Chunghwa Telecom Co., Ltd.
Chunghwa Telecom Co., Ltd. Fundamental Analysis
Chunghwa Telecom Co., Ltd. (CHT) shows moderate financial fundamentals with a PE ratio of 26.83, profit margin of 16.44%, and ROE of 10.15%. The company generates $235.9B in annual revenue with moderate year-over-year growth of 3.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CHT's fundamental strength across five key dimensions:
Efficiency Score
WeakCHT struggles to generate sufficient returns from assets.
Valuation Score
ModerateCHT shows balanced valuation metrics.
Growth Score
WeakCHT faces weak or negative growth trends.
Financial Health Score
ExcellentCHT maintains a strong and stable balance sheet.
Profitability Score
ModerateCHT maintains healthy but balanced margins.
Key Financial Metrics
Is CHT Expensive or Cheap?
P/E Ratio
CHT trades at 26.83 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CHT's PEG of 0.70 indicates potential undervaluation.
Price to Book
The market values Chunghwa Telecom Co., Ltd. at 2.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.01 times EBITDA. This signals the market has high growth expectations.
How Well Does CHT Make Money?
Net Profit Margin
For every $100 in sales, Chunghwa Telecom Co., Ltd. keeps $16.44 as profit after all expenses.
Operating Margin
Core operations generate 20.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.15 in profit for every $100 of shareholder equity.
ROA
Chunghwa Telecom Co., Ltd. generates $7.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chunghwa Telecom Co., Ltd. produces operating cash flow of $45.55B, showing steady but balanced cash generation.
Free Cash Flow
Chunghwa Telecom Co., Ltd. generates strong free cash flow of $26.63B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $34.33 in free cash annually.
FCF Yield
CHT converts 2.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How CHT Stacks Against Its Sector Peers
| Metric | CHT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.83 | 21.66 | Worse (Expensive) |
| ROE | 10.15% | 1190.00% | Weak |
| Net Margin | 16.44% | -55754.00% (disorted) | Strong |
| Debt/Equity | 0.07 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 1.48 | 1.59 | Neutral |
| ROA | 7.21% | -202359.00% (disorted) | Weak |
CHT outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Chunghwa Telecom Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-100.00%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-100.00%
Industry Style: Growth, Technology, Streaming
Declining