Fact based stock research
China Motor (TSEC:2204)
TW0002204005
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
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.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
China Motor stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 59 (better than 59% compared with investment alternatives), China Motor (Automobile Manufacturers, Taiwan) shares have above-average financial characteristics compared with similar stocks. Shares of China Motor are a good value (attractively priced) with a consolidated Value Rank of 63 (better than 63% of alternatives), are safely financed (Safety Rank of 87, which means low debt burdens), but show below-average growth (Growth Rank of 13). ...read more
RECOMMENDATION: A Combined Rank of 59, is a buy recommendation based on China Motor's financial characteristics. As the company China Motor's key financial metrics exhibit good value (Obermatt Value Rank of 63) but low growth (Obermatt Growth Rank of 13) while being safely financed (Obermatt Safety Rank of 87), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 63% of comparable companies, may also indicate that 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 and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | Taiwan |
Industry | Automobile Manufacturers |
Index | Electromobility, FTSE Taiwan |
Size class | Large |
This stock has achievements: Top 10 Stock.
26-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: China Motor
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 93 |
|
75 |
|
39 |
|
63 |
|
GROWTH | ||||||||
GROWTH | 73 |
|
47 |
|
89 |
|
13 |
|
SAFETY | ||||||||
SAFETY | 90 |
|
93 |
|
85 |
|
87 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
53 |
|
96 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
85 |
|
98 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 59 (better than 59% compared with investment alternatives), China Motor (Automobile Manufacturers, Taiwan) shares have above-average financial characteristics compared with similar stocks. Shares of China Motor are a good value (attractively priced) with a consolidated Value Rank of 63 (better than 63% of alternatives), are safely financed (Safety Rank of 87, which means low debt burdens), but show below-average growth (Growth Rank of 13). ...read more
RECOMMENDATION: A Combined Rank of 59, is a buy recommendation based on China Motor's financial characteristics. As the company China Motor's key financial metrics exhibit good value (Obermatt Value Rank of 63) but low growth (Obermatt Growth Rank of 13) while being safely financed (Obermatt Safety Rank of 87), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 63% of comparable companies, may also indicate that 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 and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 93 |
|
75 |
|
39 |
|
63 |
|
GROWTH | ||||||||
GROWTH | 73 |
|
47 |
|
89 |
|
13 |
|
SAFETY | ||||||||
SAFETY | 90 |
|
93 |
|
85 |
|
87 |
|
COMBINED | ||||||||
COMBINED | 100 |
|
85 |
|
85 |
|
59 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 63 (better than 63% compared with alternatives), China Motor shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for China Motor. Price-to-Profit (also referred to as price-earnings, P/E) is 53 which means that the stock price compared with what market professionals expect for future profits is lower than for 53% of comparable companies, indicating a good value concerning China Motor's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 42, which means that the stock price is lower as regards to invested capital than for 42% of comparable investments. On the other hand, Price-to-Sales is less favorable than 72% of alternatives (only 28% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 0% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 63, is a buy recommendation based on China Motor's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
PRICE VS. REVENUES (P/S) | ||||||||
PRICE VS. REVENUES (P/S) | 67 |
|
36 |
|
16 |
|
28 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 95 |
|
76 |
|
55 |
|
53 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 86 |
|
68 |
|
34 |
|
42 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 100 |
|
100 |
|
79 |
|
100 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 93 |
|
75 |
|
39 |
|
63 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 13 (better than 13% compared with alternatives), China Motor shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for China Motor. Only Capital Growth has a good rank of 89, which means that currently professionals expect the company to grow its invested capital more than 19% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 1 which means that currently professionals expect the company to grow less than 99% of its competitors. Profit Growth with a rank of 19 and Stock Returns with a rank of 7 are also low (below 93% of alternative investments). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 13, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for China Motor is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. 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 limited here. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 31 |
|
85 |
|
92 |
|
1 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | 10 |
|
9 |
|
89 |
|
19 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
33 |
|
3 |
|
89 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 100 |
|
85 |
|
100 |
|
7 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 73 |
|
47 |
|
89 |
|
13 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 87 (better than 87% compared with alternatives) for 2024, the company China Motor has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of China Motor is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for China Motor. Leverage is at a rank of 94, meaning the company has a below-average debt-to-equity ratio. It has less debt than 94% of its competitors. Liquidity is also good at a rank of 96, meaning the company generates more profit to service its debt than 96% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 23, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 77% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 87 (better than 87% compared with alternatives), China Motor has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for China Motor. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with China Motor 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 | 90 |
|
94 |
|
94 |
|
94 |
|
REFINANCING | ||||||||
REFINANCING | 14 |
|
53 |
|
15 |
|
23 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 95 |
|
91 |
|
97 |
|
96 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 90 |
|
93 |
|
85 |
|
87 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
59 |
|
83 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
50 |
|
98 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
52 |
|
74 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
n/a |
|
54 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
53 |
|
96 |
|
new |
Free stock analysis by the purely fact based Obermatt Method for China Motor from December 26, 2024.
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