Acer Inc

Acer Inc maintains a relatively conservative capital structure, with a debt-to-equity ratio of 0.31, indicating a low reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.37, suggesting it can cover its short-term obligations with its current assets. However, the operating cash flow is negative at -2.47 billion TWD, which may signal short-term cash flow challenges. Free cash flow, at 533.58 million TWD, is positive but modest, indicating limited capacity for reinvestment or shareholder returns.

Profitability metrics for Acer Inc are modest compared to industry benchmarks. The return on equity (ROE) is 1.87%, and the return on assets (ROA) is 0.59%, both of which are below the typical performance of industry peers. The company's gross profit margin is 10.7%, and the operating margin is 2.2%, which are in line with the industry average but suggest limited pricing power or cost control advantages.

Acer Inc's revenue is primarily concentrated in the personal computer and peripheral markets, with a global geographic footprint. The company operates in a highly competitive and cyclical industry, where demand is sensitive to macroeconomic conditions and technological shifts. While the company has a presence in multiple regions, its revenue concentration in the PC segment exposes it to market-specific risks, such as supply chain disruptions and changing consumer preferences.

The company's growth trajectory is mixed. Revenue for the latest period is 67.14 billion TWD, but the outlook for the current fiscal year is uncertain due to macroeconomic headwinds and a saturated PC market. Analysts have issued a mean price target of 25.67 TWD, which is below the current market price of 31.9 TWD, suggesting a bearish sentiment. The median price target of 26.00 TWD further reinforces this view, indicating potential downside risk for investors.

Risk factors for Acer Inc include liquidity constraints, as evidenced by the negative operating cash flow, and the potential for dilution, although the risk is currently assessed as low. The company has no immediate filing-based liquidity or dilution flags, but the high price-to-earnings ratio of 68.32 suggests that the market is pricing in future earnings growth that may not materialize. The absence of strong buy or buy recommendations from analysts also indicates a cautious outlook.

Recent events, including the latest financial filings and analyst reports, highlight the company's exposure to global economic conditions and the competitive dynamics of the PC market. The company's ability to innovate and diversify its product offerings will be critical in maintaining its market position. The current financial snapshot and analyst sentiment suggest that investors should monitor the company's performance closely, particularly in terms of cash flow generation and strategic initiatives.

Operating income grew 5.5% year-over-year to TWD 5.14 billion in FY2026, indicating improved operational efficiency despite revenue stagnation.

Free cash flow surged 111.8% year-over-year to TWD 207.5 million in FY2026, showing a recovery in cash generation capabilities.

Gross profit increased to TWD 29.99 billion in FY2026, suggesting some resilience in core product margins amidst challenging market conditions.

The company maintains low dilution, liquidity, and credit risk flags, providing a stable financial foundation for future strategic initiatives.

Debt-to-equity ratio of 0.31 remains below the computer hardware cohort median of 0.30, indicating manageable leverage levels relative to peers.

Analysts assign a 'sell' recommendation with a mean price target of TWD 25.67, implying 30.4% downside from the current market price.

Long-term debt surged to TWD 32.18 billion in FY2026, a significant increase that raises concerns about future financial flexibility and interest burden.

Revenue declined at a 3.6% CAGR over four years, reflecting a persistent long-term contraction in top-line growth potential.

Revenue TWD 72.42B, +18,1% YoY; Operating income +4,1% YoY.

• ▍Revenue TWD 72.42B, +18,1% YoY
• ▍Operating income +4,1% YoY
• ▍Net income +36,3% YoY
• ▍Free cash flow +42,9% YoY
• ▍Net margin 1.0%

Revenue TWD 74.36B, +12,6% YoY; Operating income +82,3% YoY.

• ▍Revenue TWD 74.36B, +12,6% YoY
• ▍Operating income +82,3% YoY
• ▍Net income −25,1% YoY
• ▍Free cash flow +9,6% YoY
• ▍Net margin 1.4%

Revenue TWD 73.40B, +1,0% YoY; Operating income −6,1% YoY.

• ▍Revenue TWD 73.40B, +1,0% YoY
• ▍Operating income −6,1% YoY
• ▍Net income −26,2% YoY
• ▍Free cash flow −36,5% YoY
• ▍Net margin 1.5%

Revenue TWD 66.53B, −0,9% YoY; Operating income −50,0% YoY.

• ▍Revenue TWD 66.53B, −0,9% YoY
• ▍Operating income −50,0% YoY
• ▍Net income −22,7% YoY
• ▍Free cash flow +123,7% YoY
• ▍Net margin 1.6%

Revenue TWD 61.34B; Operating income TWD 1.04B.

• ▍Revenue TWD 61.34B
• ▍Operating income TWD 1.04B
• ▍Net margin 0.8%

Revenue TWD 66.02B; Operating income TWD 1.02B.

• ▍Revenue TWD 66.02B
• ▍Operating income TWD 1.02B
• ▍Net margin 2.2%

Revenue TWD 72.69B; Operating income TWD 1.60B.

• ▍Revenue TWD 72.69B
• ▍Operating income TWD 1.60B
• ▍Net margin 2.1%

Revenue TWD 67.14B; Operating income TWD 1.47B.

• ▍Revenue TWD 67.14B
• ▍Operating income TWD 1.47B
• ▍Net margin 2.1%

Revenue TWD 275.63B, +4,1% YoY; Operating income +5,5% YoY.

• ▍Revenue TWD 275.63B, +4,1% YoY
• ▍Operating income +5,5% YoY
• ▍Net income −31,8% YoY
• ▍Free cash flow +111,8% YoY
• ▍Net margin 1.4%

Revenue TWD 264.68B, +9,7% YoY; Operating income +15,3% YoY.

• ▍Revenue TWD 264.68B, +9,7% YoY
• ▍Operating income +15,3% YoY
• ▍Net income +12,3% YoY
• ▍Free cash flow −205,6% YoY
• ▍Net margin 2.1%

Revenue TWD 241.31B, −12,4% YoY; Operating income −39,1% YoY.

• ▍Revenue TWD 241.31B, −12,4% YoY
• ▍Operating income −39,1% YoY
• ▍Net income −1,4% YoY
• ▍Free cash flow +318,9% YoY
• ▍Net margin 2.0%

Revenue TWD 275.42B, −13,7% YoY; Operating income −51,0% YoY.

• ▍Revenue TWD 275.42B, −13,7% YoY
• ▍Operating income −51,0% YoY
• ▍Net income −54,1% YoY
• ▍Free cash flow −110,7% YoY
• ▍Net margin 1.8%