AUO Corp

AUO Corp's capital structure is characterized by a debt-to-equity ratio of 0.88, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 1.39, suggesting it can cover its short-term obligations but with limited buffer. Free cash flow for the period was 3.2 billion TWD, which is a positive sign for operational efficiency and financial flexibility.

Profitability metrics for AUO Corp show a return on equity of -0.15% and a return on assets of -0.06%, both of which are negative and below the industry median for Electronic Equipment & Parts. This indicates that the company is not generating returns that meet the expectations of its shareholders or asset base. The net income for the period was -231.32 million TWD, reflecting a loss, which is a concern for investors.

AUO Corp's revenue is primarily concentrated in the Technology Equipment segment, with a significant portion derived from the consumer electronics market. The company's geographic exposure is largely within Asia, with a notable presence in China and other East Asian markets. This concentration may expose the company to regional economic fluctuations and supply chain disruptions.

The growth trajectory for AUO Corp appears to be mixed. While the company has a negative net income, the free cash flow and operating cash flow are positive, indicating some operational resilience. The outlook for the current fiscal year suggests a potential for improvement, with analysts providing a mean price target of 16.64 TWD and a median price target of 15.00 TWD. However, the company's revenue history shows a decline, which may impact its ability to meet these targets.

Risk factors for AUO Corp include liquidity concerns, as the company has negative net cash after subtracting total debt. The liquidity risk is moderate, and the dilution risk is low, with no significant dilution expected in the near term. The company's capital expenditure of -13.94 billion TWD indicates a reduction in investment, which may affect long-term growth prospects.

Recent events and filings indicate that AUO Corp has been managing its debt and liquidity carefully. The company's operating cash flow of 4.93 billion TWD and free cash flow of 3.2 billion TWD suggest that it is generating sufficient cash to support its operations and reduce debt. Analysts have provided a mean recommendation of 2.92, which is a hold rating, indicating a neutral outlook.

Net income surged 323.3% year-over-year to TWD 6.8 billion, marking a significant return to profitability.

Free cash flow improved dramatically by 479.9% to TWD 15.2 billion, indicating strong operational cash generation.

Gross profit expanded to TWD 32.4 billion, reflecting improved pricing power or cost management in recent periods.

Operating income loss narrowed significantly by 70.7% year-over-year, demonstrating effective operational restructuring and cost control.

Revenue stabilized with a slight 0.4% year-over-year increase to TWD 281.4 billion, suggesting demand resilience.

Long-term debt increased to TWD 127.8 billion in FY-1, creating substantial leverage and credit risk.

Net margin of -0.31% remains well below the cohort median of 3.54%, indicating persistent profitability challenges.

Revenue TWD 69.03B, −4,3% YoY; Operating income −175,9% YoY.

• ▍Revenue TWD 69.03B, −4,3% YoY
• ▍Operating income −175,9% YoY
• ▍Net income −134,7% YoY
• ▍Free cash flow −26,3% YoY
• ▍Net margin -1.7%

Revenue TWD 70.14B, +2,1% YoY; Operating income +18,4% YoY.

• ▍Revenue TWD 70.14B, +2,1% YoY
• ▍Operating income +18,4% YoY
• ▍Net income +78,0% YoY
• ▍Free cash flow +121,7% YoY
• ▍Net margin 4.1%

Revenue TWD 69.91B, −10,1% YoY; Operating income −524,5% YoY.

• ▍Revenue TWD 69.91B, −10,1% YoY
• ▍Operating income −524,5% YoY
• ▍Net income −38,3% YoY
• ▍Free cash flow +31,4% YoY
• ▍Net margin -1.8%

Revenue TWD 69.24B, −6,8% YoY; Operating income +1 191,6% YoY.

• ▍Revenue TWD 69.24B, −6,8% YoY
• ▍Operating income +1 191,6% YoY
• ▍Net income +942,1% YoY
• ▍Free cash flow +63,7% YoY
• ▍Net margin 2.8%

Revenue TWD 72.10B; Operating income TWD 841.8M.

• ▍Revenue TWD 72.10B
• ▍Operating income TWD 841.8M
• ▍Net margin 4.6%

Revenue TWD 68.69B; Operating income -TWD 3.43B.

• ▍Revenue TWD 68.69B
• ▍Operating income -TWD 3.43B
• ▍Net margin 2.4%

Revenue TWD 77.75B; Operating income -TWD 309.9M.

• ▍Revenue TWD 77.75B
• ▍Operating income -TWD 309.9M
• ▍Net margin -1.2%

Revenue TWD 74.33B; Operating income TWD 107.1M.

• ▍Revenue TWD 74.33B
• ▍Operating income TWD 107.1M
• ▍Net margin -0.3%

Revenue TWD 281.39B, +0,4% YoY; Operating income +70,7% YoY.

• ▍Revenue TWD 281.39B, +0,4% YoY
• ▍Operating income +70,7% YoY
• ▍Net income +323,3% YoY
• ▍Free cash flow +479,9% YoY
• ▍Net margin 2.4%

Revenue TWD 280.25B, +13,0% YoY; Operating income +63,1% YoY.

• ▍Revenue TWD 280.25B, +13,0% YoY
• ▍Operating income +63,1% YoY
• ▍Net income +83,2% YoY
• ▍Free cash flow +78,1% YoY
• ▍Net margin -1.1%

Revenue TWD 247.96B, +0,5% YoY; Operating income +7,2% YoY.

• ▍Revenue TWD 247.96B, +0,5% YoY
• ▍Operating income +7,2% YoY
• ▍Net income +13,7% YoY
• ▍Free cash flow +47,5% YoY
• ▍Net margin -7.3%

Revenue TWD 246.79B, −33,4% YoY; Operating income −140,4% YoY.

• ▍Revenue TWD 246.79B, −33,4% YoY
• ▍Operating income −140,4% YoY
• ▍Net income −134,4% YoY
• ▍Free cash flow −145,2% YoY
• ▍Net margin -8.6%