ADLINK Technology (TWSE:6166) - Share price, News & Analysis

Q: What is the Fair Price of 6166 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6166 (NT$55.4) is trading above our estimate of [[fair value]] (NT$3.88)

6166 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	1/6
Financial Health	2/6
Dividends	0/6

6166 Stock Overview

ADLINK Technology, Inc. manufactures and sells hardware, software, and peripheral equipment for industrial computers in the Asia Pacific, Mainland China, the Americas, and Europe.

Risk Analysis

Earnings have declined by 18.2% per year over past 5 years

Interest payments are not well covered by earnings

High level of non-cash earnings

ADLINK Technology Competitors

Elitegroup Computer SystemsLtd

TWSE:2331

NT$11.2b

AAEON Technology

TWSE:6579

NT$11.6b

Aten International

TWSE:6277

NT$9.1b

CMC Magnetics

TWSE:2323

NT$8.5b

Price History & Performance

Summary of all time highs, changes and price drops for ADLINK Technology
Historical stock prices
Current Share Price	NT$55.40
52 Week High	NT$71.00
52 Week Low	NT$52.30
Beta	0.13
1 Month Change	-0.36%
3 Month Change	-5.14%
1 Year Change	-10.50%
3 Year Change	40.79%
5 Year Change	-11.36%
Change since IPO	329.75%

Shareholder Returns

	6166	TW Tech	TW Market
7D	-1.9%	-5.7%	-6.4%
1Y	-10.5%	-12.6%	-18.9%

Return vs Industry: 6166 exceeded the TW Tech industry which returned -12.6% over the past year.

Return vs Market: 6166 exceeded the TW Market which returned -18.9% over the past year.

Price Volatility

Is 6166's price volatile compared to industry and market?
6166 volatility
6166 Average Weekly Movement	3.0%
Tech Industry Average Movement	4.5%
Market Average Movement	4.9%
10% most volatile stocks in TW Market	8.4%
10% least volatile stocks in TW Market	2.3%

Stable Share Price: 6166 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6166's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	n/a	Jim Liu	https://www.adlinktech.com

ADLINK Technology, Inc. manufactures and sells hardware, software, and peripheral equipment for industrial computers in the Asia Pacific, Mainland China, the Americas, and Europe. The company offers processor blades, switch blades, and platforms; CompactPCI blades, switches, backplanes, enclosures and systems, peripherals and accessories, rear transition modules, power supplies, and intelligent railway platforms; computer-on-modules; multi-function DAQ, USB DAQ, digital I/O, digitizer, dynamic signal analyzer, GPIB, timer/counter, PXI/PXIe, and local cell measurement software and utility products; GPU and AI vision solutions, AI-enabled video analytics and deep learning interface platforms, embedded MXM modules, and PCI express graphic cards; industrial motherboards and SBCs; and industrial and fanless PCs. It also provides gaming specific solutions, generic solutions, gaming monitors, and advanced gaming architecture platforms and boards; and medical panel PCs, monitors, and tablets, as well as motion control, fieldbus, and machine vision products.

ADLINK Technology Fundamentals Summary

How do ADLINK Technology's earnings and revenue compare to its market cap?
6166 fundamental statistics
Market Cap	NT$12.05b
Earnings (TTM)	NT$167.40m
Revenue (TTM)	NT$10.16b

72.0x

P/E Ratio

1.2x

P/S Ratio

Is 6166 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6166 income statement (TTM)
Revenue	NT$10.16b
Cost of Revenue	NT$6.61b
Gross Profit	NT$3.54b
Other Expenses	NT$3.38b
Earnings	NT$167.40m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.77
Gross Margin	34.88%
Net Profit Margin	1.65%
Debt/Equity Ratio	122.0%

How did 6166 perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

39%

Payout Ratio

Does 6166 pay a reliable dividends?

See 6166 dividend history and benchmarks

When do you need to buy 6166 by to receive an upcoming dividend?
ADLINK Technology dividend dates
Ex Dividend Date	Jul 12 2022
Dividend Pay Date	Aug 08 2022
Days until Ex dividend	9 days
Days until Dividend pay date	36 days

Does 6166 pay a reliable dividends?

See 6166 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 6166 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6166?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6166. This is calculated by dividing 6166's market cap by their current preferred multiple.
What is 6166's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$12.05b

6166 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.6x
Enterprise Value/EBITDA	60.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 6166's PE Ratio compare to its peers?

6166 PE Ratio vs Peers

The above table shows the PE ratio for 6166 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	24.9x
2331 Elitegroup Computer SystemsLtd	23.8x	n/a	NT$11.2b
6579 AAEON Technology	21.4x	n/a	NT$11.6b
6277 Aten International	15.1x	11.9%	NT$9.1b
2323 CMC Magnetics	39.3x	n/a	NT$8.5b
6166 ADLINK Technology	72x	n/a	NT$12.0b

Forward PE

Price-To-Earnings vs Peers: 6166 is expensive based on its Price-To-Earnings Ratio (72x) compared to the peer average (24.9x).

Price to Earnings Ratio vs Industry

How does 6166's PE Ratio compare vs other companies in the TW Tech Industry?

Price-To-Earnings vs Industry: 6166 is expensive based on its Price-To-Earnings Ratio (72x) compared to the TW Tech industry average (12.1x)

Price to Earnings Ratio vs Fair Ratio

What is 6166's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6166 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	72x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6166's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 6166 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6166 (NT$55.4) is trading above our estimate of fair value (NT$3.88)

Significantly Below Fair Value: 6166 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6166's PEG Ratio to determine if it is good value.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.0%

Forecasted Tech 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 ADLINK Technology 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.

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Take a look at our analysis of 6166’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.

Past Performance

How has ADLINK Technology performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-18.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6166 has a high level of non-cash earnings.

Growing Profit Margin: 6166's current net profit margins (1.6%) are lower than last year (1.7%).

Past Earnings Growth Analysis

Earnings Trend: 6166's earnings have declined by 18.2% per year over the past 5 years.

Accelerating Growth: 6166's earnings growth over the past year (5.5%) exceeds its 5-year average (-18.2% per year).

Earnings vs Industry: 6166 earnings growth over the past year (5.5%) underperformed the Tech industry 20.3%.

Return on Equity

High ROE: 6166's Return on Equity (3.7%) is considered low.

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Financial Health

How is ADLINK Technology's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6166's short term assets (NT$7.6B) exceed its short term liabilities (NT$5.5B).

Long Term Liabilities: 6166's short term assets (NT$7.6B) exceed its long term liabilities (NT$3.3B).

Debt to Equity History and Analysis

Debt Level: 6166's net debt to equity ratio (98.4%) is considered high.

Reducing Debt: 6166's debt to equity ratio has increased from 15.5% to 122% over the past 5 years.

Debt Coverage: 6166's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 6166's interest payments on its debt are not well covered by EBIT (2.2x coverage).

Balance Sheet

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Dividend

What is ADLINK Technology current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.54%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 6166's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (2.73%).

High Dividend: 6166's dividend (0.54%) is low compared to the top 25% of dividend payers in the TW market (6.66%).

Stability and Growth of Payments

Stable Dividend: 6166 is not paying a notable dividend for the TW market, therefore no need to check if payments are stable.

Growing Dividend: 6166 is not paying a notable dividend for the TW market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 6166 is not paying a notable dividend for the TW market.

Cash Payout to Shareholders

Cash Flow Coverage: 6166 is paying a dividend but the company has no free cash flows.

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Management

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

16.1yrs

Average management tenure

CEO

Jim Liu

21.17yrs

Tenure

Mr. Chun Liu, also known as Jim, serves as chief executive officer of LiPPERT ADLINK Technology GmbH and Ampro Computers Inc. Mr. Liu has been Chairman of the Board of Directors at ADLINK Technology, Inc s...

Leadership Team

Experienced Management: 6166's management team is seasoned and experienced (16.1 years average tenure).

Board Members

Experienced Board: 6166's board of directors are seasoned and experienced ( 10.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/02 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31