Fact based stock research
Excellence Optoelectronics (TSEC:6288)

TW0006288004

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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.

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Excellence Optoelectronics stock research in summary

eoi.com.tw

ANALYSIS: With an Obermatt Combined Rank of 37 (worse than 63% compared with investment alternatives), Excellence Optoelectronics (Semiconductors, Taiwan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Excellence Optoelectronics are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives), and are riskily financed (Safety Rank of 13, which means above-average debt burdens) but show above-average growth (Growth Rank of 77). ...read more

RECOMMENDATION: A Combined Rank of 37, is a hold recommendation based on Excellence Optoelectronics's financial characteristics. As the company Excellence Optoelectronics shows low value with an Obermatt Value Rank of 45 (55% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 77% of comparable companies (Obermatt Growth Rank is 77). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 13 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Excellence Optoelectronics, even a low-value company (in terms of its key financial indicators) can be a good investment. 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	45
Growth Rank	77
Safety Rank	13
Combined Rank	37

Country	Taiwan
Industry	Semiconductors
Index	FTSE Taiwan
Size class	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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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Excellence Optoelectronics

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	71	63	59	45
GROWTH
GROWTH	17	13	89	77
SAFETY
SAFETY	24	21	7	13
SENTIMENT
SENTIMENT	n/a	81	78	^new
360° VIEW
360° VIEW	n/a	37	73	^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 Excellence Optoelectronics is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	71	63	59	45
GROWTH
GROWTH	17	13	89	77
SAFETY
SAFETY	24	21	7	13
COMBINED
COMBINED	24	15	53	37

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Excellence Optoelectronics the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Excellence Optoelectronics shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Excellence Optoelectronics. Price-to-Sales (P/S) is 82, which means that the stock price compared with what market professionals expect for future sales is lower than 82% of comparable companies, indicating a good value concerning to Excellence Optoelectronics's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 21, meaning that dividends are expected to be lower than for 79% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 52% of alternatives (only 48% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 62% of comparable companies, 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 45, is a hold recommendation based on Excellence Optoelectronics's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Excellence Optoelectronics could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Excellence Optoelectronics looks like an expensive investment today. 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)	81	84	83	82
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	17	33	72	38
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	72	71	51	48
DIVIDEND YIELD
DIVIDEND YIELD	90	33	23	21
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	71	63	59	45

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 77 (better than 77% compared with alternatives) for 2024, Excellence Optoelectronics shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Excellence Optoelectronics. Sales Growth has a rank of 91 which means that currently professionals expect the company to grow more than 91% of its competitors. Stock Returns are also above average with a rank of 61. But Capital Growth has only a rank of 45, which means that currently professionals expect the company to grow its invested capital less than 55% of its competitors. Profit Growth is also low, with a rank of only 41, 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 77, is a buy 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 61% 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	23	75	65	91
PROFIT GROWTH
PROFIT GROWTH	n/a	7	84	41
CAPITAL GROWTH
CAPITAL GROWTH	n/a	36	49	45
STOCK RETURNS
STOCK RETURNS	28	17	51	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	17	13	89	77

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Excellence Optoelectronics.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 13 (better than 13% compared with alternatives), the company Excellence Optoelectronics has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Excellence Optoelectronics 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 Excellence Optoelectronics and the other two below average. Refinancing is at 59, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 59% of its competitors. But Leverage is high with a rank of 14, meaning the company has an above-average debt-to-equity ratio. It has more debt than 86% of its competitors. Liquidity is also on the riskier side with a rank of 15, meaning the company generates less profit to service its debt than 85% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 13 (worse than 87% compared with alternatives), Excellence Optoelectronics has a financing structure that is significantly 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 Excellence Optoelectronics 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 Excellence Optoelectronics 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	10	12	8	14
REFINANCING
REFINANCING	92	71	45	59
LIQUIDITY
LIQUIDITY	13	15	7	15
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	24	21	7	13

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Excellence Optoelectronics 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	88	85	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	8	6	^new
MARKET PULSE
MARKET PULSE	n/a	100	100	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	81	78	^new

Last update of Sentiment Rank: 12-Sep-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Excellence Optoelectronics.
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