GTSM:6561

Stock Analysis Report

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Executive Summary

Chief Telecom Inc. provides telecommunication services in Taiwan and internationally. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Chief Telecom's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6561 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6561's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

6561

-1.8%

TW Telecom

2.0%

TW Market


1 Year Return

41.5%

6561

0.3%

TW Telecom

31.2%

TW Market

Return vs Industry: 6561 exceeded the TW Telecom industry which returned 0.3% over the past year.

Return vs Market: 6561 exceeded the TW Market which returned 31.2% over the past year.


Shareholder returns

6561IndustryMarket
7 Day-1.8%-1.8%2.0%
30 Day-14.1%-0.1%10.6%
90 Day-13.9%-0.3%22.8%
1 Year44.8%41.5%3.9%0.3%35.8%31.2%
3 Year78.5%64.2%10.0%-1.8%58.3%40.5%
5 Yearn/a24.4%2.2%133.0%92.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Chief Telecom undervalued compared to its fair value and its price relative to the market?

36.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6561 (NT$314) is trading above our estimate of fair value (NT$184.01)

Significantly Below Fair Value: 6561 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6561 is poor value based on its PE Ratio (37.3x) compared to the TW Telecom industry average (35.8x).

PE vs Market: 6561 is poor value based on its PE Ratio (37.3x) compared to the TW market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6561's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6561 is overvalued based on its PB Ratio (7.8x) compared to the TW Telecom industry average (1.2x).


Next Steps

Future Growth

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

9.1%

Forecasted Telecom 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 Chief Telecom 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.


Next Steps

Past Performance

How has Chief Telecom performed over the past 5 years?

17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6561 has high quality earnings.

Growing Profit Margin: 6561's current net profit margins (23.4%) are higher than last year (22.4%).


Past Earnings Growth Analysis

Earnings Trend: 6561's earnings have grown by 17.6% per year over the past 5 years.

Accelerating Growth: 6561's earnings growth over the past year (10.9%) is below its 5-year average (17.6% per year).

Earnings vs Industry: 6561 earnings growth over the past year (10.9%) exceeded the Telecom industry -6.6%.


Return on Equity

High ROE: 6561's Return on Equity (20.9%) is considered high.


Next Steps

Financial Health

How is Chief Telecom's financial position?


Financial Position Analysis

Short Term Liabilities: 6561's short term assets (NT$2.9B) exceed its short term liabilities (NT$496.0M).

Long Term Liabilities: 6561's short term assets (NT$2.9B) exceed its long term liabilities (NT$1.2B).


Debt to Equity History and Analysis

Debt Level: 6561 is debt free.

Reducing Debt: 6561 has no debt compared to 5 years ago when its debt to equity ratio was 5.1%.

Debt Coverage: 6561 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6561 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Chief Telecom current dividend yield, its reliability and sustainability?

2.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6561's dividend (2.55%) is higher than the bottom 25% of dividend payers in the TW market (2.09%).

High Dividend: 6561's dividend (2.55%) is low compared to the top 25% of dividend payers in the TW market (5.15%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6561 has been paying a dividend for less than 10 years.

Growing Dividend: 6561's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.1%), 6561's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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


CEO

Johnny Liu

no data

Tenure

Mr. Yaoyuan Liu, also known as Johnny, serves as General Manager at Chief Telecom Inc. Mr. Liu served as Senior Vice President at Chief Telecom, President at TimeNet International Corp., Technique & Suppor...


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

Chief Telecom Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chief Telecom Inc.
  • Ticker: 6561
  • Exchange: GTSM
  • Founded: 1991
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: NT$21.559b
  • Shares outstanding: 70.22m
  • Website: https://www.chief.com.tw

Location

  • Chief Telecom Inc.
  • No. 68, Ruiguang Road
  • 2nd Floor
  • Taipei
  • 114
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6561GTSM (Taipei Exchange)YesCommon SharesTWTWDJun 2017

Biography

Chief Telecom Inc. provides telecommunication services in Taiwan and internationally. It offers POP sites; IDC services, including space/cage and suite, cabinet, inter-connection, customized power, and man...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 17:13
End of Day Share Price2021/01/26 00:00
Earnings2020/09/30
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.