TSEC:2308

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Delta Electronics

Executive Summary

Delta Electronics, Inc. provides power and thermal management solutions in Mainland China, the United States, Taiwan, and internationally.


Snowflake Analysis

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


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2308's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.2%

2308

6.2%

TW Electronic

4.7%

TW Market


1 Year Return

3.7%

2308

16.5%

TW Electronic

10.4%

TW Market

Return vs Industry: 2308 underperformed the TW Electronic industry which returned 16.5% over the past year.

Return vs Market: 2308 underperformed the TW Market which returned 10.4% over the past year.


Shareholder returns

2308IndustryMarket
7 Day11.2%6.2%4.7%
30 Day10.4%6.4%7.0%
90 Day10.8%1.0%1.9%
1 Year7.1%3.7%22.0%16.5%15.4%10.4%
3 Year3.4%-7.3%2.2%-9.5%26.2%11.5%
5 Year15.7%-4.1%30.8%7.0%50.5%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2308 (NT$153.5) is trading above our estimate of fair value (NT$101.65)

Significantly Below Fair Value: 2308 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2308 is poor value based on its PE Ratio (18.3x) compared to the Electronic industry average (16.8x).

PE vs Market: 2308 is poor value based on its PE Ratio (18.3x) compared to the TW market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2308 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 2308 is overvalued based on its PB Ratio (2.9x) compared to the TW Electronic industry average (1.4x).


Next Steps

Future Growth

How is Delta Electronics forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2308's forecast earnings growth (17.8% per year) is above the savings rate (0.9%).

Earnings vs Market: 2308's earnings (17.8% per year) are forecast to grow faster than the TW market (15.2% per year).

High Growth Earnings: 2308's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2308's revenue (9.6% per year) is forecast to grow faster than the TW market (7.4% per year).

High Growth Revenue: 2308's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2308's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

How has Delta Electronics performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2308 has a large one-off gain of NT$6.0B impacting its March 31 2020 financial results.

Growing Profit Margin: 2308's current net profit margins (8.1%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: 2308's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: 2308's earnings growth over the past year (15.7%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: 2308 earnings growth over the past year (15.7%) exceeded the Electronic industry -5.8%.


Return on Equity

High ROE: 2308's Return on Equity (13.2%) is considered low.


Next Steps

Financial Health

How is Delta Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: 2308's short term assets (NT$142.7B) exceed its short term liabilities (NT$81.5B).

Long Term Liabilities: 2308's short term assets (NT$142.7B) exceed its long term liabilities (NT$52.0B).


Debt to Equity History and Analysis

Debt Level: 2308's debt to equity ratio (22.6%) is considered satisfactory.

Reducing Debt: 2308's debt to equity ratio has reduced from 28.2% to 22.6% over the past 5 years.

Debt Coverage: 2308's debt is well covered by operating cash flow (114.1%).

Interest Coverage: 2308 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

3.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2308's dividend (3.26%) is higher than the bottom 25% of dividend payers in the TW market (2.46%).

High Dividend: 2308's dividend (3.26%) is low compared to the top 25% of dividend payers in the TW market (5.48%).


Stability and Growth of Payments

Stable Dividend: 2308's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2308's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.5%), 2308's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2308's dividends in 3 years are forecast to be covered by earnings (63.2% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Ping Cheng (57yo)

8.42yrs

Tenure

Mr. Ping Cheng serves as Chief Executive Officer of Delta India Electronics Pvt. Ltd. Mr. Cheng has been Chief Executive Officer of Delta Electronics Inc since 2012. He is the President at Delta Electronic ...


Leadership Team

NamePositionTenureCompensationOwnership
Ping Cheng
CEO & Director8.42yrsno data2.12% NT$8.5b
Simon Chang
President14.08yrsno data0.035% NT$138.8m
Chong Cheng
Founder & Honorary Chairmanno datano data4.08% NT$16.3b
Judy Wang
Corporate CFO & VP6.83yrsno datano data
Rodney Liu
Investor Relations Officerno datano datano data
Shalin Chen
Company Secretary1.17yrsno datano data

6.8yrs

Average Tenure

Experienced Management: 2308's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ping Cheng
CEO & Director8.42yrsno data2.12% NT$8.5b
Simon Chang
President14.08yrsno data0.035% NT$138.8m
Chong Cheng
Founder & Honorary Chairmanno datano data4.08% NT$16.3b
Ing-Jiunn Hai
Chairman8yrsno data0.038% NT$151.0m
An Cheng
Director2yrsno data1.97% NT$7.9b
Tzu-shing Ko
Vice Chairman8.42yrsno data0.032% NT$128.6m
Albert Chang
Director11yrsno data0.043% NT$169.6m
Ji-Ren Lee
Independent Director4yrsno datano data
George Chao
Independent Director8yrsno datano data
Yung-Chin Chen
Independent Director8yrsno datano data

8.0yrs

Average Tenure

61yo

Average Age

Experienced Board: 2308's board of directors are considered experienced (8 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

Delta Electronics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Delta Electronics, Inc.
  • Ticker: 2308
  • Exchange: TSEC
  • Founded: 1971
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: NT$398.723b
  • Shares outstanding: 2.60b
  • Website: https://www.delta.com.tw

Location

  • Delta Electronics, Inc.
  • 186 Ruey Kuang Road
  • Neihu
  • Taipei
  • 11491
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2308TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDMay 1991
DELECBDL (Bourse de Luxembourg)SPON GDR REG SLUUSDMar 2005

Biography

Delta Electronics, Inc. provides power and thermal management solutions in Mainland China, the United States, Taiwan, and internationally. It operates through Power Electronics, Automation, and Infrastructure segments. The Power Electronics segment offers inductors, transformers, networking products, EMI filters, solenoids, current sensing resistors, and power modules for use in portable devices, cloud computing equipment, automotive, IoT, and other segments; and switching power supplies, power modules, and lighting ballasts and LED drivers for IT, automotive, renewable energy storage systems, LED lighting, outdoor displays, and surveillance applications. It also provides DC brushless fans and blowers, motors, thermal management products, cabinet thermal solutions, and ventilation and automotive fans; automotive electronics comprising AC and DC chargers, and site management systems; and display and visualization products, and healthcare devices, as well as mobile, industrial, and medical power products. The Automation segment offers industrial automation products and solutions consisting of drives, motion control systems, industrial control and communication products, power quality enhancement products, human machine interfaces, sensors, meters, and robot solutions; and information monitoring and management systems, such as SCADA and industrial EMS for smart manufacturing solutions. It also provides building automation solutions to integrate building systems through IoT networking technologies, such as air conditioning, lighting, energy, water supply and drainage, elevators, electricity, and access control. The Infrastructure segment offers telecom power systems, networking systems, and UPS and datacenter infrastructure products; and EV charging products, energy storage systems, renewable energy products, and motor drives. Delta Electronics, Inc. was founded in 1971 and is headquartered in Taipei, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 16:21
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
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.