GTSM:3455

Stock Analysis Report

Executive Summary

Utechzone Co., Ltd. provides automated optical inspection (AOI) products in Taiwan.

Rewards

PE ratio (7.7x) is below the TW market (16.7x)

Earnings grew by 55.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -47.3% per year for the next 3 years

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3455 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

3455

1.7%

TW Electronic

1.0%

TW Market


1 Year Return

-10.7%

3455

24.1%

TW Electronic

18.1%

TW Market

Return vs Industry: 3455 underperformed the TW Electronic industry which returned 24.1% over the past year.

Return vs Market: 3455 underperformed the TW Market which returned 18.1% over the past year.


Shareholder returns

3455IndustryMarket
7 Day0.2%1.7%1.0%
30 Day2.7%1.2%0.05%
90 Day-14.4%9.3%7.1%
1 Year-7.0%-10.7%30.2%24.1%23.2%18.1%
3 Year54.2%33.2%27.4%12.6%37.6%21.9%
5 Year156.7%102.6%36.8%11.8%54.1%26.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

7.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3455 (NT$61.8) is trading above our estimate of fair value (NT$36.99)

Significantly Below Fair Value: 3455 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3455 is good value based on its PE Ratio (7.7x) compared to the Electronic industry average (15.3x).

PE vs Market: 3455 is good value based on its PE Ratio (7.7x) compared to the TW market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: 3455's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 3455 is overvalued based on its PB Ratio (1.7x) compared to the TW Electronic industry average (1.4x).


Next Steps

Future Growth

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

-47.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3455's earnings are forecast to decline over the next 3 years (-47.3% per year).

Earnings vs Market: 3455's earnings are forecast to decline over the next 3 years (-47.3% per year).

High Growth Earnings: 3455's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 3455's revenue is expected to decline over the next 3 years (-4.8% per year).

High Growth Revenue: 3455's revenue is forecast to decline over the next 3 years (-4.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 3455's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Utechzone performed over the past 5 years?

25.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3455 has a high level of non-cash earnings.

Growing Profit Margin: 3455's current net profit margins (15.9%) are higher than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: 3455's earnings have grown significantly by 25% per year over the past 5 years.

Accelerating Growth: 3455's earnings growth over the past year (55.9%) exceeds its 5-year average (25% per year).

Earnings vs Industry: 3455 earnings growth over the past year (55.9%) exceeded the Electronic industry -2.5%.


Return on Equity

High ROE: 3455's Return on Equity (22.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Utechzone's financial position?


Financial Position Analysis

Short Term Liabilities: 3455's short term assets (NT$3.2B) exceed its short term liabilities (NT$1.7B).

Long Term Liabilities: 3455's short term assets (NT$3.2B) exceed its long term liabilities (NT$144.8M).


Debt to Equity History and Analysis

Debt Level: 3455's debt to equity ratio (17.3%) is considered satisfactory.

Reducing Debt: 3455's debt to equity ratio has reduced from 25.3% to 17.3% over the past 5 years.

Debt Coverage: 3455's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 3455 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 3455 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3455's debt is covered by short term assets (assets are 8.4x debt).


Next Steps

Dividend

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

4.85%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.6%markettop25%5.9%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 3455's dividend (4.85%) is higher than the bottom 25% of dividend payers in the TW market (2.59%).

High Dividend: 3455's dividend (4.85%) is low compared to the top 25% of dividend payers in the TW market (5.92%).


Stability and Growth of Payments

Stable Dividend: 3455's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3455's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.3%), 3455'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

What is the CEO of Utechzone's salary, the management and board of directors tenure and is there insider trading?


CEO

Jia Jun Zou 0

0yrs

Tenure

0

Jia Jun Zou serves as Chairman of the Board of Directors and Chief Executive Officer at Utechzone Co., Ltd. Jia Jun Zou was Software engineer of New Image Co., Ltd. Jia Jun Zou serves as a Director of UTEC ...


Insider Trading

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.


Management Team

  • Jack Chang

    General Manager

    • Tenure: 0yrs
  • Jia Jun Zou

    Chairman of the Board of Directors and Chief Executive Officer

    • Tenure: 0yrs
  • Wen Jie Zhang

    President and Director

    • Tenure: 0yrs
  • Zhi Heng Fang

    Vice-President of Technology Research & Development Department and Director

    • Tenure: 0yrs

Board Members

  • Chieh Lien Wen (63yo)

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Banghan Chiu

    Independent Director

    • Tenure: 0yrs
  • Ying Cheng Lu

    Independent Director

    • Tenure: 0yrs
  • Liang Ching-yi

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Hui De Ye

    Director

    • Tenure: 0yrs
  • Fang Long Lin

    Director

    • Tenure: 0yrs
  • Jia Jun Zou

    Chairman of the Board of Directors and Chief Executive Officer

    • Tenure: 0yrs
  • Wen Jie Zhang

    President and Director

    • Tenure: 0yrs
  • Zhi Heng Fang

    Vice-President of Technology Research & Development Department and Director

    • Tenure: 0yrs
  • Ying Hua Li

    Member of the Supervisory Board

    • Tenure: 0yrs

Company Information

Utechzone Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Utechzone Co., Ltd.
  • Ticker: 3455
  • Exchange: GTSM
  • Founded: 1992
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: NT$3.791b
  • Shares outstanding: 61.14m
  • Website: https://www.utechzone.com.tw

Location

  • Utechzone Co., Ltd.
  • Room 1
  • 10th Floor
  • New Taipei City
  • 23553
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3455GTSM (Taipei Exchange)YesCommon StockTWTWDDec 2004

Biography

Utechzone Co., Ltd. provides automated optical inspection (AOI) products in Taiwan. The company offers PCB, FPD, and semiconductor inspection services. Utechzone Co., Ltd. was founded in 1992 and is headqu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 15:11
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.