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3570

Otsuka Information Technology TPEX:3570 Stock Report

Last Price

NT$87.40

Market Cap

NT$1.5b

7D

-2.6%

1Y

24.5%

Updated

11 Aug, 2022

Data

Company Financials
3570 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends3/6

3570 Stock Overview

Otsuka Information Technology Corp., together with its subsidiaries, engages in designing, trading, maintaining, and import and export of the hardware, software, computers, and network and accessories in Taiwan and China.

Otsuka Information Technology Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Otsuka Information Technology
Historical stock prices
Current Share PriceNT$87.40
52 Week HighNT$93.10
52 Week LowNT$67.20
Beta0.20
1 Month Change7.90%
3 Month Change-0.68%
1 Year Change24.50%
3 Year Change-3.10%
5 Year Change69.71%
Change since IPO110.77%

Recent News & Updates

Shareholder Returns

3570TW SoftwareTW Market
7D-2.6%0.9%1.3%
1Y24.5%-29.3%-13.2%

Return vs Industry: 3570 exceeded the TW Software industry which returned -29.3% over the past year.

Return vs Market: 3570 exceeded the TW Market which returned -13.2% over the past year.

Price Volatility

Is 3570's price volatile compared to industry and market?
3570 volatility
3570 Average Weekly Movement3.9%
Software Industry Average Movement4.0%
Market Average Movement5.1%
10% most volatile stocks in TW Market8.4%
10% least volatile stocks in TW Market2.5%

Stable Share Price: 3570 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 3570's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1995n/aKen Kuohttps://www.oitc.com.tw

Otsuka Information Technology Corp., together with its subsidiaries, engages in designing, trading, maintaining, and import and export of the hardware, software, computers, and network and accessories in Taiwan and China. It offers software installation and training, consulting, and catering services. The company was incorporated in 1995 and is headquartered in New Taipei City, Taiwan.

Otsuka Information Technology Fundamentals Summary

How do Otsuka Information Technology's earnings and revenue compare to its market cap?
3570 fundamental statistics
Market CapNT$1.49b
Earnings (TTM)NT$158.91m
Revenue (TTM)NT$1.33b

9.4x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3570 income statement (TTM)
RevenueNT$1.33b
Cost of RevenueNT$825.58m
Gross ProfitNT$504.09m
Other ExpensesNT$345.18m
EarningsNT$158.91m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)9.29
Gross Margin37.91%
Net Profit Margin11.95%
Debt/Equity Ratio0%

How did 3570 perform over the long term?

See historical performance and comparison

Dividends

6.9%

Current Dividend Yield

65%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 3570 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 3570?

Other financial metrics that can be useful for relative valuation.

3570 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/Revenue0.8x
Enterprise Value/EBITDA5x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 3570's PE Ratio compare to its peers?

3570 PE Ratio vs Peers
The above table shows the PE ratio for 3570 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.8x
6752 Galaxy Software Services
11.8xn/aNT$1.8b
3158 SysJust
13.8xn/aNT$1.9b
6590 Provision InformationLtd
11.6xn/aNT$963.9m
6870 Turn Cloud Technology Service
49.8xn/aNT$2.4b
3570 Otsuka Information Technology
9.4xn/aNT$1.5b

Price-To-Earnings vs Peers: 3570 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (21.8x).


Price to Earnings Ratio vs Industry

How does 3570's PE Ratio compare vs other companies in the Asian Software Industry?

Price-To-Earnings vs Industry: 3570 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the TW Software industry average (15.1x)


Price to Earnings Ratio vs Fair Ratio

What is 3570'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.

3570 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3570's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 3570 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3570 (NT$87.4) is trading below our estimate of fair value (NT$120.15)

Significantly Below Fair Value: 3570 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 Otsuka Information Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


31.7%

Forecasted Software industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Otsuka Information Technology has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine whether Otsuka Information Technology is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Otsuka Information 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


24.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3570 has a high level of non-cash earnings.

Growing Profit Margin: 3570's current net profit margins (12%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: 3570's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: 3570's earnings growth over the past year (29.3%) exceeds its 5-year average (24.6% per year).

Earnings vs Industry: 3570 earnings growth over the past year (29.3%) exceeded the Software industry 22.3%.


Return on Equity

High ROE: 3570's Return on Equity (22.6%) is considered high.


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Financial Health

How is Otsuka Information 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: 3570's short term assets (NT$895.5M) exceed its short term liabilities (NT$285.5M).

Long Term Liabilities: 3570's short term assets (NT$895.5M) exceed its long term liabilities (NT$18.1M).


Debt to Equity History and Analysis

Debt Level: 3570 is debt free.

Reducing Debt: 3570 has not had any debt for past 5 years.

Debt Coverage: 3570 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3570 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Otsuka Information 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


6.86%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3570's dividend (6.86%) is higher than the bottom 25% of dividend payers in the TW market (2.53%).

High Dividend: 3570's dividend (6.86%) is in the top 25% of dividend payers in the TW market (6.58%)


Stability and Growth of Payments

Stable Dividend: 3570 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3570's dividend payments have increased, but the company has only paid a dividend for 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (64.6%), 3570's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (129.2%), 3570's dividend payments are not well covered by cash flows.


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Management

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

5.2yrs

Average management tenure


CEO

Ken Kuo (45 yo)

6.58yrs

Tenure

NT$5,575,000

Compensation

Mr. Yi-Lung Kuo, also known as Ken, serves as a Director of Otsuka Information Technology Corp. since June 29, 2016 and serves as its Chief Executive Officer since 16 January 2016. Mr. Kuo serves as a Dire...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Ken's total compensation is reasonable compared to companies of similar size in the TW market.

Compensation vs Earnings: Insufficient data to compare Ken's compensation with company performance.


Leadership Team

Experienced Management: 3570's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: 3570'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

Otsuka Information Technology Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Otsuka Information Technology Corp.
  • Ticker: 3570
  • Exchange: TPEX
  • Founded: 1995
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: NT$1.494b
  • Shares outstanding: 17.10m
  • Website: https://www.oitc.com.tw

Location

  • Otsuka Information Technology Corp.
  • No. 68, Sianmin Boulevard
  • 6th Floor
  • New Taipei City
  • 220
  • Taiwan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.