Chunghwa Telecom Co (CHT) AI Stock Analysis

• Market Cap: $34.22B
• Dividend Yield: 3.79%
• Average Volume (3M): 125.31K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.23
• Revenue Growth: 3.12%
• EPS Growth: 3.14%
• Country: US
• Employees: 19,912
• Sector: Communication Services
• Sector Strength: 95
• Industry: Telecommunications Services
• EPS (TTM): 0.44
• Shares Outstanding: 775,744,700
• 10 Day Avg. Volume: 130,526
• 30 Day Avg. Volume: 125,313
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 0.42
• Enterprise Value/Ebitda: 0.41
• 1Y Price Target: $50.00
• Price Target Upside: 13.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $50.00 ▲(13.66% Upside)

Chunghwa Telecom's strong financial performance and positive earnings call are the primary drivers of the stock's score. The company's robust profitability, stable cash flows, and leadership in the Taiwan mobile market are significant strengths. While the technical analysis suggests a neutral trend, the high P/E ratio indicates potential overvaluation, slightly offset by a solid dividend yield.

Chunghwa Telecom Co Business Overview & Revenue Model

Company Description

Chunghwa Telecom Co., Ltd., together with its subsidiaries, provides telecommunication services in Taiwan and internationally. It operates through Domestic Fixed Communications Business, Mobile Communications Business, Internet Business, International Fixed Communications Business, and Others segments. The company offers local and domestic long-distance telephone, broadband access, and related services; information and communication technology and VAS services; and interconnection with its fixed-line network to other mobile and fixed-line operators. It also provides mobile; HiNet Internet, data communication, and cloud; Internet data center; and international long-distance telephone and data services. In addition, the company distributes and sells mobile handsets, data cards, electronic materials, and computing and business machinery equipment and software; designs, develops, manufactures, sells, and services semiconductor testing components, printed circuit boards, and electronic components and finished products, and automatic license plate recognition software and hardware products. Further, it offers real estate development and property management; system, network, and communications integration; intelligent buildings and energy network; digital information supply and advertisement; property and liability insurance agency; family education; computing equipment installation; management consultancy; data processing; telecommunication engineering; Internet identify; and information and communication solution services. Additionally, the company provides software design services, and Internet contents production and play services; motion picture production and distribution; and energy saving solutions and international circuits, and services for electronic parts and machinery processed products. The company was incorporated in 1996 and is headquartered in Taipei City, Taiwan.

How the Company Makes Money

Chunghwa Telecom generates revenue primarily through several key streams: mobile telecommunications services, fixed-line services, and broadband internet services. Its mobile segment, which includes voice and data services, is a significant source of income, bolstered by a large subscriber base. The fixed-line segment, though experiencing a decline in traditional voice services, continues to contribute through value-added services and enterprise solutions. Broadband internet services also represent a crucial revenue stream, particularly as demand for high-speed internet grows. Additionally, CHT has diversified its revenue through partnerships with technology firms, enabling it to offer cloud computing and digital services. This diversification helps stabilize revenue and expand its market reach. The company also benefits from government contracts and infrastructure projects, further enhancing its earnings potential.

Chunghwa Telecom Co Financial Statement Overview

Summary

Chunghwa Telecom demonstrates strong financial health with consistent profitability, a solid balance sheet, and stable cash flows. The company is well-positioned in the telecommunications industry, with low leverage and effective cost management. While free cash flow growth has seen some fluctuations, the overall financial stability and profitability provide a positive outlook.

Income Statement

Chunghwa Telecom shows strong profitability with consistent gross and net profit margins over the years. The TTM (Trailing-Twelve-Months) data indicates a slight revenue growth rate of 1.12%, which is a positive sign of stability in a competitive industry. The EBIT and EBITDA margins are robust, reflecting efficient operations and cost management.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.11, indicating low leverage and financial stability. The return on equity (ROE) is solid at approximately 9.93% in the TTM period, showcasing effective use of shareholder funds. The equity ratio is strong, suggesting a well-capitalized position.

Cash Flow

Chunghwa Telecom's cash flow position is stable, with a slight decline in free cash flow growth in the TTM period. However, the operating cash flow to net income ratio remains close to 1, indicating good cash generation relative to net income. The free cash flow to net income ratio is healthy, supporting ongoing investments and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	232.46B	229.97B	223.20B	216.74B	209.44B	207.61B
Gross Profit	84.46B	83.39B	81.43B	78.99B	74.33B	70.58B
EBITDA	87.84B	81.92B	87.58B	86.90B	79.37B	79.40B
Net Income	37.94B	37.22B	36.96B	36.36B	35.62B	33.42B
Balance Sheet
Total Assets	544.48B	534.30B	523.74B	523.20B	513.07B	506.38B
Cash, Cash Equivalents and Short-Term Investments	73.95B	57.94B	53.28B	53.00B	43.28B	35.02B
Total Debt	43.65B	43.23B	43.64B	43.47B	38.91B	38.24B
Total Liabilities	164.86B	136.39B	131.02B	129.43B	121.81B	117.12B
Stockholders Equity	366.73B	382.83B	382.31B	379.12B	377.38B	377.93B
Cash Flow
Free Cash Flow	47.92B	50.25B	43.58B	42.52B	39.27B	3.34B
Operating Cash Flow	79.30B	79.24B	74.56B	75.95B	74.86B	74.46B
Investing Cash Flow	-40.86B	-35.33B	-50.17B	-30.79B	-31.17B	-68.25B
Financing Cash Flow	-41.03B	-41.52B	-40.73B	-34.80B	-34.31B	-9.80B

Chunghwa Telecom Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.99
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHT, the sentiment is Positive. The current price of 43.99 is below the 20-day moving average (MA) of 44.66, below the 50-day MA of 44.51, and above the 200-day MA of 40.24, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 13.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHT.

Chunghwa Telecom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHT	76 Outperform	$34.22B	28.44	9.95%	3.79%	3.12%	3.14%
TLK	74 Outperform	$18.99B	13.28	17.71%	6.69%	-5.13%	-5.90%
VIV	72 Outperform	$19.83B	19.50	8.20%	4.32%	-6.51%	-0.21%
AMX	68 Neutral	$59.76B	20.64	14.41%	2.67%	-0.64%	56.92%
Sector *	60 Neutral	$46.28B	4.13	-13.12%	4.13%	1.85%	-42.71%
VOD	60 Neutral	$28.34B	9.21	-7.17%	4.21%	0.89%	-494.16%
TEF	60 Neutral	$30.16B	―	-3.55%	6.68%	-4.73%	-251.31%

Chunghwa Telecom Co Corporate Events

AT&T Acquires Spectrum Licenses in $23 Billion Deal

On August 25, 2025, AT&T Mobility II LLC, a subsidiary of AT&T Inc., entered into a $23 billion agreement to acquire wireless spectrum licenses from EchoStar Corporation. This acquisition aims to enhance AT&T’s spectrum portfolio, supporting its strategy to lead in 5G and fiber connectivity across the U.S. The transaction, expected to close in mid-2026, will enable AT&T to expand its 5G coverage and improve its home internet services, positioning the company as a leader in advanced connectivity. The deal also includes a long-term network services agreement with EchoStar, allowing it to operate under the Boost Mobile brand. AT&T plans to finance the purchase with cash and borrowings, expecting to maintain its financial targets and leverage ratios over time.

AT&T Announces New Board Director Appointment

On August 15, 2025, AT&T‘s Board of Directors elected Kelly J. Grier as a Director, effective September 1, 2025, and appointed her to the Corporate Development and Finance and Human Resources Committees. Concurrently, Scott T. Ford announced his retirement from the Board, also effective September 1, 2025, marking a significant change in the company’s leadership structure.

AT&T Completes $3.5 Billion Global Notes Sale

On June 3, 2025, AT&T successfully closed the sale of $3.5 billion in aggregate principal amount of Global Notes with varying maturity dates and interest rates. This strategic financial move is expected to impact AT&T’s financial operations by potentially enhancing liquidity and supporting its long-term investment strategies.