheng Hou, also known as Johnson, serves as Director at TECO Electric & Machinery Co., Ltd. since December 30, 2021. He is a Director at Universal Cement Corporation since December 02, 2008 and al...

Leadership Team

Experienced Management: 1104's management team is considered experienced (3.6 years average tenure).

Board Members

Experienced Board: 1104's board of directors are considered experienced (5.2 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	2022/08/14 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31