TSEC:3045

Stock Analysis Report

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Executive Summary

Taiwan Mobile Co., Ltd. provides wireless communication services in Taiwan and internationally.


Snowflake Analysis

Imperfect balance sheet with poor track record.


Similar Companies

Share Price & News

How has Taiwan Mobile's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3045 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

3045

4.1%

TW Wireless Telecom

4.3%

TW Market


1 Year Return

1.8%

3045

-1.4%

TW Wireless Telecom

13.6%

TW Market

Return vs Industry: 3045 exceeded the TW Wireless Telecom industry which returned -1% over the past year.

Return vs Market: 3045 underperformed the TW Market which returned 13.3% over the past year.


Shareholder returns

3045IndustryMarket
7 Day4.1%4.1%4.3%
30 Day7.0%3.0%6.1%
90 Day11.1%3.5%21.3%
1 Year1.8%1.8%2.4%-1.4%18.3%13.6%
3 Year18.6%7.5%8.2%-4.1%31.5%16.6%
5 Year36.2%11.7%5.2%-11.9%63.1%33.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Taiwan Mobile undervalued compared to its fair value and its price relative to the market?

25.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3045 (NT$115) is trading above our estimate of fair value (NT$104.1)

Significantly Below Fair Value: 3045 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3045 is poor value based on its PE Ratio (25.2x) compared to the Wireless Telecom industry average (14x).

PE vs Market: 3045 is poor value based on its PE Ratio (25.2x) compared to the TW market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: 3045's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 3045 is overvalued based on its PB Ratio (4.6x) compared to the XA Wireless Telecom industry average (1.9x).


Next Steps

Future Growth

How is Taiwan Mobile forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3045's earnings are forecast to decline over the next 3 years (-4.9% per year).

Earnings vs Market: 3045's earnings are forecast to decline over the next 3 years (-4.9% per year).

High Growth Earnings: 3045's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 3045's revenue (7% per year) is forecast to grow slower than the TW market (7.8% per year).

High Growth Revenue: 3045's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3045's Return on Equity is forecast to be low in 3 years time (16.7%).


Next Steps

Past Performance

How has Taiwan Mobile performed over the past 5 years?

-4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3045 has high quality earnings.

Growing Profit Margin: 3045's current net profit margins (10.1%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: 3045's earnings have declined by -4.5% per year over the past 5 years.

Accelerating Growth: 3045's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3045 had negative earnings growth (-3.8%) over the past year, making it difficult to compare to the Wireless Telecom industry average (1.6%).


Return on Equity

High ROE: 3045's Return on Equity (17.8%) is considered low.


Next Steps

Financial Health

How is Taiwan Mobile's financial position?


Financial Position Analysis

Short Term Liabilities: 3045's short term assets (NT$30.7B) do not cover its short term liabilities (NT$51.6B).

Long Term Liabilities: 3045's short term assets (NT$30.7B) do not cover its long term liabilities (NT$51.0B).


Debt to Equity History and Analysis

Debt Level: 3045's debt to equity ratio (88%) is considered high.

Reducing Debt: 3045's debt to equity ratio has increased from 80.7% to 88% over the past 5 years.

Debt Coverage: 3045's debt is well covered by operating cash flow (46.2%).

Interest Coverage: 3045's interest payments on its debt are well covered by EBIT (52.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Taiwan Mobile current dividend yield, its reliability and sustainability?

4.13%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 3045's dividend (4.13%) is higher than the bottom 25% of dividend payers in the TW market (2.28%).

High Dividend: 3045's dividend (4.13%) is low compared to the top 25% of dividend payers in the TW market (5.28%).


Stability and Growth of Payments

Stable Dividend: 3045's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3045's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (104.1%), 3045's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3045's dividends in 3 years are not forecast to be well covered by earnings (122.2% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jamie Lin

1.25yrs

Tenure

Mr. Zhichen Lin, also known as Jamie, serves as Director at Wealth Media Technology Co., Ltd. since April 21, 2020. He is an Advisor at OnRamp Fund. Mr. Lin serves as Chairman and Founding Partner at appWo ...


Leadership Team

NamePositionTenureCompensationOwnership
Zhichen Lin
President1.25yrsno datano data
Rosie Yu
Executive VP of Finance and Administration9.5yrsno datano data
Yao Xun Shih
Chief Accounting Officer7.83yrsno datano data
Tom Koh
Senior VP & CTO1.75yrsno datano data
James Chang
VP of Information Technology Group & Chief Information Officer3.5yrsno data0.0058% NT$18.7m
Steve Chou
VP & Chief Enterprise Business Officer0.67yrno datano data
Eddie Chan
VP & Chief Data Officer1.5yrsno datano data
Shirley Chu
Vice President of Finance & Administration Groupno datano datano data
Cliff Lai
Senior Advisor6.5yrsNT$3.27mno data

2.6yrs

Average Tenure

Experienced Management: 3045's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhichen Lin
President1.25yrsno datano data
Ming-Hsing Tsai
Director17yrsNT$6.91m3.5% NT$11.3b
Hsueh-Jen Sung
Independent Director6.08yrsno datano data
Ming-Chung Tsai
Chairman3.75yrsNT$5.17m2.48% NT$8.0b
Hsi-Peng Lu
Independent Director1.08yrsno datano data
Char-Dir Chung
Independent Director3.08yrsno datano data
Chris Tsai
Director1.17yrsno datano data
Hai Tan Tong
Independent Director0.083yrno datano data
Drina Yue
Independent Director0.083yrno datano data

2.1yrs

Average Tenure

Experienced Board: 3045's board of directors are not considered experienced ( 2.1 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 been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

Taiwan Mobile Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Taiwan Mobile Co., Ltd.
  • Ticker: 3045
  • Exchange: TSEC
  • Founded: 1997
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: NT$323.222b
  • Shares outstanding: 2.81b
  • Website: https://www.taiwanmobile.com

Number of Employees


Location

  • Taiwan Mobile Co., Ltd.
  • No. 88, Yan Chang Road
  • 13th Floor
  • Taipei
  • 110
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3045TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDSep 2000

Biography

Taiwan Mobile Co., Ltd. provides wireless communication services in Taiwan and internationally. The company operates through four segments: Telecommunications, Retail, Cable Television, and Others. It offers mobile communication, data mobile, and fixed-line services; and TV shopping, online shopping, and catalog shopping services. The company also provides pay TV and cable broadband services; travel, life insurance, and property insurance agency services; and online music services. In addition, it is involved in the building and operating of BOT project; call center service and telemarketing activities; and investment, TV program production and mobile phone wholesaling, retail, and mobile application development and design businesses, as well as sale of mobile phones and accessories, games, and e-books. The company offers its products and services under the Taiwan Mobile, TWM Broadband, and TWM Solution brands for the consumer, household, and enterprise markets. Taiwan Mobile Co., Ltd. was founded in 1997 and is based in Taipei, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 14:51
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
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.