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Chunghwa Telecom

NYSE:CHT
Snowflake Description

Flawless balance sheet unattractive dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CHT
NYSE
NT$873B
Market Cap
  1. Home
  2. US
  3. Telecom
Company description

Chunghwa Telecom Co., Ltd. provides telecommunication services in Taiwan. The last earnings update was 67 days ago. More info.


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CHT Share Price and Events
7 Day Returns
-0.7%
NYSE:CHT
-1.5%
US Telecom
0.8%
US Market
1 Year Returns
1%
NYSE:CHT
6.1%
US Telecom
4.8%
US Market
CHT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Chunghwa Telecom (CHT) -0.7% 1.7% 2.6% 1% -5.1% 19.6%
US Telecom -1.5% 1.4% 1.1% 6.1% -13.3% -4.2%
US Market 0.8% 4.3% 2.8% 4.8% 37.9% 43.5%
1 Year Return vs Industry and Market
  • CHT underperformed the Telecom industry which returned 6.1% over the past year.
  • CHT underperformed the Market in United States of America which returned 4.8% over the past year.
Price Volatility
CHT
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Chunghwa Telecom undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Chunghwa Telecom to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Chunghwa Telecom.

NYSE:CHT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CHT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.35
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.352 (1 + (1- 20%) (1.33%))
0.568
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:CHT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Chunghwa Telecom is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CHT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (TWD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 38,465.00 Analyst x5 35,782.06
2021 38,250.00 Analyst x1 33,100.20
2022 38,413.09 Est @ 0.43% 30,922.75
2023 38,842.34 Est @ 1.12% 29,087.33
2024 39,464.30 Est @ 1.6% 27,491.75
2025 40,229.85 Est @ 1.94% 26,070.30
2026 41,105.61 Est @ 2.18% 24,779.84
2027 42,068.65 Est @ 2.34% 23,591.49
2028 43,103.11 Est @ 2.46% 22,485.63
2029 44,198.05 Est @ 2.54% 21,448.61
Present value of next 10 years cash flows NT$274,759.98
NYSE:CHT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NT$44,198.05 × (1 + 2.73%) ÷ (7.5% – 2.73%)
NT$952,278.83
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NT$952,278.83 ÷ (1 + 7.5%)10
NT$462,125.88
NYSE:CHT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NT$274,759.98 + NT$462,125.88
NT$736,885.86
Equity Value per Share
(TWD)
= Total value / Shares Outstanding
= NT$736,885.86 / 7,757.45
NT$94.99
NYSE:CHT Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NYSE:CHT represents 0.32418x of TSEC:2412
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.32418x
Value per Share
(Listing Adjusted, USD)
= Value per Share (TWD) x Listing Adjustment Factor
= NT$ 94.99 x 0.32418
$30.79
Value per share (USD) From above. $30.79
Current discount Discount to share price of $36.47
= -1 x ($36.47 - $30.79) / $30.79
-18.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Chunghwa Telecom is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Chunghwa Telecom's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Chunghwa Telecom's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CHT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in TWD NT$4.79
TSEC:2412 Share Price ** TSEC (2019-07-15) in TWD NT$112.5
United States of America Telecom Industry PE Ratio Median Figure of 17 Publicly-Listed Telecom Companies 14.77x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Chunghwa Telecom.

NYSE:CHT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSEC:2412 Share Price ÷ EPS (both in TWD)

= 112.5 ÷ 4.79

23.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chunghwa Telecom is overvalued based on earnings compared to the US Telecom industry average.
  • Chunghwa Telecom is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Chunghwa Telecom's expected growth come at a high price?
Raw Data
NYSE:CHT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
-1.7%per year
United States of America Telecom Industry PEG Ratio Median Figure of 8 Publicly-Listed Telecom Companies 1.65x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:CHT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.47x ÷ -1.7%

-13.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chunghwa Telecom earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Chunghwa Telecom's assets?
Raw Data
NYSE:CHT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in TWD NT$49.59
TSEC:2412 Share Price * TSEC (2019-07-15) in TWD NT$112.5
United States of America Telecom Industry PB Ratio Median Figure of 30 Publicly-Listed Telecom Companies 1.5x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NYSE:CHT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSEC:2412 Share Price ÷ Book Value per Share (both in TWD)

= 112.5 ÷ 49.59

2.27x

* Primary Listing of Chunghwa Telecom.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chunghwa Telecom is overvalued based on assets compared to the US Telecom industry average.
X
Value checks
We assess Chunghwa Telecom's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Chunghwa Telecom has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Chunghwa Telecom expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Chunghwa Telecom expected to grow at an attractive rate?
  • Chunghwa Telecom's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Chunghwa Telecom's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Chunghwa Telecom's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CHT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CHT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts -1.7%
NYSE:CHT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 0.6%
United States of America Telecom Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
United States of America Telecom Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CHT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in TWD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CHT Future Estimates Data
Date (Data in TWD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 218,149 71,437 34,429 4
2020-12-31 214,700 68,995 34,367 8
2019-12-31 215,210 67,291 35,050 10
NYSE:CHT Past Financials Data
Date (Data in TWD Millions) Revenue Cash Flow Net Income *
2019-03-31 213,182 72,261 37,186
2018-12-31 215,483 66,366 37,557
2018-09-30 220,880 71,210 35,889
2018-06-30 224,600 68,811 37,539
2018-03-31 226,613 67,608 38,122
2017-12-31 227,514 70,932 38,988
2017-09-30 224,963 77,598 38,371
2017-06-30 227,056 71,619 37,794
2017-03-31 227,580 69,110 38,411
2016-12-31 229,991 64,952 40,485
2016-09-30 233,882 62,275 40,992
2016-06-30 231,541 66,311 43,216

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Chunghwa Telecom's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Chunghwa Telecom's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CHT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Chunghwa Telecom Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CHT Future Estimates Data
Date (Data in TWD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.40 5.00 4.09 4.00
2020-12-31 4.40 4.85 4.11 7.00
2019-12-31 4.47 5.04 4.25 9.00
NYSE:CHT Past Financials Data
Date (Data in TWD Millions) EPS *
2019-03-31 4.79
2018-12-31 4.84
2018-09-30 4.63
2018-06-30 4.84
2018-03-31 4.91
2017-12-31 5.03
2017-09-30 4.95
2017-06-30 4.87
2017-03-31 4.95
2016-12-31 5.22
2016-09-30 5.28
2016-06-30 5.57

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Chunghwa Telecom is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Chunghwa Telecom's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Chunghwa Telecom has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Chunghwa Telecom performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Chunghwa Telecom's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Chunghwa Telecom's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Chunghwa Telecom's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Chunghwa Telecom's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.
Earnings and Revenue History
Chunghwa Telecom's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Chunghwa Telecom Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CHT Past Revenue, Cash Flow and Net Income Data
Date (Data in TWD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 213,181.80 37,185.56 27,960.39 3,720.46
2018-12-31 215,483.00 37,557.00 28,679.00 3,725.00
2018-09-30 220,880.16 35,889.35 29,467.84 3,847.23
2018-06-30 224,600.18 37,538.55 29,926.77 3,841.57
2018-03-31 226,612.96 38,122.08 29,777.97 3,891.02
2017-12-31 227,514.00 38,988.00 29,983.00 3,886.00
2017-09-30 224,962.88 38,370.77 30,382.67 3,821.88
2017-06-30 227,055.96 37,794.16 30,551.34 3,818.57
2017-03-31 227,580.24 38,410.68 30,352.97 3,803.51
2016-12-31 229,991.00 40,485.00 30,053.00 3,785.00
2016-09-30 233,881.52 40,991.57 29,856.40 3,789.41
2016-06-30 231,541.19 43,216.08 29,586.05 3,760.93
2016-03-31 232,266.35 43,288.34 29,605.04 3,683.85
2015-12-31 231,795.00 42,039.00 29,586.00 3,617.00
2015-09-30 229,205.22 39,776.75 29,668.47 3,504.29
2015-06-30 229,168.25 37,705.53 30,054.21 3,462.79
2015-03-31 228,031.90 37,153.86 30,435.48 3,467.27
2014-12-31 226,609.00 36,970.00 30,559.00 3,504.00
2014-09-30 225,777.57 41,556.46 30,368.88 3,616.50
2014-06-30 226,360.20 42,474.64 30,107.58 3,666.19
2014-03-31 226,413.92 42,527.46 29,568.80 3,726.83
2013-12-31 227,981.00 41,494.00 29,354.00 3,726.00
2013-09-30 225,429.28 38,692.81 28,734.77 3,679.91
2013-06-30 223,990.58 37,798.75 28,387.58 3,715.19
2013-03-31 222,553.13 41,095.84 26,692.27 3,710.83
2012-12-31 221,420.00 41,492.00 26,229.00 3,698.00
2012-09-30 220,055.37 43,286.31 26,262.83 3,666.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Chunghwa Telecom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Chunghwa Telecom used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.
  • Chunghwa Telecom's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Chunghwa Telecom's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Chunghwa Telecom has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Chunghwa Telecom's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Chunghwa Telecom's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Chunghwa Telecom is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Chunghwa Telecom's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Chunghwa Telecom's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 55.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Chunghwa Telecom Company Filings, last reported 3 months ago.

NYSE:CHT Past Debt and Equity Data
Date (Data in TWD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 394,903.91 1,775.00 43,017.67
2018-12-31 384,529.00 1,700.00 35,802.00
2018-09-30 378,389.38 1,720.00 25,372.04
2018-06-30 369,366.36 1,680.00 48,685.23
2018-03-31 395,253.24 1,770.00 35,752.62
2017-12-31 369,410.00 1,670.00 32,879.00
2017-09-30 366,131.25 2,023.00 29,269.72
2017-06-30 352,519.43 1,724.50 53,861.33
2017-03-31 381,146.05 2,039.00 42,890.23
2016-12-31 366,928.00 1,738.00 36,808.00
2016-09-30 364,284.27 1,738.00 16,449.82
2016-06-30 354,557.34 1,660.00 49,961.72
2016-03-31 386,991.96 1,720.00 39,454.87
2015-12-31 369,339.00 1,860.00 34,438.00
2015-09-30 364,352.82 2,004.92 24,609.74
2015-06-30 353,033.33 2,660.00 50,698.81
2015-03-31 380,560.80 2,410.00 36,036.06
2014-12-31 365,712.00 2,464.00 29,634.00
2014-09-30 360,335.16 7,013.00 14,909.33
2014-06-30 350,281.59 3,133.00 35,119.78
2014-03-31 375,517.36 2,004.36 25,743.32
2013-12-31 365,373.95 1,954.36 18,873.81
2013-09-30 353,162.58 2,775.22 41,842.21
2013-06-30 345,288.97 1,894.87 72,071.92
2013-03-31 376,935.86 1,905.87 61,081.09
2012-12-31 363,490.00 2,169.00 59,705.00
2012-09-30 361,751.09 1,813.49 44,228.26
  • Chunghwa Telecom's level of debt (0.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (0.5% vs 0.4% today).
  • Debt is well covered by operating cash flow (4071%, greater than 20% of total debt).
  • Chunghwa Telecom earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Chunghwa Telecom's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Chunghwa Telecom has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.98%
Current annual income from Chunghwa Telecom dividends. Estimated to be 3.9% next year.
If you bought $2,000 of Chunghwa Telecom shares you are expected to receive $80 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Chunghwa Telecom's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Chunghwa Telecom's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

Purchase Chunghwa Telecom before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CHT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Telecom Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 5.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CHT Future Dividends Estimate Data
Date (Data in NT$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 4.26 5.00
2020-12-31 4.44 9.00
2019-12-31 4.41 10.00
NYSE:CHT Past Annualized Dividends Data
Date (Data in NT$) Dividend per share (annual) Avg. Yield (%)
2019-04-29 4.479 3.986
2019-03-20 4.479 4.095
2019-01-30 4.479 4.184
2018-03-21 4.796 4.408
2017-06-23 4.942 4.686
2016-06-27 5.485 5.091
2016-04-27 5.490 4.942
2016-03-11 5.490 5.032
2016-03-10 5.490 5.179
2015-06-26 4.856 4.891
2015-04-28 4.860 4.973
2015-02-13 4.860 4.932
2015-01-15 4.860 5.097
2014-04-28 2.390 2.563
2014-03-26 2.390 2.548
2013-05-15 4.630 4.938
2012-04-20 5.460 5.917
2012-03-28 5.460 6.050
2011-03-29 5.524 5.685
2010-10-25 5.075 5.610
2010-08-26 5.075 5.883
2010-04-20 5.583 6.995
2010-03-30 5.583 7.233
2010-01-15 5.583 7.315
2009-04-29 4.788 6.048
2009-04-22 4.788 6.412
2009-03-30 4.788 6.203
2008-10-30 6.375 8.226
2008-08-28 5.268 6.056

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Chunghwa Telecom's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess Chunghwa Telecom's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Chunghwa Telecom afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Chunghwa Telecom has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Chunghwa Telecom's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chi-Mau Sheih
AGE 65
TENURE AS CEO 0.3 years
CEO Bio

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 until April 2019. During his time as President of Chunghwa Telecom, Mr. Sheih utilized his comprehensive knowledge of system integration, big data, cloud computing and other fields to further promote the Company’s innovation in artificial intelligence (AI) based on its existing advantages. Mr. Sheih organized and supervised a task force of AI in the Company to development its AI speech recognition system, and accelerated the development of all AI-related application services. He also built strong connections with the government and telecom industry, and actively participated in the construction of the Taiwan AI industry ecosystem in response to the government’s “Taiwan AI Action Plan”. Mr. Sheih served as an Interim Chief Financial Officer of Chunghwa Telecom Co., Ltd. since June 1, 2017. He served as Senior Executive Vice President of Chunghwa Telecom Co., Ltd. since 2010 until January 4, 2017. While serving as the Senior Executive Vice President, Mr. Sheih established the Big Data Office in Chunghwa Telecom’s headquarters, allowing to process and make use of telecom big data to strengthen its analytical capabilities as well as execute new customer development and precision construction of network. Mr. Sheih also managed to enhance the information security capabilities, and supervise and guide the rollout of its 4G service. Mr. Sheih served as an Executive Vice President of Chunghwa Telecom Co., Ltd. and its President of Southern Taiwan Business Group. He served as the President of the Department of Network from September 2001 to January 2004. He also served as Assistant Vice President of Chunghwa Telecom Co. and Deputy Manager of Chunghwa Telecom Co.'s Central Taiwan Business Group from January 2004 to September 2006. He has been Director of Chunghwa Telecom Co., Ltd. since January 4, 2017. Mr. Sheih holds a Master of Business Administration degree from the National Taiwan University.

CEO Compensation
  • Insufficient data for Chi-Mau to compare compensation growth.
  • Insufficient data for Chi-Mau to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Chunghwa Telecom management team in years:

0.7
Average Tenure
60.5
Average Age
  • The average tenure for the Chunghwa Telecom management team is less than 2 years, this suggests a new team.
Management Team

Chi-Mau Sheih

TITLE
Chairman & CEO
AGE
65
TENURE
0.3 yrs

Shui-Yi Kuo

TITLE
President
AGE
53
TENURE
0.2 yrs

Tian-Tsair Su

TITLE
Senior EVP of Investments & Administration
AGE
56
TENURE
0.8 yrs

Dahsung Lee

TITLE
Vice President of Accounting Department
TENURE
2.3 yrs

Kuo-Feng Lin

TITLE
Senior Executive Vice President of Technology
AGE
63
TENURE
2.7 yrs

Fu-Fu Shen

TITLE
Assistant VP & Director of Investor Relations

Chung Kuo-Chiang

TITLE
VP of Legal Affairs

Yuan-Kuang Tu

TITLE
President of Northern Taiwan Business Group
AGE
63

Feng Yu Hong

TITLE
Deputy General Manager

Wei-Kuo Hong

TITLE
President of Telecommunication Training Institute
AGE
58
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the Chunghwa Telecom board of directors in years:

0.8
Average Tenure
60
Average Age
  • The average tenure for the Chunghwa Telecom board of directors is less than 3 years, this suggests a new board.
Board of Directors

Shui-Yi Kuo

TITLE
President
AGE
53
TENURE
0.3 yrs

Lo-Yu Yen

TITLE
Independent Director
AGE
64
TENURE
3.1 yrs

Chi-Mau Sheih

TITLE
Chairman & CEO
AGE
65
TENURE
0.3 yrs

Jen-Ran Chen

TITLE
Independent Director
AGE
60
TENURE
3.1 yrs

Shin-Yi Chang

TITLE
Director
AGE
61
TENURE
0.1 yrs

Chin-Tsai Pan

TITLE
Director
AGE
58
TENURE
2.3 yrs

Yu-Fen Lin

TITLE
Independent Director
AGE
48
TENURE
2.1 yrs

Chung-Chin Lu

TITLE
Independent Director
AGE
60
TENURE
1.1 yrs

Yu-Lin Huang

TITLE
Director
AGE
56
TENURE
0.4 yrs

Ho-Ting Huang

TITLE
Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Chunghwa Telecom's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Chunghwa Telecom has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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.

Details
Name: Chunghwa Telecom Co., Ltd.
CHT
Exchange: NYSE
Founded: 1996
NT$28,094,023,188
7,757,446,545
Website: http://www.cht.com.tw
Address: Chunghwa Telecom Co., Ltd.
No. 21-3, Hsinyi Road,
Sec. 1,
Taipei City,
10048,
Taiwan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSEC 2412 Common Shares Taiwan Stock Exchange TW TWD 27. Oct 2000
NYSE CHT ADR EA REPR 10 ORD TWD10 New York Stock Exchange US USD 17. Jul 2003
DB CHWD ADR EA REPR 10 ORD TWD10 Deutsche Boerse AG DE EUR 17. Jul 2003
Number of employees
Current staff
Staff numbers
0
Chunghwa Telecom employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 23:53
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.