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momo.com Inc 8454

Morningstar Rating
TWD 437.00 +17.50 (4.17%)
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Company Report

Momo.com Offers Best-in-Class Logistics for E-Commerce in Taiwan but Growth Appears To Be Slowing

We expect Momo.com to maintain its leading market share in Taiwan’s business-to-consumer, or B2C, direct sales e-commerce industry, due to a sizable lead in logistics infrastructure among peers that has indirectly led to more users, better convenience, and a higher operating margin than its closest peer. Momo.com is leveraging its logistics advantage and convenience as its long-term strategy and plans to building out two more major distribution centers by 2025, which should further differentiate its service between not only online competition but also brick-and-mortar retailers. The company is also adding new livestreaming and third-party, or 3P, platforms to its business, which could also further add incremental users.

Price vs Fair Value

8454 is trading at a 15% discount.
Price
TWD 419.50
Fair Value
TWD 145.00
Uncertainty
Very High
1-Star Price
TWD 484.33
5-Star Price
TWD 866.20
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Taiwan is relatively underpenetrated in e-commerce and should provide a conducive backdrop for market share-taking.

Bears

The retail sector remains a relatively low-barrier-to-entry industry where others could eventually replicate the same strategy in the long term.

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Trading Information

Previous Close Price
TWD 423.00
Day Range
TWD 416.50442.50
52-Week Range
TWD 376.00719.09
Bid/Ask
TWD 437.00 / TWD 438.50
Market Cap
TWD 105.39 Bil
Volume/Avg
1.7 Mil / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
28.18
Price/Sales
0.91
Dividend Yield (Trailing)
3.25%
Dividend Yield (Forward)
3.25%
Total Yield
3.25%

Company Profile

Momo.com is a leading e-commerce company that serves Taiwan. The company derives 95% of revenue online and operates under mostly a first-party, or 1P, direct sales model but is currently developing emerging third-party, or 3P, and livestreaming channels on its platform. It specializes mostly in larger-ticket items such as electronics and household items under its platform, with 4.3 million active stock-keeping units. It has 55 warehouses and a distribution center as of first-quarter 2023, with two more under construction slated for operation by 2026. The company also owns 25% of the transportation that it uses for delivery. As of July 2022, Taiwan Mobile and Teco Group owned 45% and 10.5% of Momo.com, respectively.
Sector
Consumer Cyclical
Industry
Internet Retail
Stock Style Box
Mid Core
Total Number of Employees
1,774

Competitors

Valuation

Metric
8454
JD
SE
Price/Earnings (Normalized)
28.1810.50180.55
Price/Book Value
9.041.585.79
Price/Sales
0.910.343.03
Price/Cash Flow
20.978.4519.57
Price/Earnings
8454
JD
SE

Financial Strength

Metric
8454
JD
SE
Quick Ratio
0.740.801.18
Current Ratio
1.031.161.70
Interest Coverage
173.628.6613.94
Quick Ratio
8454
JD
SE

Profitability

Metric
8454
JD
SE
Return on Assets (Normalized)
14.05%5.87%6.02%
Return on Equity (Normalized)
36.85%15.88%17.02%
Return on Invested Capital (Normalized)
28.47%8.55%7.13%
Return on Assets
8454
JD
SE
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