Fact based stock research
Chunghwa Chemical Synthesis & Biotech (TSEC:1762)

TW0001762003

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

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Chunghwa Chemical Synthesis & Biotech stock research in summary

ccsb.com.tw

ANALYSIS: With an Obermatt Combined Rank of 10 (worse than 90% compared with investment alternatives), Chunghwa Chemical Synthesis & Biotech (Pharmaceuticals, Taiwan) shares have lower financial characteristics compared with similar stocks. Shares of Chunghwa Chemical Synthesis & Biotech are low in value (priced high) with a consolidated Value Rank of 46 (worse than 54% of alternatives), show below-average growth (Growth Rank of 16), and are riskily financed (Safety Rank of 47), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 10, is a sell recommendation based on Chunghwa Chemical Synthesis & Biotech's financial characteristics. As the company Chunghwa Chemical Synthesis & Biotech's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 46), low growth (Obermatt Growth Rank of 16), and risky financing practices (Obermatt Safety Rank of 47), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. 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	46
Growth Rank	16
Safety Rank	47
Combined Rank	10

Country	Taiwan
Industry	Pharmaceuticals
Index	FTSE Taiwan
Size class	X-Small

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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Research History: Chunghwa Chemical Synthesis & Biotech

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	79	73	80	46
GROWTH
GROWTH	75	100	47	16
SAFETY
SAFETY	45	72	61	47
SENTIMENT
SENTIMENT	n/a	100	41	^new
360° VIEW
360° VIEW	n/a	100	64	^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 Chunghwa Chemical Synthesis & Biotech is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	79	73	80	46
GROWTH
GROWTH	75	100	47	16
SAFETY
SAFETY	45	72	61	47
COMBINED
COMBINED	89	100	79	10

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Chunghwa Chemical Synthesis & Biotech the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 46 (worse than 54% compared with alternatives), Chunghwa Chemical Synthesis & Biotech shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Chunghwa Chemical Synthesis & Biotech. Expected dividend yields are higher than for 60% of comparable companies (a Dividend Yield rank of 60), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 79, which means that the stock price is lower compared with invested capital than for 79% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 37 which means that the stock price compared with what market professionals expect for future profits is higher than for 63% of comparable companies, indicating a low value concerning Chunghwa Chemical Synthesis & Biotech's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Chunghwa Chemical Synthesis & Biotech with a rank of 32. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 68% of comparable companies, indicating a low value concerning Chunghwa Chemical Synthesis & Biotech's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 46, is a hold recommendation based on Chunghwa Chemical Synthesis & Biotech's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Chunghwa Chemical Synthesis & Biotech may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. 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 essential 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)	72	63	57	37
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	92	95	97	32
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	56	63	65	79
DIVIDEND YIELD
DIVIDEND YIELD	81	65	67	60
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	79	73	80	46

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Chunghwa Chemical Synthesis & Biotech; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 16 (better than 16% compared with alternatives), Chunghwa Chemical Synthesis & Biotech 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 Chunghwa Chemical Synthesis & Biotech. Only Capital Growth has a good rank of 58, which means that currently professionals expect the company to grow its invested capital more than 26% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 24 which means that currently professionals expect the company to grow less than 76% of its competitors. Profit Growth with a rank of 26 and Stock Returns with a rank of 14 are also low (below 86% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 16, 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 Chunghwa Chemical Synthesis & Biotech 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	68	98	67	24
PROFIT GROWTH
PROFIT GROWTH	92	26	15	26
CAPITAL GROWTH
CAPITAL GROWTH	n/a	96	81	58
STOCK RETURNS
STOCK RETURNS	60	91	39	14
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	75	100	47	16

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Chunghwa Chemical Synthesis & Biotech.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 47 (better than 47% compared with alternatives), the company Chunghwa Chemical Synthesis & Biotech 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 Chunghwa Chemical Synthesis & Biotech 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 Chunghwa Chemical Synthesis & Biotech and the other two below average. Refinancing is at 62, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 62% of its competitors. But Leverage is high with a rank of 39, meaning the company has an above-average debt-to-equity ratio. It has more debt than 61% of its competitors. Liquidity is also on the riskier side with a rank of 43, meaning the company generates less profit to service its debt than 57% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 47 (worse than 53% compared with alternatives), Chunghwa Chemical Synthesis & Biotech 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 Chunghwa Chemical Synthesis & Biotech 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 Chunghwa Chemical Synthesis & Biotech 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	19	94	47	39
REFINANCING
REFINANCING	79	27	57	62
LIQUIDITY
LIQUIDITY	38	61	61	43
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	45	72	61	47

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Chunghwa Chemical Synthesis & Biotech 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	97	20	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	98	30	^new
MARKET PULSE
MARKET PULSE	n/a	100	100	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	100	41	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Chunghwa Chemical Synthesis & Biotech.
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