TSEC:6214

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Systex Corporation provides various IT services for enterprise and government clients in Taiwan and Asia. More Details


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6214 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 6214's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

6214

-2.3%

TW IT

2.0%

TW Market


1 Year Return

2.4%

6214

12.4%

TW IT

31.2%

TW Market

Return vs Industry: 6214 underperformed the TW IT industry which returned 12.4% over the past year.

Return vs Market: 6214 underperformed the TW Market which returned 31.2% over the past year.


Shareholder returns

6214IndustryMarket
7 Day-3.0%-2.3%2.0%
30 Day-4.0%-2.0%10.6%
90 Day3.1%3.8%22.8%
1 Year8.6%2.4%17.6%12.4%35.8%31.2%
3 Year72.9%41.1%57.9%35.3%58.3%40.5%
5 Year138.5%64.2%155.4%89.4%133.0%92.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6214 (NT$84.4) is trading above our estimate of fair value (NT$62.43)

Significantly Below Fair Value: 6214 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6214 is good value based on its PE Ratio (9.8x) compared to the TW IT industry average (14.5x).

PE vs Market: 6214 is good value based on its PE Ratio (9.8x) compared to the TW market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6214's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6214 is good value based on its PB Ratio (1.6x) compared to the TW IT industry average (2.9x).


Next Steps

Future Growth

How is Systex forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.9%

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 Systex 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.


Next Steps

Past Performance

How has Systex performed over the past 5 years?

18.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6214 has a large one-off gain of NT$1.7B impacting its September 30 2020 financial results.

Growing Profit Margin: 6214's current net profit margins (9.2%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: 6214's earnings have grown by 18.1% per year over the past 5 years.

Accelerating Growth: 6214's earnings growth over the past year (92.8%) exceeds its 5-year average (18.1% per year).

Earnings vs Industry: 6214 earnings growth over the past year (92.8%) exceeded the IT industry 29.9%.


Return on Equity

High ROE: 6214's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is Systex's financial position?


Financial Position Analysis

Short Term Liabilities: 6214's short term assets (NT$14.5B) exceed its short term liabilities (NT$7.1B).

Long Term Liabilities: 6214's short term assets (NT$14.5B) exceed its long term liabilities (NT$542.8M).


Debt to Equity History and Analysis

Debt Level: 6214's debt to equity ratio (10%) is considered satisfactory.

Reducing Debt: 6214's debt to equity ratio has increased from 6.9% to 10% over the past 5 years.

Debt Coverage: 6214's debt is well covered by operating cash flow (102.1%).

Interest Coverage: 6214 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Systex current dividend yield, its reliability and sustainability?

5.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6214's dividend (5.92%) is higher than the bottom 25% of dividend payers in the TW market (2.09%).

High Dividend: 6214's dividend (5.92%) is in the top 25% of dividend payers in the TW market (5.15%)


Stability and Growth of Payments

Stable Dividend: 6214's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6214's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.3%), 6214's dividend payments are 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?

13.7yrs

Average management tenure


CEO

Frank Lin

11.25yrs

Tenure

Mr. Lung-Fen Lin, also known as Frank, serves as the President, General Manager and Director of Systex Corporation and served as its Chief Operating Officer. He has been Chairman of the Board of Systex Cor...


Leadership Team

NamePositionTenureCompensationOwnership
Lung-Fen Lin
President11.25yrsno data0.53%
NT$ 112.0m
Chih-Chun Chung
Corporate Governance Officer6.67yrsno datano data
Yuan-Yih Cheng
Head of Accounting & Accounting Manager12.08yrsno datano data
Yu-Jen Huang
CHO & Vice President13.67yrsno datano data
Deng-Yuan Cheng
Chief Strategy Officer18.83yrsno data0.062%
NT$ 12.9m
Kou-Lin Su
Senior Vice President16yrsno datano data
Jee-Der Fan
Senior VP & Deputy GM14yrsno data0.037%
NT$ 7.7m
Shih-Chung Yang
Senior Vice President14yrsno datano data
Chun-Hsiung Tsai
Chief Audit Executive2.75yrsno datano data

13.7yrs

Average Tenure

Experienced Management: 6214's management team is seasoned and experienced (13.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lung-Fen Lin
President11.25yrsno data0.53%
NT$ 112.0m
Deng-Yuan Cheng
Chief Strategy Officer18.83yrsno data0.062%
NT$ 12.9m
Jih-Tsan Huang
Independent Director13.58yrsno datano data
Ting-Rong Huang
Director4.58yrsno data0.098%
NT$ 20.5m
Wen-Feng Cheng
Independent Director7.58yrsno data0.00034%
NT$ 71.2k
Ta-Wei Lu
Director13.58yrsno data0.99%
NT$ 208.4m
Chih-Min Lin
Director13.58yrsno data0.0022%
NT$ 467.3k
Shung-Ho Shaw
Director18.83yrsno datano data
Chin-Ho Hsieh
Director10.58yrsno datano data
Chi-Rong Huang
Director4.58yrsno datano data
Chien-Hua Lai
Independent Director1.58yrsno datano data
Cheng-Huan Wu
Director1.58yrsno data0.00025%
NT$ 52.4k

9.1yrs

Average Tenure

Experienced Board: 6214's board of directors are considered experienced (9.1 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

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


Key Information

  • Name: Systex Corporation
  • Ticker: 6214
  • Exchange: TSEC
  • Founded: 1997
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: NT$20.955b
  • Shares outstanding: 247.98m
  • Website: https://tw.systex.com

Number of Employees


Location

  • Systex Corporation
  • 318, Rueiguang Road
  • Neihu District
  • Taipei
  • 114
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6214TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDJan 2003

Biography

Systex Corporation provides various IT services for enterprise and government clients in Taiwan and Asia. It operates through Financial Business Integration, Customer Market Integration, Data Technology In...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 08:41
End of Day Share Price2021/01/26 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.