Cheng Fwa Industrial Ltd (5426) fair value: what the stock is really worth
As of Sep 24, 2026: fair value of Cheng Fwa Industrial Ltd TWD 8.78, price TWD 27.90, upside -68.5%, quality 61 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Cheng Fwa Industrial Co., Ltd. manufactures, processes, and supplies precision-stamping metal parts for THE computer, telecommunication, networking, and electronic industries in Taiwan and internationally.
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Cheng Fwa Industrial Co., Ltd. manufactures, processes, and supplies precision-stamping metal parts for THE computer, telecommunication, networking, and electronic industries in Taiwan and internationally. It offers components for printer parts, electronic components, PDA and PDA LCD frame, spring, notebook parts, panel, air compressor, web camera shield, and tuner chassis; tel-communication box, IPC chassis, storage server chassis. PC case, satellite disc antennas, web cam, set top box, and kiosk products for industrial PC and servers of the electronic industry; and custom plastic injection molding for medical devices and components, as well as products for lighting, automotive, and instrumentation industries; and server slide rail. The company also provides design and engineering; rapid prototyping/soft tool production; tooling development/maintenance; precision metal stamping/fabrication; finish processing/assembling; and plastic injection services. In addition, it is involved in the manufacture and sales of industrial computer casings and their accessories, and plastic products. Cheng Fwa Industrial Co., Ltd. was founded in 1961 and is headquartered in New Taipei City, Taiwan.
Stock analysis
Cheng Fwa Industrial Ltd (5426) currently trades at 27.90 TWD, while our model-based Fair Value estimate is 8.78 TWD, implying the stock looks roughly 217.8% overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of 10.85 TWD per share, and 0 of the 15 models we run sit above the 27.90 TWD price.
Bear case: the Dividend Discount group reads lowest at 4.89 TWD, and 15 of the 15 models stay below the price. Evidence for this calculation is low.
Scenario range: 6.35 TWD (bear) to 9.95 TWD (bull), the price of 27.90 TWD sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 61/100 (solid quality), in the Industrials sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Cheng Fwa Industrial Ltd reported revenue of 1.8B TWD in FY2025 versus 1.7B TWD in FY2021, a compound +1.4%/yr. Reported net income was 74.3M TWD in FY2025.
Key figures
Market cap 4.0B TWD (≈ $126M) · P/E ratio 53.7 · P/S ratio 2.27 · EPS (TTM) 0.5200 TWD · Dividend yield 1.9% · Net margin 4.2% · Return on equity 2.4% · Return on assets (EBIT) 0.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 35 out of 100 (low confidence).
What moves the price
The share trades about 30% below its 52-week high and 58% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −36% fair-value upside, at −69%, 5426 screens richer than that median.
Fair Value models
Bear 6.35 TWDFair Value 8.78 TWDBull 9.95 TWD
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (0.3818 TWD per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.32/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+17.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−5.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.8%
Start year 2020 (pandemic)
Revenue growth 8 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+0.8%
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What shareholders gained per year (last 3 years), in TWD ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 3 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis. Measured in TWD: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−9.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year−11.6%
Dividend (yield on the price)1.9%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−1% → 4%
⚠ Revenue per share shrinking 1.6%/yr over ~6Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Compare Cheng Fwa Industrial Ltd with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Metal Fabrication · 262 stocks
Beats the industry median on 3/12 measures
Overall it trails its industry peers.
Valuation
Quality Score61 · Top 25%
Fair Value upside−69% · Bottom 25%
Profitability
Return on equity (TTM)2% · Below median
Return on assets1% · Below median
Net margin (TTM)3% · Below median
Operating margin (TTM)9% · Above median
Growth and dividend
Revenue growth6% · Below median
Dividend yield (TTM)1.9% · Above median
Valuation Multiplesvs Metal Fabrication median · lower = cheaper
P/E (TTM)53.7× · Priciest 25%
P/B1.80× · Pricier than median
P/S (TTM)2.26× · Pricier than median
EV/EBITDA22.6× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)31· sector 35
PAST (return on equity)10· sector 20
HEALTH (low debt)0· sector 95
DIVIDEND (yield)38· sector 25
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Cheng Fwa Industrial Ltd (5426) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of 8.78 TWD versus a price of 27.90 TWD, about −69% upside (overvalued).
What is the fair value of 5426?
Our model-based fair value for Cheng Fwa Industrial Ltd is 8.78 TWD (as of Sep 24, 2026), built from audited fundamentals. The current price: 27.90 TWD.
What is the quality score of 5426?
Cheng Fwa Industrial Ltd has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Cheng Fwa Industrial Ltd (5426)?
Our model-based price target is the fair value of 8.78 TWD (as of Sep 24, 2026) from 15 valuation models. Cautious scenario 6.35 TWD, optimistic scenario 9.95 TWD. It is a calculation from audited fundamentals, not an analyst target.
What is the Cheng Fwa Industrial Ltd stock forecast for 2026?
Our models put fair value at 8.78 TWD, about −69% upside versus a price of 27.90 TWD (overvalued). Cautious scenario 6.35 TWD, optimistic scenario 9.95 TWD. The calculation is refreshed regularly with new filings.
What is the revenue of Cheng Fwa Industrial Ltd (5426)?
Cheng Fwa Industrial Ltd reported trailing-twelve-month revenue of about 1.8B TWD (latest available figure, as of Sep 24, 2026).
Does Cheng Fwa Industrial Ltd pay a dividend?
Cheng Fwa Industrial Ltd currently shows a dividend yield of about 1.91% relative to its recent price (as of Sep 24, 2026).
What is the intrinsic value of Cheng Fwa Industrial Ltd (5426)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Cheng Fwa Industrial Ltd it is 8.78 TWD per share (as of Sep 24, 2026), against a price of 27.90 TWD. It is the blended result of 15 valuation models (cash flow, earnings, asset, dividend).
Is Cheng Fwa Industrial Ltd stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 5426 trades above its calculated fair value: price 27.90 TWD, fair value 8.78 TWD, a gap of about −69% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 5426?
No. The price is what the market pays today (27.90 TWD); the fair value is what the company's own numbers justify (8.78 TWD). For Cheng Fwa Industrial Ltd the two are 19.12 TWD per share apart. That gap is exactly why we show both numbers side by side.
How much is Cheng Fwa Industrial Ltd worth?
The market values Cheng Fwa Industrial Ltd at about 4.0B TWD (market capitalisation, as of Sep 24, 2026). Per share that is 27.90 TWD; our models calculate a fair value of 8.78 TWD per share.
What do the bullish and bearish scenarios say about 5426?
Our models span a range for Cheng Fwa Industrial Ltd: cautious scenario 6.35 TWD, base 8.78 TWD, optimistic 9.95 TWD per share (as of Sep 24, 2026, price 27.90 TWD). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 5426?
Cheng Fwa Industrial Ltd trades at a price-to-earnings ratio of 53.7 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 8.78 TWD is built from several models across several years. Other multiples: P/B 1.8, P/S 2.3, EV/EBITDA 22.6.
How solid is the balance sheet of Cheng Fwa Industrial Ltd (5426)?
Balance-sheet figures for Cheng Fwa Industrial Ltd (as of Sep 24, 2026): return on equity 2.4%. They feed the Quality Score of 61/100, which measures business quality independently of the share price.
How far is 5426 from its 52-week high?
Cheng Fwa Industrial Ltd trades at 27.90 TWD, about 30% below its 52-week high of 39.65 TWD and 58% above the low of 17.70 TWD (as of Sep 24, 2026). Distance from the high says nothing about value: that is what the fair value of 8.78 TWD is for.
Which stocks are comparable to Cheng Fwa Industrial Ltd?
From the same area (Industrials) we also value Carpenter Technology Corporation, ATI Inc, Mueller Industries, Inc, Aurubis AG, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Cheng Fwa Industrial Ltd stock attractive at the current price?
The data as of Sep 24, 2026: price 27.90 TWD, calculated fair value 8.78 TWD (−69%), Quality Score 61/100, from 15 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 5426 calculated?
We run Cheng Fwa Industrial Ltd through 15 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 8.78 TWD, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.2 % above its aggregate fair value. Cheng Fwa Industrial Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Cheng Fwa Industrial Ltd (5426)?
The closing price on Sep 24, 2026 was 27.90 TWD. Our model-based fair value is 8.78 TWD, about −69% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Cheng Fwa Industrial Ltd right now?
The price sits above even our optimistic bull case (9.95 TWD). The favourable scenario is already priced in. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of Cheng Fwa Industrial Ltd
How large is the market capitalisation of Cheng Fwa Industrial Ltd (5426)?
The market capitalisation of Cheng Fwa Industrial Ltd is 4.0B TWD (≈ $126M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Cheng Fwa Industrial Ltd (5426)?
The price-to-sales ratio of Cheng Fwa Industrial Ltd is 2.27 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Cheng Fwa Industrial Ltd (5426)?
Earnings per share at Cheng Fwa Industrial Ltd are 0.5200 TWD (price ÷ EPS = P/E 53.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Cheng Fwa Industrial Ltd (5426)?
The dividend yield of Cheng Fwa Industrial Ltd is 1.9% (payout 103%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Cheng Fwa Industrial Ltd (5426)?
The net margin of Cheng Fwa Industrial Ltd is 4.2% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Cheng Fwa Industrial Ltd (5426)?
The return on equity (ROE) of Cheng Fwa Industrial Ltd is 2.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Cheng Fwa Industrial Ltd (5426)?
On an EBIT basis the return on assets of Cheng Fwa Industrial Ltd is 0.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Cheng Fwa Industrial Ltd (5426)?
The operating margin of Cheng Fwa Industrial Ltd is 9.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Cheng Fwa Industrial Ltd (5426)?
Revenue at Cheng Fwa Industrial Ltd is growing +6.1% versus a year earlier (3y avg −5.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Cheng Fwa Industrial Ltd (5426)?
Earnings per share at Cheng Fwa Industrial Ltd are growing −32.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Cheng Fwa Industrial Ltd (5426) generate?
The free cash flow of Cheng Fwa Industrial Ltd is −60.0M TWD (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Cheng Fwa Industrial Ltd (5426) carry?
The net debt of Cheng Fwa Industrial Ltd is 39.6M TWD (fiscal year 2021). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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