Far EasTone Telecommunications Co Ltd

Far EasTone maintains a leveraged capital structure with total liabilities of TWD 89.98 billion against total equity of TWD 92.14 billion, resulting in a debt-to-equity ratio of 0.58. The company holds TWD 1.27 billion in cash and equivalents, which is insufficient to cover its TWD 53.56 billion in long-term debt, leading to a negative net cash position. Liquidity is assessed as medium risk, supported by a current ratio of 1.05, indicating minimal short-term buffer beyond immediate obligations. Operating cash flow stands at TWD 32.86 billion, providing substantial coverage for the TWD 7.01 billion in capital expenditures, resulting in free cash flow of TWD 14.33 billion.

Profitability metrics show a return on equity of 14.9% and a return on assets of 7.54%, reflecting efficient utilization of its asset base. The company generated TWD 13.73 billion in net income on TWD 110.35 billion in revenue, yielding a net margin of approximately 12.4%. Operating income of TWD 17.35 billion suggests stable operational leverage, while the gross profit of TWD 33.41 billion indicates a gross margin of roughly 30.3%. These returns are consistent with mature telecommunications operators, though specific cohort median comparisons are not provided in the input data to benchmark relative performance.

Revenue concentration is implied to be high within the Taiwan domestic market, as no geographic segment breakdown is provided in the available data. The company operates as an integrated telecommunications provider, suggesting a mix of wireless and fixed-line services, but specific segment revenue contributions are not disclosed in the current snapshot. This lack of segment detail limits the ability to assess diversification benefits or specific growth drivers within distinct business lines.

Growth trajectory analysis is constrained by the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to quantify year-over-year growth rates or identify cyclical patterns in the company's financial performance. The current snapshot provides a static view of profitability and cash generation but lacks the temporal depth required for trend analysis.

Risk assessment highlights medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, emphasizing reliance on operating cash flows to service debt obligations. The absence of significant dilution risk is supported by the identical basic and diluted share counts of 3.61 billion shares, indicating no significant convertible securities or options impacting the share base.

Recent analyst sentiment is positive, with a mean recommendation of 1.75 (where 1 is strong buy) and a mean price target of TWD 100.00, implying upside from the current market price of TWD 95.00. The analyst consensus includes one strong buy and three buy ratings, with no hold ratings, suggesting confidence in the company's near-term prospects. No specific filing, news, or transcript observations are provided to detail recent corporate actions or strategic shifts.

Revenue grew at a 6.6% CAGR from 2022 to 2026, demonstrating consistent top-line expansion.

Net income CAGR of 10.8% outpaces revenue growth, indicating strong operational leverage and profitability.

Free cash flow reached TWD 14.5 billion in 2025, providing substantial liquidity for dividends or debt reduction.

Debt-to-equity ratio of 0.58 exceeds the 0.44 industry median, suggesting higher financial leverage risk.

Free cash flow declined 1.3% year-over-year in 2026, signaling potential near-term cash generation headwinds.

Medium liquidity risk flags indicate potential challenges in trading volume or market depth.

Medium credit risk flags suggest potential concerns regarding the company's ability to meet debt obligations.

Revenue TWD 32.68B, +12,1% YoY; Operating income +8,4% YoY.

• ▍Revenue TWD 32.68B, +12,1% YoY
• ▍Operating income +8,4% YoY
• ▍Net income +0,3% YoY
• ▍Free cash flow +0,4% YoY
• ▍Net margin 11.2%

Revenue TWD 26.39B, +6,7% YoY; Operating income +5,2% YoY.

• ▍Revenue TWD 26.39B, +6,7% YoY
• ▍Operating income +5,2% YoY
• ▍Net income +8,7% YoY
• ▍Free cash flow +1,6% YoY
• ▍Net margin 13.1%

Revenue TWD 25.23B, +1,0% YoY; Operating income +11,8% YoY.

• ▍Revenue TWD 25.23B, +1,0% YoY
• ▍Operating income +11,8% YoY
• ▍Net income +8,1% YoY
• ▍Free cash flow +10,5% YoY
• ▍Net margin 13.4%

Revenue TWD 26.73B; Operating income TWD 4.39B.

• ▍Revenue TWD 26.73B
• ▍Operating income TWD 4.39B
• ▍Net margin 12.1%

Revenue TWD 29.17B; Operating income TWD 4.28B.

• ▍Revenue TWD 29.17B
• ▍Operating income TWD 4.28B
• ▍Net margin 12.5%

Revenue TWD 24.74B; Operating income TWD 3.98B.

• ▍Revenue TWD 24.74B
• ▍Operating income TWD 3.98B
• ▍Net margin 12.8%

Revenue TWD 24.97B; Operating income TWD 3.76B.

• ▍Revenue TWD 24.97B
• ▍Operating income TWD 3.76B
• ▍Net margin 12.5%

Revenue TWD 110.35B, +5,5% YoY; Operating income +11,9% YoY.

• ▍Revenue TWD 110.35B, +5,5% YoY
• ▍Operating income +11,9% YoY
• ▍Net income +6,9% YoY
• ▍Free cash flow −1,3% YoY
• ▍Net margin 12.4%

Revenue TWD 104.62B, +11,7% YoY; Operating income +10,3% YoY.

• ▍Revenue TWD 104.62B, +11,7% YoY
• ▍Operating income +10,3% YoY
• ▍Net income +14,8% YoY
• ▍Free cash flow +38,5% YoY
• ▍Net margin 12.3%

Revenue TWD 93.69B, +5,1% YoY; Operating income +11,3% YoY.

• ▍Revenue TWD 93.69B, +5,1% YoY
• ▍Operating income +11,3% YoY
• ▍Net income +16,4% YoY
• ▍Free cash flow +50,8% YoY
• ▍Net margin 11.9%

Revenue TWD 89.15B, +4,5% YoY; Operating income +21,9% YoY.

• ▍Revenue TWD 89.15B, +4,5% YoY
• ▍Operating income +21,9% YoY
• ▍Net income +5,3% YoY
• ▍Free cash flow +63,5% YoY
• ▍Net margin 10.8%

Revenue TWD 85.32B; Operating income TWD 10.36B.

• ▍Revenue TWD 85.32B
• ▍Operating income TWD 10.36B
• ▍Net margin 10.7%