Far EasTone Telecommunications Co Ltd

Far EasTone Telecommunications Co Ltd has a price-to-book ratio of 3.65 and a price-to-tangible-book ratio of 3.65, indicating that the market values the company at a premium to its book value. The company's debt-to-equity ratio is 0.72, suggesting a moderate level of leverage. However, the current ratio of 0.61 indicates that the company may face liquidity challenges in the short term, as its current liabilities exceed its current assets. The company's liquidity position is further complicated by a negative net cash position after subtracting total debt, which is a key liquidity flag.

In terms of profitability, the company's return on equity is 3.16%, and its return on assets is 1.53%, both of which are below the industry median for wireless telecommunications services. The company's operating margin is 13.75%, and its net profit margin is 11.41%, which are also below the industry median. These metrics suggest that the company is underperforming relative to its peers in terms of generating returns on its equity and assets.

The company's revenue is primarily concentrated in Taiwan, with no significant geographic diversification reported. The company operates in a single business segment, which is wireless telecommunications services. This lack of diversification may expose the company to higher risks if the local market experiences economic downturns or regulatory changes.

The company's revenue growth is expected to remain flat in the current fiscal year, with a slight decline projected for the next fiscal year. This outlook is based on the company's historical revenue performance and the competitive landscape in the wireless telecommunications sector. The company's capital expenditure is negative, indicating that it is generating more cash from operations than it is spending on new investments.

The company's risk assessment indicates a medium level of liquidity risk and a low level of dilution risk. The key liquidity flag is the negative net cash position after subtracting total debt, which could impact the company's ability to meet short-term obligations. The company has not issued any new shares recently, and there is no indication of dilution pressure in the near term.

Recent events, including analyst estimates and recommendations, suggest a generally positive outlook for the company. The mean price target is 101.00 TWD, with a median price target of 102.00 TWD. The mean recommendation is 2.00, indicating a "buy" rating, with four "buy" and one "hold" recommendation. There is one "strong buy" recommendation, which suggests that some analysts have a very positive view of the company's prospects.

Revenue grew at a 6.6% CAGR from 2022 to 2026, demonstrating consistent top-line expansion.

Net income CAGR of 10.8% outpaces revenue growth, indicating strong operational leverage and profitability.

Free cash flow surged to TWD 14.5 billion in 2025, providing robust liquidity for dividends or debt reduction.

Cash conversion ratio of 2.74 beats the peer median of 2.6, reflecting high earnings quality.

Return on equity of 3.16% lags the 4.78% industry median, signaling inefficient capital utilization.

High credit risk flags suggest potential vulnerabilities in the company's financial stability or debt profile.

Free cash flow growth turned negative at -1.3% year-over-year in 2026, breaking the upward trend.

Medium liquidity risk indicates potential challenges in meeting short-term financial obligations or trading volume.

Revenue TWD 32.68B, +12,1% YoY; Operating income +8,4% YoY.

• ▍Revenue TWD 32.68B, +12,1% YoY
• ▍Operating income +8,4% YoY
• ▍Net income +0,3% YoY
• ▍Free cash flow +0,4% YoY
• ▍Net margin 11.2%

Revenue TWD 26.39B, +6,7% YoY; Operating income +5,2% YoY.

• ▍Revenue TWD 26.39B, +6,7% YoY
• ▍Operating income +5,2% YoY
• ▍Net income +8,7% YoY
• ▍Free cash flow +1,6% YoY
• ▍Net margin 13.1%

Revenue TWD 25.23B, +1,0% YoY; Operating income +11,8% YoY.

• ▍Revenue TWD 25.23B, +1,0% YoY
• ▍Operating income +11,8% YoY
• ▍Net income +8,1% YoY
• ▍Free cash flow +9,6% YoY
• ▍Net margin 13.4%

Revenue TWD 26.04B, +1,1% YoY; Operating income +21,9% YoY.

• ▍Revenue TWD 26.04B, +1,1% YoY
• ▍Operating income +21,9% YoY
• ▍Net income +10,3% YoY
• ▍Free cash flow +2,2% YoY
• ▍Net margin 12.4%

Revenue TWD 29.17B; Operating income TWD 4.28B.

• ▍Revenue TWD 29.17B
• ▍Operating income TWD 4.28B
• ▍Net margin 12.5%

Revenue TWD 24.74B; Operating income TWD 3.98B.

• ▍Revenue TWD 24.74B
• ▍Operating income TWD 3.98B
• ▍Net margin 12.8%

Revenue TWD 24.97B; Operating income TWD 3.76B.

• ▍Revenue TWD 24.97B
• ▍Operating income TWD 3.76B
• ▍Net margin 12.5%

Revenue TWD 25.75B; Operating income TWD 3.54B.

• ▍Revenue TWD 25.75B
• ▍Operating income TWD 3.54B
• ▍Net margin 11.4%

Revenue TWD 110.35B, +5,5% YoY; Operating income +11,9% YoY.

• ▍Revenue TWD 110.35B, +5,5% YoY
• ▍Operating income +11,9% YoY
• ▍Net income +6,9% YoY
• ▍Free cash flow −1,3% YoY
• ▍Net margin 12.4%

Revenue TWD 104.62B, +11,7% YoY; Operating income +10,3% YoY.

• ▍Revenue TWD 104.62B, +11,7% YoY
• ▍Operating income +10,3% YoY
• ▍Net income +14,8% YoY
• ▍Free cash flow +38,5% YoY
• ▍Net margin 12.3%

Revenue TWD 93.69B, +5,1% YoY; Operating income +11,3% YoY.

• ▍Revenue TWD 93.69B, +5,1% YoY
• ▍Operating income +11,3% YoY
• ▍Net income +16,4% YoY
• ▍Free cash flow +50,8% YoY
• ▍Net margin 11.9%

Revenue TWD 89.15B, +4,5% YoY; Operating income +21,9% YoY.

• ▍Revenue TWD 89.15B, +4,5% YoY
• ▍Operating income +21,9% YoY
• ▍Net income +5,3% YoY
• ▍Free cash flow +63,5% YoY
• ▍Net margin 10.8%