NOT FOR DISTRIBUTION
Header cover image

Wistron Information Technology & Services

Market Cap

NT$6.7b

Last Updated

2021/04/15 08:49 UTC

Data Sources

Company Financials +

Executive Summary

Wistron Information Technology & Services Corporation operates as an information technology (IT) service provider to Fortune 500 companies worldwide. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Wistron Information Technology & Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4953 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 4953's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-9.4%

4953

0.7%

TW IT

0.2%

TW Market


1 Year Return

33.7%

4953

39.6%

TW IT

61.6%

TW Market

Return vs Industry: 4953 underperformed the TW IT industry which returned 39.6% over the past year.

Return vs Market: 4953 underperformed the TW Market which returned 61.6% over the past year.


Shareholder returns

4953IndustryMarket
7 Day-9.4%0.7%0.2%
30 Day-9.0%6.3%4.2%
90 Day5.7%16.1%8.2%
1 Year39.0%33.7%46.1%39.6%67.1%61.6%
3 Year248.8%228.7%72.7%47.3%72.5%52.8%
5 Year554.2%464.5%160.5%93.4%136.5%94.5%

Long-Term Price Volatility Vs. Market

How volatile is Wistron Information Technology & Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wistron Information Technology & Services 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: 4953 (NT$101.5) is trading below our estimate of fair value (NT$654.23)

Significantly Below Fair Value: 4953 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 4953 is good value based on its PE Ratio (14.4x) compared to the TW IT industry average (15.3x).

PE vs Market: 4953 is good value based on its PE Ratio (14.4x) compared to the TW market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 4953's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 4953 is good value based on its PB Ratio (2.9x) compared to the TW IT industry average (3x).


Future Growth

How is Wistron Information Technology & Services forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

14.2%

Forecasted Software industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 4953's forecast earnings growth is above the savings rate (0.8%).

Earnings vs Market: Insufficient data to determine if 4953's earnings are forecast to grow faster than the TW market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 4953's revenue is forecast to grow faster than the TW market.

High Growth Revenue: Insufficient data to determine if 4953's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 4953's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Wistron Information Technology & Services performed over the past 5 years?

50.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4953 has high quality earnings.

Growing Profit Margin: 4953's current net profit margins (9.1%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: 4953's earnings have grown significantly by 50.4% per year over the past 5 years.

Accelerating Growth: 4953's earnings growth over the past year (12.8%) is below its 5-year average (50.4% per year).

Earnings vs Industry: 4953 earnings growth over the past year (12.8%) underperformed the IT industry 25.7%.


Return on Equity

High ROE: 4953's Return on Equity (20%) is considered low.


Financial Health

How is Wistron Information Technology & Services's financial position?


Financial Position Analysis

Short Term Liabilities: 4953's short term assets (NT$2.7B) exceed its short term liabilities (NT$1.1B).

Long Term Liabilities: 4953's short term assets (NT$2.7B) exceed its long term liabilities (NT$208.6M).


Debt to Equity History and Analysis

Debt Level: 4953's debt to equity ratio (3.1%) is considered satisfactory.

Reducing Debt: 4953's debt to equity ratio has reduced from 4.9% to 3.1% over the past 5 years.

Debt Coverage: 4953's debt is well covered by operating cash flow (906.2%).

Interest Coverage: 4953's interest payments on its debt are well covered by EBIT (1775x coverage).


Balance Sheet


Dividend

What is Wistron Information Technology & Services's current dividend yield, its reliability and sustainability?

3.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4953's dividend (3.15%) is higher than the bottom 25% of dividend payers in the TW market (2%).

High Dividend: 4953's dividend (3.15%) is low compared to the top 25% of dividend payers in the TW market (4.79%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 4953 has been paying a dividend for less than 10 years.

Growing Dividend: 4953's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.3%), 4953's dividend payments are well 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?

6.3yrs

Average board tenure


CEO

Ching Hsiao

1.83yrs

Tenure

Mr. Ching Hsiao has been Chairman and Chief Executive Officer of Wistron Information Technology & Services Corporation since June 24, 2019 and serves as its Director since June 14, 2005. He serves as Chair...


Board Members

Experienced Board: 4953's board of directors are considered experienced (6.3 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

Wistron Information Technology & Services Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wistron Information Technology & Services Corporation
  • Ticker: 4953
  • Exchange: GTSM
  • Founded: 1992
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: NT$6.701b
  • Shares outstanding: 65.75m
  • Website: https://www.wistronits.com

Location

  • Wistron Information Technology & Services Corporation
  • No. 93, Section 1, Xintai 5th Road
  • 32nd Floor
  • New Taipei City
  • 22175
  • Taiwan

Listings


Biography

Wistron Information Technology & Services Corporation operates as an information technology (IT) service provider to Fortune 500 companies worldwide. It provides R&D as a service, which include talents out...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/15 08:49
End of Day Share Price2021/04/14 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.