Everlight Electronics (TWSE:2393) - Share price, News & Analysis

Q: What is the Fair Price of 2393 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2393 (NT$41.25) is trading below our estimate of [[fair value]] (NT$106.04)

2393 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	4/6
Financial Health	6/6
Dividends	4/6

2393 Stock Overview

Everlight Electronics Co., Ltd. manufactures and markets optoelectronics components in Taiwan and internationally.

Rewards

Trading at 61.1% below our estimate of its fair value

Earnings are forecast to grow 8.35% per year

Earnings have grown 9.3% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Everlight Electronics Competitors

Formosa Advanced Technologies

TWSE:8131

NT$17.5b

Taiwan-Asia Semiconductor

TWSE:2340

NT$18.6b

Taiwan Semiconductor

TPEX:5425

NT$17.7b

Ardentec

TPEX:3264

NT$17.0b

Price History & Performance

Summary of all time highs, changes and price drops for Everlight Electronics
Historical stock prices
Current Share Price	NT$41.25
52 Week High	NT$68.90
52 Week Low	NT$40.85
Beta	0.92
1 Month Change	-8.03%
3 Month Change	-14.77%
1 Year Change	-19.12%
3 Year Change	40.31%
5 Year Change	-15.73%
Change since IPO	130.53%

Shareholder Returns

	2393	TW Semiconductor	TW Market
7D	-1.6%	-2.4%	-0.5%
1Y	-19.1%	-20.0%	-13.8%

Return vs Industry: 2393 matched the TW Semiconductor industry which returned -20% over the past year.

Return vs Market: 2393 underperformed the TW Market which returned -13.8% over the past year.

Price Volatility

Is 2393's price volatile compared to industry and market?
2393 volatility
2393 Average Weekly Movement	3.8%
Semiconductor Industry Average Movement	5.8%
Market Average Movement	4.7%
10% most volatile stocks in TW Market	8.2%
10% least volatile stocks in TW Market	2.3%

Stable Share Price: 2393 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 2393's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1983	n/a	Robert Yeh	https://www.everlight.com

Everlight Electronics Co., Ltd. manufactures and markets optoelectronics components in Taiwan and internationally. It offers visible LEDs, such as lighting, horticulture lighting, UV, flash, automotive, lamp, SMD, digital displays, backlight, and signage LEDs; and infrared LEDs comprising infrared LED and silicon detectors, infrared receiver modules, optic fiber devices, and optical switches. The company also provides sensors, such as ambient light, proximity, and color sensors; and photo couplers, including photo transistors and darlington, schmitt triggers, high speed products, triac drivers, solid state relays, and IGBT gate drivers.

Everlight Electronics Fundamentals Summary

How do Everlight Electronics's earnings and revenue compare to its market cap?
2393 fundamental statistics
Market Cap	NT$18.73b
Earnings (TTM)	NT$1.95b
Revenue (TTM)	NT$24.65b

9.4x

P/E Ratio

0.7x

P/S Ratio

Is 2393 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2393 income statement (TTM)
Revenue	NT$24.65b
Cost of Revenue	NT$17.96b
Gross Profit	NT$6.69b
Other Expenses	NT$4.74b
Earnings	NT$1.95b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.39
Gross Margin	27.14%
Net Profit Margin	7.89%
Debt/Equity Ratio	14.6%

How did 2393 perform over the long term?

See historical performance and comparison

Dividends

8.5%

Current Dividend Yield

80%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 2393 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
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2393?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2393. This is calculated by dividing 2393's market cap by their current preferred multiple.
What is 2393's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$18.73b

2393 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	0.5x
Enterprise Value/EBITDA	3x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does 2393's PE Ratio compare to its peers?

2393 PE Ratio vs Peers

The above table shows the PE ratio for 2393 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.3x
8131 Formosa Advanced Technologies	10.6x	n/a	NT$17.5b
2340 Taiwan-Asia Semiconductor	26x	31.4%	NT$18.6b
5425 Taiwan Semiconductor	16.3x	n/a	NT$17.7b
3264 Ardentec	6.2x	n/a	NT$17.0b
2393 Everlight Electronics	9.4x	8.3%	NT$18.3b

Forward PE

Price-To-Earnings vs Peers: 2393 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (15.3x).

Price to Earnings Ratio vs Industry

How does 2393's PE Ratio compare vs other companies in the TW Semiconductor Industry?

Price-To-Earnings vs Industry: 2393 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the TW Semiconductor industry average (13.3x)

Price to Earnings Ratio vs Fair Ratio

What is 2393'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.

2393 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.4x
Fair PE Ratio	13.1x

Price-To-Earnings vs Fair Ratio: 2393 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.1x).

Share Price vs Fair Value

What is the Fair Price of 2393 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2393 (NT$41.25) is trading below our estimate of fair value (NT$106.04)

Significantly Below Fair Value: 2393 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 2393 is poor value based on its PEG Ratio (1.1x)

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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

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

8.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2393's forecast earnings growth (8.3% per year) is above the savings rate (0.7%).

Earnings vs Market: 2393's earnings (8.3% per year) are forecast to grow faster than the TW market (7.4% per year).

High Growth Earnings: 2393's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2393's revenue (7.1% per year) is forecast to grow slower than the TW market (7.7% per year).

High Growth Revenue: 2393's revenue (7.1% 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 2393's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Everlight Electronics performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

9.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2393 has high quality earnings.

Growing Profit Margin: 2393's current net profit margins (7.9%) are higher than last year (7.1%).

Past Earnings Growth Analysis

Earnings Trend: 2393's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: 2393's earnings growth over the past year (19.1%) exceeds its 5-year average (9.3% per year).

Earnings vs Industry: 2393 earnings growth over the past year (19.1%) underperformed the Semiconductor industry 67%.

Return on Equity

High ROE: 2393's Return on Equity (10.2%) is considered low.

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Financial Health

How is Everlight Electronics's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: 2393's short term assets (NT$20.6B) exceed its short term liabilities (NT$10.7B).

Long Term Liabilities: 2393's short term assets (NT$20.6B) exceed its long term liabilities (NT$762.8M).

Debt to Equity History and Analysis

Debt Level: 2393 has more cash than its total debt.

Reducing Debt: 2393's debt to equity ratio has reduced from 52.8% to 14.6% over the past 5 years.

Debt Coverage: 2393's debt is well covered by operating cash flow (140.5%).

Interest Coverage: 2393 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

8.48%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2393's dividend (8.48%) is higher than the bottom 25% of dividend payers in the TW market (2.57%).

High Dividend: 2393's dividend (8.48%) is in the top 25% of dividend payers in the TW market (6.35%)

Stability and Growth of Payments

Stable Dividend: 2393's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2393's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (79.8%), 2393's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (54.5%), 2393'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?

11.8yrs

Average management tenure

CEO

Robert Yeh (70 yo)

39.08yrs

Tenure

Mr. Yin-Fu Yeh, also known as Robert, serves as the Chairman and President of Everlight Electronics Co. Ltd. since June 22, 2012 and May 15, 1983 respectively, and has also been its Director since June 198...

Leadership Team

Experienced Management: 2393's management team is seasoned and experienced (11.8 years average tenure).

Board Members

Experienced Board: 2393's board of directors are considered experienced (7 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	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31