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2317

Hon Hai Precision IndustryTWSE:2317 Stock Report

Last Price

NT$103.00

Market Cap

NT$1.4t

7D

-2.4%

1Y

-12.0%

Updated

20 Jan, 2022

Data

Company Financials +
2317 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends4/6

2317 Stock Overview

Hon Hai Precision Industry Co., Ltd. provides technology solutions in Japan, Ireland, the United States, Singapore, China, Taiwan, and internationally.

Hon Hai Precision Industry Competitors

Broadcom

NasdaqGS:AVGO

US$226.1b

Micron Technology

NasdaqGS:MU

US$95.3b

Analog Devices

NasdaqGS:ADI

US$83.3b

SK hynix

KOSE:A000660

₩86.0t

Price History & Performance

Summary of all time highs, changes and price drops for Hon Hai Precision Industry
Historical stock prices
Current Share PriceNT$103.00
52 Week HighNT$134.50
52 Week LowNT$96.50
Beta0.79
1 Month Change-1.44%
3 Month Change-4.19%
1 Year Change-11.97%
3 Year Change47.14%
5 Year Change-1.55%
Change since IPO3,650.12%

Recent News & Updates

Shareholder Returns

2317TW ElectronicTW Market
7D-2.4%-0.3%-0.9%
1Y-12.0%8.2%14.0%

Return vs Industry: 2317 underperformed the TW Electronic industry which returned 10.3% over the past year.

Return vs Market: 2317 underperformed the TW Market which returned 16.7% over the past year.

Price Volatility

Is 2317's price volatile compared to industry and market?
2317 volatility
2317 Average Weekly Movement2.5%
Electronic Industry Average Movement5.4%
Market Average Movement4.3%
10% most volatile stocks in TW Market8.4%
10% least volatile stocks in TW Market1.7%

Stable Share Price: 2317 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 2317's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1974n/aYang-Wei Liuhttps://www.foxconn.com

Hon Hai Precision Industry Co., Ltd. provides technology solutions in Japan, Ireland, the United States, Singapore, China, Taiwan, and internationally. The company manufactures, sells, and services connectors, cases, thermal modules, wired/wireless communication products, optical products, power supply modules, and assemblies for use in the information technology, communications, automotive equipment, precision molding, automobile, and consumer electronics industries.

Hon Hai Precision Industry Fundamentals Summary

How do Hon Hai Precision Industry's earnings and revenue compare to its market cap?
2317 fundamental statistics
Market CapNT$1.43t
Earnings (TTM)NT$140.90b
Revenue (TTM)NT$6.11t

10.1x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2317 income statement (TTM)
RevenueNT$6.11t
Cost of RevenueNT$5.75t
Gross ProfitNT$362.64b
ExpensesNT$221.74b
EarningsNT$140.90b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)10.16
Gross Margin5.93%
Net Profit Margin2.30%
Debt/Equity Ratio59.8%

How did 2317 perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

39%

Payout Ratio

Valuation

Is Hon Hai Precision Industry undervalued compared to its fair value and its price relative to the market?

45.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2317 (NT$103) is trading below our estimate of fair value (NT$190.27)

Significantly Below Fair Value: 2317 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2317 is good value based on its PE Ratio (10.1x) compared to the TW Electronic industry average (17.7x).

PE vs Market: 2317 is good value based on its PE Ratio (10.1x) compared to the TW market (17x).


Price to Earnings Growth Ratio

PEG Ratio: 2317 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 2317 is good value based on its PB Ratio (1.1x) compared to the TW Electronic industry average (1.8x).


Future Growth

How is Hon Hai Precision Industry forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2317's forecast earnings growth (8.6% per year) is above the savings rate (0.8%).

Earnings vs Market: 2317's earnings (8.6% per year) are forecast to grow slower than the TW market (9.8% per year).

High Growth Earnings: 2317's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2317's revenue (2.4% per year) is forecast to grow slower than the TW market (10.1% per year).

High Growth Revenue: 2317's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2317's Return on Equity is forecast to be low in 3 years time (11.2%).


Past Performance

How has Hon Hai Precision Industry performed over the past 5 years?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2317 has high quality earnings.

Growing Profit Margin: 2317's current net profit margins (2.3%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: 2317's earnings have declined by 4.6% per year over the past 5 years.

Accelerating Growth: 2317's earnings growth over the past year (36%) exceeds its 5-year average (-4.6% per year).

Earnings vs Industry: 2317 earnings growth over the past year (36%) underperformed the Electronic industry 36%.


Return on Equity

High ROE: 2317's Return on Equity (10.3%) is considered low.


Financial Health

How is Hon Hai Precision Industry's financial position?


Financial Position Analysis

Short Term Liabilities: 2317's short term assets (NT$2,815.4B) exceed its short term liabilities (NT$1,817.1B).

Long Term Liabilities: 2317's short term assets (NT$2,815.4B) exceed its long term liabilities (NT$318.5B).


Debt to Equity History and Analysis

Debt Level: 2317 has more cash than its total debt.

Reducing Debt: 2317's debt to equity ratio has increased from 34.6% to 59.8% over the past 5 years.

Debt Coverage: 2317's debt is not well covered by operating cash flow (3.7%).

Interest Coverage: 2317 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Hon Hai Precision Industry current dividend yield, its reliability and sustainability?

3.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2317's dividend (3.88%) is higher than the bottom 25% of dividend payers in the TW market (1.87%).

High Dividend: 2317's dividend (3.88%) is low compared to the top 25% of dividend payers in the TW market (5.02%).


Stability and Growth of Payments

Stable Dividend: 2317's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2317's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.4%), 2317's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2317's dividends in 3 years are forecast to be covered by earnings (57.9% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Yang-Wei Liu

2.5yrs

Tenure

Mr. Yang-Wei Liu has been Chairman of Hon Hai Precision Industry Co., Ltd. since June 21, 2019 and also serves as its President since July 04, 2019. Mr. Liu had been a Director of Sharp Corporation since A...


Leadership Team

Experienced Management: 2317's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: 2317's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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

Hon Hai Precision Industry Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Hon Hai Precision Industry Co., Ltd.
  • Ticker: 2317
  • Exchange: TWSE
  • Founded: 1974
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Implied Market Cap: NT$1.428t
  • Shares outstanding: 13.86b
  • Website: https://www.foxconn.com

Number of Employees


Location

  • Hon Hai Precision Industry Co., Ltd.
  • No. 66, Zhongshan Road
  • Tucheng Industrial Zone
  • New Taipei City
  • 236
  • Taiwan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 15:51
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.