2371:TWSETatung Co., Ltd. Analysis
Data as of 2026-06-21 - not real-time
NT$28.30
Latest Price
8/10Risk
Risk Level: High
Executive Summary
Technical outlook is bearish: the stock trades at 28.3, comfortably below its 20‑day (29.35), 50‑day (30.10) and 200‑day (34.20) moving averages, with a MACD histogram of –0.12 signalling downward momentum and an RSI of 42.7 indicating neutral‑to‑weak demand. Volume has been decreasing and price sits near the identified support at 27.4, while the next resistance is around 32.8.
Fundamentals raise red flags: profit margin is –22%, trailing EPS is –5.2 and free cash flow is –8.4 bn TWD, yet the company pays a lofty 10.97% dividend with an 81% payout ratio. Debt‑to‑equity stands at 74.7% and total debt exceeds cash holdings, while a DCF‑derived fair value of only 2.13 TWD suggests the market price is vastly overvalued. High 30‑day volatility (≈38.5%) and a max drawdown of –35.6% further underscore the risk.
Fundamentals raise red flags: profit margin is –22%, trailing EPS is –5.2 and free cash flow is –8.4 bn TWD, yet the company pays a lofty 10.97% dividend with an 81% payout ratio. Debt‑to‑equity stands at 74.7% and total debt exceeds cash holdings, while a DCF‑derived fair value of only 2.13 TWD suggests the market price is vastly overvalued. High 30‑day volatility (≈38.5%) and a max drawdown of –35.6% further underscore the risk.
Market Outlook
Short Term
< 1 yearCautious
Model confidence: 7/10
Key Factors
- Price below all major SMAs and bearish MACD
- Negative earnings and free cash flow
- High dividend payout unlikely to be maintained
Medium Term
1–3 yearsNeutral
Model confidence: 5/10
Key Factors
- Potential stabilization of cash flow if new energy projects succeed
- Continued dividend pressure may force payout cuts
- Volatility remains elevated, limiting upside
Long Term
> 3 yearsNeutral
Model confidence: 4/10
Key Factors
- Structural debt burden and low ROE limit long‑term upside
- Industry transition to green energy could improve margins over time
- Current valuation far above DCF fair value, requiring a major catalyst
Key Metrics & Analysis
Financial Health
Revenue Growth8.90%
Profit Margin-22.41%
P/E Ratio12.1
ROE-19.03%
ROA1.05%
Debt/Equity74.69
P/B Ratio1.3
Op. Cash FlowNT$979.4M
Free Cash FlowNT$-8418481152
Industry P/E31.4
Technical Analysis
TrendBearish
RSI42.7
SupportNT$27.40
ResistanceNT$32.80
MA 20NT$29.35
MA 50NT$30.10
MA 200NT$34.20
MACDBearish
VolumeDecreasing
Fear & Greed Index91.46
Valuation
Fair ValueNT$2.13
GradeOvervalued
TypeValue
Dividend Yield10.97%
Risk Assessment
Beta0.37
Volatility38.51%
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.