TSEC:6285

Stock Analysis Report

Executive Summary

Wistron NeWeb Corporation researches, develops, produces, and sells communications products worldwide.

Rewards

Trading at 72.8% below its fair value

Earnings are forecast to grow 23.67% per year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6285 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

6285

1.2%

TW Communications

2.3%

TW Market


1 Year Return

-7.8%

6285

25.4%

TW Communications

20.9%

TW Market

Return vs Industry: 6285 underperformed the TW Communications industry which returned 25.4% over the past year.

Return vs Market: 6285 underperformed the TW Market which returned 20.9% over the past year.


Shareholder returns

6285IndustryMarket
7 Day-1.2%1.2%2.3%
30 Day0.7%0.3%3.8%
90 Day-8.8%-1.8%9.3%
1 Year-3.3%-7.8%29.7%25.4%26.0%20.9%
3 Year4.7%-8.4%47.7%32.2%42.1%25.9%
5 Year57.6%27.6%88.1%57.0%59.2%30.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Wistron NeWeb 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: 6285 (NT$74.6) is trading below our estimate of fair value (NT$274.55)

Significantly Below Fair Value: 6285 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6285 is good value based on its PE Ratio (16.5x) compared to the Communications industry average (23.2x).

PE vs Market: 6285 is good value based on its PE Ratio (16.5x) compared to the TW market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: 6285 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 6285 is overvalued based on its PB Ratio (1.8x) compared to the TW Communications industry average (1.4x).


Next Steps

Future Growth

How is Wistron NeWeb forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

23.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6285's forecast earnings growth (23.7% per year) is above the savings rate (0.7%).

Earnings vs Market: 6285's earnings (23.7% per year) are forecast to grow faster than the TW market (13.5% per year).

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

Revenue vs Market: 6285's revenue (11.2% per year) is forecast to grow faster than the TW market (8.3% per year).

High Growth Revenue: 6285's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6285's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Wistron NeWeb performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6285 has high quality earnings.

Growing Profit Margin: 6285's current net profit margins (2.8%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: 6285's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: 6285's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6285 had negative earnings growth (-1.4%) over the past year, making it difficult to compare to the Communications industry average (1.4%).


Return on Equity

High ROE: 6285's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wistron NeWeb's financial position?


Financial Position Analysis

Short Term Liabilities: 6285's short term assets (NT$26.3B) exceed its short term liabilities (NT$17.8B).

Long Term Liabilities: 6285's short term assets (NT$26.3B) exceed its long term liabilities (NT$1.8B).


Debt to Equity History and Analysis

Debt Level: 6285's debt to equity ratio (20%) is considered satisfactory.

Reducing Debt: 6285's debt to equity ratio has reduced from 20.2% to 20% over the past 5 years.

Debt Coverage: 6285's debt is well covered by operating cash flow (92.2%).

Interest Coverage: 6285's interest payments on its debt are well covered by EBIT (76x coverage).


Balance Sheet

Inventory Level: 6285 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6285's debt is covered by short term assets (assets are 8.3x debt).


Next Steps

Dividend

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

4.69%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%2.6%markettop25%5.9%industryaverage3.3%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: 6285's dividend (4.69%) is higher than the bottom 25% of dividend payers in the TW market (2.58%).

High Dividend: 6285's dividend (4.69%) is low compared to the top 25% of dividend payers in the TW market (5.87%).


Stability and Growth of Payments

Stable Dividend: 6285's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6285's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.2%), 6285's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6285's dividends in 3 years are forecast to be covered by earnings (62.4% payout ratio).


Next Steps

Management

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

8.5yrs

Average board tenure


CEO

Jeffrey Gau 0

0yrs

Tenure

0

Mr. Jeffrey Gau serves as the Chief Executive Officer and President at Wistron NeWeb Corp and has been its Director since June 17, 2011. Mr. Gau joined WNC in 1996. He served as the Chief Operating Officer ...


Board Age and Tenure

8.5yrs

Average Tenure

65yo

Average Age

Experienced Board: 6285's board of directors are considered experienced (8.5 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 4.2%.


Management Team

  • Frank Lin (64yo)

    Chief Staff Officer & Director

    • Tenure: 19.7yrs
  • Haydn Hsieh (64yo)

    Chairman & Chief Strategy Officer

    • Tenure: 5.5yrs
  • Fayu Chen

    Senior VP & GM of Business Group

    • Tenure: 0yrs
  • Jeffrey Gau

    President

    • Tenure: 0yrs
  • Larry Lee

    Senior VP & GM of Business Group

    • Tenure: 0yrs
  • Jona Song

    Chief Financial Officer

    • Tenure: 0yrs
  • Horen Chen

    Chief Technology Officer

    • Tenure: 0yrs
  • Amy Hsu

    Chief Supply Chain Officer

    • Tenure: 2.1yrs

Board Members

  • Frank Lin (64yo)

    Chief Staff Officer & Director

    • Tenure: 19.7yrs
  • Philip Peng (66yo)

    Director

    • Tenure: 14.5yrs
  • Haydn Hsieh (64yo)

    Chairman & Chief Strategy Officer

    • Tenure: 5.5yrs
  • Max Wu

    Director

    • Tenure: 17.3yrs
  • Neng-Pai Lin (66yo)

    Independent Director

    • Tenure: 4.5yrs
  • Donald Hwang (61yo)

    Director

    • Tenure: 2yrs
  • Jeffrey Gau

    President

    • Tenure: 0yrs
  • Robert Hung (71yo)

    Independent Director

    • Tenure: 8.5yrs
  • Hsing-Chuan Hsin

    Independent Director

    • Tenure: 2.5yrs

Company Information

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


Key Information

  • Name: Wistron NeWeb Corporation
  • Ticker: 6285
  • Exchange: TSEC
  • Founded: 1996
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: NT$29.119b
  • Shares outstanding: 390.33m
  • Website: https://www.wnc.com.tw

Number of Employees


Location

  • Wistron NeWeb Corporation
  • 20 Park Avenue II
  • Hsinchu Science Park
  • Hsinchu
  • 308
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6285TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDSep 2003

Biography

Wistron NeWeb Corporation researches, develops, produces, and sells communications products worldwide. The company offers wired communication equipment, wireless communication networking equipment, electro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 14:50
End of Day Share Price2019/12/13 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.