Delta Electronics Inc

Delta Electronics maintains a conservative capital structure with a debt-to-equity ratio of 0.29 and a current ratio of 1.89, indicating adequate short-term liquidity coverage. The balance sheet shows total assets of TWD 639.6 billion against total liabilities of TWD 371.6 billion, with long-term debt standing at TWD 76.5 billion. Cash and equivalents total TWD 74.8 billion, resulting in a net cash position that is technically negative when total debt is subtracted, as flagged in the risk assessment. The company generates robust operating cash flow of TWD 98.5 billion, which supports its capital expenditure of TWD 47.9 billion, yielding free cash flow of TWD 29.7 billion.

Profitability metrics demonstrate strong operational efficiency, with a return on equity of 26.28% and a return on assets of 11.01%. The company reports net income of TWD 60.1 billion on revenue of TWD 554.9 billion, reflecting a net margin of approximately 10.8%. Operating income stands at TWD 82.2 billion, indicating effective cost control and gross profit generation of TWD 190.2 billion. These returns suggest a high-quality economic moat, although specific cohort median comparisons are not available to benchmark relative performance.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of geographic or product mix exposure. The company’s activity is broadly defined within the electronic equipment and instruments sector, suggesting a diversified customer base typical of industrial power supply manufacturers. Without specific segment breakdowns, the revenue stream is assumed to be derived from its core power electronics and automation business lines.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue base of TWD 554.9 billion provides a substantial scale, but year-over-year growth rates cannot be calculated from the provided snapshot. The company’s ability to sustain its current profitability levels depends on maintaining its market share in the competitive electronic components industry.

Risk factors include a medium liquidity risk rating and a low dilution risk. The key flag notes that net cash is negative after subtracting total debt, which may constrain financial flexibility during periods of high capital intensity. The low dilution risk is supported by the identical basic and diluted share counts of 2.6 billion shares, indicating no significant outstanding options or convertible securities impacting the share count.

Recent observations highlight strong analyst sentiment, with a mean recommendation of 1.57 (strong buy) and a mean price target of TWD 2,857.31, implying significant upside from the current market price of TWD 1,995.00. The high price target of TWD 4,500.00 suggests optimistic expectations for future earnings growth or multiple expansion. There are no hold ratings among the analysts, with 9 strong buys and 12 buys recorded.

Revenue is projected to surge 31.8% year-over-year to TWD 554.9 billion in fiscal 2026, demonstrating robust top-line growth momentum.

Net income is forecast to jump 70.6% to TWD 60.1 billion in 2026, significantly outpacing revenue growth and indicating strong operating leverage.

Analysts assign a mean price target of TWD 2,857, implying 29% upside from the current market price of TWD 2,215.

Long-term debt is projected to increase to TWD 76.5 billion in 2026, rising from TWD 49.7 billion in 2022, increasing leverage exposure.

The company faces a medium level of liquidity risk, which could constrain financial flexibility during periods of market stress or cash flow volatility.

Free cash flow is highly volatile, dropping to TWD 7.1 billion in 2024 before recovering, suggesting inconsistent cash generation stability.

Capex intensity is below the cohort median, which may indicate underinvestment in long-term growth drivers or maintenance of existing assets.

Revenue TWD 159.35B, +34,0% YoY; Operating income +101,0% YoY.

• ▍Revenue TWD 159.35B, +34,0% YoY
• ▍Operating income +101,0% YoY
• ▍Net income +100,9% YoY
• ▍Free cash flow +142,1% YoY
• ▍Net margin 12.9%

Revenue TWD 161.61B, +41,5% YoY; Operating income +212,9% YoY.

• ▍Revenue TWD 161.61B, +41,5% YoY
• ▍Operating income +212,9% YoY
• ▍Net income +141,4% YoY
• ▍Free cash flow +479,3% YoY
• ▍Net margin 10.7%

Revenue TWD 150.32B, +34,0% YoY; Operating income +48,5% YoY.

• ▍Revenue TWD 150.32B, +34,0% YoY
• ▍Operating income +48,5% YoY
• ▍Net income +50,8% YoY
• ▍Free cash flow +32,8% YoY
• ▍Net margin 12.4%

Revenue TWD 124.04B, +19,9% YoY; Operating income +42,2% YoY.

• ▍Revenue TWD 124.04B, +19,9% YoY
• ▍Operating income +42,2% YoY
• ▍Net income +40,2% YoY
• ▍Free cash flow +2,2% YoY
• ▍Net margin 11.2%

Revenue TWD 118.92B; Operating income TWD 14.04B.

• ▍Revenue TWD 118.92B
• ▍Operating income TWD 14.04B
• ▍Net margin 8.6%

Revenue TWD 114.20B; Operating income TWD 8.01B.

• ▍Revenue TWD 114.20B
• ▍Operating income TWD 8.01B
• ▍Net margin 6.3%

Revenue TWD 112.20B; Operating income TWD 16.42B.

• ▍Revenue TWD 112.20B
• ▍Operating income TWD 16.42B
• ▍Net margin 11.0%

Revenue TWD 103.44B; Operating income TWD 13.13B.

• ▍Revenue TWD 103.44B
• ▍Operating income TWD 13.13B
• ▍Net margin 9.6%

Revenue TWD 554.89B, +31,8% YoY; Operating income +82,8% YoY.

• ▍Revenue TWD 554.89B, +31,8% YoY
• ▍Operating income +82,8% YoY
• ▍Net income +70,6% YoY
• ▍Free cash flow +94,6% YoY
• ▍Net margin 10.8%

Revenue TWD 421.15B, +5,0% YoY; Operating income +10,7% YoY.

• ▍Revenue TWD 421.15B, +5,0% YoY
• ▍Operating income +10,7% YoY
• ▍Net income +5,5% YoY
• ▍Free cash flow +115,3% YoY
• ▍Net margin 8.4%

Revenue TWD 401.23B, +4,4% YoY; Operating income −0,9% YoY.

• ▍Revenue TWD 401.23B, +4,4% YoY
• ▍Operating income −0,9% YoY
• ▍Net income +2,2% YoY
• ▍Free cash flow −64,3% YoY
• ▍Net margin 8.3%

Revenue TWD 384.44B, +22,2% YoY; Operating income +32,9% YoY.

• ▍Revenue TWD 384.44B, +22,2% YoY
• ▍Operating income +32,9% YoY
• ▍Net income +21,9% YoY
• ▍Free cash flow +137,7% YoY
• ▍Net margin 8.5%