TECO Electric & Machinery Co., Ltd.

$ 70.00 1.89 %

Established in 1956 and headquartered in Taipei, Taiwan, TECO Electric & Machinery Co., Ltd. operates globally, focusing on the manufacturing, installation, wholesale, and retail of a wide array of electronic, telecommunication, office, and home appliance products. The company's core product offerings include low, medium, and high voltage motors, as well as sophisticated system and automation products like AC servo driving systems, programmable logic controllers (PLCs), human-machine interfaces (HMIs), and robotics. TECO also provides electromechanical engineering solutions, various power equipment, and a comprehensive range of household and air conditioning appliances. Expanding its scope, TECO actively develops innovative technologies such as wind turbines, electric vehicles, and photovoltaic (PV) power station products, often integrating them with Internet of Things (IoT) capabilities. Its manufacturing division produces essential components like switches, busways, telephone systems, billing boxes, generators, reducers, and electric control equipment, alongside mechanical components for air conditioners. Beyond manufacturing, TECO is deeply involved in research and development for fiber optic communication software and hardware, and undertakes the construction of commercial buildings. The company's service portfolio is extensive, encompassing investment consultancy for domestic and international industrial parks, communication network IT services, science park development, software development and sales, and technical services related to storage and energy. Further business activities include real estate, international trading, the production of data storage and processing equipment, various mail services, information software and data processing services, electronic information supply, and the import, sale, and leasing of franking machines.

CEO: Fei-Yuan Kao - https://www.teco.com.tw

Price objectif

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Recommandation

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DCF

$ 52.80

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1504.TW vs S&P500

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Quick ratio

1.64

suggests a healthy liquidity position, showing that the company can likely meet its short-term obligations.

P/E ratio

28.93

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

2.42

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

6.36 %

indicates low profitability, suggesting that the company is not using equity efficiently to generate profits.

ROIC

3.58 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

7.20

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.28

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

0.98

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

89.53 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
5 indicates moderate financial health
Altman score
2.87 indicates an uncertain financial situation
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Cash / Debt

Cash Ratio
0.94 indicates that the company has a moderate ability to cover its short-term debts with its cash
Debt Ratio
0.16 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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