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HwaCom Systems Inc (6163) Fair Value & Analysis

Communication Services · TW · Market cap 6.7B TWD

HS HwaCom Systems Inc 6163 · TWO
Price42.00 TWD
Fair Value12.93 TWD
Upside-69.2%
Quality58/100
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Healthy Growth
Thin margins · 1.3% net margin
Low debt · generates free cash flow
1.36% dividend yield
Trails peers (4/14)
Narrow moat 26/100
Evidence: High Range 9.12 TWD – 16.36 TWD Share as image

Fair value as of: Jul 23, 2026

From 25 valuation models · updated 18 days ago

Share price −9.1% over the past month.

A solid business, but screening 69% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (16.36 TWD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

74.10 TWD 13.90 TWD Fair Value 12.93 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 13.90 TWD – 74.10 TWD · fair‑value band 9.12 TWD – 16.36 TWD · the 42.00 TWD price screens above the 12.93 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

Full chart & analysis →

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Analysis

HwaCom Systems Inc (6163) currently trades at 42.00 TWD, while our model-based Fair Value estimate is 12.93 TWD, implying the stock looks roughly 69.2% overvalued today. The Quality Score stands at 58/100 (solid quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, HwaCom Systems Inc generated revenue of 6.7B TWD at a net margin of 1.3%. Revenue grew 46.3% year over year. It earns a return on equity of 2.9%. Net debt stands at 116M TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 9.12 TWD (bear case) to 16.36 TWD (bull case); at 42.00 TWD, the current price sits above 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 45% below its 52-week high and 109% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at -69%, 6163 screens richer 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 57.78 TWD 77.72 TWD 104.32 TWD 80
Residual Income 13.90 TWD 13.76 TWD 12.14 TWD 76
Rev-Margin DCF 30.91 TWD 37.17 TWD 44.46 TWD 74
All 25 models by family
DCF Models
FCF DCF 56.78 TWD 78.83 TWD 109.82 TWD 38
Owner Earnings 19.21 TWD 24.04 TWD 30.84 TWD 31
5Y Revenue Exit 30.91 TWD 36.28 TWD 42.28 TWD 39
5Y EBITDA Exit 34.02 TWD 41.93 TWD 50.42 TWD 41
5Y P/E Exit 33.02 TWD 40.12 TWD 47.00 TWD 38
10Y Revenue Exit 40.16 TWD 46.99 TWD 54.62 TWD 36
10Y EBITDA Exit 42.29 TWD 50.76 TWD 60.52 TWD 37
10Y P/E Exit 41.68 TWD 49.55 TWD 58.04 TWD 35
Earnings-Based
Graham-Dodd 4.86 TWD 12.93 TWD 16.90 TWD 54
PEG = 1.0 2.50 TWD 3.57 TWD 4.64 TWD 46
EPV 15.26 TWD 16.31 TWD 17.21 TWD 59
Dividend Discount
Gordon GGM 3.81 TWD 7.58 TWD 11.50 TWD 70
DDM Multi-Stage 3.81 TWD 5.80 TWD 7.85 TWD 61
Multiples
P/E Multiple 11.80 TWD 15.74 TWD 19.67 TWD 63
P/S Multiple 9.12 TWD 12.16 TWD 15.20 TWD 58
P/B Multiple 9.12 TWD 12.16 TWD 15.20 TWD 55
EV/EBIT 18.48 TWD 21.76 TWD 25.03 TWD 53
EV/EBITDA 22.26 TWD 26.79 TWD 31.33 TWD 54
EV/Revenue 16.11 TWD 19.30 TWD 22.49 TWD 43
Asset-Based
NCAV (Graham) 9.47 TWD 12.69 TWD 18.94 TWD 50
Growth DCF
Growth DCF 57.78 TWD 77.72 TWD 104.32 TWD 80
Rev-Margin DCF 30.91 TWD 37.17 TWD 44.46 TWD 74
Economic Profit
Residual Income 13.90 TWD 13.76 TWD 12.14 TWD 76
ROIC Compounder 15.26 TWD 16.31 TWD 17.21 TWD 72
Growth Earnings
Growth-Adj P/E 9.23 TWD 13.19 TWD 17.14 TWD 68

Widest divergence: DCF Models (41.93 TWD) versus Dividend Discount (5.80 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 6.7B TWD
Revenue growth (YoY) +46.3%
Net margin 1.3%
Return on equity 2.9%
Free cash flow 682M TWD FY2025
P/E ratio 64.2
More key figures
Operating margin 0.3%
EPS (TTM) 0.7100 TWD
Dividend yield 1.4%
EPS growth (YoY) -91.0%
Net debt 116M TWD FY2024

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

Quality Score breakdown

Overall quality 58/100

Of which business quality 59 · Market factors (momentum, volatility) 50

Profitability 34
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 75
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 69
Distance to the 52-week high (market factor)
Net Issuance 75
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

HwaCom Systems Inc. provides digital media, smart applications, cybersecurity, and information and communication technology solutions in Taiwan and internationally.

Full company description

HwaCom Systems Inc. provides digital media, smart applications, cybersecurity, and information and communication technology solutions in Taiwan and internationally. The company offers cloud computing and data center solutions; VMware cloud foundation; network management solutions; broadband integration solutionsl private 5G network and smart applications solutions; telecommunication digital value-added application service; clout solutions; intelligent cloud cost optimization solution; migration to azure cloud; and multi-cloud solutions. It also provides intelligent transportation service; smart city control solutions; AIoT innovative application services assist digital transformation; smart pole solution; AR remote video collaboration application; drone application solutions - unmanned aerial vehicles/drones; video surveillance cloud; technological disaster prevention and smart construction solutions; and intelligent building management system solutions. In addition, the company offers IPTV/OTT Solution - Amazing TV, E2E IPTV/OTT Total Solution, Smart Exhibition and 5G Streaming Solutions, and Smart AirPort Solution. Further, it provides information security solutions, such as security management services; digital risk protection " cyberint argos; breach and attack simulation " KEYSIGHT threat simulator; ai cyber security defense " darktrace; system vulnerability scan service; webpage vulnerability scan service; penetration testing; source code inspection service; IOT/OT asset discovery, vulnerability management, and threat detection; ISMS and PIMS services; social engineering; OIS- ISMS PIMS, and GHG emission reporting services. The company also offers products for ICT, networking, telecom, media and video, and information security. HwaCom Systems Inc. was founded in 1994 and is headquartered in New Taipei City, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

HwaCom Systems Inc reported revenue of 6.1B TWD in FY2025 versus 6.2B TWD in FY2021, a compound −0.4%/yr. Reported net income was 105M TWD in FY2025, compounding −11.5%/yr from FY2021.

Growth Quality 72/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
6.1B TWD
Latest YoY
+10.9%
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.
+0.1%
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.
+6.4%
Avg. growth/yr (8Y) 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.
+5.7%
Revenue −0.4%/yr
FY21 6.2B TWD
FY22 6.1B TWD
FY23 5.3B TWD
FY24 5.5B TWD
FY25 6.1B TWD
Net income −11.5%/yr
FY21 172M TWD
FY22 138M TWD
FY23 57.6M TWD
FY24 131M TWD
FY25 105M TWD

6163 screens 69% overvalued. Compare with China Mobile Limited →

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Cite: Fair Value Calculator (2026). "HwaCom Systems Inc Fair Value". https://www.fairvalue-calculator.com/stock/6163

Peer Group

Telecom Services · 250 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 58 · Above median
Fair Value upside −69% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 0% · Bottom 25%
Revenue growth 46% · Top 25%
Dividend yield (TTM) 1.4% · Below median
Debt / equity 0.11× · Lower than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 64.2× · Pricier than 75% of peers
P/B 2.40× · Pricier than median
P/S (TTM) 1.00× · Pricier than median
P/FCF 0.3× · Cheaper than 75% of peers
EV/EBITDA 25.3× · Pricier 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 0 · sector 29
FUTURE 100 · sector 15
PAST 12 · sector 28
HEALTH 94 · sector 88
DIVIDEND 27 · sector 73

VALUE 0: the price sits above our fair-value range.

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 Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

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Frequently asked questions

Is HwaCom Systems Inc (6163) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 12.93 TWD versus a price of 42.00 TWD, about −69% (overvalued).
What is the fair value of 6163?
Our model-based fair value for HwaCom Systems Inc is 12.93 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 42.00 TWD.
What is the quality score of 6163?
HwaCom Systems Inc has a Quality Score of 58/100. 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 HwaCom Systems Inc (6163)?
HwaCom Systems Inc reported trailing-twelve-month revenue of about 6.7B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 6163?
The net profit margin of HwaCom Systems Inc is about 1.3%, meaning it keeps roughly 1.3% of revenue as net income. Based on the latest reported figures.

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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