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2412

Chunghwa Telecom TWSE:2412 Stock Report

Last Price

NT$122.00

Market Cap

NT$946.4b

7D

0.4%

1Y

3.8%

Updated

07 Aug, 2022

Data

Company Financials +
2412 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends2/6

2412 Stock Overview

Chunghwa Telecom Co., Ltd., together with its subsidiaries, provides telecommunication services in Taiwan and internationally.

Chunghwa Telecom Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chunghwa Telecom
Historical stock prices
Current Share PriceNT$122.00
52 Week HighNT$132.50
52 Week LowNT$109.00
Beta-0.037
1 Month Change-2.01%
3 Month Change-2.40%
1 Year Change3.83%
3 Year Change13.49%
5 Year Change19.61%
Change since IPO0.12%

Recent News & Updates

Shareholder Returns

2412TW TelecomTW Market
7D0.4%0.3%0.1%
1Y3.8%2.7%-14.4%

Return vs Industry: 2412 exceeded the TW Telecom industry which returned 2.7% over the past year.

Return vs Market: 2412 exceeded the TW Market which returned -14.4% over the past year.

Price Volatility

Is 2412's price volatile compared to industry and market?
2412 volatility
2412 Average Weekly Movement2.8%
Telecom Industry Average Movement3.1%
Market Average Movement5.1%
10% most volatile stocks in TW Market8.4%
10% least volatile stocks in TW Market2.5%

Stable Share Price: 2412 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 2412's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199620,341Chi-Mau Sheihhttps://www.cht.com.tw

Chunghwa Telecom Co., Ltd., together with its subsidiaries, provides telecommunication services in Taiwan and internationally. It operates through Domestic Fixed Communications Business, Mobile Communications Business, Internet Business, International Fixed Communications Business, and Others segments. The company offers local and domestic long-distance telephone, broadband access, and related services; information and communication technology and VAS services; and interconnection with its fixed-line network to other mobile and fixed-line operators.

Chunghwa Telecom Fundamentals Summary

How do Chunghwa Telecom's earnings and revenue compare to its market cap?
2412 fundamental statistics
Market CapNT$946.41b
Earnings (TTM)NT$36.72b
Revenue (TTM)NT$214.51b

25.8x

P/E Ratio

4.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2412 income statement (TTM)
RevenueNT$214.51b
Cost of RevenueNT$136.20b
Gross ProfitNT$78.31b
Other ExpensesNT$41.59b
EarningsNT$36.72b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.73
Gross Margin36.51%
Net Profit Margin17.12%
Debt/Equity Ratio8.7%

How did 2412 perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

97%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2412 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 2412?

Other financial metrics that can be useful for relative valuation.

2412 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/Revenue4.4x
Enterprise Value/EBITDA11.7x
PEG Ratio9.3x

Price to Earnings Ratio vs Peers

How does 2412's PE Ratio compare to its peers?

2412 PE Ratio vs Peers
The above table shows the PE ratio for 2412 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.7x
4904 Far EasTone Telecommunications
24.7x7.3%NT$246.3b
3045 Taiwan Mobile
25.9x6.3%NT$286.3b
6170 Welldone
14.3xn/aNT$2.4b
TLKM Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia
18x6.7%Rp460.6t
2412 Chunghwa Telecom
25.8x2.8%NT$946.4b

Price-To-Earnings vs Peers: 2412 is expensive based on its Price-To-Earnings Ratio (25.8x) compared to the peer average (20.7x).


Price to Earnings Ratio vs Industry

How does 2412's PE Ratio compare vs other companies in the Asian Telecom Industry?

Price-To-Earnings vs Industry: 2412 is expensive based on its Price-To-Earnings Ratio (25.8x) compared to the TW Telecom industry average (18.2x)


Price to Earnings Ratio vs Fair Ratio

What is 2412'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.

2412 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.8x
Fair PE Ratio25.8x

Price-To-Earnings vs Fair Ratio: 2412 is good value based on its Price-To-Earnings Ratio (25.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.8x).


Share Price vs Fair Value

What is the Fair Price of 2412 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2412 (NT$122) is trading below our estimate of fair value (NT$211.25)

Significantly Below Fair Value: 2412 is trading below fair value by more than 20%.


Analyst Price Targets

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

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Chunghwa Telecom forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2412's forecast earnings growth (2.8% per year) is above the savings rate (0.7%).

Earnings vs Market: 2412's earnings (2.8% per year) are forecast to grow slower than the TW market (5.7% per year).

High Growth Earnings: 2412's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2412's revenue (2% per year) is forecast to grow slower than the TW market (7.3% per year).

High Growth Revenue: 2412's revenue (2% 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 (10%).


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Past Performance

How has Chunghwa Telecom performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-2.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2412 has high quality earnings.

Growing Profit Margin: 2412's current net profit margins (17.1%) are higher than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: 2412's earnings have declined by 2.1% per year over the past 5 years.

Accelerating Growth: 2412's earnings growth over the past year (7%) exceeds its 5-year average (-2.1% per year).

Earnings vs Industry: 2412 earnings growth over the past year (7%) underperformed the Telecom industry 19.3%.


Return on Equity

High ROE: 2412's Return on Equity (10.2%) is considered low.


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Financial Health

How is Chunghwa Telecom'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: 2412's short term assets (NT$109.8B) exceed its short term liabilities (NT$91.5B).

Long Term Liabilities: 2412's short term assets (NT$109.8B) exceed its long term liabilities (NT$61.0B).


Debt to Equity History and Analysis

Debt Level: 2412 has more cash than its total debt.

Reducing Debt: 2412's debt to equity ratio has increased from 0.5% to 8.7% over the past 5 years.

Debt Coverage: 2412's debt is well covered by operating cash flow (229.3%).

Interest Coverage: 2412 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Chunghwa Telecom 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


3.78%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2412's dividend (3.78%) is higher than the bottom 25% of dividend payers in the TW market (2.55%).

High Dividend: 2412's dividend (3.78%) is low compared to the top 25% of dividend payers in the TW market (6.64%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (97.4%), 2412's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (84.7%), 2412's dividend payments are covered by cash flows.


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Management

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

2.7yrs

Average management tenure


CEO

Chi-Mau Sheih (68 yo)

3.33yrs

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

Experienced Management: 2412's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: 2412's board of directors are considered experienced (3.4 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.


Top Shareholders

Company Information

Chunghwa Telecom Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Chunghwa Telecom Co., Ltd.
  • Ticker: 2412
  • Exchange: TWSE
  • Founded: 1996
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: NT$946.408b
  • Shares outstanding: 7.76b
  • Website: https://www.cht.com.tw

Number of Employees


Location

  • Chunghwa Telecom Co., Ltd.
  • No. 21-3, Xinyi Road
  • Section 1
  • Taipei City
  • 100
  • Taiwan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.