Fact based stock research
Teco Electric & Machinery (TSEC:1504)

TW0001504009

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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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Teco Electric & Machinery stock research in summary

teco.com.tw

ANALYSIS: With an Obermatt Combined Rank of 19 (worse than 81% compared with investment alternatives), Teco Electric & Machinery (Electr. Components & Equipment, Taiwan) shares have lower financial characteristics compared with similar stocks. Shares of Teco Electric & Machinery are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives) and show below-average growth (Growth Rank of 19) but are safely financed (Safety Rank of 62), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 19, is a sell recommendation based on Teco Electric & Machinery's financial characteristics. As the company Teco Electric & Machinery's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 35) and low growth (Obermatt Growth Rank of 19), 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. In this case, good financing practices (Obermatt Safety Rank of 62) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for 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	35
Growth Rank	19
Safety Rank	62
Combined Rank	19

Country	Taiwan
Industry	Electr. Components & Equipment
Index	Electromobility, Human Rights, Low Waste, Water Tech, 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

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

Research History: Teco Electric & Machinery

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	100	37	48	35
GROWTH
GROWTH	51	91	95	19
SAFETY
SAFETY	98	61	69	62
SENTIMENT
SENTIMENT	n/a	53	67	^new
360° VIEW
360° VIEW	n/a	85	88	^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 Teco Electric & Machinery is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	100	37	48	35
GROWTH
GROWTH	51	91	95	19
SAFETY
SAFETY	98	61	69	62
COMBINED
COMBINED	100	87	84	19

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 35 (worse than 65% compared with alternatives), Teco Electric & Machinery shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Teco Electric & Machinery. Expected dividend yields are higher than for 90% of comparable companies (a Dividend Yield rank of 90), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 52, which means that the stock price is lower compared with invested capital than for 52% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 23 which means that the stock price compared with what market professionals expect for future profits is higher than for 77% of comparable companies, indicating a low value concerning Teco Electric & Machinery's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Teco Electric & Machinery with a rank of 33. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 67% of comparable companies, indicating a low value concerning Teco Electric & Machinery's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 35, is a hold recommendation based on Teco Electric & Machinery's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Teco Electric & Machinery may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. 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)	82	33	29	23
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	91	17	46	33
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	94	90	70	52
DIVIDEND YIELD
DIVIDEND YIELD	89	68	92	90
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	100	37	48	35

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 19 (better than 19% compared with alternatives), Teco Electric & Machinery shows one of the most restricted growth dynamics in its industry. There is little 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 Teco Electric & Machinery. Sales Growth has a rank of 67 which means that currently professionals expect the company to grow more than 67% of its competitors. Stock Returns are also above average with a rank of 59. But Capital Growth has only a rank of 17, which means that currently professionals expect the company to grow its invested capital less than 83% of its competitors. Profit Growth is also low, with a rank of only 18, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 19, is a sell recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 59% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. 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	42	66	47	67
PROFIT GROWTH
PROFIT GROWTH	33	64	85	18
CAPITAL GROWTH
CAPITAL GROWTH	n/a	74	58	17
STOCK RETURNS
STOCK RETURNS	47	69	89	59
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	51	91	95	19

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 62 (better than 62% compared with alternatives), the company Teco Electric & Machinery 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 Teco Electric & Machinery 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 Teco Electric & Machinery. Leverage is at a rank of 72, meaning the company has a below-average debt-to-equity ratio. It has less debt than 72% of its competitors. Liquidity is also good at a rank of 64, meaning the company generates more profit to service its debt than 64% 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 35, 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 65% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 62 (better than 62% compared with alternatives), Teco Electric & Machinery has a financing structure that is 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 Teco Electric & Machinery. 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 Teco Electric & Machinery 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	71	66	76	72
REFINANCING
REFINANCING	58	61	45	35
LIQUIDITY
LIQUIDITY	98	29	53	64
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	98	61	69	62

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Teco Electric & Machinery 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	34	36	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	25	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	29	88	^new
MARKET PULSE
MARKET PULSE	n/a	73	72	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	53	67	^new

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