GTSM:6661

Stock Analysis Report

Executive Summary

Welgene Biotech Co.,Ltd. provides clinical testing services.


Snowflake Analysis

Excellent balance sheet with solid track record.

Share Price & News

How has Welgene BiotechLtd's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6661 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

6661

3.7%

TW Life Sciences

-0.2%

TW Market


1 Year Return

23.4%

6661

27.8%

TW Life Sciences

-10.7%

TW Market

Return vs Industry: 6661 underperformed the TW Life Sciences industry which returned 26.5% over the past year.

Return vs Market: 6661 exceeded the TW Market which returned -10.3% over the past year.


Shareholder returns

6661IndustryMarket
7 Day2.0%3.7%-0.2%
30 Day-7.1%-11.2%-15.3%
90 Day3.7%5.7%-20.2%
1 Year30.8%23.4%28.3%27.8%-6.6%-10.7%
3 Yearn/a109.8%107.5%8.5%-4.1%
5 Yearn/a58.7%53.6%21.2%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Welgene BiotechLtd 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: 6661 (NT$26) is trading below our estimate of fair value (NT$88.09)

Significantly Below Fair Value: 6661 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6661 is good value based on its PE Ratio (15.7x) compared to the Life Sciences industry average (39.7x).

PE vs Market: 6661 is poor value based on its PE Ratio (15.7x) compared to the TW market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6661's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6661 is good value based on its PB Ratio (2.4x) compared to the XA Life Sciences industry average (3.3x).


Next Steps

Future Growth

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

28.3%

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 Welgene BiotechLtd 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 Welgene BiotechLtd performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6661 has high quality earnings.

Growing Profit Margin: 6661's current net profit margins (9.2%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: 6661's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: 6661's earnings growth over the past year (98.7%) exceeds its 5-year average (15.6% per year).

Earnings vs Industry: 6661 earnings growth over the past year (98.7%) exceeded the Life Sciences industry 4.9%.


Return on Equity

High ROE: 6661's Return on Equity (15%) is considered low.


Next Steps

Financial Health

How is Welgene BiotechLtd's financial position?


Financial Position Analysis

Short Term Liabilities: 6661's short term assets (NT$305.0M) exceed its short term liabilities (NT$139.4M).

Long Term Liabilities: 6661's short term assets (NT$305.0M) exceed its long term liabilities (NT$456.0K).


Debt to Equity History and Analysis

Debt Level: 6661's debt to equity ratio (7.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 6661's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6661's debt is well covered by operating cash flow (445.2%).

Interest Coverage: 6661's interest payments on its debt are well covered by EBIT (157.3x coverage).


Balance Sheet

Inventory Level: 6661 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6661's debt is covered by short term assets (assets are 18.5x debt).


Next Steps

Dividend

What is Welgene BiotechLtd's current dividend yield, its reliability and sustainability?

4.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6661's dividend (4.85%) is higher than the bottom 25% of dividend payers in the TW market (3.27%).

High Dividend: 6661's dividend (4.85%) is low compared to the top 25% of dividend payers in the TW market (7.1%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6661 has been paying a dividend for less than 10 years.

Growing Dividend: 6661's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.4%), 6661'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?


CEO

Welgene BiotechLtd 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

Welgene Biotech Co.,Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Welgene Biotech Co.,Ltd.
  • Ticker: 6661
  • Exchange: GTSM
  • Founded: 2003
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: NT$538.310m
  • Shares outstanding: 20.70m
  • Website: https://www.welgene.com.tw

Location

  • Welgene Biotech Co.,Ltd.
  • No.3, Park Street
  • 12th Floor
  • Taipei City
  • 115
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6661GTSM (Taipei Exchange)YesOrdinary SharsTWTWDOct 2017

Biography

Welgene Biotech Co.,Ltd. provides clinical testing services. The company offers research services, including sequencing, microarray, quantitative PCR detection, nucleic acid extraction/QC, LCM single cell experiment, and biological information analysis services; and clinical application services, such as array-based genomic hybridization and non-invasive prenatal tests. It also provides reagents, consumable supplies, and instruments, as well as software services. The company was founded in 2003 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 Analysis2020/04/03 18:36
End of Day Share Price2020/04/01 00:00
Earnings2019/06/30
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.