KTET Answer Key

EPS growth is an important number as it indicates the future prospects of Chunghwa Telecom Co.. It is typically displayed as a percentage and called the EPS growth rate, which at this time is hard to estimate, but revenue growth has been -1.80% over the last twelve months. The long-term trend in EPS shows how well the management of Chunghwa Telecom Co. is adding value for shareholders.



Chunghwa Telecom Co. is in the communication services industry and trades as part of the communication services sector. The company CEO is Yu Cheng. Chunghwa Telecom Co is a Taiwan based telecommunication company. It is engaged in providing fixed-line, wireless, and Internet and data services.

Previous Intraday Performance:

The CHT shares had a previous change of 0.09% which opened at 35.02 and closed at 35.04. It moved to an intraday high of 35.04 and a low of 34.88.

SeekingAlpha:  Chunghwa Telecom Co., Ltd. 2018 Q4 – Results – Earnings Call Slides

Historical Performance:

Over the last five trading days, CHT shares returned -0.23% and in the past 30 trading days it returned 0.69%. Over three months, it changed -0.54%. In one year it has changed -1.46% and within that year its 52-week high was 39.33 and its 52-week low was 34.02. CHT stock is 3.00% above its 52 Week Low.

Our calculations result in a 200 day moving average of 34.92 and a 50 day moving average of 34.84. Right now, CHT stock is trading 0.34% above its 200 day moving average and may be a good opportunity to buy.

SeekingAlpha:  Chunghwa Telecom Co Ltd (CHT) on Q4 2018 Results – Earnings Call Transcript

Liquidity:

The company has a market cap of $27.2b with 775.7m shares outstanding and a float of 775.7m shares. Trading volume was 75,678 shares and has experienced an average volume of 89,397 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Chunghwa Telecom Co. was 1.68 which ended on 31st of December 2017, which according to the previous close, that is a PE of 20.86. The trailing twelve month EPS is 1.51, which comes to a trailing twelve month PE of 23.21. Historically, the PE high was 23.50 and the PE low was 16.20. If the stock reached its PE low, that would represent a price of 24.46, which is a decrease of -30.20%.

Below was the last reported quarterly earnings per share:
12-31-2018:  0.35
09-30-2018:  0.36
06-30-2018:  0.43
03-31-2018:  0.37

The dividend per share is currently 1.56, which is a dividend yield of 4.45%. CHT stock may not have sufficient earnings to cover future dividends and still be able to invest in and grow the business, therefore in the future the dividend may be reduced.



Base on our calculations, the intrinsic value per share is 28.14, which means it might overvalued by -24.52%

Indicators Also to Watch:

Based on the latest filings, there is 4.30% of institutional ownership. Short-interest was 576,349, which was 0.07% of shares outstanding. The short-interest ratio or days-to-cover ratio was 5.39. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 0.14

SeekingAlpha:  Chunghwa Telecom reports Q4 results

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 9.86%, return on assets is 8.04%, profit margin is 17.36%, price-to-sales is 5.17 and price-to-book is 2.27.

Company Score Card:

Results are out of six:
 0  : Growth Expectations Result
 6  : Financial Safety Result
 1  : Past Performance Result
 0  : Valuation Result
 2  : Dividend Safety Result
 1  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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