Overall CHT gets a fundamental rating of 5 out of 10. We evaluated CHT against 37 industry peers in the Diversified Telecommunication Services industry. While CHT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, CHT is valued expensive at the moment.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

Each year in the past 5 years CHT has been profitable.
CHT had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 7.49%, CHT belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
With a decent Return On Equity value of 10.20%, CHT is doing good in the industry, outperforming 72.97% of the companies in the same industry.
CHT's Return On Invested Capital of 8.79% is amongst the best of the industry. CHT outperforms 91.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CHT is in line with the industry average of 6.52%.
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

Looking at the Profit Margin, with a value of 16.29%, CHT belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
In the last couple of years the Profit Margin of CHT has remained more or less at the same level.
With an excellent Operating Margin value of 20.65%, CHT belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
CHT's Operating Margin has been stable in the last couple of years.
The Gross Margin of CHT (36.71%) is worse than 72.97% 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.
Compared to 5 years ago, CHT has about the same amount of shares outstanding.
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.
The Debt to FCF ratio of CHT (0.86) is better than 97.30% of its industry peers.
CHT has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.09, CHT belongs to the top of the industry, outperforming 91.89% 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

A Current Ratio of 1.50 indicates that CHT should not have too much problems paying its short term obligations.
CHT has a better Current ratio (1.50) than 72.97% of its industry peers.
A Quick Ratio of 1.30 indicates that CHT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.30, CHT is in the better half of the industry, outperforming 64.86% of the companies in the same industry.

		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.
The Earnings Per Share has been growing slightly by 2.61% on average over the past years.
The Revenue has been growing slightly by 4.07% in the past 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

Based on estimates for the next years, CHT will show a small growth in Earnings Per Share. The EPS will grow by 5.05% on average per year.
CHT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.39% yearly.

EPS Next Y4.97%

EPS Next 2Y4.47%

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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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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

CHT has a very decent profitability rating, which may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y4.47%

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 2.33, 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 2Y4.47%

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%.