Fact based stock research
Hua Nan Financial (TSEC:2880)

TW0002880002

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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.

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Hua Nan Financial stock research in summary

hnfhc.com.tw

ANALYSIS: With an Obermatt Combined Rank of 16 (worse than 84% compared with investment alternatives), Hua Nan Financial (Diversified Banks, Taiwan) shares have lower financial characteristics compared with similar stocks. Shares of Hua Nan Financial are low in value (priced high) with a consolidated Value Rank of 7 (worse than 93% of alternatives), and are riskily financed (Safety Rank of 30, which means above-average debt burdens) but show above-average growth (Growth Rank of 70). ...read more

RECOMMENDATION: A Combined Rank of 16, is a sell recommendation based on Hua Nan Financial's financial characteristics. As the company Hua Nan Financial shows low value with an Obermatt Value Rank of 7 (93% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 70% of comparable companies (Obermatt Growth Rank is 70). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 30 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Hua Nan Financial, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	7
Growth Rank	70
Safety Rank	30
Combined Rank	16

Country	Taiwan
Industry	Diversified Banks
Index	Human Rights, FTSE Taiwan
Size class	Medium

24-Apr-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Hua Nan Financial

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	5	8	11	7
GROWTH
GROWTH	72	17	53	70
SAFETY
SAFETY	6	34	34	30
SENTIMENT
SENTIMENT	90	60	41	^new
360° VIEW
360° VIEW	25	12	21	^new

Most recent update of the stock research: 24-Apr-2025. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Hua Nan Financial is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	5	8	11	7
GROWTH
GROWTH	72	17	53	70
SAFETY
SAFETY	6	34	34	30
COMBINED
COMBINED	10	4	19	16

Last update of combined financial performance: 24-Apr-2025. Stock analysis on combined financial performance: The higher the rank of Hua Nan Financial the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 7 (worse than 93% compared with alternatives), Hua Nan Financial shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Hua Nan Financial. Price-to-Sales is 8 which means that the stock price compared with what market professionals expect for future profits is higher than 92% of comparable companies, indicating a low value concerning Hua Nan Financial's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 10, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Hua Nan Financial. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 5 and Dividend Yield, which is lower than 54% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 7, is a sell recommendation based on Hua Nan Financial's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Hua Nan Financial? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Hua Nan Financial? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Hua Nan Financial may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	11	10	11	8
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	10	12	8	5
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	12	10	10	10
DIVIDEND YIELD
DIVIDEND YIELD	30	37	64	46
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	5	8	11	7

Last update of Value Rank: 24-Apr-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Hua Nan Financial; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 70 (better than 70% compared with alternatives), Hua Nan Financial 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, with half of the indicators below and half above average for Hua Nan Financial. Capital Growth has a rank of 79, which means that currently professionals expect the company to grow its invested capital more than 20% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 83 (above 83% of alternative investments). But Sales Growth has only a rank of 43, which means that, currently, professionals expect the company to grow less than 57% of its competitors, and Profit Growth is also low at a rank of 20. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 70, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Hua Nan Financial, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. 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	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	83	61	7	43
PROFIT GROWTH
PROFIT GROWTH	98	74	42	20
CAPITAL GROWTH
CAPITAL GROWTH	5	19	73	79
STOCK RETURNS
STOCK RETURNS	69	11	73	83
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	72	17	53	70

Last update of Growth Rank: 24-Apr-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Hua Nan Financial.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 30 (better than 30% compared with alternatives), the company Hua Nan Financial has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Hua Nan Financial is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Hua Nan Financial. Leverage is at a rank of 60, meaning the company has a below-average debt-to-equity ratio. It has less debt than 60% of its competitors. Liquidity is also good at a rank of 54, meaning the company generates more profit to service its debt than 54% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 19, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 81% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 30 (worse than 70% compared with alternatives), Hua Nan Financial has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Hua Nan Financial. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Hua Nan Financial and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	39	38	54	60
REFINANCING
REFINANCING	14	19	33	19
LIQUIDITY
LIQUIDITY	23	78	60	54
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	6	34	34	30

Last update of Safety Rank: 24-Apr-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Hua Nan Financial and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	1	32	^new
OPINIONS CHANGE
OPINIONS CHANGE	9	50	15	^new
PRO HOLDINGS
PRO HOLDINGS	100	64	93	^new
MARKET PULSE
MARKET PULSE	100	97	40	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	90	60	41	^new

Last update of Sentiment Rank: 24-Apr-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Hua Nan Financial.
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