Fact based stock research
King's Town Bank (TSEC:2809)

TW0002809001

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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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King's Town Bank stock research in summary

customer.ktb.com.tw

ANALYSIS: With an Obermatt Combined Rank of 24 (worse than 76% compared with investment alternatives), King's Town Bank (Diversified Banks, Taiwan) shares have lower financial characteristics compared with similar stocks. Shares of King's Town Bank are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives), show below-average growth (Growth Rank of 37), and are riskily financed (Safety Rank of 42), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 24, is a sell recommendation based on King's Town Bank's financial characteristics. As the company King's Town Bank's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 37), low growth (Obermatt Growth Rank of 37), and risky financing practices (Obermatt Safety Rank of 42), 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	37
Growth Rank	37
Safety Rank	42
Combined Rank	24

Country	Taiwan
Industry	Diversified Banks
Index	FTSE Taiwan
Size class	Small

23-Jan-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

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Research History: King's Town Bank

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	56	49	30	37
GROWTH
GROWTH	79	86	73	37
SAFETY
SAFETY	66	30	30	42
SENTIMENT
SENTIMENT	n/a	88	100	^new
360° VIEW
360° VIEW	n/a	79	63	^new

Most recent update of the stock research: 23-Jan-2025. 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 King's Town Bank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	56	49	30	37
GROWTH
GROWTH	79	86	73	37
SAFETY
SAFETY	66	30	30	42
COMBINED
COMBINED	81	58	39	24

Last update of combined financial performance: 23-Jan-2025. Stock analysis on combined financial performance: The higher the rank of King's Town Bank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 37 (worse than 63% compared with alternatives), King's Town Bank 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 King's Town Bank. Price-to-Profit (also referred to as price-earnings, P/E) is 53 which means that the stock price compared with what market professionals expect for future profits is lower than for 53% of comparable companies, indicating a good value concerning King's Town Bank's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 31, which means that the stock price is lower as regards to invested capital than for 31% of comparable investments. On the other hand, Price-to-Sales is less favorable than 90% of alternatives (only 10% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 19% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 37, is a hold recommendation based on King's Town Bank's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. 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)	17	28	12	10
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	71	68	60	53
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	60	40	32	31
DIVIDEND YIELD
DIVIDEND YIELD	54	74	70	81
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	56	49	30	37

Last update of Value Rank: 23-Jan-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of King's Town Bank; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 37 (better than 37% compared with alternatives), King's Town Bank shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for King's Town Bank. Capital Growth has a rank of 92, which means that currently professionals expect the company to grow its invested capital more than 4% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 53 (above 53% of alternative investments). But Sales Growth has only a rank of 24, which means that, currently, professionals expect the company to grow less than 76% of its competitors, and Profit Growth is also low at a rank of 4. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 37, is a hold 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 King's Town Bank, 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	89	78	67	24
PROFIT GROWTH
PROFIT GROWTH	n/a	88	98	4
CAPITAL GROWTH
CAPITAL GROWTH	n/a	87	9	92
STOCK RETURNS
STOCK RETURNS	26	27	57	53
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79	86	73	37

Last update of Growth Rank: 23-Jan-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of King's Town Bank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 42 (better than 42% compared with alternatives), the company King's Town Bank 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 King's Town Bank 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 King's Town Bank. Liquidity is at 65, meaning the company generates more profit to service its debt than 65% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 38, 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 62% of its competitors. Leverage is also high at a rank of 48, which means that the company has an above-average debt-to-equity ratio. It has more debt than 52% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 42 (worse than 58% compared with alternatives), King's Town Bank has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	58	37	52	48
REFINANCING
REFINANCING	50	39	22	38
LIQUIDITY
LIQUIDITY	74	63	59	65
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	66	30	30	42

Last update of Safety Rank: 23-Jan-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of King's Town Bank 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	95	100	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	6	96	^new
MARKET PULSE
MARKET PULSE	n/a	100	100	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	88	100	^new

Last update of Sentiment Rank: 23-Jan-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for King's Town Bank.
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