Fact based stock research
Cheng Mei Materials Technology (TSEC:4960)

TW0004960000

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Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Cheng Mei Materials Technology stock research in summary

cmmt.com.tw

ANALYSIS: With an Obermatt Combined Rank of 37 (worse than 63% compared with investment alternatives), Cheng Mei Materials Technology (Electronic Components, Taiwan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Cheng Mei Materials Technology are a good value (attractively priced) with a consolidated Value Rank of 61 (better than 61% of alternatives) but show below-average growth (Growth Rank of 43), and are riskily financed (Safety Rank of 39), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 37, is a hold recommendation based on Cheng Mei Materials Technology's financial characteristics. As the company Cheng Mei Materials Technology's key financial metrics exhibit good value (Obermatt Value Rank of 61) but low growth (Obermatt Growth Rank of 43) and risky financing practices (Obermatt Safety Rank of 39), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 61% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	61
Growth Rank	43
Safety Rank	39
Combined Rank	37

Country	Taiwan
Industry	Electronic Components
Index	FTSE Taiwan
Size class	Medium

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Cheng Mei Materials Technology

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	80	89	83	61
GROWTH
GROWTH	46	1	31	43
SAFETY
SAFETY	30	37	45	39
SENTIMENT
SENTIMENT	n/a	34	54	^new
360° VIEW
360° VIEW	n/a	35	47	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Cheng Mei Materials Technology is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	80	89	83	61
GROWTH
GROWTH	46	1	31	43
SAFETY
SAFETY	30	37	45	39
COMBINED
COMBINED	46	31	57	37

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Cheng Mei Materials Technology the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 61 (better than 61% compared with alternatives), Cheng Mei Materials Technology shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Cheng Mei Materials Technology. Price-to-Sales (P/S) is 88, which means that the stock price compared with what market professionals expect for future sales is lower than for 88% of comparable companies, indicating a good value concerning Cheng Mei Materials Technology's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 90% of alternatives (10% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 14, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 61, is a buy recommendation based on Cheng Mei Materials Technology's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Cheng Mei Materials Technology may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	90	90	90	88
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	92	78	14	14
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	100	100	94	90
DIVIDEND YIELD
DIVIDEND YIELD	1	53	47	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	80	89	83	61

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Cheng Mei Materials Technology; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), Cheng Mei Materials Technology shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Cheng Mei Materials Technology. Sales Growth has a rank of 73 which means that currently professionals expect the company to grow more than 73% of its competitors. Stock Returns are also above average with a rank of 69. But Capital Growth has only a rank of 33, which means that currently professionals expect the company to grow its invested capital less than 67% of its competitors. Profit Growth is also low, with a rank of only 1, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 69% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	20	3	33	73
PROFIT GROWTH
PROFIT GROWTH	2	11	29	1
CAPITAL GROWTH
CAPITAL GROWTH	n/a	1	41	33
STOCK RETURNS
STOCK RETURNS	56	43	53	69
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	46	1	31	43

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Cheng Mei Materials Technology.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 39 (better than 39% compared with alternatives), the company Cheng Mei Materials Technology has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Cheng Mei Materials Technology is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Cheng Mei Materials Technology and the other two below average. Refinancing is at 95, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 95% of its competitors. But Leverage is high with a rank of 32, meaning the company has an above-average debt-to-equity ratio. It has more debt than 68% of its competitors. Liquidity is also on the riskier side with a rank of 11, meaning the company generates less profit to service its debt than 89% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 39 (worse than 61% compared with alternatives), Cheng Mei Materials Technology has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Cheng Mei Materials Technology are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Cheng Mei Materials Technology and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	14	32	44	32
REFINANCING
REFINANCING	100	100	97	95
LIQUIDITY
LIQUIDITY	11	5	13	11
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	30	37	45	39

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Cheng Mei Materials Technology and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	25	18	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	40	23	^new
MARKET PULSE
MARKET PULSE	n/a	n/a	n/a	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	34	54	^new

Last update of Sentiment Rank: 16-Mar-2023. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Cheng Mei Materials Technology.
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