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TCL Electronics Holdings

DB:TC2A
Snowflake Description

Flawless balance sheet, undervalued and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TC2A
DB
HK$8B
Market Cap
  1. Home
  2. DE
  3. Consumer Durables
Company description

TCL Electronics Holdings Limited, an investment holding company, manufactures, distributes, and sells color television sets in the People’s Republic of China, Europe, North America, and internationally. The last earnings update was 52 days ago. More info.


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TC2A Share Price and Events
7 Day Returns
-8.1%
DB:TC2A
-1.1%
DE Consumer Durables
0.1%
DE Market
1 Year Returns
10%
DB:TC2A
2.9%
DE Consumer Durables
8.8%
DE Market
TC2A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TCL Electronics Holdings (TC2A) -8.1% -10.2% 2.4% 10% -16.6% 33.6%
DE Consumer Durables -1.1% 3.5% 4.1% 2.9% -5.9% 11.6%
DE Market 0.1% 5.9% 15% 8.8% 14.5% 21%
1 Year Return vs Industry and Market
  • TC2A outperformed the Consumer Durables industry which returned 2.9% over the past year.
  • TC2A outperformed the Market in Germany which returned 8.8% over the past year.
Price Volatility
TC2A
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for TCL Electronics Holdings's competitors could be found in our database.

TC2A Value

 Is TCL Electronics Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TCL Electronics Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TCL Electronics Holdings.

DB:TC2A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:TC2A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.815 (1 + (1- 25%) (12.38%))
0.926
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.926 * 5.96%)
5.75%

Discounted Cash Flow Calculation for DB:TC2A using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TCL Electronics Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:TC2A DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 5.75%)
2020 1,713.00 Analyst x1 1,619.87
2021 1,804.00 Analyst x1 1,613.18
2022 1,656.71 Est @ -8.16% 1,400.92
2023 1,563.16 Est @ -5.65% 1,249.95
2024 1,502.44 Est @ -3.88% 1,136.08
2025 1,462.61 Est @ -2.65% 1,045.84
2026 1,436.48 Est @ -1.79% 971.31
2027 1,419.49 Est @ -1.18% 907.64
2028 1,408.71 Est @ -0.76% 851.78
2029 1,402.19 Est @ -0.46% 801.74
Present value of next 10 years cash flows HK$11,598.00
DB:TC2A DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$1,402.19 × (1 + 0.23%) ÷ (5.75% – 0.23%)
HK$25,454.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$25,454.03 ÷ (1 + 5.75%)10
HK$14,554.03
DB:TC2A Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$11,598.00 + HK$14,554.03
HK$26,152.03
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$26,152.03 / 2,362.97
HK$11.07
DB:TC2A Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:TC2A represents 0.11353x of SEHK:1070
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.11353x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 11.07 x 0.11353
€1.26
Value per share (EUR) From above. €1.26
Current discount Discount to share price of €0.39
= -1 x (€0.39 - €1.26) / €1.26
69.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price TCL Electronics Holdings is available for.
Intrinsic value
>50%
Share price is €0.39 vs Future cash flow value of €1.26
Current Discount Checks
For TCL Electronics Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TCL Electronics Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • TCL Electronics Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TCL Electronics Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TCL Electronics Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:TC2A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in HKD HK$0.76
SEHK:1070 Share Price ** SEHK (2019-11-14) in HKD HK$3.4
Germany Consumer Durables Industry PE Ratio Median Figure of 8 Publicly-Listed Consumer Durables Companies 17.05x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 19.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TCL Electronics Holdings.

DB:TC2A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1070 Share Price ÷ EPS (both in HKD)

= 3.4 ÷ 0.76

4.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TCL Electronics Holdings is good value based on earnings compared to the DE Consumer Durables industry average.
  • TCL Electronics Holdings is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does TCL Electronics Holdings's expected growth come at a high price?
Raw Data
DB:TC2A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
-13.4%per year
Germany Consumer Durables Industry PEG Ratio Median Figure of 5 Publicly-Listed Consumer Durables Companies 0.97x
Germany Market PEG Ratio Median Figure of 255 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

DB:TC2A PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 4.47x ÷ -13.4%

-0.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TCL Electronics Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on TCL Electronics Holdings's assets?
Raw Data
DB:TC2A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in HKD HK$4.64
SEHK:1070 Share Price * SEHK (2019-11-14) in HKD HK$3.4
Germany Consumer Durables Industry PB Ratio Median Figure of 12 Publicly-Listed Consumer Durables Companies 1.69x
Germany Market PB Ratio Median Figure of 577 Publicly-Listed Companies 1.83x
DB:TC2A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1070 Share Price ÷ Book Value per Share (both in HKD)

= 3.4 ÷ 4.64

0.73x

* Primary Listing of TCL Electronics Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TCL Electronics Holdings is good value based on assets compared to the DE Consumer Durables industry average.
X
Value checks
We assess TCL Electronics Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. TCL Electronics Holdings has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TC2A Future Performance

 How is TCL Electronics Holdings expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-13.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TCL Electronics Holdings expected to grow at an attractive rate?
  • TCL Electronics Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.
Growth vs Market Checks
  • TCL Electronics Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • TCL Electronics Holdings's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:TC2A Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:TC2A Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts -13.4%
DB:TC2A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 10.5%
Germany Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 15%
Germany Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:TC2A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:TC2A Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 61,080 1,878 1,441 2
2020-12-31 55,752 1,581 1,239 3
2019-12-31 49,810 2,195 1,831 3
2019-11-14
DB:TC2A Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-06-30 47,256 2,520 1,734
2019-03-31 46,419 2,296 1,339
2018-12-31 45,582 2,073 944
2018-09-30 45,216 1,744 1,090
2018-06-30 44,850 1,416 1,236
2018-03-31 42,868 1,019
2017-12-31 40,822 746 815
2017-09-30 38,609 519
2017-06-30 36,157 1,350 239
2017-03-31 34,483 190
2016-12-31 33,361 1,097 183
2016-09-30 33,248 475

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TCL Electronics Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • TCL Electronics Holdings's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:TC2A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from TCL Electronics Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TC2A Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.62 0.66 0.58 2.00
2020-12-31 0.53 0.59 0.50 3.00
2019-12-31 0.80 0.82 0.78 2.00
2019-11-14
DB:TC2A Past Financials Data
Date (Data in HKD Millions) EPS *
2019-06-30 0.76
2019-03-31 0.60
2018-12-31 0.43
2018-09-30 0.47
2018-06-30 0.63
2018-03-31 0.55
2017-12-31 0.47
2017-09-30 0.30
2017-06-30 0.14
2017-03-31 0.12
2016-12-31 0.12
2016-09-30 0.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • TCL Electronics Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess TCL Electronics Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TCL Electronics Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TC2A Past Performance

  How has TCL Electronics Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TCL Electronics Holdings's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TCL Electronics Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • TCL Electronics Holdings's 1-year earnings growth is less than its 5-year average (40.4% vs 58.3%)
  • TCL Electronics Holdings's earnings growth has exceeded the DE Consumer Durables industry average in the past year (40.4% vs -21.1%).
Earnings and Revenue History
TCL Electronics Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TCL Electronics Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TC2A Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 47,255.89 1,734.29 6,028.42 892.52
2019-03-31 46,418.93 1,339.26 5,903.73 807.41
2018-12-31 45,581.97 944.24 5,779.05 722.29
2018-09-30 45,216.00 1,089.89 5,712.29 690.45
2018-06-30 44,850.03 1,235.54 5,645.54 658.60
2018-03-31 42,867.86 1,019.22 5,458.03 662.87
2017-12-31 40,822.36 814.64 5,338.30 632.40
2017-09-30 38,608.95 518.73 5,225.00 698.37
2017-06-30 36,157.42 239.13 5,114.76 700.32
2017-03-31 34,483.40 190.28 5,038.71 643.81
2016-12-31 33,361.25 182.76 5,040.71 638.16
2016-09-30 33,247.66 474.64 5,323.14 499.04
2016-06-30 32,846.41 -15.30 5,454.11 466.86
2016-03-31 33,089.18 54.11 5,531.81 531.25
2015-12-31 34,016.83 25.81 5,392.44 551.63
2015-09-30 34,369.07 -295.00 5,259.80 551.69
2015-06-30 33,720.50 201.43 5,064.49 499.07
2015-03-31 33,922.91 264.89 5,168.79 475.91
2014-12-31 33,526.27 234.50 5,080.90 423.09
2014-09-30 35,208.28 67.95 5,131.69 443.14
2014-06-30 36,620.23 -145.07 5,185.19 482.77
2014-03-31 37,998.61 -281.94 5,259.08 476.73
2013-12-31 39,494.70 -136.80 5,599.54 424.57
2013-09-30 39,308.08 287.78 5,558.70 438.77
2013-06-30 39,339.44 606.43 5,623.72 375.57
2013-03-31 37,893.13 699.24 5,330.37 319.74
2012-12-31 36,025.00 815.75 5,171.98 335.86

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • TCL Electronics Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • TCL Electronics Holdings used its assets more efficiently than the DE Consumer Durables industry average last year based on Return on Assets.
  • TCL Electronics Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TCL Electronics Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TCL Electronics Holdings has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TC2A Health

 How is TCL Electronics Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TCL Electronics Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TCL Electronics Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • TCL Electronics Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of TCL Electronics Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 26.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TCL Electronics Holdings Company Filings, last reported 4 months ago.

DB:TC2A Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 11,282.94 856.61 7,394.06
2019-03-31 9,779.57 1,114.53 6,741.98
2018-12-31 9,779.57 1,114.53 6,741.98
2018-09-30 9,779.57 1,114.53 6,741.98
2018-06-30 9,894.04 499.46 5,655.67
2018-03-31 7,696.52 2,926.79 5,910.24
2017-12-31 7,696.52 2,924.69 5,910.24
2017-09-30 7,696.52 2,924.69 5,910.24
2017-06-30 6,824.24 1,729.08 2,910.96
2017-03-31 6,684.06 2,138.51 3,963.43
2016-12-31 6,556.35 1,350.15 3,882.36
2016-09-30 6,638.35 1,362.11 2,008.26
2016-06-30 6,627.34 1,622.64 2,680.84
2016-03-31 4,524.63 2,171.15 1,680.81
2015-12-31 4,408.73 2,595.76 2,214.93
2015-09-30 4,155.26 6,371.34 3,391.59
2015-06-30 4,732.97 4,683.36 3,307.46
2015-03-31 4,710.19 4,138.52 2,436.75
2014-12-31 4,606.18 4,028.93 3,379.37
2014-09-30 4,651.24 4,192.30 3,457.73
2014-06-30 4,530.78 2,850.01 3,242.53
2014-03-31 4,523.54 2,864.31 4,546.23
2013-12-31 4,482.38 2,415.00 3,047.52
2013-09-30 4,599.21 2,977.56 3,925.21
2013-06-30 5,222.37 2,195.83 4,740.09
2013-03-31 5,303.17 3,033.74 4,067.53
2012-12-31 4,991.85 3,009.99 3,431.34
  • TCL Electronics Holdings's level of debt (7.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (63.2% vs 7.6% today).
  • Debt is well covered by operating cash flow (294.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14.4x coverage).
X
Financial health checks
We assess TCL Electronics Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TCL Electronics Holdings has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TC2A Dividends

 What is TCL Electronics Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.86%
Current annual income from TCL Electronics Holdings dividends. Estimated to be 6.93% next year.
If you bought €2,000 of TCL Electronics Holdings shares you are expected to receive €117 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • TCL Electronics Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.38%).
  • TCL Electronics Holdings's dividend is above the markets top 25% of dividend payers in Germany (3.68%).
Upcoming dividend payment

Purchase TCL Electronics Holdings before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:TC2A Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Germany Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 334 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:TC2A Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.26 1.00
2020-12-31 0.21 2.00
2019-12-31 0.25 2.00
2019-11-14
DB:TC2A Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-08-28 0.199 5.182
2019-04-18 0.192 5.263
2018-08-24 0.249 6.950
2018-04-20 0.190 5.035
2017-08-29 0.078 2.019
2017-07-27 0.078 2.038
2016-10-24 0.000 0.000
2016-08-30 0.000 0.000
2016-08-12 0.000 0.000
2016-04-20 0.000 0.000
2016-04-18 0.000 0.000
2016-03-23 0.000 0.000
2015-03-25 0.053 1.177
2014-10-23 0.000 0.000
2014-09-02 0.000 0.000
2014-08-14 0.000 0.000
2014-04-24 0.000 0.000
2014-03-21 0.000 0.000
2014-02-24 0.000 0.000
2013-10-24 0.000 0.000
2013-09-05 0.000 0.000
2013-08-15 0.000 0.000
2013-03-19 0.296 5.534
2013-02-26 0.296 4.802
2012-10-26 0.200 4.177
2012-08-09 0.200 5.107
2012-02-27 0.160 4.039
2011-10-26 0.000 0.000
2011-08-22 0.000 0.000
2011-08-08 0.000 0.000
2011-05-03 0.000 0.000
2011-04-29 0.000 0.000
2011-03-28 0.000 0.000
2010-03-10 0.120 3.302

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of TCL Electronics Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess TCL Electronics Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TCL Electronics Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TCL Electronics Holdings has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TC2A Management

 What is the CEO of TCL Electronics Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kevin Wang
COMPENSATION HK$8,725,000
AGE 45
TENURE AS CEO 2.1 years
CEO Bio

Mr. Cheng Wang, also known as Kevin, serves as Senior Vice President of TCL Corp. He has been the Chief Executive Officer of TCL Multimedia Technology Holdings Limited since October 1, 2017 and has been its has been Chief Operating Officer since January 2017. Mr. Kevin served as General Manager of Supply Chain Management Center since July 2016 and as its General Manager of China Division since February 2017. Mr. Kevin served as Head of Overseas Business Center and Assistant to Chief Executive Officer of China Market at TCL Multimedia Technology Holdings Limited. Mr. Kevin has been Executive Director at TCL Multimedia Technology Holdings Limited since December 22, 2017. He joined the TCL Multimedia in July 1997. From 1997 to 2006, he took roles of HR Department of China Sales Center and Europe Channel Customers Department of Strategic OEM Business Center of TTE. From 2007 to 2015, he worked as General Manager of TCL Vietnam Corporation Limited, General Manager of Overseas Business Center and Vice President of TCL Multimedia Technology Holdings Limited. From June 2015 to July 2016, Mr. WANG was assigned as HR Director and General Manager of Human Resource Management Center of TCL Corporation. Mr. WANG graduated from Heilongjiang Commercial College in 1997 with a Bachelor Degree in Economics. In 2005, he acquired a Master Degree of Executive Business Administration from University of Texas at Arlington.

CEO Compensation
  • Kevin's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Kevin's remuneration is about average for companies of similar size in Germany.
Management Team

Dong Li

TITLE
Founder & Chairman
COMPENSATION
HK$5M
AGE
62

Kevin Wang

TITLE
CEO, COO & Executive Director
COMPENSATION
HK$9M
AGE
45
TENURE
2.1 yrs

Xiaolin Yan

TITLE
CTO & Executive Director
COMPENSATION
HK$782K
AGE
53

Michael Wang

TITLE
Executive Director
COMPENSATION
HK$6M
AGE
42

Lihua Hu

TITLE
Chief Financial Officer
AGE
46
TENURE
0.8 yrs

Morgan Chen

TITLE
SVP, GM - Business & Supply Chain Management Center and GM - CRT Business Unit
AGE
47

Jin mei Li

TITLE
Vice President and Human Resource Director
AGE
49

Kai Sing Wong

TITLE
Senior Vice President and General Manager of Home Network Business Unit
AGE
69

Yonghong Song

TITLE
Senior Vice President and General Manager of Global Product Center
AGE
52

Shanshui Zhang

TITLE
Executive Vice President and General Manager of Global Industrial Center
AGE
53
Board of Directors Tenure

Average tenure and age of the TCL Electronics Holdings board of directors in years:

3
Average Tenure
61.5
Average Age
  • The average tenure for the TCL Electronics Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Kevin Wang

TITLE
CEO, COO & Executive Director
COMPENSATION
HK$9M
AGE
45
TENURE
2.2 yrs

Xiaolin Yan

TITLE
CTO & Executive Director
COMPENSATION
HK$782K
AGE
53
TENURE
6.3 yrs

Michael Wang

TITLE
Executive Director
COMPENSATION
HK$6M
AGE
42
TENURE
2.2 yrs

Carter Tseng

TITLE
Independent Non-Executive Director
AGE
70
TENURE
8.3 yrs

Dong Li

TITLE
Founder & Chairman
COMPENSATION
HK$5M
AGE
62
TENURE
1.7 yrs

Yijiang Wang

TITLE
Independent Non-Executive Director
COMPENSATION
HK$466K
AGE
66
TENURE
3.8 yrs

Kevin Lau

TITLE
Independent Non-Executive Director
COMPENSATION
HK$567K
AGE
61
TENURE
2 yrs

Albert Thomas da Rosa

TITLE
Non Executive Director
COMPENSATION
HK$391K
AGE
65
TENURE
20 yrs

Robert Maarten Westerhof

TITLE
Independent Non Executive Director
COMPENSATION
HK$466K
AGE
76
TENURE
13.2 yrs

Yuhao Li

TITLE
Non-Executive Director
COMPENSATION
HK$80K
AGE
37
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
08. Apr 19 Sell Dong Li Individual 02. Apr 19 02. Apr 19 -5,000 €0.51 €-2,568
08. Apr 19 Sell Dong Li Individual 03. Apr 19 03. Apr 19 -114,000 €0.51 €-58,172
08. Apr 19 Sell Dong Li Individual 04. Apr 19 04. Apr 19 -881,000 €0.51 €-450,187
28. Mar 19 Sell Dong Li Individual 26. Mar 19 26. Mar 19 -24,000 €0.54 €-12,975
28. Mar 19 Sell Dong Li Individual 25. Mar 19 25. Mar 19 -2,000,000 €0.54 €-1,081,798
22. Mar 19 Sell Robert Maarten Westerhof Individual 19. Mar 19 19. Mar 19 -30,000 €0.49 €-14,781
04. Jan 19 Sell Cheng Wang Individual 31. Dec 18 31. Dec 18 -203 €0.34 €-69
04. Jan 19 Sell Xubin Huang Individual 31. Dec 18 31. Dec 18 -1,822 €0.34 €-616
28. Dec 18 Buy Dong Li Individual 21. Dec 18 21. Dec 18 1,312,000 €0.33 €437,959
04. Jan 19 Buy Dong Li Individual 02. Jan 19 02. Jan 19 550,000 €0.34 €185,482
04. Jan 19 Sell Xiaolin Yan Individual 31. Dec 18 31. Dec 18 -1,701 €0.34 €-575
04. Jan 19 Sell Dong Li Individual 31. Dec 18 31. Dec 18 -1,250 €0.34 €-422
04. Jan 19 Buy Dong Li Individual 31. Dec 18 31. Dec 18 450,000 €0.33 €149,552
02. Jan 19 Buy Dong Li Individual 28. Dec 18 28. Dec 18 429,000 €0.33 €142,564
18. Dec 18 Buy Dong Li Individual 13. Dec 18 13. Dec 18 21,000 €0.34 €7,220
13. Dec 18 Buy Dong Li Individual 11. Dec 18 11. Dec 18 667,000 €0.34 €224,802
X
Management checks
We assess TCL Electronics Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TCL Electronics Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TC2A News

Simply Wall St News

TC2A Company Info

Description

TCL Electronics Holdings Limited, an investment holding company, manufactures, distributes, and sells color television sets in the People’s Republic of China, Europe, North America, and internationally. It operates through Television, Smart AV, Smart Home Products, and Others segments. The company offers 3D and LED TVs, and accessories; BD and DVD players, dockings, and sound bars; and smart home solutions and products. It is also involved in the information technology, Internet service, and other businesses, including the manufacture and sale of television related components; and the sale of white goods, mobile phones, and air conditioners. The company was formerly known as TCL Multimedia Technology Holdings Limited and changed its name to TCL Electronics Holdings Limited in June 2018. The company was founded in 1981 and is headquartered in Shenzhen, the People’s Republic of China. TCL Electronics Holdings Limited is a subsidiary of T.C.L. Industries Holdings (H.K.) Limited.

Details
Name: TCL Electronics Holdings Limited
TC2A
Exchange: DB
Founded: 1981
HK$931,818,621
2,362,970,868
Website: http://electronics.tcl.com
Address: TCL Electronics Holdings Limited
TCL Electronics Holdings Limited Building,
9th Floor,
Shenzhen,
Guangdong Province, 518067,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1070 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 26. Nov 1999
OTCPK TCLH.F Ordinary Shares Pink Sheets LLC US USD 26. Nov 1999
DB TC2A Ordinary Shares Deutsche Boerse AG DE EUR 26. Nov 1999
SHSC 1070 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 26. Nov 1999
SZSC 1070 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 26. Nov 1999
Number of employees
Current staff
Staff numbers
25,158
TCL Electronics Holdings employees.
Industry
Consumer Electronics
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/14 20:58
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/09/18
Last earnings filing: 2019/09/23
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.