Gigabyte Technology Co Ltd

Gigabyte Technology maintains a debt-to-equity ratio of 0.66, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.68, suggesting it can cover its short-term obligations but with limited excess. However, the company's operating cash flow is negative at -21.63 billion TWD, which raises concerns about its ability to fund operations from core business activities. Free cash flow stands at 1.81 billion TWD, providing some flexibility for reinvestment or shareholder returns.

Profitability metrics show a return on equity (ROE) of 7.66% and a return on assets (ROA) of 2.79%, both below the industry median for Computer Hardware firms. This suggests Gigabyte Technology is underperforming its peers in terms of capital efficiency and asset utilization. Gross profit of 7.98 billion TWD and operating income of 3.85 billion TWD indicate a healthy margin structure, but the net income of 2.96 billion TWD reflects the impact of operating and financial expenses.

The company's revenue is concentrated in a few key segments, with disclosed exposure to computer hardware and peripherals. While the exact geographic breakdown is not provided, the company's operations are likely concentrated in Asia, given its headquarters in Taiwan and the global supply chain dynamics of the computer hardware industry. This concentration may expose the company to regional economic and geopolitical risks.

Looking ahead, Gigabyte Technology is expected to see a modest growth trajectory, with analysts projecting a mean price target of 383.56 TWD. The company's revenue history shows a need for improvement in both top-line and bottom-line performance to meet these expectations. The capital expenditure of -1.82 billion TWD indicates a reduction in investment, which may signal a strategic shift or a response to market conditions.

Risk factors for Gigabyte Technology include liquidity concerns due to a negative net cash position after subtracting total debt. The company's dilution risk is assessed as low, with no immediate pressure from share issuance or other dilutive events. However, the negative operating cash flow and reliance on free cash flow for liquidity suggest potential vulnerabilities in the face of economic downturns or supply chain disruptions.

Recent events, including analyst estimates and price targets, indicate a generally positive outlook from the investment community. The mean recommendation of 1.83 suggests a slight bias toward buy, with five strong-buy ratings and four buy ratings among analysts. This sentiment is supported by the high price target of 495.00 TWD, although the low price target of 288.00 TWD highlights the volatility and uncertainty in the sector.

Revenue surged 27.1% year-over-year to TWD 336.9 billion in FY2026, demonstrating strong top-line growth momentum.

Analysts project 12.8% upside to a mean price target of TWD 383.56, reflecting positive market sentiment.

Free cash flow improved to TWD 6.08 billion in FY2026, recovering from negative territory in the prior fiscal year.

Long-term debt skyrocketed to TWD 43.7 billion in FY2026, raising significant leverage and credit risk concerns.

The company faces a high credit risk flag, indicating potential difficulties in meeting financial obligations.

Cash conversion ratio of -7.3% ranks in the bottom quartile of the cohort, suggesting poor cash generation efficiency.

Debt-to-equity ratio of 0.66 is well above the 0.30 cohort median, indicating higher financial leverage than peers.

Revenue TWD 105.06B, +59,8% YoY; Operating income +74,9% YoY.

• ▍Revenue TWD 105.06B, +59,8% YoY
• ▍Operating income +74,9% YoY
• ▍Net income +69,1% YoY
• ▍Free cash flow +65,9% YoY
• ▍Net margin 5.0%

Revenue TWD 89.35B, +36,2% YoY; Operating income +53,9% YoY.

• ▍Revenue TWD 89.35B, +36,2% YoY
• ▍Operating income +53,9% YoY
• ▍Net income +3,2% YoY
• ▍Free cash flow −12,5% YoY
• ▍Net margin 3.3%

Revenue TWD 79.58B, +13,0% YoY; Operating income +1,8% YoY.

• ▍Revenue TWD 79.58B, +13,0% YoY
• ▍Operating income +1,8% YoY
• ▍Net income +58,5% YoY
• ▍Free cash flow +36,6% YoY
• ▍Net margin 3.8%

Revenue TWD 102.26B, +38,3% YoY; Operating income +37,5% YoY.

• ▍Revenue TWD 102.26B, +38,3% YoY
• ▍Operating income +37,5% YoY
• ▍Net income +3,0% YoY
• ▍Free cash flow +87,2% YoY
• ▍Net margin 3.0%

Revenue TWD 65.75B; Operating income TWD 4.24B.

• ▍Revenue TWD 65.75B
• ▍Operating income TWD 4.24B
• ▍Net margin 4.7%

Revenue TWD 65.62B; Operating income TWD 2.47B.

• ▍Revenue TWD 65.62B
• ▍Operating income TWD 2.47B
• ▍Net margin 4.4%

Revenue TWD 70.45B; Operating income TWD 3.38B.

• ▍Revenue TWD 70.45B
• ▍Operating income TWD 3.38B
• ▍Net margin 2.7%

Revenue TWD 73.92B; Operating income TWD 3.85B.

• ▍Revenue TWD 73.92B
• ▍Operating income TWD 3.85B
• ▍Net margin 4.0%

Revenue TWD 336.94B, +27,1% YoY; Operating income +31,3% YoY.

• ▍Revenue TWD 336.94B, +27,1% YoY
• ▍Operating income +31,3% YoY
• ▍Net income +24,5% YoY
• ▍Free cash flow +17,9% YoY
• ▍Net margin 3.6%

Revenue TWD 265.15B, +93,9% YoY; Operating income +161,0% YoY.

• ▍Revenue TWD 265.15B, +93,9% YoY
• ▍Operating income +161,0% YoY
• ▍Net income +106,4% YoY
• ▍Free cash flow +394,7% YoY
• ▍Net margin 3.7%

Revenue TWD 136.77B, +27,5% YoY; Operating income −16,2% YoY.

• ▍Revenue TWD 136.77B, +27,5% YoY
• ▍Operating income −16,2% YoY
• ▍Net income −27,5% YoY
• ▍Free cash flow +163,4% YoY
• ▍Net margin 3.5%

Revenue TWD 107.26B, −12,0% YoY; Operating income −59,6% YoY.

• ▍Revenue TWD 107.26B, −12,0% YoY
• ▍Operating income −59,6% YoY
• ▍Net income −51,0% YoY
• ▍Free cash flow −116,1% YoY
• ▍Net margin 6.1%