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Tong Ming Enterprise Co (5538) Fair Value & Analysis

Basic Materials · TW · Market cap 7.0B TWD

TM Tong Ming Enterprise Co 5538 · TW
Price35.40 TWD
Fair Value51.38 TWD
Upside+45.1%
Quality57/100
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Healthy Growth
Thin margins · 5.4% net margin
Low debt · generates free cash flow
4.34% dividend yield
Ranks above peers (13/14)
Narrow moat 38/100
Evidence: High Range 38.54 TWD – 64.23 TWD Share as image

Fair value as of: Jul 23, 2026

From 25 valuation models · updated 18 days ago

Share price +7.4% over the past month.

A solid business, screening 45% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (38.54 TWD). The market is more pessimistic than our downside scenario.
  • Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

57.00 TWD 28.25 TWD Fair Value 51.38 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 23, 2026.

How to read this chart

60‑month range 28.25 TWD – 57.00 TWD · fair‑value band 38.54 TWD – 64.23 TWD · the 35.40 TWD price screens below the 51.38 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

Tong Ming Enterprise Co (5538) currently trades at 35.40 TWD, while our model-based Fair Value estimate is 51.38 TWD, implying the stock looks roughly 45.1% undervalued today. The Quality Score stands at 57/100 (solid quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Tong Ming Enterprise Co generated revenue of 12.8B TWD at a net margin of 5.4%. Revenue grew 2.8% year over year. It earns a return on equity of 9.1%. Net debt stands at 2.9B TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 38.54 TWD (bear case) to 64.23 TWD (bull case); at 35.40 TWD, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 5% below its 52-week high and 26% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -7% fair-value upside, at 45%, 5538 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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
Highest evidence
Growth DCF 38.65 TWD 50.90 TWD 67.17 TWD 80
Residual Income 30.63 TWD 32.80 TWD 36.46 TWD 76
Rev-Margin DCF 38.10 TWD 54.71 TWD 72.94 TWD 74
All 25 models by family
DCF Models
FCF DCF 38.00 TWD 51.49 TWD 70.34 TWD 38
Owner Earnings 50.59 TWD 69.74 TWD 96.49 TWD 31
5Y Revenue Exit 38.10 TWD 54.48 TWD 74.86 TWD 39
5Y EBITDA Exit 47.01 TWD 70.59 TWD 97.32 TWD 41
5Y P/E Exit 45.43 TWD 67.73 TWD 90.33 TWD 38
10Y Revenue Exit 36.87 TWD 51.37 TWD 69.75 TWD 36
10Y EBITDA Exit 43.25 TWD 62.10 TWD 85.98 TWD 37
10Y P/E Exit 42.28 TWD 60.20 TWD 80.93 TWD 35
Earnings-Based
Graham-Dodd 20.55 TWD 53.31 TWD 69.49 TWD 54
PEG = 1.0 10.09 TWD 14.42 TWD 18.74 TWD 46
EPV 34.27 TWD 38.42 TWD 42.00 TWD 59
Dividend Discount
Gordon GGM 13.17 TWD 25.23 TWD 39.75 TWD 70
DDM Multi-Stage 13.17 TWD 19.88 TWD 26.79 TWD 61
Multiples
P/E Multiple 47.60 TWD 63.47 TWD 79.34 TWD 63
P/S Multiple 38.54 TWD 51.38 TWD 64.23 TWD 58
P/B Multiple 38.54 TWD 51.38 TWD 64.23 TWD 55
EV/EBIT 52.88 TWD 67.84 TWD 82.81 TWD 53
EV/EBITDA 58.44 TWD 75.27 TWD 92.09 TWD 54
EV/Revenue 40.02 TWD 53.76 TWD 67.49 TWD 43
Asset-Based
NCAV (Graham) 18.51 TWD 24.80 TWD 37.01 TWD 50
Growth DCF
Growth DCF 38.65 TWD 50.90 TWD 67.17 TWD 80
Rev-Margin DCF 38.10 TWD 54.71 TWD 72.94 TWD 74
Economic Profit
Residual Income 30.63 TWD 32.80 TWD 36.46 TWD 76
ROIC Compounder 34.27 TWD 39.01 TWD 45.38 TWD 72
Growth Earnings
Growth-Adj P/E 37.10 TWD 52.99 TWD 68.89 TWD 68

Widest divergence: DCF Models (60.20 TWD) versus Dividend Discount (19.88 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 12.8B TWD
Revenue growth (YoY) +2.8%
Net margin 5.4%
Return on equity 9.1%
Free cash flow 584M TWD FY2025
P/E ratio 11.5
More key figures
Operating margin 9.6%
EPS (TTM) 3.02 TWD
Dividend yield 4.3%
EPS growth (YoY) +60.4%
Net debt 2.9B TWD FY2025

Figures from reported company fundamentals · as of Jul 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 55 · Market factors (momentum, volatility) 67

Profitability 37
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 47
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 67
Distance to the 52-week high (market factor)
Net Issuance 78
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Tong Ming Enterprise Co., Ltd., together with its subsidiaries, manufactures and sells stainless steel fasteners and wires under the TONG brand name in China and internationally.

Full company description

Tong Ming Enterprise Co., Ltd., together with its subsidiaries, manufactures and sells stainless steel fasteners and wires under the TONG brand name in China and internationally. It offers fasteners, such as screws, nuts, industrial rice, and threaded rods; and stainless-steel wires, which are used as customized raw materials for manufacturing small screws, kitchen supplies, mesh belts, re-stretching wires, and springs. The company was founded in 1995 and is headquartered in Grand Cayman, Cayman Islands.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tong Ming Enterprise Co reported revenue of 12.7B TWD in FY2025 versus 13.2B TWD in FY2021, a compound −1.0%/yr. Reported net income was 608M TWD in FY2025, compounding −19.4%/yr from FY2021.

Growth Quality 68/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
12.7B TWD
Latest YoY
+1.5%
Avg. growth/yr (3Y) 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.
−6.2%
Avg. growth/yr (5Y) 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.
+6.8%
Avg. growth/yr (15Y) 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.
+6.7%
Revenue −1.0%/yr
FY21 13.2B TWD
FY22 15.4B TWD
FY23 13.0B TWD
FY24 12.5B TWD
FY25 12.7B TWD
Net income −19.4%/yr
FY21 1.4B TWD
FY22 911M TWD
FY23 135M TWD
FY24 576M TWD
FY25 608M TWD
Character of growth · EPS growth decomposed (2014-2025) −0.8 % p.a.
Revenue per share +6.6 pp

of which total revenue +8.4 pp · buybacks/dilution −1.8 pp

EBIT margin −8.2 pp
Tax rate +1.1 pp
Residual (interest, one-offs) −0.4 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Tong Ming Enterprise Co Fair Value". https://www.fairvalue-calculator.com/stock/5538

Peer Group

Steel · 378 stocks

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.

Quality Score 57 · Top 25%
Fair Value upside +45% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 4% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 10% · Top 25%
Revenue growth 3% · Above median
Dividend yield (TTM) 4.3% · Top 25%
Debt / equity 0.15× · Higher than median

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 11.5× · Cheaper than 75% of peers
P/B 0.94× · Cheaper than median
P/S (TTM) 0.55× · Cheaper than median
P/FCF 0.4× · Cheaper than median
EV/EBITDA 4.6× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 93 · sector 19
FUTURE 14 · sector 4
PAST 36 · sector 15
HEALTH 92 · sector 95
DIVIDEND 87 · sector 41

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Steel stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

Stock Price Fair Value vs Fair Value
Tata Steel Limited TTST $0.2010 $0.2000 -0%
JSW Steel Limited JSWSTEEL ₹1,227 ₹1,140 -7%
Baoshan Iron & Steel Co 600019 ¥5.89 ¥8.07 +37%
China Steel Corporation 2002A 38.55 TWD 8.74 TWD -77%
POSCO Holdings 005490 313,500 KRW 155,270 KRW -50%
Companhia Siderúrgica Nacional, SID 13,670 ARS 15,940 ARS +17%
Jindal Steel Limited JINDALSTEL ₹1,028 ₹545.12 -47%
Lloyds Metals and Energy Limited LLOYDSME ₹1,844 ₹1,098 -40%
Gerdau S.A GGBN 83.50 MXN 42.64 MXN -49%
Ternium S.A TXR 17,780 ARS 27,210 ARS +53%

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Frequently asked questions

Is Tong Ming Enterprise Co (5538) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 51.38 TWD versus a price of 35.40 TWD, about +45% (undervalued).
What is the fair value of 5538?
Our model-based fair value for Tong Ming Enterprise Co is 51.38 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 35.40 TWD.
What is the quality score of 5538?
Tong Ming Enterprise Co has a Quality Score of 57/100. 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 revenue of Tong Ming Enterprise Co (5538)?
Tong Ming Enterprise Co reported trailing-twelve-month revenue of about 12.8B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 5538?
The net profit margin of Tong Ming Enterprise Co is about 5.4%, meaning it keeps roughly 5.4% of revenue as net income. Based on the latest reported figures.
Does Tong Ming Enterprise Co pay a dividend?
Tong Ming Enterprise Co currently shows a dividend yield of about 4.70% relative to its recent price (as of Jul 23, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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