Fact based stock research
Hon Hai Precision Industry (TSEC:2317)
TW0002317005
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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.
Hon Hai Precision Industry stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), Hon Hai Precision Industry (Electr. Manufacturing Services, Taiwan) shares have much better financial characteristics than comparable stocks. Shares of Hon Hai Precision Industry are a good value (attractively priced) with a consolidated Value Rank of 85 (better than 85% of alternatives), show above-average growth (Growth Rank of 81) but are riskily financed (Safety Rank of 44), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on Hon Hai Precision Industry's financial characteristics. As the company Hon Hai Precision Industry's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 85) and above-average growth (Obermatt Growth Rank of 81), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 44) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. 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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360° Viewnew| Country | Taiwan |
| Industry | Electr. Manufacturing Services |
| Index | FTSE Taiwan |
| Size class | XX-Large |
14-Nov-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: Hon Hai Precision Industry
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 98 |
|
95 |
|
100 |
|
85 |
|
| GROWTH | ||||||||
| GROWTH | 51 |
|
11 |
|
21 |
|
81 |
|
| SAFETY | ||||||||
| SAFETY | 100 |
|
39 |
|
43 |
|
44 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
37 |
|
40 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
47 |
|
50 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), Hon Hai Precision Industry (Electr. Manufacturing Services, Taiwan) shares have much better financial characteristics than comparable stocks. Shares of Hon Hai Precision Industry are a good value (attractively priced) with a consolidated Value Rank of 85 (better than 85% of alternatives), show above-average growth (Growth Rank of 81) but are riskily financed (Safety Rank of 44), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on Hon Hai Precision Industry's financial characteristics. As the company Hon Hai Precision Industry's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 85) and above-average growth (Obermatt Growth Rank of 81), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 44) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. 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 | 98 |
|
95 |
|
100 |
|
85 |
|
| GROWTH | ||||||||
| GROWTH | 51 |
|
11 |
|
21 |
|
81 |
|
| SAFETY | ||||||||
| SAFETY | 100 |
|
39 |
|
43 |
|
44 |
|
| COMBINED | ||||||||
| COMBINED | 100 |
|
51 |
|
61 |
|
90 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 85 (better than 85% compared with alternatives) for 2024, Hon Hai Precision Industry shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Hon Hai Precision Industry. Price-to-Sales is 97 which means that the stock price compared with what market professionals expect for future sales is lower than for 97% of comparable companies, indicating a good value for Hon Hai Precision Industry's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 60% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 61. Compared with other companies in the same industry, dividend yields of Hon Hai Precision Industry are expected to be higher than for 61% of all competitors (a Dividend Yield rank of 61). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 85, is a buy recommendation based on Hon Hai Precision Industry's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Hon Hai Precision Industry based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 100 |
|
100 |
|
100 |
|
97 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 91 |
|
73 |
|
97 |
|
60 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 94 |
|
95 |
|
93 |
|
61 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 90 |
|
63 |
|
84 |
|
61 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 98 |
|
95 |
|
100 |
|
85 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 81 (better than 81% compared with alternatives) for 2024, Hon Hai Precision Industry 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 Hon Hai Precision Industry. Sales Growth has a rank of 73 which means that currently professionals expect the company to grow more than 73% of its competitors. Stock Returns are also above average with a rank of 100. But Capital Growth has only a rank of 46, which means that currently professionals expect the company to grow its invested capital less than 54% of its competitors. Profit Growth is also low, with a rank of only 37, 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 81, 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 100% 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 | 34 |
|
10 |
|
13 |
|
73 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 59 |
|
30 |
|
75 |
|
37 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
54 |
|
40 |
|
46 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 70 |
|
23 |
|
23 |
|
100 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 51 |
|
11 |
|
21 |
|
81 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 44 (better than 44% compared with alternatives), the company Hon Hai Precision Industry 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 Hon Hai Precision Industry 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 Hon Hai Precision Industry and the other two below average. Refinancing is at 77, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 77% of its competitors. But Leverage is high with a rank of 28, meaning the company has an above-average debt-to-equity ratio. It has more debt than 72% of its competitors. Liquidity is also on the riskier side with a rank of 30, meaning the company generates less profit to service its debt than 70% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 44 (worse than 56% compared with alternatives), Hon Hai Precision Industry 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 Hon Hai Precision Industry 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 Hon Hai Precision Industry 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 |
|
14 |
|
20 |
|
28 |
|
| REFINANCING | ||||||||
| REFINANCING | 90 |
|
99 |
|
99 |
|
77 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 100 |
|
15 |
|
23 |
|
30 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 100 |
|
39 |
|
43 |
|
44 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
43 |
|
51 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
29 |
|
64 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
79 |
|
48 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
21 |
|
26 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
37 |
|
40 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Hon Hai Precision Industry from November 14, 2024.
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