Executive Summary
Chunghwa Telecom Co., Ltd. provides telecommunication services in Taiwan.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -2% per year for the next 3 years
Dividend of 3.97% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Flawless balance sheet and slightly overvalued.
Similar Companies
Share Price & News
How has Chunghwa Telecom's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2412 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.9%
2412
1.4%
TW Telecom
8.4%
TW Market
1 Year Return
-3.6%
2412
-4.4%
TW Telecom
-10.6%
TW Market
Return vs Industry: 2412 matched the TW Telecom industry which returned -2.7% over the past year.
Return vs Market: 2412 exceeded the TW Market which returned -9.9% over the past year.
Shareholder returns
| 2412 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | 1.4% | 8.4% |
| 30 Day | -1.4% | -1.7% | -14.9% |
| 90 Day | -3.2% | -4.5% | -19.9% |
| 1 Year | 0.4%-3.6% | -0.5%-4.4% | -6.4%-10.6% |
| 3 Year | 17.9%3.4% | 13.6%0.3% | 8.7%-3.9% |
| 5 Year | 34.6%7.3% | 25.6%1.7% | 21.0%-0.8% |
Price Volatility Vs. Market
How volatile is Chunghwa Telecom's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Chunghwa Telecom undervalued compared to its fair value and its price relative to the market?
8.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2412 (NT$106.5) is trading below our estimate of fair value (NT$116.3)
Significantly Below Fair Value: 2412 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: 2412 is good value based on its PE Ratio (25.2x) compared to the Telecom industry average (25.4x).
PE vs Market: 2412 is poor value based on its PE Ratio (25.2x) compared to the TW market (13.6x).
Price to Earnings Growth Ratio
PEG Ratio: 2412's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: 2412 is overvalued based on its PB Ratio (2.2x) compared to the TW Telecom industry average (1x).
Next Steps
Future Growth
How is Chunghwa Telecom forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
-2.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2412's earnings are forecast to decline over the next 3 years (-2% per year).
Earnings vs Market: 2412's earnings are forecast to decline over the next 3 years (-2% per year).
High Growth Earnings: 2412's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 2412's revenue (0.4% per year) is forecast to grow slower than the TW market (7% per year).
High Growth Revenue: 2412's revenue (0.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2412's Return on Equity is forecast to be low in 3 years time (8.2%).
Next Steps
Past Performance
How has Chunghwa Telecom performed over the past 5 years?
-2.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2412 has high quality earnings.
Growing Profit Margin: 2412's current net profit margins (15.8%) are lower than last year (17.4%).
Past Earnings Growth Analysis
Earnings Trend: 2412's earnings have declined by -2.5% per year over the past 5 years.
Accelerating Growth: 2412's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 2412 had negative earnings growth (-12.7%) over the past year, making it difficult to compare to the Telecom industry average (-8.6%).
Return on Equity
High ROE: 2412's Return on Equity (8.7%) is considered low.
Next Steps
Financial Health
How is Chunghwa Telecom's financial position?
Financial Position Analysis
Short Term Liabilities: 2412's short term assets (NT$94.1B) exceed its short term liabilities (NT$64.4B).
Long Term Liabilities: 2412's short term assets (NT$94.1B) exceed its long term liabilities (NT$26.7B).
Debt to Equity History and Analysis
Debt Level: 2412's debt to equity ratio (0.4%) is considered satisfactory.
Reducing Debt: 2412's debt to equity ratio has reduced from 0.7% to 0.4% over the past 5 years.
Debt Coverage: 2412's debt is well covered by operating cash flow (4285.6%).
Interest Coverage: 2412 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 2412 has a high level of physical assets or inventory.
Debt Coverage by Assets: 2412's debt is covered by short term assets (assets are 55.7x debt).
Next Steps
Dividend
What is Chunghwa Telecom's current dividend yield, its reliability and sustainability?
3.97%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 2412's dividend (3.97%) is higher than the bottom 25% of dividend payers in the TW market (3.31%).
High Dividend: 2412's dividend (3.97%) is low compared to the top 25% of dividend payers in the TW market (7.12%).
Stability and Growth of Payments
Stable Dividend: 2412's dividend payments have been volatile in the past 10 years.
Growing Dividend: 2412's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (99.9%), 2412's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 2412's dividends in 3 years are not forecast to be well covered by earnings (96% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.9yrs
Average management tenure
CEO
Chi-Mau Sheih (65yo)
0.92
Tenure
Mr. Chi-Mau Sheih has been Chairman and Chief Executive Officer at Chunghwa Telecom Co., Ltd. since April 22, 2019. Mr. Sheih served as the President of Chunghwa Telecom Co., Ltd. since January 4, 2017 unt ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 0.92yr | no data | 0.00093% NT$7.7m | |
| President | 0.92yr | no data | no data | |
| President | no data | no data | 0.00039% NT$3.2m | |
| President | no data | no data | 0.000030% NT$247.9k | |
| President | no data | no data | 0.00015% NT$1.2m | |
| President | no data | no data | 0.00014% NT$1.2m | |
| President | no data | no data | 0.00055% NT$4.5m | |
| President | no data | no data | 0.000050% NT$413.1k | |
| President | no data | no data | 0.000030% NT$247.9k | |
| Vice President of Accounting Department | 2.92yrs | no data | no data |
0.9yrs
Average Tenure
Experienced Management: 2412's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 0.92yr | no data | 0.00093% NT$7.7m | |
| President | 0.92yr | no data | no data | |
| Independent Director | 3.75yrs | no data | no data | |
| Independent Director | 3.75yrs | no data | no data | |
| Director | 0.75yr | no data | no data | |
| Director | 3yrs | no data | 0.000030% NT$247.9k | |
| Independent Director | 2.75yrs | no data | no data | |
| Independent Director | 1.75yrs | no data | no data | |
| Director | 1yr | no data | no data | |
| Director | 0.75yr | no data | no data |
1.4yrs
Average Tenure
60yo
Average Age
Experienced Board: 2412's board of directors are not considered experienced ( 1.4 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
Chunghwa Telecom Co., Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Chunghwa Telecom Co., Ltd.
- Ticker: 2412
- Exchange: TSEC
- Founded: 1996
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: NT$826.168b
- Shares outstanding: 7.76b
- Website: https://www.cht.com.tw
Number of Employees
Location
- Chunghwa Telecom Co., Ltd.
- No. 21-3, Hsinyi Road
- Sec. 1
- Taipei City
- 10048
- Taiwan
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 2412 | TSEC (Taiwan Stock Exchange) | Yes | Common Shares | TW | TWD | Oct 2000 |
| CHT | NYSE (New York Stock Exchange) | ADR EA REPR 10 ORD TWD10 | US | USD | Jul 2003 | |
| CHWD | DB (Deutsche Boerse AG) | ADR EA REPR 10 ORD TWD10 | DE | EUR | Jul 2003 |
Biography
Chunghwa Telecom Co., Ltd. provides telecommunication services in Taiwan. It operates through Domestic Fixed Communications Business, Mobile Communications Business, Internet Business, International Fixed Communications Business, and Other Business segments. It offers local and domestic long distance telephone and leased line, broadband access, Wi-Fi, and multimedia on demand services; information and communication technology (ICT), corporate, and bill handling services; and interconnection with its fixed-line network to other mobile and fixed-line operators. It also offers mobile; HiNet Internet, data communication, and cloud; Internet value-added and data center; international long distance telephone, data, and other; and satellite services. In addition, it distributes and sells mobile handsets, tablets, data cards, electronic materials, ICT products, and computing and business machinery equipment and software; designs, develops, produces, sells, and services semiconductor testing components, printed circuit boards, and electronic components and finished products, and automatic license plate recognition software and hardware products. Further, it offers property development and management; system, network, and communications integration; intelligent buildings and energy network; digital information supply and advertisement; property and liability insurance agency; digital family education; computing equipment installation; management consultancy; data processing; telecommunication engineering; Internet identify; and information and communication solution services. Additionally, it engages in the investment; digital entertainment content production; animated character licensing and endorsement; and mobile digital platform construction businesses, as well as provision of energy saving solutions and international circuits, and services for electronic parts and machinery processed products. The company was founded in 1996 and is headquartered in Taipei City, Taiwan.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 15:39 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.