Ctrl K
Operating cash flow of $20.6B in 2026Q2 covers capex of $10.8B (52.5% of OCF), and free cash flow of $9.8B supports a self-funding model, though dividend coverage appears thin given the 3.7% yield.
Chunghwa Telecom Co., Ltd. (CHT) cash flow statement — 25-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Cash from Operations | 80.26B | 77.5B | 79.24B | 74.56B | 75.95B | 74.86B | 74.46B | 72.43B | 66.37B | 70.93B | 64.95B | 76.32B | 71.38B | 75.29B | 67.56B | 75.36B | 84.77B | 77.29B | 91.87B | 87.24B | 100.13B | 86.42B | 91.56B | 93.45B | 91.58B | 73.1B |
| Operating CF Growth % | 1.6% | -2.2% | 6.28% | -1.83% | 1.46% | 0.54% | 2.8% | 9.13% | -6.44% | 9.21% | -14.9% | 6.93% | -5.19% | 11.44% | -10.35% | -11.1% | 9.68% | -15.87% | 5.3% | -12.88% | 15.87% | -5.62% | -2.01% | 2.04% | 25.28% | - |
| Operating CF / Revenue % | 32.8% | 33.01% | 34.67% | 33.66% | 35.21% | 35.74% | 35.9% | 40.39% | 30.8% | 31.18% | 28.24% | 32.93% | 31.5% | 33.02% | 30.69% | 34.65% | 41.88% | 38.96% | 45.55% | 43.42% | 53.74% | 46.65% | 49.45% | 51.3% | 50.94% | 39.64% |
| Net Income | 39.11B | 38.92B | 47.84B | 36.96B | 47.2B | 46.07B | 42.83B | 41.87B | 44.98B | 48B | 49.38B | 51.97B | 46.56B | 49.11B | 41.04B | 48.1B | 48.56B | 44.5B | 45.79B | 49.46B | 42.07B | 33.41B | 50.92B | 47.23B | 44.21B | 37.4B |
| Depreciation & Amortization | 40.97B | 41.39B | 39.62B | 40.51B | 39.43B | 38.4B | 36.37B | 35.18B | 31.87B | 31.93B | 32.48B | 33.45B | 34.11B | 32.19B | 32.53B | 32.37B | 34.06B | 36.34B | 38.22B | 39.37B | 40.63B | 41.27B | 40.7B | 41.49B | 40.42B | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10.63B | -5.67B | -7.79B | -7.35B | -9.49B | -7.94B | -125.67M | 56.18M | 26.57M | 1.1B | -156M | 259.45M | 1.4B | 9.73B | 157M | 407.47M | 765.22M | 0 |
| Other Non-Cash Items | -7.18B | 404.09M | -9.09B | -697.5M | -7.85B | -7.64B | -7.93B | -7.92B | 1.76B | -180.97M | -169.04M | -273.02M | -241.99M | -526.4M | 514.51M | 37.07M | 246.49M | 518.38M | 563M | 745.93M | 2.28B | -32.88M | 1.73B | 33.96M | 5.29B | 35.7B |
| Working Capital Changes | -2.14B | -3.22B | 863M | -2.22B | -2.85B | -1.98B | 3.19B | 3.3B | -1.63B | -3.17B | -8.97B | -1.5B | 349.93M | 2.38B | -6.39B | -4.94B | 1.42B | -5.58B | 5.72B | -3.34B | 14.66B | -12.17B | -2.4B | -1.02B | 904.35M | 0 |
| Capital Expenditures | -25.86B | -27.85B | -28.99B | -50.17B | -33.43B | -35.59B | -71.12B | -24.53B | -29.05B | -38.18B | -23.8B | -35.46B | -33.2B | -76.25B | -33.87B | -27.43B | -24.89B | -25.75B | -30.33B | -39.4B | -27.83B | 0 | -23.01B | -32.19B | -43.37B | 0 |
| CapEx / Revenue % | 10.57% | 12.92% | 12.58% | 22.65% | 14.62% | 16.87% | 11.34% | 13.48% | 13.48% | 16.78% | 10.35% | 15.3% | 14.65% | 33.45% | 15.39% | 12.61% | 12.3% | 12.98% | 15.04% | 19.61% | 14.94% | 0% | 12.43% | 17.67% | 24.12% | 0% |
| CapEx / D&A | 0.63x | 0.73x | 0.73x | 1.24x | 0.80x | 0.92x | 0.65x | 0.69x | 0.91x | 1.20x | 0.73x | 1.06x | 0.97x | 2.37x | 1.04x | 0.85x | 0.73x | 0.71x | 0.79x | 1.00x | 0.68x | 0.00x | 0.57x | 0.78x | 1.07x | - |
| CapEx Coverage (OCF/CapEx) | 3.10x | 2.55x | 2.76x | 1.49x | 2.41x | 2.12x | 3.17x | 3.00x | 2.28x | 1.86x | 2.73x | 2.15x | 2.15x | 0.99x | 1.99x | 2.75x | 3.41x | 3.00x | 3.03x | 2.21x | 3.60x | - | 3.98x | 2.90x | 2.11x | - |
| Cash from Investing | -25.86B | -28.2B | -35.33B | -50.17B | -30.79B | -31.17B | -68.25B | -27.13B | -32.61B | -36.72B | -21.66B | -30.45B | -27.38B | -49.17B | -38.87B | -33.1B | -17.36B | -29.47B | -34.53B | -39.4B | -19.13B | -28.12B | -32.45B | -32.16B | -55.44B | -53.7B |
| Acquisitions | 928.03M | 1.75B | -776M | -1.55B | 288M | -321M | 344M | -4.16B | -182.34M | -10.24B | 152.11M | -103.43M | -252.49M | -49.43M | 38.59M | 99.45M | -195.5M | -209.23M | -194M | -778.36M | -260.68M | -22.99B | -32.68B | -203.74M | 0 | 0 |
| Purchase of Investments | -57.38B | -55.94B | -75.39B | -45.68B | -6.05B | -17.73B | -5.34B | -14.88B | -10.01B | -6.63B | -4.17B | -12.53B | -470.58M | -20.13B | -8.4B | -11.67B | -10.71B | -12.07B | -13.16B | -25.26B | -4.27B | -4.83B | -9.66B | 0 | 0 | 0 |
| Sale of Investments | 56.72B | 56.4B | 70.05B | 28.6B | 7.4B | 21.38B | 6.96B | 16.68B | 5.66B | 7.81B | 4.79B | 16.32B | 4.9B | 46.2B | 4.37B | 6.32B | 20.81B | 8.1B | 9.51B | 11.87B | 12.45B | 0 | 122M | 0 | 0 | 0 |
| Other Investing | -783.24M | -65.65M | -456M | -799.69M | -891M | 825M | -46.7B | -594M | 964.42M | 10.52B | 1.37B | 1.32B | 1.65B | 1.06B | -1.01B | -422.51M | -2.37B | 459.1M | -365M | 97.3M | 782.04M | -295.96M | 32.78B | 237.69M | -12.07B | -53.7B |
| Cash from Financing | -47.31B | -48.46B | -41.52B | -40.73B | -34.8B | -34.31B | -9.8B | -38.93B | -35.04B | -36.61B | -42.52B | -39.19B | -35.12B | -42.47B | -42.84B | -65.74B | -46.96B | -56.45B | -52.33B | -42.84B | -52.23B | -45.68B | -43.38B | -55.42B | -33.11B | -38.9B |
| Dividends Paid | -38.46B | -39B | -36.91B | -36.48B | -35.75B | -33.4B | -32.78B | -34.75B | -37.2B | -38.34B | -42.55B | -37.67B | -35.1B | -41.5B | -42.36B | -42.85B | -39.37B | -37.84B | -41.2B | -34.6B | -40.63B | -45.48B | -43.41B | -38.54B | -33.84B | 0 |
| Dividend Payout Ratio % | - | 100.76% | 99.25% | 98.7% | 98.32% | 93.79% | 98.1% | 105.46% | 104.8% | 98.62% | 106.2% | 88.01% | 90.9% | 104.5% | 106.16% | 91.05% | 82.69% | 86.47% | 89.98% | 69.98% | 96.65% | 129.94% | 85.26% | 81.7% | 76.38% | - |
| Debt Issuance (Net) | -2M | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 0 | -1000K | 1000K | 0 |
| Stock Issued | 0 | -5.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 29M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -4.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19.39B | -9.7B | 0 | 0 | -7.23B | -11.4B | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.56B | -4.28B | -327M | -233M | 566M | 2.82B | -309M | -450M | 2.14B | 1.8B | 155M | -329.58M | -523M | -747M | -442M | -1.85B | -597.43M | -20.07B | -11.31B | -53.47M | -4.61M | 0 | 32M | 28.9M | 42M | -38.9B |
| Net Change in Cash | 6.58B | 829.31M | 2.44B | -16.37B | 10.41B | 9.36B | -3.63B | 6.41B | -1.18B | -2.28B | 828.92M | 6.71B | 8.97B | -16.35B | -14.19B | -23.49B | 17.62B | -8.03B | 5.05B | 5.58B | 28.77B | 12.66B | 15.73B | 5.87B | 3.03B | -38.9B |
| Exchange Rate Effect | -504.44M | -20M | 40M | -24M | 52M | -13M | -30M | 39M | 102.6M | 121.1M | 58.38M | 25.89M | 87.87M | -9.16M | -36.3M | 110.74M | -63.53M | -6.69M | 31M | 583.77M | 0 | 32.88M | 0 | 0 | 0 | -19.4B |
| Cash at Beginning | 35.23B | 36.26B | 33.82B | 50.19B | 39.78B | 30.42B | 34.05B | 27.64B | 28.82B | 31.1B | 30.27B | 23.56B | 14.59B | 30.94B | 67.39B | 90.88B | 73.26B | 81.29B | 76.23B | 70.67B | 41.9B | 29.37B | 13.55B | 7.64B | 4.63B | 0 |
| Cash at End | 42.22B | 37.09B | 36.26B | 33.82B | 50.19B | 39.78B | 30.42B | 34.05B | 27.64B | 28.82B | 31.1B | 30.27B | 23.56B | 14.59B | 53.2B | 67.39B | 90.88B | 73.26B | 81.29B | 76.25B | 70.68B | 42.03B | 29.28B | 13.51B | 7.65B | -38.9B |
| Free Cash Flow | 54.4B | 49.6B | 50.25B | 24.39B | 42.52B | 39.27B | 3.34B | 47.9B | 37.32B | 32.75B | 41.15B | 40.86B | 38.18B | -965.18M | 33.69B | 47.93B | 59.87B | 51.53B | 61.54B | 47.84B | 72.31B | 86.42B | 68.55B | 61.26B | 48.21B | 73.1B |
| FCF Growth % | 34.33% | -1.29% | 106.09% | -42.65% | 8.29% | 1075.72% | -93.03% | 28.35% | 13.94% | -20.41% | 0.71% | 7.03% | 4055.4% | -102.86% | -29.7% | -19.95% | 16.18% | -16.26% | 28.65% | -33.84% | -16.33% | 26.06% | 11.91% | 27.07% | -34.05% | - |
| FCF Margin % | 22.23% | 21.13% | 21.99% | 11.01% | 19.71% | 18.75% | 1.61% | 26.71% | 17.32% | 14.4% | 17.89% | 17.63% | 16.85% | -0.42% | 15.3% | 22.04% | 29.58% | 25.98% | 30.52% | 23.81% | 38.81% | 46.65% | 37.02% | 33.63% | 26.81% | 39.64% |
| FCF / Net Income % | 139.1% | 128.16% | 135.13% | 65.98% | 116.96% | 110.26% | 9.99% | 145.38% | 105.12% | 84.25% | 102.71% | 95.46% | 98.86% | -2.43% | 84.43% | 101.82% | 125.76% | 117.77% | 134.39% | 96.72% | 171.88% | 258.66% | 134.64% | 129.69% | 109.05% | 195.45% |
Quick answers to the most common questions about buying CHT stock.
Chunghwa Telecom Co., Ltd. (CHT) generated $77.50B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Chunghwa Telecom Co., Ltd. (CHT) generated $49.60B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Chunghwa Telecom Co., Ltd. (CHT) spent $30.34B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Chunghwa Telecom Co., Ltd. (CHT) returned $39.00B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Dividend coverage and valuation
Predictable Cash Generation from Regulated Operations
Operating cash flow averaged $18.9B per quarter over the last ten quarters, with 2026Q2 at $20.6B, indicating stable cash generation from regulated telecom services, as reported in financial statements.
The consistency of OCF, despite quarterly fluctuations, underscores the defensive nature of CHT's subscription-based revenue. The 2026Q2 OCF of $20.6B comfortably covers fixed obligations, with interest paid at zero, reflecting minimal leverage. This suggests that the regulated cash flow stream is reliable and supports the company's operational and capital needs.
CAPEX Burn Aligned with Network Investment
CAPEX averaged $12.4B per quarter, with 2026Q2 at $10.8B, representing 52.5% of OCF, indicating a disciplined investment pace relative to cash generation, based on reported figures.
The CapEx-to-OCF ratio has ranged from 42.4% to 147.8% over the past ten quarters, with the higher ratios in Q1 quarters likely reflecting seasonal investment cycles. The 2026Q2 ratio of 52.5% suggests that CHT is investing in network infrastructure without straining its cash flow, consistent with its role as a regulated utility. However, the elevated CapEx in Q1 2026 (130.1% of OCF) indicates that quarterly cash flow can be temporarily pressured, but the annualized trend remains manageable.
Minimal External Financing Needs
Free cash flow was positive in 8 of the last 10 quarters, with 2026Q2 at $9.8B, and the company issued no significant debt or equity, reflecting a self-funding model, as per the cash flow data.
CHT's fortress balance sheet is evident from its negligible debt-to-equity ratio and the absence of material external financing activities. The company's ability to fund CAPEX and dividends from internal cash generation suggests that it does not rely on capital markets, providing significant financial flexibility. This is particularly important in a rising rate environment, as CHT is insulated from refinancing risks that could affect more leveraged peers.
Dividend Coverage Appears Adequate Despite Flag
OCF-to-dividend coverage was 137,884.8x in 2025Q4, but the 3.88% yield is flagged as not well covered by earnings, suggesting potential reliance on cash reserves, based on reported figures.
The dividend coverage ratio based on OCF is extremely high, indicating that operating cash flow easily covers dividend payments. However, the external flag that the dividend is not well covered by earnings warrants attention, as it may imply that the payout is supported by cash reserves rather than net income. Given CHT's minimal debt and substantial cash position, the dividend appears safe in the near term, but investors should monitor whether earnings growth keeps pace with dividend increases.
Cash Earnings Align with Net Income
Net income averaged $9.6B per quarter, while OCF averaged $18.9B, indicating a cash conversion ratio of approximately 197%, suggesting minimal non-cash distortions, as reported in financial statements.
The significant gap between net income and OCF is typical for capital-intensive utilities, driven by non-cash depreciation and amortization. The absence of large non-cash items like AFUDC in the data suggests that reported earnings are a reliable indicator of cash-generating ability. This alignment between accounting earnings and cash flow supports the quality of CHT's earnings and reduces the risk of accounting distortions.
Potential Pressures from Undersea Cable Security
Recent geopolitical focus on undersea cable security may lead to elevated CAPEX for network hardening, potentially pressuring free cash flow, as noted in recent context flags.
While CHT's cash flow is currently stable, the heightened emphasis on national resilience could result in unplanned capital expenditures that do not generate immediate commercial returns. This could temporarily reduce free cash flow and increase the need for external financing, though CHT's balance sheet strength provides ample capacity. Investors should monitor management commentary on any mandated infrastructure spending, as it could alter the current cash flow trajectory.