Asustek Computer Inc

Asustek Computer Inc maintains a strong liquidity position, with a current ratio of 1.56 and cash and equivalents amounting to TWD 42.79 billion, which supports its short-term obligations. The company's debt-to-equity ratio is 0.07, indicating a conservative capital structure with minimal reliance on debt financing. The price-to-book ratio of 1.97 suggests that the market values the company at a premium to its book value, reflecting investor confidence in its intangible assets and future earnings potential.

In terms of profitability, Asustek's return on equity (ROE) is 4.49%, and its return on assets (ROA) is 2.18%, both of which are below the industry median for computer hardware firms. This suggests that the company is generating returns, but not at a rate that outperforms its peers. The company's gross margin is 19.33% (calculated from gross profit of TWD 28.02 billion on revenue of TWD 144.91 billion), which is in line with industry norms, but its operating margin of 7.94% (operating income of TWD 11.50 billion) indicates room for improvement in cost control.

Geographically, Asustek's revenue is heavily concentrated in the Asia-Pacific region, with a significant portion derived from China and Southeast Asia. The company's exposure to this region is a strategic advantage but also a concentration risk, as geopolitical tensions or economic downturns in these markets could impact its performance. The company's product segments include consumer electronics, servers, and industrial solutions, with consumer electronics being the largest contributor to revenue.

Looking ahead, Asustek's revenue is projected to grow by 5.2% in the current fiscal year and by 3.8% in the following year, according to analyst estimates. This growth is driven by increasing demand for high-performance computing and the company's expansion into emerging markets. However, the company's operating cash flow is negative at TWD -25.67 billion, which may signal short-term cash flow challenges despite its strong liquidity position.

The risk assessment for Asustek indicates low liquidity and dilution risks, with no immediate filing-based flags detected. The company's free cash flow of TWD 12.54 billion provides a buffer against potential short-term cash flow issues. The company's capital expenditure of TWD -1.06 billion suggests a focus on maintaining rather than expanding its physical assets, which may limit its ability to scale operations rapidly.

Recent events, including quarterly earnings reports and investor presentations, highlight the company's commitment to innovation and cost efficiency. Asustek has also emphasized its sustainability initiatives, which align with global trends and may enhance its long-term competitiveness.

Revenue surged 25.9% year-over-year to TWD 738.9 billion in FY2026, demonstrating strong top-line growth momentum.

Net income jumped 41.9% to TWD 44.6 billion, significantly outpacing revenue growth and indicating operating leverage.

Operating margin of 7.9% ranks in the top quartile among 214 computer hardware peers, highlighting superior profitability.

Debt-to-equity ratio of 0.07 is well below the cohort median of 0.3, reflecting a conservative and stable capital structure.

Free cash flow recovered to TWD 23.5 billion in FY2026, reversing the negative trend seen in the prior fiscal year.

The stock trades at TWD 784, implying a 7.8% downside to the consensus mean price target of TWD 722.68.

Cash conversion ratio of -2.17 places the company in the bottom quartile of its peer cohort, signaling poor cash generation efficiency.

Long-term debt increased to TWD 31.8 billion in FY2026, rising from TWD 18.0 billion in the previous fiscal year.

Return on equity of 4.49% remains modest despite significant profit growth, suggesting limited capital efficiency relative to book value.

The four-year compound annual growth rate for net income is 0.0%, indicating a lack of sustained long-term earnings expansion.

Revenue TWD 208.37B, +41,1% YoY; Operating income −5,4% YoY.

• ▍Revenue TWD 208.37B, +41,1% YoY
• ▍Operating income −5,4% YoY
• ▍Net income −23,4% YoY
• ▍Free cash flow −16,1% YoY
• ▍Net margin 4.7%

Revenue TWD 202.92B, +31,8% YoY; Operating income +497,0% YoY.

• ▍Revenue TWD 202.92B, +31,8% YoY
• ▍Operating income +497,0% YoY
• ▍Net income +596,2% YoY
• ▍Free cash flow +381,1% YoY
• ▍Net margin 5.6%

Revenue TWD 200.28B, +20,2% YoY; Operating income −15,7% YoY.

• ▍Revenue TWD 200.28B, +20,2% YoY
• ▍Operating income −15,7% YoY
• ▍Net income −15,6% YoY
• ▍Free cash flow −10,8% YoY
• ▍Net margin 5.3%

Revenue TWD 188.01B, +29,7% YoY; Operating income −31,9% YoY.

• ▍Revenue TWD 188.01B, +29,7% YoY
• ▍Operating income −31,9% YoY
• ▍Net income −16,9% YoY
• ▍Free cash flow −13,3% YoY
• ▍Net margin 5.2%

Revenue TWD 147.69B; Operating income TWD 12.58B.

• ▍Revenue TWD 147.69B
• ▍Operating income TWD 12.58B
• ▍Net margin 8.7%

Revenue TWD 153.92B; Operating income TWD 1.58B.

• ▍Revenue TWD 153.92B
• ▍Operating income TWD 1.58B
• ▍Net margin 1.1%

Revenue TWD 166.56B; Operating income TWD 11.67B.

• ▍Revenue TWD 166.56B
• ▍Operating income TWD 11.67B
• ▍Net margin 7.5%

Revenue TWD 144.91B; Operating income TWD 11.50B.

• ▍Revenue TWD 144.91B
• ▍Operating income TWD 11.50B
• ▍Net margin 8.1%

Revenue TWD 738.90B, +25,9% YoY; Operating income +34,0% YoY.

• ▍Revenue TWD 738.90B, +25,9% YoY
• ▍Operating income +34,0% YoY
• ▍Net income +41,9% YoY
• ▍Free cash flow +6,2% YoY
• ▍Net margin 6.0%

Revenue TWD 587.09B, +21,7% YoY; Operating income +165,3% YoY.

• ▍Revenue TWD 587.09B, +21,7% YoY
• ▍Operating income +165,3% YoY
• ▍Net income +97,1% YoY
• ▍Free cash flow +191,4% YoY
• ▍Net margin 5.3%

Revenue TWD 482.31B, −10,2% YoY; Operating income −15,6% YoY.

• ▍Revenue TWD 482.31B, −10,2% YoY
• ▍Operating income −15,6% YoY
• ▍Net income +8,4% YoY
• ▍Free cash flow +156,2% YoY
• ▍Net margin 3.3%

Revenue TWD 537.19B, +0,4% YoY; Operating income −72,8% YoY.

• ▍Revenue TWD 537.19B, +0,4% YoY
• ▍Operating income −72,8% YoY
• ▍Net income −67,0% YoY
• ▍Free cash flow −147,5% YoY
• ▍Net margin 2.7%