Fact based stock research
Lite-On Technology (TSEC:2301)

TW0002301009

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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.

Lite-On Technology stock research in summary

liteon.com

ANALYSIS: With an Obermatt Combined Rank of 15 (worse than 85% compared with investment alternatives), Lite-On Technology (Technology Hardware & Peripherals, Taiwan) shares have lower financial characteristics compared with similar stocks. Shares of Lite-On Technology are low in value (priced high) with a consolidated Value Rank of 25 (worse than 75% of alternatives) and show below-average growth (Growth Rank of 9) but are safely financed (Safety Rank of 59), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 15, is a sell recommendation based on Lite-On Technology's financial characteristics. As the company Lite-On Technology's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 25) and low growth (Obermatt Growth Rank of 9), 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. In this case, good financing practices (Obermatt Safety Rank of 59) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for 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	25
Growth Rank	9
Safety Rank	59
Combined Rank	15

Country	Taiwan
Industry	Technology Hardware & Peripherals
Index	Recycling, FTSE Taiwan
Size class	X-Large

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: Lite-On Technology

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	95	41	31	25
GROWTH
GROWTH	41	87	77	9
SAFETY
SAFETY	82	45	27	59
SENTIMENT
SENTIMENT	n/a	29	75	^new
360° VIEW
360° VIEW	n/a	51	49	^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 Lite-On Technology is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	95	41	31	25
GROWTH
GROWTH	41	87	77	9
SAFETY
SAFETY	82	45	27	59
COMBINED
COMBINED	91	65	29	15

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 25 (worse than 75% compared with alternatives), Lite-On Technology shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Lite-On Technology. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 68% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 34 which means that the stock price compared with what market professionals expect for future profits is higher than 66% of comparable companies, indicating a low value concerning Lite-On Technology's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 30 which means that the stock price compared with what market professionals expect for future profit levels is higher than 70% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 37 is also low. Compared with invested capital, the stock price is higher than for 63% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 25, is a hold recommendation based on Lite-On Technology's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Lite-On Technology? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Lite-On Technology only if they reasonably expect the low current profit levels to be transitory. 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)	80	43	31	34
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	91	57	47	30
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	68	43	25	37
DIVIDEND YIELD
DIVIDEND YIELD	100	83	87	68
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	95	41	31	25

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 9 (better than 9% compared with alternatives), Lite-On Technology shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Lite-On Technology. While Sales Growth ranks at 53, professionals currently expect the company to grow more than 53% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 11, which means that, currently, professionals expect the company to grow its profits less than 89% of its competitors, and Capital Growth has a low rank of 42. Historic stock returns were also below average with a current Stock Returns rank of 17 which means that the stock returns have recently been below 83% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 9, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. 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 isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	24	55	58	53
PROFIT GROWTH
PROFIT GROWTH	25	59	67	11
CAPITAL GROWTH
CAPITAL GROWTH	n/a	90	67	42
STOCK RETURNS
STOCK RETURNS	66	73	73	17
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	41	87	77	9

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 59 (better than 59% compared with alternatives), the company Lite-On Technology has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Lite-On Technology is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Lite-On Technology.Leverage is at 56, meaning the company has a below-average debt-to-equity ratio. It has less debt than 56% of its competitors.Refinancing is at a rank of 51, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 51% of its competitors. Liquidity is at 46, meaning that the company generates less profit to service its debt than 54% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 59 (better than 59% compared with alternatives), Lite-On Technology has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Lite-On Technology more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	96	42	38	56
REFINANCING
REFINANCING	12	37	33	51
LIQUIDITY
LIQUIDITY	96	59	51	46
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	82	45	27	59

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Lite-On Technology 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	46	97	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	37	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	30	93	^new
MARKET PULSE
MARKET PULSE	n/a	45	8	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	29	75	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Lite-On Technology.
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