Chroma ATE Inc

Chroma ATE Inc maintains a conservative capital structure with a debt-to-equity ratio of 0.12 and a current ratio of 2.85, indicating strong short-term liquidity coverage. The company holds TWD 1.71 billion in cash and equivalents against TWD 3.89 billion in long-term debt, resulting in a net cash position that is technically negative after subtracting total debt, which contributes to a medium liquidity risk assessment. Despite this, the firm generates robust free cash flow of TWD 6.53 billion, significantly exceeding its operating cash flow of TWD 5.26 billion, driven by capital expenditures of TWD 2.41 billion.

Profitability metrics are exceptional, with a return on equity of 42.12% and a return on assets of 28.49%, reflecting efficient use of capital. The company reports a gross profit of TWD 17.42 billion on revenue of TWD 28.31 billion, yielding a gross margin of approximately 61.5%. Operating income stands at TWD 9.20 billion, leading to a net income of TWD 11.69 billion, which suggests non-operating income contributions or tax benefits boosting the bottom line beyond operating performance.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of product or geographic mix. The company’s market capitalization is TWD 770.94 billion, with a share count of 423.59 million basic and diluted shares, indicating no immediate dilution from options or convertible securities in the current period.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to assess the compound annual growth rate or recent momentum relative to prior periods. The current valuation multiples suggest high growth expectations, with a price-to-earnings ratio of 57.39 and an EV/EBITDA of 65.44, which are premium valuations typical for high-growth software or semiconductor equipment firms.

Risk factors include a medium liquidity rating due to the net debt position, although the low dilution risk is supported by the identical basic and diluted share counts. The key flag noting negative net cash after debt subtraction warrants monitoring, particularly if interest rates remain elevated or if cash flow generation slows. The absence of specific segment or geographic data limits the ability to assess concentration risks in specific markets or customer bases.

Recent events are highlighted by strong analyst sentiment, with a mean recommendation of 1.78 (close to strong buy) and a mean price target of TWD 2,771.25, implying significant upside from the current market price of TWD 1,820.00. The high price target of TWD 4,000.00 and low of TWD 2,465.00 indicate a consensus view of substantial growth potential, with 5 strong buy and 12 buy ratings outweighing a single hold rating.

Net income surged 122.1% year-over-year to TWD 11.7 billion in FY2026, demonstrating exceptional earnings acceleration.

Free cash flow jumped 400% to TWD 6.5 billion in FY2026, highlighting robust cash generation capabilities.

Analysts project 21.3% upside to a mean price target of TWD 2,771.25, reflecting strong market confidence.

Cash conversion ratio of 0.39 trails the software cohort median of 0.95, suggesting weaker cash realization from earnings.

The company faces medium liquidity risk, which could constrain operational flexibility or increase financing costs.

Debt-to-equity ratio of 0.12 is below the cohort median of 0.06, indicating higher relative leverage than peers.

Revenue TWD 11.86B, +72,8% YoY; Operating income +120,9% YoY.

• ▍Revenue TWD 11.86B, +72,8% YoY
• ▍Operating income +120,9% YoY
• ▍Net income +82,1% YoY
• ▍Free cash flow +89,3% YoY
• ▍Net margin 32.6%

Revenue TWD 8.58B, +42,1% YoY; Operating income +91,6% YoY.

• ▍Revenue TWD 8.58B, +42,1% YoY
• ▍Operating income +91,6% YoY
• ▍Net income +72,8% YoY
• ▍Free cash flow +141,8% YoY
• ▍Net margin 29.7%

Revenue TWD 6.41B, +13,8% YoY; Operating income +22,6% YoY.

• ▍Revenue TWD 6.41B, +13,8% YoY
• ▍Operating income +22,6% YoY
• ▍Net income +255,3% YoY
• ▍Free cash flow +330,0% YoY
• ▍Net margin 79.0%

Revenue TWD 6.46B, +17,1% YoY; Operating income +45,1% YoY.

• ▍Revenue TWD 6.46B, +17,1% YoY
• ▍Operating income +45,1% YoY
• ▍Net income +38,8% YoY
• ▍Free cash flow +8,2% YoY
• ▍Net margin 30.3%

Revenue TWD 6.87B; Operating income TWD 2.16B.

• ▍Revenue TWD 6.87B
• ▍Operating income TWD 2.16B
• ▍Net margin 30.9%

Revenue TWD 6.04B; Operating income TWD 1.56B.

• ▍Revenue TWD 6.04B
• ▍Operating income TWD 1.56B
• ▍Net margin 24.4%

Revenue TWD 5.63B; Operating income TWD 1.51B.

• ▍Revenue TWD 5.63B
• ▍Operating income TWD 1.51B
• ▍Net margin 25.3%

Revenue TWD 5.51B; Operating income TWD 1.51B.

• ▍Revenue TWD 5.51B
• ▍Operating income TWD 1.51B
• ▍Net margin 25.5%

Revenue TWD 28.31B, +31,1% YoY; Operating income +67,8% YoY.

• ▍Revenue TWD 28.31B, +31,1% YoY
• ▍Operating income +67,8% YoY
• ▍Net income +122,1% YoY
• ▍Free cash flow +400,0% YoY
• ▍Net margin 41.3%

Revenue TWD 21.60B, +15,7% YoY; Operating income +18,4% YoY.

• ▍Revenue TWD 21.60B, +15,7% YoY
• ▍Operating income +18,4% YoY
• ▍Net income +32,3% YoY
• ▍Free cash flow +762,2% YoY
• ▍Net margin 24.4%

Revenue TWD 18.68B, −15,4% YoY; Operating income −7,9% YoY.

• ▍Revenue TWD 18.68B, −15,4% YoY
• ▍Operating income −7,9% YoY
• ▍Net income −22,1% YoY
• ▍Free cash flow −109,1% YoY
• ▍Net margin 21.3%

Revenue TWD 22.07B, +25,5% YoY; Operating income +63,5% YoY.

• ▍Revenue TWD 22.07B, +25,5% YoY
• ▍Operating income +63,5% YoY
• ▍Net income +22,2% YoY
• ▍Free cash flow +16,7% YoY
• ▍Net margin 23.1%