Taking everything into account, CHT scores 5 out of 10 in our fundamental rating. CHT was compared to 36 industry peers in the Diversified Telecommunication Services industry. CHT scores excellent on profitability, but there are some minor concerns on its financial health. CHT is quite expensive at the moment. It does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CHT had positive earnings in each of the past 5 years.
CHT had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 7.49%, CHT belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
CHT has a Return On Equity of 10.20%. This is in the better half of the industry: CHT outperforms 69.44% of its industry peers.
With an excellent Return On Invested Capital value of 8.79%, CHT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CHT is in line with the industry average of 6.75%.
The last Return On Invested Capital (8.79%) for CHT is above the 3 year average (8.27%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	7.49%
ROE	10.2%
ROIC	8.79%

ROA(3y)6.99%

ROA(5y)6.91%

ROE(3y)9.63%

ROE(5y)9.43%

ROIC(3y)8.27%

ROIC(5y)8.08%

1.3 Margins

The Profit Margin of CHT (16.29%) is better than 80.56% of its industry peers.
In the last couple of years the Profit Margin of CHT has remained more or less at the same level.
CHT has a better Operating Margin (20.65%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of CHT has remained more or less at the same level.
CHT's Gross Margin of 36.71% is on the low side compared to the rest of the industry. CHT is outperformed by 75.00% of its industry peers.
CHT's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	20.65%
PM (TTM)	16.29%
GM	36.71%

OM growth 3Y-1.88%

OM growth 5Y0.68%

PM growth 3Y-1.6%

PM growth 5Y0.48%

GM growth 3Y0.42%

GM growth 5Y1.01%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

Compared to 1 year ago, CHT has about the same amount of shares outstanding.
The number of shares outstanding for CHT remains at a similar level compared to 5 years ago.
CHT has a better debt/assets ratio than last year.

2.2 Solvency

CHT has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
CHT has a Debt to FCF ratio of 0.86. This is amongst the best in the industry. CHT outperforms 97.22% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that CHT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.09, CHT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.09
Debt/FCF	0.86
Altman-Z	N/A

ROIC/WACCN/A

WACCN/A

2.3 Liquidity

CHT has a Current Ratio of 1.50. This is a normal value and indicates that CHT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.50, CHT is doing good in the industry, outperforming 72.22% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that CHT should not have too much problems paying its short term obligations.
CHT's Quick ratio of 1.30 is fine compared to the rest of the industry. CHT outperforms 63.89% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.5
Quick Ratio	1.3

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.32% over the past year.
CHT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.61% yearly.
Looking at the last year, CHT shows a small growth in Revenue. The Revenue has grown by 4.07% in the last year.
The Revenue has been growing slightly by 2.08% on average over the past years.

EPS 1Y (TTM)5.32%

EPS 3Y1.36%

EPS 5Y2.61%

EPS Q2Q%5.17%

Revenue 1Y (TTM)4.07%

Revenue growth 3Y3%

Revenue growth 5Y2.08%

Sales Q2Q%4.16%

3.2 Future

The Earnings Per Share is expected to grow by 5.05% on average over the next years.
The Revenue is expected to grow by 2.39% on average over the next years.

EPS Next Y5.15%

EPS Next 2Y4.65%

EPS Next 3Y5.05%

EPS Next 5YN/A

Revenue Next Year3.53%

Revenue Next 2Y2.76%

Revenue Next 3Y2.39%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

The decent profitability rating of CHT may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y4.65%

EPS Next 3Y5.05%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.00%, CHT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.28, CHT pays a bit more dividend than its industry peers.
CHT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	3%

5.2 History

The dividend of CHT has a limited annual growth rate of 1.22%.
CHT has paid a dividend for at least 10 years, which is a reliable track record.
CHT has not decreased its dividend in the last 3 years.

Dividend Growth(5Y)1.22%

Div Incr Years4

Div Non Decr Years4

5.3 Sustainability

CHT pays out 100.98% of its income as dividend. This is not a sustainable payout ratio.
CHT's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP100.98%

EPS Next 2Y4.65%

EPS Next 3Y5.05%

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CHUNGHWA TELECOM LT-SPON ADR / CHT FAQ

What is the ChartMill fundamental rating of CHUNGHWA TELECOM LT-SPON ADR (CHT) stock?

ChartMill assigns a fundamental rating of 5 / 10 to CHT.

What is the valuation status for CHT stock?

ChartMill assigns a valuation rating of 1 / 10 to CHUNGHWA TELECOM LT-SPON ADR (CHT). This can be considered as Overvalued.

How profitable is CHUNGHWA TELECOM LT-SPON ADR (CHT) stock?

CHUNGHWA TELECOM LT-SPON ADR (CHT) has a profitability rating of 7 / 10.

What is the financial health of CHUNGHWA TELECOM LT-SPON ADR (CHT) stock?

The financial health rating of CHUNGHWA TELECOM LT-SPON ADR (CHT) is 6 / 10.

How sustainable is the dividend of CHUNGHWA TELECOM LT-SPON ADR (CHT) stock?

The dividend rating of CHUNGHWA TELECOM LT-SPON ADR (CHT) is 5 / 10 and the dividend payout ratio is 100.98%.