GTSM:4123

Stock Analysis Report

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Executive Summary

Center Laboratories, Inc. operates as a pharmaceutical company in Taiwan. More Details


Snowflake Analysis

Fair value with questionable track record.

Share Price & News

How has Center Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4123 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 4123's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-6.4%

4123

-1.4%

TW Pharmaceuticals

-0.2%

TW Market


1 Year Return

12.4%

4123

29.9%

TW Pharmaceuticals

28.6%

TW Market

Return vs Industry: 4123 underperformed the TW Pharmaceuticals industry which returned 29.9% over the past year.

Return vs Market: 4123 underperformed the TW Market which returned 28.6% over the past year.


Shareholder returns

4123IndustryMarket
7 Day-6.4%-1.4%-0.2%
30 Day-12.7%-10.5%8.8%
90 Day-9.2%-20.2%20.6%
1 Year14.5%12.4%32.1%29.9%33.1%28.6%
3 Year62.3%52.2%37.7%30.3%55.3%37.8%
5 Year49.6%40.3%22.1%11.8%135.7%94.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Center Laboratories undervalued compared to its fair value and its price relative to the market?

11.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 4123 (NT$60.4) is trading above our estimate of fair value (NT$25.43)

Significantly Below Fair Value: 4123 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 4123 is good value based on its PE Ratio (11.6x) compared to the TW Pharmaceuticals industry average (17.6x).

PE vs Market: 4123 is good value based on its PE Ratio (11.6x) compared to the TW market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 4123's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 4123 is good value based on its PB Ratio (1.7x) compared to the TW Pharmaceuticals industry average (2x).


Next Steps

Future Growth

How is Center Laboratories forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

39.1%

Forecasted Pharmaceuticals & Biotech 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 Center Laboratories 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 Center Laboratories performed over the past 5 years?

39.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4123 has a large one-off gain of NT$3.5B impacting its September 30 2020 financial results.

Growing Profit Margin: 4123's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: 4123's earnings have grown significantly by 39% per year over the past 5 years.

Accelerating Growth: 4123's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4123 had negative earnings growth (-38.9%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (23.3%).


Return on Equity

High ROE: 4123's Return on Equity (15.8%) is considered low.


Next Steps

Financial Health

How is Center Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: 4123's short term assets (NT$1.9B) do not cover its short term liabilities (NT$2.2B).

Long Term Liabilities: 4123's short term assets (NT$1.9B) do not cover its long term liabilities (NT$3.8B).


Debt to Equity History and Analysis

Debt Level: 4123's debt to equity ratio (18.2%) is considered satisfactory.

Reducing Debt: 4123's debt to equity ratio has reduced from 79.8% to 18.2% over the past 5 years.

Debt Coverage: 4123's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 4123's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Center Laboratories's current dividend yield, its reliability and sustainability?

2.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4123's dividend (2.06%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (2.13%).

High Dividend: 4123's dividend (2.06%) is low compared to the top 25% of dividend payers in the TW market (5.17%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 4123 has been paying a dividend for less than 10 years.

Growing Dividend: 4123 has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.6%), 4123's dividend payments are 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

Rui Bao Xu

no data

Tenure

Rui Bao Xu serves as the President of Center Laboratories, Inc. and served as its General Manager.


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 7.7%.


Top Shareholders

Company Information

Center Laboratories, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Center Laboratories, Inc.
  • Ticker: 4123
  • Exchange: GTSM
  • Founded: 1957
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: NT$27.660b
  • Shares outstanding: 457.95m
  • Website: https://www.centerlab.com.tw

Location

  • Center Laboratories, Inc.
  • No.3-2, Park Street
  • 7th Flooor
  • Taipei City
  • 115
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4123GTSM (Taipei Exchange)YesCommon StockTWTWDOct 2003

Biography

Center Laboratories, Inc. operates as a pharmaceutical company in Taiwan. It engages in the research and development of small molecule drugs, as well as manufactures and sells pharmaceuticals; development ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 17:37
End of Day Share Price2021/01/21 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.