Fact based stock research
EZconnoration (TSEC:6442)

TW0006442007

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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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EZconnoration stock research in summary

ezconn.com

ANALYSIS: With an Obermatt Combined Rank of 37 (worse than 63% compared with investment alternatives), EZconnoration (Communications Equipment, Taiwan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of EZconnoration are low in value (priced high) with a consolidated Value Rank of 3 (worse than 97% of alternatives), and are riskily financed (Safety Rank of 39, which means above-average debt burdens) but show above-average growth (Growth Rank of 81). ...read more

RECOMMENDATION: A Combined Rank of 37, is a hold recommendation based on EZconnoration's financial characteristics. As the company EZconnoration shows low value with an Obermatt Value Rank of 3 (97% 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 81% of comparable companies (Obermatt Growth Rank is 81). 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 39 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 EZconnoration, 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	3
Growth Rank	81
Safety Rank	39
Combined Rank	37

Country	Taiwan
Industry	Communications Equipment
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: EZconnoration

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	89	49	37	3
GROWTH
GROWTH	64	85	79	81
SAFETY
SAFETY	80	44	66	39
SENTIMENT
SENTIMENT	n/a	53	64	^new
360° VIEW
360° VIEW	n/a	73	85	^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 EZconnoration is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	89	49	37	3
GROWTH
GROWTH	64	85	79	81
SAFETY
SAFETY	80	44	66	39
COMBINED
COMBINED	100	84	70	37

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 3 (worse than 97% compared with alternatives), EZconnoration shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for EZconnoration. Price-to-Sales is 4 which means that the stock price compared with what market professionals expect for future profits is higher than 96% of comparable companies, indicating a low value concerning EZconnoration's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 2, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of EZconnoration. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 12 and Dividend Yield, which is lower than 81% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 3, is a sell recommendation based on EZconnoration's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for EZconnoration? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as EZconnoration? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. EZconnoration may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. 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)	89	76	46	4
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	54	9	21	12
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	92	74	40	2
DIVIDEND YIELD
DIVIDEND YIELD	86	43	61	19
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	89	49	37	3

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 81 (better than 81% compared with alternatives) for 2024, EZconnoration 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 EZconnoration. Capital Growth has a rank of 87, which means that currently professionals expect the company to grow its invested capital more than 34% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 100 (above 100% of alternative investments). But Sales Growth has only a rank of 43, which means that, currently, professionals expect the company to grow less than 57% of its competitors, and Profit Growth is also low at a rank of 34. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 81, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for EZconnoration, investors may want to look at value and sentiment indicators for a well-rounded picture of this 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 mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	51	37	55	43
PROFIT GROWTH
PROFIT GROWTH	69	83	97	34
CAPITAL GROWTH
CAPITAL GROWTH	n/a	69	33	87
STOCK RETURNS
STOCK RETURNS	56	75	63	100
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	64	85	79	81

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 39 (better than 39% compared with alternatives), the company EZconnoration 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 EZconnoration 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 two out of three indicators above average for EZconnoration. Leverage is at a rank of 54, meaning the company has a below-average debt-to-equity ratio. It has less debt than 54% of its competitors. Liquidity is also good at a rank of 56, meaning the company generates more profit to service its debt than 56% 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 15, 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 85% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 39 (worse than 61% compared with alternatives), EZconnoration has a financing structure that is riskier 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 EZconnoration. 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 EZconnoration 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	40	40	48	54
REFINANCING
REFINANCING	94	91	71	15
LIQUIDITY
LIQUIDITY	56	10	52	56
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	80	44	66	39

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of EZconnoration 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	20	11	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	86	76	^new
MARKET PULSE
MARKET PULSE	n/a	n/a	n/a	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	53	64	^new

Last update of Sentiment Rank: 18-May-2023. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for EZconnoration.
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