Merry Electronics Co Ltd

Merry Electronics maintains a conservative capital structure with a debt-to-equity ratio of 0.22, indicating a relatively low reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.8, suggesting it can cover its short-term obligations but with limited excess capacity. However, the company's net cash position is negative after subtracting total debt, which could signal potential liquidity constraints in the near term.

Profitability metrics show that the company's return on equity (ROE) is 3.61%, and its return on assets (ROA) is 1.57%. These figures are below the industry median for ROE and ROA, indicating that the company is underperforming its peers in terms of capital efficiency and asset utilization. The gross profit margin is 13.48%, and the operating margin is 5.88%, both of which are in line with the industry average, suggesting that the company is managing its production and operating costs effectively.

The company's revenue is primarily concentrated in the computer peripherals segment, with no significant geographic diversification reported in the available data. This concentration could expose the company to market-specific risks, particularly in the consumer electronics sector, which is sensitive to economic cycles and technological changes.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or decline projected in the current or next fiscal year. The capital expenditure for the period was negative, indicating a reduction in investment in long-term assets, which could signal a focus on cost containment or a strategic shift in capital allocation. The company's free cash flow of 834.55 million TWD suggests it has sufficient cash to fund operations and potentially return value to shareholders.

The risk assessment indicates a low potential for dilution, with no significant dilution sources identified in the available data. The company's liquidity risk is moderate, primarily due to the negative net cash position after accounting for total debt. Credit risk is not a major concern given the company's strong equity base and manageable debt levels.

Recent events and disclosures do not highlight any material changes in the company's operations or financial strategy. The company's stock has a mean price target of 99.50 TWD, with a median price target of 99.50 TWD, indicating a generally positive outlook from analysts. The mean recommendation score of 2.20 suggests a mixed sentiment, with one strong buy, two buy, and two hold ratings.

Operating and net margins significantly exceed Household Electronics cohort medians, indicating superior profitability relative to peers.

Analysts project 11.3% upside to a mean price target of 99.5 TWD, reflecting positive market sentiment.

Return on equity of 3.61% outperforms the cohort median of 2.02%, demonstrating efficient capital utilization.

Revenue grew at a 6.5% CAGR over four years, showing consistent top-line expansion despite recent volatility.

Debt-to-equity ratio of 0.22 is below the cohort median of 0.26, suggesting a conservative leverage profile.

The company faces high credit risk, which could impair financial stability and increase borrowing costs.

Long-term debt increased significantly in FY2026, reversing the deleveraging trend observed in previous years.

Revenue TWD 10.97B, +23,9% YoY; Operating income +102,5% YoY.

• ▍Revenue TWD 10.97B, +23,9% YoY
• ▍Operating income +102,5% YoY
• ▍Net income −27,1% YoY
• ▍Free cash flow −1,9% YoY
• ▍Net margin 2.3%

Revenue TWD 14.18B; Operating income TWD 547.0M.

• ▍Revenue TWD 14.18B
• ▍Operating income TWD 547.0M
• ▍Net margin 2.8%

Revenue TWD 10.33B; Operating income TWD 244.0M.

• ▍Revenue TWD 10.33B
• ▍Operating income TWD 244.0M
• ▍Net margin 0.0%

Revenue TWD 8.86B; Operating income TWD 104.3M.

• ▍Revenue TWD 8.86B
• ▍Operating income TWD 104.3M
• ▍Net margin 4.0%

Revenue TWD 12.86B; Operating income TWD 755.6M.

• ▍Revenue TWD 12.86B
• ▍Operating income TWD 755.6M
• ▍Net margin 4.9%

Revenue TWD 46.49B, +6,0% YoY; Operating income −18,8% YoY.

• ▍Revenue TWD 46.49B, +6,0% YoY
• ▍Operating income −18,8% YoY
• ▍Net income −37,6% YoY
• ▍Free cash flow −145,9% YoY
• ▍Net margin 2.9%

Revenue TWD 43.86B, +19,5% YoY; Operating income +67,6% YoY.

• ▍Revenue TWD 43.86B, +19,5% YoY
• ▍Operating income +67,6% YoY
• ▍Net income +62,3% YoY
• ▍Free cash flow +94,8% YoY
• ▍Net margin 4.9%

Revenue TWD 36.69B, +3,6% YoY; Operating income +17,7% YoY.

• ▍Revenue TWD 36.69B, +3,6% YoY
• ▍Operating income +17,7% YoY
• ▍Net income −9,3% YoY
• ▍Free cash flow −20,9% YoY
• ▍Net margin 3.6%

Revenue TWD 35.40B, −2,2% YoY; Operating income −17,0% YoY.

• ▍Revenue TWD 35.40B, −2,2% YoY
• ▍Operating income −17,0% YoY
• ▍Net income +29,0% YoY
• ▍Free cash flow +416,7% YoY
• ▍Net margin 4.1%

Revenue TWD 36.18B; Operating income TWD 1.10B.

• ▍Revenue TWD 36.18B
• ▍Operating income TWD 1.10B
• ▍Net margin 3.1%