Fact based stock research
Sercomm (TSEC:5388)

TW0005388003

How to read the free ranks

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.

Sercomm stock research in summary

sercomm.com

ANALYSIS: With an Obermatt Combined Rank of 47 (worse than 53% compared with investment alternatives), Sercomm (Communications Equipment, Taiwan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Sercomm are a good value (attractively priced) with a consolidated Value Rank of 83 (better than 83% of alternatives) but show below-average growth (Growth Rank of 45), and are riskily financed (Safety Rank of 23), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 47, is a hold recommendation based on Sercomm's financial characteristics. As the company Sercomm's key financial metrics exhibit good value (Obermatt Value Rank of 83) but low growth (Obermatt Growth Rank of 45) and risky financing practices (Obermatt Safety Rank of 23), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 83% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. 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	83
Growth Rank	45
Safety Rank	23
Combined Rank	47

Country	Taiwan
Industry	Communications Equipment
Index	FTSE Taiwan
Size class	Large

This stock has achievements: Top 10 Stock.

14-Nov-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.

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

Research History: Sercomm

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	95	67	77	83
GROWTH
GROWTH	65	45	93	45
SAFETY
SAFETY	53	27	17	23
SENTIMENT
SENTIMENT	n/a	62	58	^new
360° VIEW
360° VIEW	n/a	41	76	^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 Sercomm is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	95	67	77	83
GROWTH
GROWTH	65	45	93	45
SAFETY
SAFETY	53	27	17	23
COMBINED
COMBINED	84	41	81	47

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 83 (better than 83% compared with alternatives) for 2024, Sercomm shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Sercomm. Price-to-Sales (P/S) is 76, which means that the stock price compared with what market professionals expect for future sales is lower than for 76% of comparable companies, indicating a good value concerning Sercomm's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 77% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 93 (dividends are expected to be higher than 93% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 53% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Sercomm to 47. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 83, is a buy recommendation based on Sercomm's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	97	84	80	76
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	85	46	72	77
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	45	43	26	47
DIVIDEND YIELD
DIVIDEND YIELD	96	90	100	93
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	95	67	77	83

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 45 (better than 45% compared with alternatives), Sercomm 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 Sercomm. 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 36% of competitors with a rank of 62. But Profit Growth only has a rank of 36, which means that currently professionals expect the company to grow its profits less than 64% of its competitors. And Stock Returns have also been below average with a rank of only 23. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 45, 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	91	75	59
PROFIT GROWTH
PROFIT GROWTH	70	9	65	36
CAPITAL GROWTH
CAPITAL GROWTH	n/a	56	81	62
STOCK RETURNS
STOCK RETURNS	71	31	79	23
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	65	45	93	45

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 23 (better than 23% compared with alternatives), the company Sercomm 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 Sercomm 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 Sercomm and the other two below average. Refinancing is at 59, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 59% of its competitors. But Leverage is high with a rank of 16, meaning the company has an above-average debt-to-equity ratio. It has more debt than 84% of its competitors. Liquidity is also on the riskier side with a rank of 42, meaning the company generates less profit to service its debt than 58% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 23 (worse than 77% compared with alternatives), Sercomm has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Sercomm are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Sercomm and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	24	16	10	16
REFINANCING
REFINANCING	80	59	47	59
LIQUIDITY
LIQUIDITY	52	39	39	42
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	53	27	17	23

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Sercomm 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	5	97	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	87	15	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	96	74	^new
MARKET PULSE
MARKET PULSE	n/a	45	43	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	62	58	^new

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