Fact based stock research
Nan Ya Plastics (TSEC:1303)

TW0001303006

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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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Nan Ya Plastics stock research in summary

npc.com.tw

ANALYSIS: With an Obermatt Combined Rank of 5 (worse than 95% compared with investment alternatives), Nan Ya Plastics (Commodity Chemicals, Taiwan) shares have lower financial characteristics compared with similar stocks. Shares of Nan Ya Plastics are low in value (priced high) with a consolidated Value Rank of 23 (worse than 77% of alternatives), show below-average growth (Growth Rank of 35), and are riskily financed (Safety Rank of 13), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 5, is a sell recommendation based on Nan Ya Plastics's financial characteristics. As the company Nan Ya Plastics's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 23), low growth (Obermatt Growth Rank of 35), and risky financing practices (Obermatt Safety Rank of 13), 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	23
Growth Rank	35
Safety Rank	13
Combined Rank	5

Country	Taiwan
Industry	Commodity Chemicals
Index	Low Emissions, Energy Efficient, Human Rights, FTSE Taiwan
Size class	X-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: Nan Ya Plastics

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	88	39	31	23
GROWTH
GROWTH	80	39	33	35
SAFETY
SAFETY	71	26	32	13
SENTIMENT
SENTIMENT	n/a	6	1	^new
360° VIEW
360° VIEW	n/a	5	8	^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 Nan Ya Plastics is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	88	39	31	23
GROWTH
GROWTH	80	39	33	35
SAFETY
SAFETY	71	26	32	13
COMBINED
COMBINED	100	14	20	5

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 23 (worse than 77% compared with alternatives), Nan Ya Plastics 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 Nan Ya Plastics. Price-to-Sales is 32 which means that the stock price compared with what market professionals expect for future profits is higher than 68% of comparable companies, indicating a low value concerning Nan Ya Plastics's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 49, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Nan Ya Plastics. 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 53% 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 23, is a sell recommendation based on Nan Ya Plastics's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Nan Ya Plastics? 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 Nan Ya Plastics? 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. Nan Ya Plastics 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)	52	26	25	32
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	86	38	23	12
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	76	32	29	49
DIVIDEND YIELD
DIVIDEND YIELD	76	81	57	47
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	88	39	31	23

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Nan Ya Plastics; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 35 (better than 35% compared with alternatives), Nan Ya Plastics 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 Nan Ya Plastics. Sales Growth has a rank of 59 which means that currently, professionals expect the company to grow more than 59% of its competitors. Capital Growth is also above 43% of competitors with a rank of 51. But Profit Growth only has a rank of 43, which means that currently professionals expect the company to grow its profits less than 57% of its competitors. And Stock Returns have also been below average with a rank of only 17. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 35, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. 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	70	35	80	59
PROFIT GROWTH
PROFIT GROWTH	9	4	20	43
CAPITAL GROWTH
CAPITAL GROWTH	n/a	68	49	51
STOCK RETURNS
STOCK RETURNS	58	71	27	17
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	80	39	33	35

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 13 (better than 13% compared with alternatives), the company Nan Ya Plastics 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 Nan Ya Plastics 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 Nan Ya Plastics. Liquidity is at 23, meaning that the company generates less profit to service its debt than 77% 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 13 (worse than 87% compared with alternatives), Nan Ya Plastics 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 Nan Ya Plastics because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	52	42	44	36
REFINANCING
REFINANCING	70	33	25	21
LIQUIDITY
LIQUIDITY	64	38	48	23
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	71	26	32	13

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Nan Ya Plastics 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	43	1	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	4	15	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	28	9	^new
MARKET PULSE
MARKET PULSE	n/a	30	29	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	6	1	^new

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