Fact based stock research
HIWIN TECHNOLOGIES (TSEC:2049)

TW0002049004

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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).

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HIWIN TECHNOLOGIES stock research in summary

hiwin.tw

ANALYSIS: With an Obermatt Combined Rank of 12 (worse than 88% compared with investment alternatives), HIWIN TECHNOLOGIES (Industrial Machinery, Taiwan) shares have lower financial characteristics compared with similar stocks. Shares of HIWIN TECHNOLOGIES are low in value (priced high) with a consolidated Value Rank of 13 (worse than 87% of alternatives), and are riskily financed (Safety Rank of 10, which means above-average debt burdens) but show above-average growth (Growth Rank of 81). ...read more

RECOMMENDATION: A Combined Rank of 12, is a sell recommendation based on HIWIN TECHNOLOGIES's financial characteristics. As the company HIWIN TECHNOLOGIES shows low value with an Obermatt Value Rank of 13 (87% 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 10 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 HIWIN TECHNOLOGIES, 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	13
Growth Rank	81
Safety Rank	10
Combined Rank	12

Country	Taiwan
Industry	Industrial Machinery
Index	Energy Efficient, FTSE Taiwan
Size class	Large

19-Dec-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: HIWIN TECHNOLOGIES

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	64	41	33	13
GROWTH
GROWTH	91	73	29	81
SAFETY
SAFETY	23	4	12	10
SENTIMENT
SENTIMENT	n/a	10	86	^new
360° VIEW
360° VIEW	n/a	13	24	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better HIWIN TECHNOLOGIES is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	64	41	33	13
GROWTH
GROWTH	91	73	29	81
SAFETY
SAFETY	23	4	12	10
COMBINED
COMBINED	73	21	6	12

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of HIWIN TECHNOLOGIES the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 13 (worse than 87% compared with alternatives), HIWIN TECHNOLOGIES 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 HIWIN TECHNOLOGIES. Price-to-Sales is 27 which means that the stock price compared with what market professionals expect for future profits is higher than 73% of comparable companies, indicating a low value concerning HIWIN TECHNOLOGIES's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 36, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of HIWIN TECHNOLOGIES. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 5 and Dividend Yield, which is lower than 84% 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 13, is a sell recommendation based on HIWIN TECHNOLOGIES's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for HIWIN TECHNOLOGIES? 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 HIWIN TECHNOLOGIES? 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. HIWIN TECHNOLOGIES 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)	43	26	28	27
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	71	35	22	5
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	48	38	49	36
DIVIDEND YIELD
DIVIDEND YIELD	58	42	30	16
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	64	41	33	13

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of HIWIN TECHNOLOGIES; 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, HIWIN TECHNOLOGIES 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 all but one indicator above average for HIWIN TECHNOLOGIES. Sales Growth has a rank of 73 which means that currently, professionals expect the company to grow more than 73% of its competitors. Capital Growth is also above 33% of competitors with a rank of 82, and Stock Returns with the rank of 65 is also an outperformance. Only Profit Growth is low with a rank of 33 which means that currently, professionals expect the company to grow its profits less than 67% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 81, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, HIWIN TECHNOLOGIES is a good growth 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. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	73	68	57	73
PROFIT GROWTH
PROFIT GROWTH	92	72	13	33
CAPITAL GROWTH
CAPITAL GROWTH	n/a	73	35	82
STOCK RETURNS
STOCK RETURNS	50	3	57	65
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	91	73	29	81

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of HIWIN TECHNOLOGIES.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 10 (better than 10% compared with alternatives), the company HIWIN TECHNOLOGIES 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 HIWIN TECHNOLOGIES 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 all three metrics below average for HIWIN TECHNOLOGIES. Liquidity is at 26, meaning that the company generates less profit to service its debt than 74% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 36, meaning the company has an above-average debt-to-equity ratio. It has more debt than 64% of its competitors. Finally, Refinancing is at a rank of 21 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 79% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 10 (worse than 90% compared with alternatives), HIWIN TECHNOLOGIES has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of HIWIN TECHNOLOGIES because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	28	26	40	36
REFINANCING
REFINANCING	44	9	23	21
LIQUIDITY
LIQUIDITY	41	12	29	26
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	23	4	12	10

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of HIWIN TECHNOLOGIES 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	31	79	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	18	20	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	26	74	^new
MARKET PULSE
MARKET PULSE	n/a	73	76	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	10	86	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for HIWIN TECHNOLOGIES.
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