Fact based stock research
Radiant Opto-Electronics (TSEC:6176)

TW0006176001

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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.

Radiant Opto-Electronics stock research in summary

radiant.com.tw

ANALYSIS: With an Obermatt Combined Rank of 94 (better than 94% compared with investment alternatives), Radiant Opto-Electronics (Semiconductors, Taiwan) shares have much better financial characteristics than comparable stocks. Shares of Radiant Opto-Electronics are a good value (attractively priced) with a consolidated Value Rank of 65 (better than 65% of alternatives), show above-average growth (Growth Rank of 75), and are safely financed (Safety Rank of 74), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 94, is a strong buy recommendation based on Radiant Opto-Electronics's financial characteristics. As the company Radiant Opto-Electronics's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 65), above-average growth (Obermatt Growth Rank of 75), and indicate that the company is safely financed (Obermatt Safety Rank of 74), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Radiant Opto-Electronics. 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

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	65
Growth Rank	75
Safety Rank	74
Combined Rank	94

Country	Taiwan
Industry	Semiconductors
Index	FTSE Taiwan
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Radiant Opto-Electronics

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	98	93	93	65
GROWTH
GROWTH	29	3	55	75
SAFETY
SAFETY	100	71	83	74
SENTIMENT
SENTIMENT	n/a	10	76	^new
360° VIEW
360° VIEW	n/a	35	91	^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 Radiant Opto-Electronics is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	98	93	93	65
GROWTH
GROWTH	29	3	55	75
SAFETY
SAFETY	100	71	83	74
COMBINED
COMBINED	93	53	95	94

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Radiant Opto-Electronics the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 65 (better than 65% compared with alternatives), Radiant Opto-Electronics shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Radiant Opto-Electronics. Price-to-Profit (also referred to as price-earnings, P/E) is 65 which means that the stock price compared with what market professionals expect for future profits is lower than for 65% of comparable companies, indicating a good value concerning Radiant Opto-Electronics'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 40, which means that the stock price is lower as regards to invested capital than for 40% of comparable investments. On the other hand, Price-to-Sales is less favorable than 52% of alternatives (only 48% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 16% 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 65, is a buy recommendation based on Radiant Opto-Electronics'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)	94	78	69	48
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	96	80	94	65
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	82	72	66	40
DIVIDEND YIELD
DIVIDEND YIELD	100	98	100	84
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	98	93	93	65

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 75 (better than 75% compared with alternatives) for 2024, Radiant Opto-Electronics 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 Radiant Opto-Electronics. Capital Growth has a rank of 97, which means that currently professionals expect the company to grow its invested capital more than 44% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 93 (above 93% of alternative investments). But Sales Growth has only a rank of 18, which means that, currently, professionals expect the company to grow less than 82% of its competitors, and Profit Growth is also low at a rank of 44. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 75, is a buy 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 Radiant Opto-Electronics, 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	29	6	7	18
PROFIT GROWTH
PROFIT GROWTH	71	12	76	44
CAPITAL GROWTH
CAPITAL GROWTH	n/a	48	67	97
STOCK RETURNS
STOCK RETURNS	28	23	51	93
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	29	3	55	75

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Radiant Opto-Electronics.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 74 (better than 74% compared with alternatives), the company Radiant Opto-Electronics 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 Radiant Opto-Electronics 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 all three are above average for Radiant Opto-Electronics. Leverage is at 54, meaning the company has a below-average debt-to-equity ratio. It has less debt than 54% of its competitors. Refinancing is at a rank of 73, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 73% of its competitors. Finally, Liquidity is also good at a rank of 53, which means that the company generates more profit to service its debt than 53% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 74 (better than 74% compared with alternatives), Radiant Opto-Electronics has a financing structure that is safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Radiant Opto-Electronics but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	96	40	52	54
REFINANCING
REFINANCING	92	97	91	73
LIQUIDITY
LIQUIDITY	98	55	51	53
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	71	83	74

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Radiant Opto-Electronics 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	35	29	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	42	70	^new
MARKET PULSE
MARKET PULSE	n/a	3	100	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	10	76	^new

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