GTSM:6488

Stock Analysis Report

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Executive Summary

GlobalWafers Co., Ltd., together with its subsidiaries, researches, designs, develops, and manufactures, semiconductor ingots and wafers in Taiwan and internationally. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6488 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.2%

6488

3.1%

TW Semiconductor

1.4%

TW Market


1 Year Return

31.3%

6488

57.3%

TW Semiconductor

18.2%

TW Market

Return vs Industry: 6488 underperformed the TW Semiconductor industry which returned 59.4% over the past year.

Return vs Market: 6488 exceeded the TW Market which returned 18.8% over the past year.


Shareholder returns

6488IndustryMarket
7 Day3.2%3.1%1.4%
30 Day-0.2%2.4%0.2%
90 Day1.1%31.3%10.8%
1 Year39.5%31.3%62.1%57.3%22.5%18.2%
3 Year53.6%31.7%103.6%83.1%35.8%20.7%
5 Year595.8%449.6%264.2%205.0%91.7%57.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6488 (NT$407) is trading below our estimate of fair value (NT$501.24)

Significantly Below Fair Value: 6488 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6488 is good value based on its PE Ratio (14.2x) compared to the TW Semiconductor industry average (20.7x).

PE vs Market: 6488 is good value based on its PE Ratio (14.2x) compared to the TW market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: 6488 is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: 6488 is overvalued based on its PB Ratio (4.5x) compared to the TW Semiconductor industry average (1.9x).


Next Steps

Future Growth

How is GlobalWafers forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6488's forecast earnings growth (4.7% per year) is above the savings rate (0.9%).

Earnings vs Market: 6488's earnings (4.7% per year) are forecast to grow slower than the TW market (15.6% per year).

High Growth Earnings: 6488's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6488's revenue (8.8% per year) is forecast to grow faster than the TW market (8.2% per year).

High Growth Revenue: 6488's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6488's Return on Equity is forecast to be high in 3 years time (31%)


Next Steps

Past Performance

How has GlobalWafers performed over the past 5 years?

45.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6488 has a high level of non-cash earnings.

Growing Profit Margin: 6488's current net profit margins (22.7%) are lower than last year (24.2%).


Past Earnings Growth Analysis

Earnings Trend: 6488's earnings have grown significantly by 45.8% per year over the past 5 years.

Accelerating Growth: 6488's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6488 had negative earnings growth (-15.2%) over the past year, making it difficult to compare to the Semiconductor industry average (6.3%).


Return on Equity

High ROE: 6488's Return on Equity (31.5%) is considered high.


Next Steps

Financial Health

How is GlobalWafers's financial position?


Financial Position Analysis

Short Term Liabilities: 6488's short term assets (NT$49.7B) exceed its short term liabilities (NT$32.0B).

Long Term Liabilities: 6488's short term assets (NT$49.7B) exceed its long term liabilities (NT$22.3B).


Debt to Equity History and Analysis

Debt Level: 6488's debt to equity ratio (13%) is considered satisfactory.

Reducing Debt: 6488's debt to equity ratio has increased from 5.8% to 13% over the past 5 years.

Debt Coverage: 6488's debt is well covered by operating cash flow (264.2%).

Interest Coverage: 6488 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

6.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6488's dividend (6.14%) is higher than the bottom 25% of dividend payers in the TW market (2.22%).

High Dividend: 6488's dividend (6.14%) is in the top 25% of dividend payers in the TW market (5.44%)


Stability and Growth of Payments

Stable Dividend: 6488 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6488's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87%), 6488's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6488's dividends in 3 years are forecast to be covered by earnings (76.2% payout ratio).


Next Steps

Management

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

6.0yrs

Average board tenure


CEO

Doris Hsu (59 yo)

8.92yrs

Tenure

Ms. Hsiu-lan Hsu, also known as Doris, serves as the Chairman and Chief Executive Officer of Sino-American Silicon Products Inc. since June 24, 2020. She serves as Chairperson of GlobalWafers Co., Ltd. and ...


Board Members

NamePositionTenureCompensationOwnership
Hsiu-Lan Hsu
Chairperson & CEO8.92yrsno data0.19%
NT$ 345.1m
Tang-Liang Yao
Representative Director8.92yrsno data0.046%
NT$ 81.8m
Kuo-Chow Chen
Director6.33yrsno data0.15%
NT$ 271.0m
Ming-Kuang Lu
Representative Director8.92yrsno data0.31%
NT$ 541.5m
Chi-Hsiung Cheng
Independent Director5.67yrsno data0.00023%
NT$ 407.4k
Cheng-Yuan Cheng
Independent Director2.25yrsno datano data
Hsien-Chin Chiu
Independent Director0.25yrno datano data

6.0yrs

Average Tenure

Experienced Board: 6488's board of directors are considered experienced (6 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.


Top Shareholders

Company Information

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


Key Information

  • Name: GlobalWafers Co., Ltd.
  • Ticker: 6488
  • Exchange: GTSM
  • Founded: 2011
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: NT$177.141b
  • Shares outstanding: 435.24m
  • Website: https://www.sas-globalwafers.com

Location

  • GlobalWafers Co., Ltd.
  • Science-Based Industrial Park
  • No.8, Industrial East Road 2
  • Hsinchu City
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6488GTSM (Taipei Exchange)YesCommon StockTWTWDOct 2014
160249277BDL (Bourse de Luxembourg)SPON GDR EACH REP 1 SHSLUUSDApr 2017

Biography

GlobalWafers Co., Ltd., together with its subsidiaries, researches, designs, develops, and manufactures, semiconductor ingots and wafers in Taiwan and internationally. It offers silicon ingots and wafers; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/17 19:41
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
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.