Chunghwa Telecom Co Ltd

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CHT : NYSE : Technology
$34.18 | %
Today's Range: 34.17 - 34.35
Avg. Daily Volume: 160400.0
09/22/17 - 4:02 PM ET

Financial Analysis


CHUNGHWA TELECOM LTD's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. CHUNGHWA TELECOM LTD has weak liquidity. Currently, the Quick Ratio is 0.96 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.33% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1832.491741.92
EBITDA ($mil)669.67651.43
EBIT ($mil)405.66399.42
Net Income ($mil)343.81342.86


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1837.481624.79
Total Assets ($mil)15092.2514404.47
Total Debt ($mil)56.7651.52
Equity ($mil)11399.3310822.06


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin51.2651.58
EBITDA Margin36.5437.39
Operating Margin22.1422.93
Sales Turnover0.480.48
Return on Assets7.899.11
Return on Equity10.4412.13
Debt Q2 FY17 Q2 FY16
Current Ratio1.141.04
Debt/Capital0.010.0
Interest Expense0.170.14
Interest Coverage2443.742894.34


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)775.75775.75
Div / share0.00.0
EPS0.440.44
Book value / share14.6913.95
Institutional Own % n/a n/a
Avg Daily Volume160540.0173862.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 34.08 for the Diversified Telecommunication Services industry and a discount compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 2.34 indicates a discount versus the S&P 500 average of 3.10 and a discount versus the industry average of 3.46. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, CHUNGHWA TELECOM LTD proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CHT 22.52 Peers 34.08   CHT 11.82 Peers 6.94

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CHT is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CHT is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CHT 20.03 Peers 15.35   CHT 3.98 Peers 0.66

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

CHT is trading at a significant premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

CHT trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHT 2.34 Peers 3.46   CHT -9.47 Peers 55.53

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CHT is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CHT is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CHT 3.70 Peers 11.15   CHT 4.43 Peers 0.91

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CHT is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CHT has a sales growth rate that significantly exceeds its peers.

 

 

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