AAEON Technology (TWSE:6579) - Share price, News & Analysis

Q: What is the Fair Price of 6579 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6579 (NT$89.1) is trading above our estimate of [[fair value]] (NT$39.89)

6579 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	2/6

6579 Stock Overview

AAEON Technology Inc. designs, manufactures, and sells industrial computers and peripherals.

Rewards

Earnings grew by 236.9% over the past year

Risk Analysis

Earnings have declined by 9% per year over past 5 years

Dividend of 3.48% is not well covered by earnings

AAEON Technology Competitors

Elitegroup Computer SystemsLtd

TWSE:2331

NT$13.7b

ADLINK Technology

TWSE:6166

NT$12.7b

IEI Integration

TWSE:3022

NT$11.1b

Quanta Storage

TPEX:6188

NT$11.5b

Price History & Performance

Summary of all time highs, changes and price drops for AAEON Technology
Historical stock prices
Current Share Price	NT$89.10
52 Week High	NT$95.50
52 Week Low	NT$58.60
Beta	0.35
1 Month Change	14.23%
3 Month Change	10.55%
1 Year Change	45.35%
3 Year Change	20.24%
5 Year Change	-18.26%
Change since IPO	-28.72%

Shareholder Returns

	6579	TW Tech	TW Market
7D	-1.2%	0.04%	2.7%
1Y	45.4%	-0.2%	-8.2%

Return vs Industry: 6579 exceeded the TW Tech industry which returned -0.2% over the past year.

Return vs Market: 6579 exceeded the TW Market which returned -8.2% over the past year.

Price Volatility

Is 6579's price volatile compared to industry and market?
6579 volatility
6579 Average Weekly Movement	5.2%
Tech Industry Average Movement	5.0%
Market Average Movement	5.0%
10% most volatile stocks in TW Market	8.4%
10% least volatile stocks in TW Market	2.5%

Stable Share Price: 6579 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6579's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	n/a	Howard Lin	https://www.aaeon.com

AAEON Technology Inc. designs, manufactures, and sells industrial computers and peripherals. The company offers embedded boards, such as embedded single board computers, computer-on-modules, industrial motherboards, smart display modules, and PICMG and RISC single board computers; and computing systems, including panel and fanless embedded box PCs, machine vision and digital signage systems, multi-PoE and fanless appliances, turn-key chassis solutions, and industrial chassis. It also provides rugged tablet computers and accessories; UP boards and systems; artificial intelligence (AI) Edge solutions and modules; and network appliances comprising desktop and rackmount network appliances, industrial cyber security appliances, networking motherboards, and network interface modules.

AAEON Technology Fundamentals Summary

How do AAEON Technology's earnings and revenue compare to its market cap?
6579 fundamental statistics
Market Cap	NT$13.25b
Earnings (TTM)	NT$816.75m
Revenue (TTM)	NT$7.71b

16.2x

P/E Ratio

1.7x

P/S Ratio

Is 6579 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6579 income statement (TTM)
Revenue	NT$7.71b
Cost of Revenue	NT$5.30b
Gross Profit	NT$2.41b
Other Expenses	NT$1.60b
Earnings	NT$816.75m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.49
Gross Margin	31.29%
Net Profit Margin	10.59%
Debt/Equity Ratio	1.9%

How did 6579 perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

41%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6579 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6579?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6579. This is calculated by dividing 6579's market cap by their current preferred multiple.
What is 6579's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$13.25b

6579 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	1.5x
Enterprise Value/EBITDA	11x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 6579's PE Ratio compare to its peers?

6579 PE Ratio vs Peers

The above table shows the PE ratio for 6579 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.3x
2331 Elitegroup Computer SystemsLtd	19.1x	n/a	NT$13.7b
6166 ADLINK Technology	23.6x	-33.7%	NT$12.7b
3022 IEI Integration	11.5x	n/a	NT$11.1b
6188 Quanta Storage	10.8x	n/a	NT$11.5b
6579 AAEON Technology	16.2x	n/a	NT$13.3b

Price-To-Earnings vs Peers: 6579 is good value based on its Price-To-Earnings Ratio (16.2x) compared to the peer average (16.3x).

Price to Earnings Ratio vs Industry

How does 6579's PE Ratio compare vs other companies in the TW Tech Industry?

Price-To-Earnings vs Industry: 6579 is expensive based on its Price-To-Earnings Ratio (16.2x) compared to the TW Tech industry average (12.4x)

Price to Earnings Ratio vs Fair Ratio

What is 6579'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.

6579 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6579's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 6579 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6579 (NT$89.1) is trading above our estimate of fair value (NT$39.89)

Significantly Below Fair Value: 6579 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is AAEON 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

3.8%

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 AAEON 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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Check out AAEON Technology's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has AAEON Technology performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-9.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6579 has high quality earnings.

Growing Profit Margin: 6579's current net profit margins (10.6%) are higher than last year (4.4%).

Past Earnings Growth Analysis

Earnings Trend: 6579's earnings have declined by 9% per year over the past 5 years.

Accelerating Growth: 6579's earnings growth over the past year (236.9%) exceeds its 5-year average (-9% per year).

Earnings vs Industry: 6579 earnings growth over the past year (236.9%) exceeded the Tech industry 30.3%.

Return on Equity

High ROE: 6579's Return on Equity (10.6%) is considered low.

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Financial Health

How is AAEON Technology's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: 6579's short term assets (NT$6.0B) exceed its short term liabilities (NT$2.2B).

Long Term Liabilities: 6579's short term assets (NT$6.0B) exceed its long term liabilities (NT$369.1M).

Debt to Equity History and Analysis

Debt Level: 6579 has more cash than its total debt.

Reducing Debt: 6579's debt to equity ratio has reduced from 2.4% to 1.9% over the past 5 years.

Debt Coverage: 6579's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 6579 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.48%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6579's dividend (3.48%) is higher than the bottom 25% of dividend payers in the TW market (2.46%).

High Dividend: 6579's dividend (3.48%) is low compared to the top 25% of dividend payers in the TW market (6.46%).

Stability and Growth of Payments

Stable Dividend: 6579 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6579's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.5%), 6579's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 6579 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?

3.5yrs

Average management tenure

CEO

Howard Lin

no data

Tenure

Mr. Chien-Hung Lin, also known as Howard, serves as the President at Aaeon Technology Inc., since November 25, 2014 and its Manager. He serves as a Director of the Onyx Healthcare Inc. He served as a Chief...

Leadership Team

Experienced Management: 6579's management team is considered experienced (3.5 years average tenure).

Board Members

Experienced Board: 6579's board of directors are considered experienced (6.2 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	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31