Fact based stock research
Foxconn Technology (TSEC:2354)
TW0002354008
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Foxconn Technology stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 49 (worse than 51% compared with investment alternatives), Foxconn Technology (Electr. Manufacturing Services, Taiwan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Foxconn Technology are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives). But they show above-average growth (Growth Rank of 55) and are safely financed (Safety Rank of 77, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 49, is a hold recommendation based on Foxconn Technology's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Foxconn Technology exhibits low value (Obermatt Value Rank of 31), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 55). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 77) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | Taiwan |
Industry | Electr. Manufacturing Services |
Index | FTSE Taiwan |
Size class | X-Large |
21-Mar-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Foxconn Technology
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 95 |
|
37 |
|
91 |
|
31 |
|
GROWTH | ||||||||
GROWTH | 40 |
|
31 |
|
55 |
|
55 |
|
SAFETY | ||||||||
SAFETY | 79 |
|
70 |
|
84 |
|
77 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
21 |
|
8 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
15 |
|
69 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 49 (worse than 51% compared with investment alternatives), Foxconn Technology (Electr. Manufacturing Services, Taiwan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Foxconn Technology are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives). But they show above-average growth (Growth Rank of 55) and are safely financed (Safety Rank of 77, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 49, is a hold recommendation based on Foxconn Technology's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Foxconn Technology exhibits low value (Obermatt Value Rank of 31), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 55). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 77) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 95 |
|
37 |
|
91 |
|
31 |
|
GROWTH | ||||||||
GROWTH | 40 |
|
31 |
|
55 |
|
55 |
|
SAFETY | ||||||||
SAFETY | 79 |
|
70 |
|
84 |
|
77 |
|
COMBINED | ||||||||
COMBINED | 88 |
|
32 |
|
96 |
|
49 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 31 (worse than 69% compared with alternatives), Foxconn Technology shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Foxconn Technology. Price-to-Sales (P/S) is 50, which means that the stock price compared with what market professionals expect for future sales is lower than for 50% of comparable companies, indicating a good value regarding Foxconn Technology's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 61% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 90. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Foxconn Technology (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 31, is a hold recommendation based on Foxconn Technology's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
PRICE VS. REVENUES (P/S) | ||||||||
PRICE VS. REVENUES (P/S) | 86 |
|
45 |
|
63 |
|
50 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 73 |
|
39 |
|
90 |
|
61 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 100 |
|
92 |
|
95 |
|
90 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 84 |
|
42 |
|
75 |
|
1 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 95 |
|
37 |
|
91 |
|
31 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), Foxconn Technology shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Foxconn Technology. Profit Growth, with a rank of 77 (better than 77% of its competitors), and Capital Growth, with a rank of 96, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 11, which means that, currently, professionals expect the company to grow less than 89% of its competitors, and Stock Returns are at a rank of 33. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 40 |
|
24 |
|
83 |
|
11 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | 1 |
|
61 |
|
98 |
|
77 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
37 |
|
5 |
|
96 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 71 |
|
13 |
|
15 |
|
33 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 40 |
|
31 |
|
55 |
|
55 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 77 (better than 77% compared with alternatives) for 2024, the company Foxconn Technology has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Foxconn Technology is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Foxconn Technology.Leverage is at 78, meaning the company has a below-average debt-to-equity ratio. It has less debt than 78% of its competitors.Refinancing is at a rank of 90, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 90% of its competitors. Liquidity is at 28, meaning that the company generates less profit to service its debt than 72% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 77 (better than 77% compared with alternatives), Foxconn Technology has a financing structure that is significantly safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Foxconn Technology more challenging. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 100 |
|
68 |
|
80 |
|
78 |
|
REFINANCING | ||||||||
REFINANCING | 10 |
|
87 |
|
87 |
|
90 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 88 |
|
28 |
|
36 |
|
28 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 79 |
|
70 |
|
84 |
|
77 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
8 |
|
1 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
68 |
|
38 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
26 |
|
1 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
21 |
|
8 |
|
new |
Stock analysis by the purely fact based Obermatt Method for Foxconn Technology from March 21, 2024.
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