Chunghwa Telecom Co Ltd

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CHT : NYSE : Technology
$32.32 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 312100.0
01/23/17 - 4:01 PM ET

Financial Analysis


CHUNGHWA TELECOM LTD's gross profit margin for the third quarter of its fiscal year 2016 has decreased 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 average liquidity. Currently, the Quick Ratio is 1.04 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.07% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1978.061469.57
EBITDA ($mil)666.62590.46
EBIT ($mil)392.95375.33
Net Income ($mil)327.7313.39


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)578.3790.79
Total Assets ($mil)13780.0713153.34
Total Debt ($mil)55.5860.79
Equity ($mil)11450.6210897.91


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin48.0754.72
EBITDA Margin33.740.17
Operating Margin19.8725.54
Sales Turnover0.540.52
Return on Assets9.639.34
Return on Equity11.5911.28
Debt Q3 FY16 Q3 FY15
Current Ratio1.351.39
Debt/Capital0.00.01
Interest Expense0.170.22
Interest Coverage2284.61737.62


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)775.75775.75
Div / share1.731.48
EPS0.420.4
Book value / share14.7614.05
Institutional Own % n/a n/a
Avg Daily Volume314996.0221891.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 25.95 for the Diversified Telecommunication Services industry and a discount compared to the S&P 500 average of 25.41. To use another comparison, its price-to-book ratio of 2.17 indicates a discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 4.25. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. 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 18.72 Peers 25.95   CHT 12.69 Peers 8.19

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 18.19 Peers 18.96   CHT 15.73 Peers 1.88

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

CHT is trading at a valuation on par with 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 2.17 Peers 4.25   CHT 8.22 Peers 93.33

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 3.35 Peers 2.15   CHT 8.63 Peers 9.54

Premium. 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 premium to its industry.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

CHT is keeping pace with its peers on the basis of sales growth.

 

 

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