OTCPK:HNHA.F

Stock Analysis Report

Hon Hai Precision Industry

Executive Summary

Hon Hai Precision Industry Co., Ltd. provides technology solutions in Japan, Ireland, the United States, Europe, Singapore, China, Hong Kong, and internationally.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Hon Hai Precision Industry's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.5%

HNHA.F

-1.9%

US Electronic

-1.0%

US Market


1 Year Return

n/a

HNHA.F

6.1%

US Electronic

18.0%

US Market

Return vs Industry: Insufficient data to determine how HNHA.F performed against the US Electronic industry.

Return vs Market: Insufficient data to determine how HNHA.F performed against the US Market.


Shareholder returns

HNHA.FIndustryMarket
7 Day-4.5%-1.9%-1.0%
30 Day-11.2%-6.0%0.6%
90 Day-9.7%1.1%7.9%
1 Yearn/a7.2%6.1%20.4%18.0%
3 Yearn/a34.4%30.8%48.0%38.5%
5 Yearn/a67.4%59.3%72.2%53.3%

Price Volatility Vs. Market

How volatile is Hon Hai Precision Industry's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hon Hai Precision Industry undervalued compared to its fair value and its price relative to the market?

15.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HNHA.F ($2.69) is trading below our estimate of fair value ($3.17)

Significantly Below Fair Value: HNHA.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HNHA.F is good value based on its PE Ratio (8.7x) compared to the Electronic industry average (18.8x).

PE vs Market: HNHA.F is good value based on its PE Ratio (8.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HNHA.F is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: HNHA.F is good value based on its PB Ratio (0.9x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

How is Hon Hai Precision Industry forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HNHA.F's forecast earnings growth (6.7% per year) is above the savings rate (1.7%).

Earnings vs Market: HNHA.F's earnings (6.7% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: HNHA.F's revenue (4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HNHA.F's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HNHA.F's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Hon Hai Precision Industry performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HNHA.F has high quality earnings.

Growing Profit Margin: HNHA.F's current net profit margins (2.4%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: HNHA.F's earnings have declined by -1.3% per year over the past 5 years.

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

Earnings vs Industry: HNHA.F had negative earnings growth (-5.8%) over the past year, making it difficult to compare to the Electronic industry average (13.1%).


Return on Equity

High ROE: HNHA.F's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hon Hai Precision Industry's financial position?


Financial Position Analysis

Short Term Liabilities: HNHA.F's short term assets (NT$2,710.0B) exceed its short term liabilities (NT$1,796.5B).

Long Term Liabilities: HNHA.F's short term assets (NT$2,710.0B) exceed its long term liabilities (NT$277.5B).


Debt to Equity History and Analysis

Debt Level: HNHA.F's debt to equity ratio (54.7%) is considered high.

Reducing Debt: HNHA.F's debt to equity ratio has increased from 43.3% to 54.7% over the past 5 years.

Debt Coverage: HNHA.F's debt is well covered by operating cash flow (28.1%).

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


Balance Sheet

Inventory Level: HNHA.F has a high level of physical assets or inventory.

Debt Coverage by Assets: HNHA.F's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

What is Hon Hai Precision Industry's current dividend yield, its reliability and sustainability?

4.90%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: HNHA.F's dividend (4.9%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HNHA.F's dividend (4.9%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

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

Growing Dividend: HNHA.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.6%), HNHA.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HNHA.F's dividends in 3 years are forecast to be well covered by earnings (46.9% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Yang-Wei Liu 0

0.6yrs

Tenure

0

Mr. Yang-Wei Liu has been Chairman of Hon Hai Precision Industry Co., Ltd. since June 21, 2019 and also serves as General Manager since July 04, 2019. Mr. Liu had been a Director of Sharp Corporation since ...


Leadership Team

NamePositionTenureCompensationOwnership
Yang-Wei Liu
Chairman & General Manager0.6yrsno datano data
Tai-Ming Gou
Director46yrsno data12.51% NT$4.7b
Teh-Tsai Huang
CFO & Company Secretary0.8yrsno datano data
Zong-Kai Chou
Accounting Director0yrsno datano data
Yen Hwang
Investor Relations Officer0yrsno datano data
Chin-Min Huang
Deputy Director of Public Relations Office2.6yrsno datano data
Fang-Ming Lu
President of Business Group & Director12.7yrsno data0.049% NT$18.3m
Yi-Bin Chien
Department General Manager0yrsno datano data
Jin-Ming Li
Head Office General Manager0yrsno datano data
Alex Yang
Investor Relations Officer0yrsno datano data

1.5yrs

Average Tenure

62.5yo

Average Age

Experienced Management: HNHA.F's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yang-Wei Liu
Chairman & General Manager0.6yrsno datano data
Tai-Ming Gou
Director46yrsno data12.51% NT$4.7b
Fang-Ming Lu
President of Business Group & Director12.7yrsno data0.049% NT$18.3m
Kuo-Chuan Kung
Independent Director0.7yrsno datano data
Sung-Ching Lu
Representative Director0.7yrsno datano data
Kuo Wang
Independent Director2.1yrsno datano data
Ta-wei Kuo
Independent Director0.7yrsno datano data
Chieh Li
Vice chairman of the Board0.7yrsno datano data
Cheng-Wu Tai
Representative Director0.7yrsno datano data

0.7yrs

Average Tenure

62.5yo

Average Age

Experienced Board: HNHA.F's board of directors are not considered experienced ( 0.7 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

Hon Hai Precision Industry Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hon Hai Precision Industry Co., Ltd.
  • Ticker: HNHA.F
  • Exchange: OTCPK
  • Founded: 1974
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: NT$1.132t
  • Listing Market Cap: NT$37.256b
  • Shares outstanding: 13.86b
  • Website: https://www.foxconn.com

Number of Employees


Location

  • Hon Hai Precision Industry Co., Ltd.
  • No. 66, Zhongshan Road
  • Tucheng Industrial Zone
  • New Taipei City
  • 236
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HHPDBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1 GDR REG'SARARSNo data
2317TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDJan 1992
HNHA.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
HNHP.FOTCPK (Pink Sheets LLC)SP GDS REG S NEWUSUSDSep 1999
HHPDLSE (London Stock Exchange)SP GDS REG S NEWGBUSDSep 1999
HHP2DB (Deutsche Boerse AG)SP GDS REG S NEWDEEURSep 1999
HHPDLBATS-CHIXE (BATS 'Chi-X Europe')SP GDS REG S NEWGBUSDSep 1999

Biography

Hon Hai Precision Industry Co., Ltd. provides technology solutions in Japan, Ireland, the United States, Europe, Singapore, China, Hong Kong, and internationally. The company manufactures, sells, and services connectors, cases, thermal modules, wired/wireless communication products, optical products, power supply modules, and assemblies for use in the information technology, communications, automotive equipment, precision molding, automobile, and consumer electronics industries. It also manufactures automobile wires/electronic devices and electronic components, as well as machinery and equipment; and provides services of planning, advisory, and business management, as well as software and electronic information application, logistics, export processing, construction, and information/software services. In addition, the company manufactures and sells application modules and network cables assemblies; develops educational technology; holds patent applications; manufactures and trades in portable cameras; and retails retail office machinery and equipment, and electronic appliances. Further, it is involved in the reinvestment in the businesses relating to robots, automatic equipment, molds, parts, and accessories and corresponding services; sale, software development, repair services, after-sale services, and rental services of robots; leasing of FTTH wideband; and research, development, and manufactures routers. Additionally, the company manufactures and sells computer and data processing equipment, WIFI cards and modules, CFTVs, DVRs, Bluetooth modules, set-top boxes, and optical network terminals. The company was founded in 1974 and is headquartered in New Taipei City, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:36
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.