Fact based stock research
Taiwan Fertilizer (TSEC:1722)

TW0001722007

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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 Fertilizer stock research in summary

taifer.com.tw

ANALYSIS: With an Obermatt Combined Rank of 69 (better than 69% compared with investment alternatives), Taiwan Fertilizer (Fertilizers & Agricultural Chemicals, Taiwan) shares have above-average financial characteristics compared with similar stocks. Shares of Taiwan Fertilizer are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives). But they show above-average growth (Growth Rank of 75) and are safely financed (Safety Rank of 81, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 69, is a buy recommendation based on Taiwan Fertilizer's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Taiwan Fertilizer exhibits low value (Obermatt Value Rank of 31), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 75). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 81) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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	31
Growth Rank	75
Safety Rank	81
Combined Rank	69

Country	Taiwan
Industry	Fertilizers & Agricultural Chemicals
Index	SDG 12, SDG 2, FTSE Taiwan
Size class	Medium

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

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

Research History: Taiwan Fertilizer

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	54	35	47	31
GROWTH
GROWTH	10	85	75	75
SAFETY
SAFETY	80	70	28	81
SENTIMENT
SENTIMENT	n/a	78	92	^new
360° VIEW
360° VIEW	n/a	91	51	^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 Fertilizer is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	54	35	47	31
GROWTH
GROWTH	10	85	75	75
SAFETY
SAFETY	80	70	28	81
COMBINED
COMBINED	44	84	44	69

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 31 (worse than 69% compared with alternatives), Taiwan Fertilizer 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 Taiwan Fertilizer. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 89% 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 2 which means that the stock price compared with what market professionals expect for future profits is higher than 98% of comparable companies, indicating a low value concerning Taiwan Fertilizer's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 10 which means that the stock price compared with what market professionals expect for future profit levels is higher than 90% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 34 is also low. Compared with invested capital, the stock price is higher than for 66% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 31, is a hold recommendation based on Taiwan Fertilizer's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Taiwan Fertilizer? 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 Taiwan Fertilizer 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)	9	3	2	2
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	38	18	55	10
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	86	46	42	34
DIVIDEND YIELD
DIVIDEND YIELD	86	73	75	89
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	54	35	47	31

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Taiwan Fertilizer; 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, Taiwan Fertilizer 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 Taiwan Fertilizer. Sales Growth has a rank of 89, which means that, currently, professionals expect the company to grow more than 89% of its competitors. Profit Growth with a rank of 89 is also above average. But Capital Growth has only a rank of 28, and Stock Returns with 47 are also below-average. Stock returns for Taiwan Fertilizer have recently been below 53% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 75, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Taiwan Fertilizer. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. 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 the Obermatt 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	19	87	75	89
PROFIT GROWTH
PROFIT GROWTH	91	34	67	89
CAPITAL GROWTH
CAPITAL GROWTH	n/a	77	33	28
STOCK RETURNS
STOCK RETURNS	36	77	79	47
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	10	85	75	75

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 Fertilizer.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 81 (better than 81% compared with alternatives) for 2024, the company Taiwan Fertilizer has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Taiwan Fertilizer 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, with two out of three indicators above average for Taiwan Fertilizer. Leverage is at a rank of 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors. Liquidity is also good at a rank of 100, meaning the company generates more profit to service its debt than 100% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 19, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 81% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 81 (better than 81% compared with alternatives), Taiwan Fertilizer has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Taiwan Fertilizer. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Taiwan Fertilizer 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	72	98	98	100
REFINANCING
REFINANCING	40	11	17	19
LIQUIDITY
LIQUIDITY	90	90	1	100
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	80	70	28	81

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Taiwan Fertilizer 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	69	100	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	12	100	^new
MARKET PULSE
MARKET PULSE	n/a	93	91	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	78	92	^new

Last update of Sentiment Rank: 30-Nov-2023. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Taiwan Fertilizer.
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