TWSE:2412

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Chunghwa Telecom

Market Cap

NT$899.9b

Last Updated

2021/07/23 08:38 UTC

Data Sources

Company Financials +

Executive Summary

Chunghwa Telecom Co., Ltd. provides telecommunication services in Taiwan. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


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 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 2412's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

2412

0.7%

TW Telecom

-1.5%

TW Market


1 Year Return

6.4%

2412

6.5%

TW Telecom

42.0%

TW Market

Return vs Industry: 2412 matched the TW Telecom industry which returned 6.5% over the past year.

Return vs Market: 2412 underperformed the TW Market which returned 42% over the past year.


Shareholder returns

2412IndustryMarket
7 Day0.9%0.7%-1.5%
30 Day1.3%1.1%1.8%
90 Day1.8%1.1%2.0%
1 Year6.4%6.4%6.5%6.5%45.0%42.0%
3 Year18.8%10.0%16.9%8.5%73.4%56.8%
5 Year20.9%2.2%15.6%-1.1%130.8%93.2%

Long-Term 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?

46.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2412 (NT$116) is trading below our estimate of fair value (NT$215.58)

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


Price To Earnings Ratio

PE vs Industry: 2412 is good value based on its PE Ratio (26.5x) compared to the TW Telecom industry average (33.3x).

PE vs Market: 2412 is poor value based on its PE Ratio (26.5x) compared to the TW market (18.6x).


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 (2.3x) compared to the TW Telecom industry average (1.8x).


Future Growth

How is Chunghwa Telecom forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-0.1%

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 (-0.1% per year).

Earnings vs Market: 2412's earnings are forecast to decline over the next 3 years (-0.1% per year).

High Growth Earnings: 2412's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 2412's revenue (1% per year) is forecast to grow slower than the TW market (9% per year).

High Growth Revenue: 2412's revenue (1% 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 (8.9%).


Past Performance

How has Chunghwa Telecom performed over the past 5 years?

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2412 has high quality earnings.

Growing Profit Margin: 2412's current net profit margins (16.2%) are higher than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: 2412's earnings have declined by 5.3% per year over the past 5 years.

Accelerating Growth: 2412's earnings growth over the past year (3.2%) exceeds its 5-year average (-5.3% per year).

Earnings vs Industry: 2412 earnings growth over the past year (3.2%) underperformed the Telecom industry 13.6%.


Return on Equity

High ROE: 2412's Return on Equity (8.9%) is considered low.


Financial Health

How is Chunghwa Telecom's financial position?


Financial Position Analysis

Short Term Liabilities: 2412's short term assets (NT$88.4B) exceed its short term liabilities (NT$63.6B).

Long Term Liabilities: 2412's short term assets (NT$88.4B) exceed its long term liabilities (NT$45.5B).


Debt to Equity History and Analysis

Debt Level: 2412's debt to equity ratio (6.7%) is considered satisfactory.

Reducing Debt: 2412's debt to equity ratio has increased from 0.4% to 6.7% over the past 5 years.

Debt Coverage: 2412's debt is well covered by operating cash flow (266.6%).

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


Balance Sheet


Dividend

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

3.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2412's dividend (3.71%) is higher than the bottom 25% of dividend payers in the TW market (1.83%).

High Dividend: 2412's dividend (3.71%) is low compared to the top 25% of dividend payers in the TW market (4.94%).


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 (98.4%), 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 (99.5% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Chi-Mau Sheih (67 yo)

2.25yrs

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 (2.2 years average tenure).


Board Members

Experienced Board: 2412's board of directors are not considered experienced ( 2.3 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: TWSE
  • Founded: 1996
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: NT$899.864b
  • Shares outstanding: 7.76b
  • Website: https://www.cht.com.tw

Number of Employees


Location

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

Listings


Biography

Chunghwa Telecom Co., Ltd. provides telecommunication services in Taiwan. It operates through Domestic Fixed Communications Business, Mobile Communications Business, Internet Business, International Fixed ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 08:38
End of Day Share Price2021/07/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.