2371:TSETatung Co., Ltd. Analysis
Data as of 2026-07-03 - not real-time
NT$28.00
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
Tatung Co., Ltd. is trading at TWD 28, just above its 20‑day SMA (27.96) but well below the 50‑day (29.17) and 200‑day (33.53) averages, indicating a bearish bias. The RSI sits near 48, suggesting neutral momentum, while the MACD line is still negative despite a bullish histogram, and volume has been trending downwards. Support sits at 26.20 with resistance near 32.20, and the stock exhibits elevated 30‑day volatility (~41%) though its beta is modest (0.36).
Fundamentally, Tatung reports a trailing loss (EPS ‑5.2) with a –22.4% profit margin and negative free cash flow, while carrying a high debt load (debt‑to‑equity ≈ 75%). The dividend yield is exceptionally high at 11.3% with an 81% payout, but sustainability is doubtful given the cash‑flow shortfall. A DCF fair‑value estimate of only TWD 2.14 starkly contrasts the current price, underscoring a significant overvaluation despite a forward PE of ~12 and a lower‑than‑industry PE multiple.
Fundamentally, Tatung reports a trailing loss (EPS ‑5.2) with a –22.4% profit margin and negative free cash flow, while carrying a high debt load (debt‑to‑equity ≈ 75%). The dividend yield is exceptionally high at 11.3% with an 81% payout, but sustainability is doubtful given the cash‑flow shortfall. A DCF fair‑value estimate of only TWD 2.14 starkly contrasts the current price, underscoring a significant overvaluation despite a forward PE of ~12 and a lower‑than‑industry PE multiple.
Market Outlook
Short Term
< 1 yearCautious
Model confidence: 7/10
Key Factors
- Bearish technical positioning below key moving averages
- Decreasing volume and high volatility
- Unsustainable dividend given negative earnings and cash flow
Medium Term
1–3 yearsNeutral
Model confidence: 6/10
Key Factors
- Forward earnings turning positive
- High dividend yield attractive if sustainability improves
- Heavy debt load limits upside
Long Term
> 3 yearsNeutral
Model confidence: 5/10
Key Factors
- Exposure to green energy and new energy markets
- Potential valuation upside if cash flow stabilizes
- Persistent leverage and earnings volatility
Key Metrics & Analysis
Financial Health
Revenue Growth8.90%
Profit Margin-22.41%
P/E Ratio12.0
ROE-19.03%
ROA1.05%
Debt/Equity74.69
P/B Ratio1.2
Op. Cash FlowNT$979.4M
Free Cash FlowNT$-8418481152
Industry P/E31.9
Technical Analysis
TrendBearish
RSI47.7
SupportNT$26.20
ResistanceNT$32.20
MA 20NT$27.96
MA 50NT$29.17
MA 200NT$33.53
MACDBullish
VolumeDecreasing
Fear & Greed Index92.59
Valuation
Fair ValueNT$2.14
GradeOvervalued
TypeValue
Dividend Yield11.31%
Risk Assessment
Beta0.36
Volatility40.92%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.