Quanta Computer Inc

Quanta Computer Inc maintains a debt-to-equity ratio of 0.86 and a current ratio of 1.2, indicating moderate leverage and liquidity coverage. The company holds TWD 118.7 billion in cash and equivalents but has TWD 145.8 billion in long-term debt, resulting in a net cash position of negative TWD 27.1 billion. Free cash flow of TWD 12.6 billion in the latest period suggests capacity to service debt obligations, though capital expenditures of TWD 2.5 billion indicate ongoing reinvestment in operations.

Profitability metrics show a return on equity of 7.15% and return on assets of 1.63%, both below the industry median for computer hardware firms. Gross profit of TWD 21.95 billion represents 8.5% of revenue, while operating income of TWD 11.69 billion reflects a 4.5% margin. These figures suggest Quanta's cost structure and pricing power are underperforming relative to peers in the technology equipment sector.

The company's revenue is concentrated in disclosed segments, with no geographic breakdown provided in the latest financials. This lack of geographic diversification introduces concentration risk, particularly in regions with regulatory or economic volatility. No specific segment performance data is available to assess internal growth drivers or exposure to high-growth markets.

Outlook data indicates a revenue growth trajectory of 5.2% in the current fiscal year and 3.8% in the next, driven by demand for computing infrastructure and supply chain stabilization. These projections align with the company's historical revenue growth of 4.1% year-over-year. However, the decelerating growth rate suggests potential headwinds in market saturation or competitive pressures.

Risk factors include medium liquidity risk due to the net cash deficit and a debt load exceeding cash reserves. Dilution risk is assessed as low, with no recent share issuance or shelf registration activity reported. The company's capital structure remains stable, though the debt-to-equity ratio could rise if free cash flow declines or debt servicing costs increase.

Recent events include analyst price targets ranging from TWD 250 to 425, with a mean of TWD 367.39 and a median of TWD 372. The mean recommendation of 1.86 (on a 1-5 scale) reflects a generally positive sentiment, supported by 8 strong-buy and 11 buy ratings. No material earnings surprises or regulatory actions were disclosed in the latest filings.

Revenue surged 50.5% year-over-year to TWD 2.12 trillion in FY2026, demonstrating robust top-line growth momentum.

Net income grew 25.6% to TWD 74.99 billion in FY2026, reflecting strong profitability expansion alongside revenue gains.

Analysts project 20.1% upside to a mean price target of TWD 367.39, signaling strong market confidence.

Debt-to-equity ratio of 0.86 falls in the bottom quartile of the cohort, signaling elevated financial leverage risk.

Long-term debt increased to TWD 322.5 billion in FY2026, raising concerns about future debt servicing obligations.

Medium liquidity risk flags indicate potential challenges in meeting short-term financial obligations under stress scenarios.

Medium credit risk flags suggest potential vulnerabilities in the company's credit profile or counterparty exposures.

Revenue TWD 638.64B, +53,0% YoY; Operating income +58,4% YoY.

• ▍Revenue TWD 638.64B, +53,0% YoY
• ▍Operating income +58,4% YoY
• ▍Net income +39,9% YoY
• ▍Free cash flow +59,3% YoY
• ▍Net margin 3.5%

Revenue TWD 495.26B, +16,7% YoY; Operating income −5,9% YoY.

• ▍Revenue TWD 495.26B, +16,7% YoY
• ▍Operating income −5,9% YoY
• ▍Net income −1,2% YoY
• ▍Free cash flow −293,4% YoY
• ▍Net margin 3.3%

Revenue TWD 504.12B, +62,6% YoY; Operating income +34,2% YoY.

• ▍Revenue TWD 504.12B, +62,6% YoY
• ▍Operating income +34,2% YoY
• ▍Net income +11,4% YoY
• ▍Free cash flow +17,5% YoY
• ▍Net margin 3.3%

Revenue TWD 485.67B, +87,6% YoY; Operating income +110,4% YoY.

• ▍Revenue TWD 485.67B, +87,6% YoY
• ▍Operating income +110,4% YoY
• ▍Net income +61,6% YoY
• ▍Free cash flow +44,9% YoY
• ▍Net margin 4.0%

Revenue TWD 417.31B; Operating income TWD 15.16B.

• ▍Revenue TWD 417.31B
• ▍Operating income TWD 15.16B
• ▍Net margin 3.8%

Revenue TWD 424.55B; Operating income TWD 19.53B.

• ▍Revenue TWD 424.55B
• ▍Operating income TWD 19.53B
• ▍Net margin 3.9%

Revenue TWD 309.95B; Operating income TWD 15.21B.

• ▍Revenue TWD 309.95B
• ▍Operating income TWD 15.21B
• ▍Net margin 4.9%

Revenue TWD 258.94B; Operating income TWD 11.69B.

• ▍Revenue TWD 258.94B
• ▍Operating income TWD 11.69B
• ▍Net margin 4.7%

Revenue TWD 2.12T, +50,5% YoY; Operating income +41,9% YoY.

• ▍Revenue TWD 2.12T, +50,5% YoY
• ▍Operating income +41,9% YoY
• ▍Net income +25,6% YoY
• ▍Free cash flow −3,3% YoY
• ▍Net margin 3.5%

Revenue TWD 1.41T, +29,9% YoY; Operating income +41,4% YoY.

• ▍Revenue TWD 1.41T, +29,9% YoY
• ▍Operating income +41,4% YoY
• ▍Net income +50,5% YoY
• ▍Free cash flow +28,0% YoY
• ▍Net margin 4.2%

Revenue TWD 1.09T, −15,2% YoY; Operating income +39,6% YoY.

• ▍Revenue TWD 1.09T, −15,2% YoY
• ▍Operating income +39,6% YoY
• ▍Net income +37,0% YoY
• ▍Free cash flow +476,4% YoY
• ▍Net margin 3.7%

Revenue TWD 1.28T, +13,4% YoY; Operating income −16,3% YoY.

• ▍Revenue TWD 1.28T, +13,4% YoY
• ▍Operating income −16,3% YoY
• ▍Net income −13,9% YoY
• ▍Free cash flow −148,6% YoY
• ▍Net margin 2.3%