Chunghwa Telecom Profitability Analysis
| CHT Stock | USD 37.61 0.36 0.95% |
Net Income | First Reported 2001-12-31 | Previous Quarter 9.8 B | Current Value 9 B | Quarterly Volatility 3.7 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.47 | 0.3648 |
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| Net Profit Margin | 0.22 | 0.1656 |
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| Operating Profit Margin | 0.28 | 0.2077 |
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| Pretax Profit Margin | 0.29 | 0.2106 |
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| Return On Assets | 0.1 | 0.0706 |
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| Return On Equity | 0.13 | 0.0972 |
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For Chunghwa Telecom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chunghwa Telecom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chunghwa Telecom Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chunghwa Telecom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chunghwa Telecom Co over time as well as its relative position and ranking within its peers.
Chunghwa |
Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chunghwa Telecom. If investors know Chunghwa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chunghwa Telecom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.01) | Dividend Share 4.758 | Earnings Share 1.45 | Revenue Per Share 73.01 | Quarterly Revenue Growth 0.036 |
The market value of Chunghwa Telecom is measured differently than its book value, which is the value of Chunghwa that is recorded on the company's balance sheet. Investors also form their own opinion of Chunghwa Telecom's value that differs from its market value or its book value, called intrinsic value, which is Chunghwa Telecom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chunghwa Telecom's market value can be influenced by many factors that don't directly affect Chunghwa Telecom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chunghwa Telecom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chunghwa Telecom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chunghwa Telecom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Chunghwa Telecom Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Chunghwa Telecom's current stock value. Our valuation model uses many indicators to compare Chunghwa Telecom value to that of its competitors to determine the firm's financial worth. Chunghwa Telecom Co is rated third in return on equity category among its peers. It also is rated third in return on asset category among its peers reporting about 0.58 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Chunghwa Telecom Co is roughly 1.72 . At this time, Chunghwa Telecom's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Chunghwa Telecom by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Chunghwa Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Chunghwa Telecom |
| = | 0.0973 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Chunghwa Telecom |
| = | 0.0567 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Chunghwa Return On Asset Comparison
Chunghwa Telecom is currently under evaluation in return on asset category among its peers.
Chunghwa Telecom Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Chunghwa Telecom, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chunghwa Telecom will eventually generate negative long term returns. The profitability progress is the general direction of Chunghwa Telecom's change in net profit over the period of time. It can combine multiple indicators of Chunghwa Telecom, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 353 M | 370.6 M | |
| Operating Income | 46.4 B | 40.2 B | |
| Income Before Tax | 47 B | 41.2 B | |
| Total Other Income Expense Net | 655 M | 743.9 M | |
| Net Income Applicable To Common Shares | 41.9 B | 44 B | |
| Net Income | 37 B | 49.5 B | |
| Income Tax Expense | 8.9 B | 8 B | |
| Net Income From Continuing Ops | 38.1 B | 38.3 B | |
| Interest Income | 557.8 M | 572.4 M | |
| Net Interest Income | 251.7 M | 264.3 M | |
| Change To Netincome | 2.4 B | 2.5 B | |
| Net Income Per Share | 4.76 | 3.82 | |
| Income Quality | 2.02 | 1.95 | |
| Net Income Per E B T | 0.79 | 0.63 |
Chunghwa Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Chunghwa Telecom. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Chunghwa Telecom position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Chunghwa Telecom's important profitability drivers and their relationship over time.
Chunghwa Telecom Profitability Trends
Chunghwa Telecom profitability trend refers to the progression of profit or loss within a business. An upward trend means that Chunghwa Telecom's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Chunghwa Telecom's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Chunghwa Telecom Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Chunghwa Telecom different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Chunghwa Telecom in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Chunghwa Telecom's future profitability.
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Use Chunghwa Telecom in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Chunghwa Telecom position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chunghwa Telecom will appreciate offsetting losses from the drop in the long position's value.Chunghwa Telecom Pair Trading
Chunghwa Telecom Co Pair Trading Analysis
The ability to find closely correlated positions to Chunghwa Telecom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chunghwa Telecom when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Chunghwa Telecom - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Chunghwa Telecom Co to buy it.
The correlation of Chunghwa Telecom is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Chunghwa Telecom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chunghwa Telecom moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Chunghwa Telecom can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Chunghwa Telecom position
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Additional Tools for Chunghwa Stock Analysis
When running Chunghwa Telecom's price analysis, check to measure Chunghwa Telecom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Chunghwa Telecom is operating at the current time. Most of Chunghwa Telecom's value examination focuses on studying past and present price action to predict the probability of Chunghwa Telecom's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chunghwa Telecom's price. Additionally, you may evaluate how the addition of Chunghwa Telecom to your portfolios can decrease your overall portfolio volatility.