Strong H Machinery Technology Co (TPE:4560) Predictability Rank


TPE:4560 Strong H Machinery Technology Co TPE:4560
85 GF Score
Price NT$32.95
GF Value NT$40.31
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Strong H Machinery Technology Co Predictability Rank?

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Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Strong H Machinery Technology Co Predictability Rank Related Terms

TPE:4560
85GF Score
Strong H Machinery Technology Co TPE:4560
Predictability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Strong H Machinery Technology Co Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%1.1%3.1%


















For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-Star (non-predictable)Average among all
% Out of All 2403 Stocks 3.3% 2.9% 3.7% 3.3% 3.3% 3.7% 3.3% 76.3% 100%
% that are in Loss (10y) 3% 10% 8% 9% 11% 18% 16% 45% 37%
Average Gain (10y) 364.6% 330.9% 278.0% 235.1% 243.5% 227.8% 154.8% 100.0% 138.1%
Median Gain (10y) 238.5% 193.5% 171.0% 159.0% 132.5% 113.5% 87.0% 13.0% 39.0%
Maximum Gainer 2228.0% 2547.0% 2452.0% 2852.0% 2432.0% 1892.0% 1807.0% 11483.0% 11483.0%
Maximum Loser -82.0% -53.0% -67.0% -100.0% -83.0% -100.0% -78.0% -100.0% -100.0%
Annualized Average Gain 15.4% 14.6% 13.2% 12.0% 12.2% 11.7% 9.1% 6.7% 8.4%
Annualized Median Gain 12.1% 10.6% 9.8% 9.3% 8.2% 7.3% 6.0% 1.1% 3.1%
















For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Also read:

Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

Is Strong H Machinery Technology Co (TPE:4560) Overvalued in 2026?

Based on GuruFocus' analysis, Strong H Machinery Technology Co stock appears to be undervalued. The current stock price of NT$32.95 is trading 18.3% below its estimated GF Value™ of NT$40.31. GuruFocus considers Strong H Machinery Technology Co to be Modestly Undervalued.

Key valuation signals for TPE:4560:

  • Predictability Rank:
  • GF Value™: NT$40.31 vs. price of NT$32.95 (18.3% below fair value)
  • GF Score™: 85/100 with 2 warning signs

No single metric tells the full story. See the TPE:4560 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Strong H Machinery Technology Co Business Description

Address No. 1699, open road, Development zone, Shandong Province, Laizhou City, CHN
Strong H Machinery Technology Co is a professional precision machining manufacturer. The company mainly produces and sells industrial sewing machine parts for assembly by machine manufacturers and repair by end users. It offers various types of industrial sewing machine knives to customers, including needle plates, teeth, presser feet, and needle embroidery machine knives. Its products include industrial sewing machine knives, straight knives, round knives, gauge sets, needle plate shear lines, and computerized embroidery machine parts. The Group's only reportable segment is the sewing machine spare parts segment, as the Group's main activities are manufacturing and selling sewing machine spare parts. The company operates in China and Taiwan, with the majority of revenue coming from China.
85GF Score

Get the complete analysis for TPE:4560

Predictability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$32.95
Price
NT$40.31
GF Value