WinWay Technology (TWSE:6515) - Share price, News & Analysis

Q: What is the Fair Price of 6515 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6515 (NT$374) is trading below our estimate of [[fair value]] (NT$651.83)

6515 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	6/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

6515 Stock Overview

Rewards

Trading at 42.6% below our estimate of its fair value

Earnings are forecast to grow 22.56% per year

Earnings have grown 14.6% per year over the past 5 years

Risk Analysis

Highly volatile share price over the past 3 months

Unstable dividend track record

WinWay Technology Competitors

Visual Photonics Epitaxy

TWSE:2455

NT$12.6b

SDI

TWSE:2351

NT$21.0b

Foxsemicon Integrated Technology

TWSE:3413

NT$17.8b

MPI

TPEX:6223

NT$8.9b

Price History & Performance

Summary of all time highs, changes and price drops for WinWay Technology
Historical stock prices
Current Share Price	NT$374.00
52 Week High	NT$479.00
52 Week Low	NT$232.00
Beta	1.05
1 Month Change	20.26%
3 Month Change	5.20%
1 Year Change	45.81%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-35.85%

Shareholder Returns

	6515	TW Semiconductor	TW Market
7D	-7.2%	1.9%	2.2%
1Y	45.8%	-18.0%	-11.0%

Return vs Industry: 6515 exceeded the TW Semiconductor industry which returned -21.1% over the past year.

Return vs Market: 6515 exceeded the TW Market which returned -13.2% over the past year.

Price Volatility

Is 6515's price volatile compared to industry and market?
6515 volatility
6515 Average Weekly Movement	8.5%
Semiconductor Industry Average Movement	6.4%
Market Average Movement	5.0%
10% most volatile stocks in TW Market	8.3%
10% least volatile stocks in TW Market	2.5%

Stable Share Price: 6515 is more volatile than 90% of TW stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 6515's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of TW stocks.

About the Company

Founded	Employees	CEO	Website
2001	n/a	Mark Wang	https://www.winwayglobal.com

WinWay Technology Co., Ltd. designs, manufactures, processes, and sells optoelectronic product test fixtures, integrated circuit test interfaces, and fixtures and their components in Taiwan, the United States, China, Europe, Canada, and Asia. Its products include coaxial, spring probe, and PoP sockets; elastomers; vertical and WLCSP probe cards; and thermal control systems, high performance heat sink lids, high performance test sockets, changeover kits, direct docking probe cards, burn-in sockets, and contact element products. The company also engages in the provision of professional and technical support services; and import and export trade of related products.

WinWay Technology Fundamentals Summary

How do WinWay Technology's earnings and revenue compare to its market cap?
6515 fundamental statistics
Market Cap	NT$12.81b
Earnings (TTM)	NT$560.34m
Revenue (TTM)	NT$3.14b

22.9x

P/E Ratio

4.1x

P/S Ratio

Is 6515 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6515 income statement (TTM)
Revenue	NT$3.14b
Cost of Revenue	NT$1.83b
Gross Profit	NT$1.31b
Other Expenses	NT$753.01m
Earnings	NT$560.34m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	16.36
Gross Margin	41.81%
Net Profit Margin	17.84%
Debt/Equity Ratio	0%

How did 6515 perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

67%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6515 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6515?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6515. This is calculated by dividing 6515's market cap by their current preferred multiple.
What is 6515's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$12.81b

6515 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	3.5x
Enterprise Value/EBITDA	14.8x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does 6515's PE Ratio compare to its peers?

6515 PE Ratio vs Peers

The above table shows the PE ratio for 6515 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.6x
2455 Visual Photonics Epitaxy	15.7x	n/a	NT$12.6b
2351 SDI	22.9x	21.5%	NT$21.0b
3413 Foxsemicon Integrated Technology	9.4x	5.0%	NT$17.8b
6223 MPI	10.3x	n/a	NT$8.9b
6515 WinWay Technology	22.9x	22.6%	NT$12.8b

Price-To-Earnings vs Peers: 6515 is expensive based on its Price-To-Earnings Ratio (22.9x) compared to the peer average (14.6x).

Price to Earnings Ratio vs Industry

How does 6515's PE Ratio compare vs other companies in the TW Semiconductor Industry?

Price-To-Earnings vs Industry: 6515 is expensive based on its Price-To-Earnings Ratio (22.9x) compared to the TW Semiconductor industry average (12.1x)

Price to Earnings Ratio vs Fair Ratio

What is 6515'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.

6515 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.9x
Fair PE Ratio	18.9x

Price-To-Earnings vs Fair Ratio: 6515 is expensive based on its Price-To-Earnings Ratio (22.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).

Share Price vs Fair Value

What is the Fair Price of 6515 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6515 (NT$374) is trading below our estimate of fair value (NT$651.83)

Significantly Below Fair Value: 6515 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is WinWay Technology forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

6/6

Future Growth Score 6/6

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

22.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6515's forecast earnings growth (22.6% per year) is above the savings rate (0.7%).

Earnings vs Market: 6515's earnings (22.6% per year) are forecast to grow faster than the TW market (5.8% per year).

High Growth Earnings: 6515's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6515's revenue (20.3% per year) is forecast to grow faster than the TW market (7.2% per year).

High Growth Revenue: 6515's revenue (20.3% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6515's Return on Equity is forecast to be high in 3 years time (28.1%)

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Past Performance

How has WinWay Technology performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

14.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6515 has high quality earnings.

Growing Profit Margin: 6515's current net profit margins (17.8%) are higher than last year (16.6%).

Past Earnings Growth Analysis

Earnings Trend: 6515's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: 6515's earnings growth over the past year (18.2%) exceeds its 5-year average (14.6% per year).

Earnings vs Industry: 6515 earnings growth over the past year (18.2%) underperformed the Semiconductor industry 58.2%.

Return on Equity

High ROE: 6515's Return on Equity (20.8%) is considered high.

Discover strong past performing companies

Financial Health

How is WinWay Technology'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: 6515's short term assets (NT$2.9B) exceed its short term liabilities (NT$1.4B).

Long Term Liabilities: 6515's short term assets (NT$2.9B) exceed its long term liabilities (NT$53.3M).

Debt to Equity History and Analysis

Debt Level: 6515 is debt free.

Reducing Debt: 6515 had no debt 5 years ago.

Debt Coverage: 6515 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6515 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is WinWay Technology 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
Cash Flow Coverage

2.94%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6515's dividend (2.94%) is higher than the bottom 25% of dividend payers in the TW market (2.53%).

High Dividend: 6515's dividend (2.94%) is low compared to the top 25% of dividend payers in the TW market (6.58%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether 6515's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 6515's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (66.5%), 6515's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (89.2%), 6515's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

2.6yrs

Average board tenure

CEO

Mark Wang

21.33yrs

Tenure

Mr. Mark Wang founded WinWay Technology Co., Ltd. in 2001 and serves as Chief Executive Officer since April 01, 2001 also serves as the Chairman of the Board since January 10, 2020.

Board Members

Experienced Board: 6515's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.

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	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31