Fact based stock research
Taiwan-Asia Semiconductor (TSEC:2340)

TW0002340007

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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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Taiwan-Asia Semiconductor stock research in summary

opto.com.tw

ANALYSIS: With an Obermatt Combined Rank of 16 (worse than 84% compared with investment alternatives), Taiwan-Asia Semiconductor (Semiconductors, Taiwan) shares have lower financial characteristics compared with similar stocks. Shares of Taiwan-Asia Semiconductor are low in value (priced high) with a consolidated Value Rank of 23 (worse than 77% of alternatives), and are riskily financed (Safety Rank of 14, which means above-average debt burdens) but show above-average growth (Growth Rank of 73). ...read more

RECOMMENDATION: A Combined Rank of 16, is a sell recommendation based on Taiwan-Asia Semiconductor's financial characteristics. As the company Taiwan-Asia Semiconductor shows low value with an Obermatt Value Rank of 23 (77% 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 73% of comparable companies (Obermatt Growth Rank is 73). 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 14 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 Taiwan-Asia Semiconductor, 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	23
Growth Rank	73
Safety Rank	14
Combined Rank	16

Country	Taiwan
Industry	Semiconductors
Index	FTSE Taiwan
Size class	Small

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: Taiwan-Asia Semiconductor

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	83	39	17	23
GROWTH
GROWTH	55	63	19	73
SAFETY
SAFETY	95	39	35	14
SENTIMENT
SENTIMENT	n/a	42	8	^new
360° VIEW
360° VIEW	n/a	43	4	^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 Taiwan-Asia Semiconductor is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	83	39	17	23
GROWTH
GROWTH	55	63	19	73
SAFETY
SAFETY	95	39	35	14
COMBINED
COMBINED	93	41	5	16

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Taiwan-Asia Semiconductor the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 23 (worse than 77% compared with alternatives), Taiwan-Asia Semiconductor shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators where three out of four are below average for Taiwan-Asia Semiconductor. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 58, which means that the stock price is lower compared with invested capital than for 58% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 30 which means the stock price compared with what market professionals expect for future profits is higher than 70% of comparable companies, indicating a low value concerning Taiwan-Asia Semiconductor's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 58 and for the dividend yields rank which is lower than for 63% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 23, is a sell recommendation based on Taiwan-Asia Semiconductor's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Taiwan-Asia Semiconductor, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. 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)	55	24	27	30
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	75	18	7	1
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	63	50	52	58
DIVIDEND YIELD
DIVIDEND YIELD	96	79	51	37
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	83	39	17	23

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 73 (better than 73% compared with alternatives), Taiwan-Asia Semiconductor shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Taiwan-Asia Semiconductor. Sales Growth has a value of 51 which means that currently professionals expect the company to grow more than 51% of its competitors. Profit Growth with a value of 69 and Capital Growth with a rank of 87 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 21, which means that stock returns have recently been below 79% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 73, is a buy recommendation for growth and momentum investors. Taiwan-Asia Semiconductor has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Taiwan-Asia Semiconductor, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. 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	34	52	13	51
PROFIT GROWTH
PROFIT GROWTH	61	36	17	69
CAPITAL GROWTH
CAPITAL GROWTH	n/a	36	59	87
STOCK RETURNS
STOCK RETURNS	63	99	53	21
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	55	63	19	73

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Taiwan-Asia Semiconductor.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 14 (better than 14% compared with alternatives), the company Taiwan-Asia Semiconductor 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 Taiwan-Asia Semiconductor 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 Taiwan-Asia Semiconductor. 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 38, meaning the company has an above-average debt-to-equity ratio. It has more debt than 62% of its competitors. Finally, Refinancing is at a rank of 41 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 59% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 14 (worse than 86% compared with alternatives), Taiwan-Asia Semiconductor 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 Taiwan-Asia Semiconductor because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	90	48	64	38
REFINANCING
REFINANCING	49	57	39	41
LIQUIDITY
LIQUIDITY	86	33	29	26
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	95	39	35	14

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Taiwan-Asia Semiconductor 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	100	9	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	1	20	^new
MARKET PULSE
MARKET PULSE	n/a	n/a	n/a	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	42	8	^new

Last update of Sentiment Rank: 18-Jan-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Taiwan-Asia Semiconductor.
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