| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | -100 |
| Intrinsic value (DCF) | 1.16 | -63 |
| Graham-Dodd Method | 0.60 | -81 |
| Graham Formula | 0.30 | -90 |
Compal Electronics, Inc. (CEIR.L) is a leading Taiwanese electronics manufacturer specializing in the production of notebook PCs, monitors, LCD TVs, mobile phones, and various components. Headquartered in Taipei City, the company operates globally, with significant operations in Taiwan, the U.S., China, and the Netherlands. Compal Electronics operates through two primary segments: Information Technology Product and Strategy Integrated Product, covering a broad range of consumer and industrial electronics. The company is a key player in the computer hardware sector, providing OEM and ODM services for major global brands. With a diversified product portfolio that includes tablet PCs, networking devices, automotive electronics, and smart wearables, Compal Electronics has established itself as a critical supply chain partner in the technology industry. The company also engages in real estate, biotechnology, and medical equipment, showcasing its strategic diversification. Founded in 1984, Compal Electronics continues to innovate in electronics manufacturing, leveraging its extensive R&D capabilities and global production footprint.
Compal Electronics presents a stable investment opportunity within the technology hardware sector, supported by its diversified product portfolio and strong OEM/ODM relationships. The company's revenue of $910.25 billion (USD) and net income of $10.04 billion (USD) reflect its operational scale, though thin margins are typical in the competitive electronics manufacturing industry. With a market capitalization of $3.86 billion (USD) and a low beta of 0.416, the stock may appeal to risk-averse investors seeking exposure to the tech supply chain. However, reliance on low-margin manufacturing and exposure to global supply chain disruptions pose risks. The dividend yield, supported by a $0.21493 per share payout, adds income appeal. Investors should monitor demand trends in PCs and consumer electronics, as well as Compal's ability to maintain cost efficiency amid rising component prices.
Compal Electronics competes in the highly competitive electronics manufacturing services (EMS) and original design manufacturing (ODM) industry, where scale, cost efficiency, and technological expertise are critical. The company's competitive advantage lies in its extensive manufacturing capabilities, strong R&D focus, and long-standing relationships with major tech brands. However, it faces intense competition from larger EMS providers like Foxconn and Pegatron, which benefit from greater economies of scale. Compal differentiates itself through diversification into automotive electronics, medical IoT, and smart devices, reducing reliance on traditional PC manufacturing. Its strategic investments in automation and supply chain optimization help maintain cost competitiveness. The company's presence in China and Taiwan provides access to a skilled labor force and integrated supply chains, though geopolitical risks in the region could impact operations. While Compal is not a consumer-facing brand, its ability to deliver high-quality, customized solutions for clients strengthens its market position. The shift toward 5G, AI, and IoT presents growth opportunities, but Compal must continue innovating to stay ahead of rivals in this rapidly evolving sector.