TSEC:2344

Stock Analysis Report

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Executive Summary

Winbond Electronics Corporation, together with its subsidiaries, designs, develops, manufactures, and markets very large scale integration integrated circuits (ICs) for various microelectronic applications in Asia, the United States, Europe, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2344 is more volatile than 75% of TW stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2344's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of TW stocks.


Market Performance


7 Day Return

3.7%

2344

1.0%

TW Semiconductor

1.1%

TW Market


1 Year Return

4.3%

2344

55.0%

TW Semiconductor

20.3%

TW Market

Return vs Industry: 2344 underperformed the TW Semiconductor industry which returned 55% over the past year.

Return vs Market: 2344 underperformed the TW Market which returned 20.3% over the past year.


Shareholder returns

2344IndustryMarket
7 Day3.7%1.0%1.1%
30 Day5.8%10.5%8.1%
90 Day46.2%15.1%8.4%
1 Year5.1%4.3%59.7%55.0%24.6%20.3%
3 Year-23.4%-32.3%112.8%91.1%45.0%28.9%
5 Year172.8%130.7%258.8%200.1%95.8%61.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

97.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2344 (NT$18.2) is trading above our estimate of fair value (NT$0.43)

Significantly Below Fair Value: 2344 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2344 is poor value based on its PE Ratio (97.7x) compared to the TW Semiconductor industry average (23.5x).

PE vs Market: 2344 is poor value based on its PE Ratio (97.7x) compared to the TW market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: 2344's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 2344 is good value based on its PB Ratio (1.2x) compared to the TW Semiconductor industry average (2.1x).


Next Steps

Future Growth

How is Winbond Electronics forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2344's earnings are forecast to decline over the next 3 years (-9.6% per year).

Earnings vs Market: 2344's earnings are forecast to decline over the next 3 years (-9.6% per year).

High Growth Earnings: 2344's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 2344's revenue (25.8% per year) is forecast to grow faster than the TW market (9% per year).

High Growth Revenue: 2344's revenue (25.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2344's Return on Equity is forecast to be low in 3 years time (1.4%).


Next Steps

Past Performance

How has Winbond Electronics performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2344 has a large one-off gain of NT$443.0M impacting its September 30 2020 financial results.

Growing Profit Margin: 2344's current net profit margins (1.4%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: 2344's earnings have declined by 5% per year over the past 5 years.

Accelerating Growth: 2344's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2344 had negative earnings growth (-68.3%) over the past year, making it difficult to compare to the Semiconductor industry average (12%).


Return on Equity

High ROE: 2344's Return on Equity (1.6%) is considered low.


Next Steps

Financial Health

How is Winbond Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: 2344's short term assets (NT$45.2B) exceed its short term liabilities (NT$24.2B).

Long Term Liabilities: 2344's short term assets (NT$45.2B) exceed its long term liabilities (NT$33.8B).


Debt to Equity History and Analysis

Debt Level: 2344's debt to equity ratio (47.2%) is considered high.

Reducing Debt: 2344's debt to equity ratio has increased from 37.5% to 47.2% over the past 5 years.

Debt Coverage: 2344's debt is well covered by operating cash flow (35%).

Interest Coverage: 2344 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2344's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (2.12%).

High Dividend: 2344's dividend (0.55%) is low compared to the top 25% of dividend payers in the TW market (5.18%).


Stability and Growth of Payments

Stable Dividend: 2344 is not paying a notable dividend for the TW market, therefore no need to check if payments are stable.

Growing Dividend: 2344 is not paying a notable dividend for the TW market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 2344 is not paying a notable dividend for the TW market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2344's dividend in 3 years as they are not forecast to pay a notable one for the TW market.


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Arthur Chiao

15.25yrs

Tenure

NT$4,957,000

Compensation

Mr. Yu-Cheng Chiao, also known as Arthur, has been the Chairman and Chief Executive Officer of Winbond Electronics Corp. since April 30, 2008 and since August 01, 2005 respectively. Mr. Chiao serves as Dir...


Leadership Team

NamePositionTenureCompensationOwnership
Yu-Cheng Chiao
Chairman & CEO15.25yrsNT$4.96m3.42%
NT$ 2.5b
Tung-Yi Chan
Vice Chairman & Deputy CEO0.67yrNT$4.78m0.023%
NT$ 16.4m
Yung Chin
Chief Administrative Officer & Director24.58yrsNT$2.28m0.30%
NT$ 214.4m
Pei-Ming Chen
President & CTO0.67yrno data0.0087%
NT$ 6.3m
Chiou-Jii Huang
CFO & VP0.42yrno data0.016%
NT$ 11.2m
Chin-Feng Yang
VP of Finance Center0.67yrno datano data
Cheng-Kung Lin
no datano data0.047%
NT$ 33.9m
Eungjoon Park
Chief Business Officer12.25yrsno data0.0063%
NT$ 4.5m
Keh-Shew Lu
Advisiorno datano datano data

0.7yrs

Average Tenure

Experienced Management: 2344's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yu-Cheng Chiao
Chairman & CEO15.25yrsNT$4.96m3.42%
NT$ 2.5b
Tung-Yi Chan
Vice Chairman & Deputy CEO0.67yrNT$4.78m0.023%
NT$ 16.4m
Yung Chin
Chief Administrative Officer & Director24.58yrsNT$2.28m0.30%
NT$ 214.4m
Stephen Tso
Independent Director1.42yrsno datano data
Wei-Shin Ma
Director3.42yrsno data0.64%
NT$ 462.4m
Francis Tsai
Independent Director6.42yrsno datano data
Shan-Kio Hsu
Independent Director6.42yrsno datano data
Jie-Li Hsu
Independent Director6.42yrsno datano data
Si-Ru Pan
Representative Director3.42yrsno data0.00028%
NT$ 202.8k
Chih-Cheng Lin
Director3.42yrsno datano data

4.9yrs

Average Tenure

Experienced Board: 2344's board of directors are considered experienced (4.9 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

Winbond Electronics Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Winbond Electronics Corporation
  • Ticker: 2344
  • Exchange: TSEC
  • Founded: 1987
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$72.436b
  • Shares outstanding: 3.98b
  • Website: https://www.winbond.com

Number of Employees


Location

  • Winbond Electronics Corporation
  • No. 8, Keya 1st Road
  • Daya District
  • Taichung
  • 42881
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2344TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDNov 1995
WNBDEBDL (Bourse de Luxembourg)SPON GDR REG SLUUSDFeb 1999

Biography

Winbond Electronics Corporation, together with its subsidiaries, designs, develops, manufactures, and markets very large scale integration integrated circuits (ICs) for various microelectronic applications...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 08:43
End of Day Share Price2020/11/27 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.