Inventec Corp

Inventec Corp has a market capitalization of TWD 224.58 billion and a price-to-earnings ratio of 124.02, indicating a high valuation relative to its earnings. The company's price-to-book ratio of 3.65 suggests that the market values its equity at a premium compared to its book value. The enterprise value to EBITDA ratio of 109.60 further highlights the premium valuation, while the enterprise value to revenue ratio of 1.85 indicates that the company is valued at approximately 1.85 times its annual revenue.

Profitability metrics show that Inventec's return on equity is 2.94%, which is relatively low compared to industry benchmarks. The return on assets of 0.65% also indicates that the company is not efficiently utilizing its assets to generate returns. The company's operating margin is 1.69%, and its net profit margin is 1.17%, both of which are below the industry median for computer hardware firms. These metrics suggest that Inventec is underperforming in terms of profitability relative to its peers.

In terms of geographic and segment exposure, Inventec's revenue is heavily concentrated in the Asia-Pacific region, with a significant portion of its sales coming from China and other Asian markets. The company's product portfolio is dominated by notebook computers and servers, with a smaller contribution from peripheral devices. This concentration in a few product lines and geographic regions increases the company's vulnerability to regional economic downturns and supply chain disruptions.

Looking at the growth trajectory, Inventec's revenue is expected to remain relatively flat in the current fiscal year, with a projected increase of less than 1% year-over-year. The company's capital expenditure is negative, indicating that it is not investing in new projects or expanding its operations. This lack of investment may hinder its ability to grow in the long term. The company's free cash flow of TWD 1.73 billion is positive, but it is not sufficient to fund significant expansion or innovation.

The risk assessment for Inventec highlights several key concerns. The company's liquidity is rated as medium, with a current ratio of 1.13, indicating that it has just enough current assets to cover its current liabilities. The debt-to-equity ratio of 1.0 suggests that the company is leveraged equally with debt and equity, which could increase its financial risk. The dilution risk is rated as low, but the company's net cash position is negative after subtracting total debt, which could lead to future dilution if the company needs to raise additional capital.

Recent events and filings indicate that Inventec has not issued any new shares in the past year, and there are no immediate plans for a public offering. The company's recent earnings call transcripts suggest that management is focused on cost control and improving operational efficiency. However, there are no significant new product launches or strategic initiatives announced that could drive future growth.

Revenue grew 7.0% year-over-year to TWD 691.2 billion in FY2026, demonstrating consistent top-line expansion.

Net income surged 19.7% year-over-year to TWD 8.7 billion, outpacing revenue growth significantly.

Operating income increased 13.5% year-over-year to TWD 13.4 billion, indicating improved operational efficiency.

Cash conversion ratio of 2.53 ranks above the 75th percentile of the computer hardware cohort.

Dilution risk is assessed as low, providing stability for existing shareholders' equity value.

Long-term debt rose to TWD 89.3 billion in FY2026, increasing leverage and financial risk exposure.

The company faces high credit risk, potentially impacting borrowing costs and financial stability.

Net margin of 1.17% trails the 2.68% cohort median, reflecting weaker profitability relative to peers.

Revenue TWD 200.31B, +27,6% YoY; Operating income +4,1% YoY.

• ▍Revenue TWD 200.31B, +27,6% YoY
• ▍Operating income +4,1% YoY
• ▍Net income +42,6% YoY
• ▍Free cash flow −67,1% YoY
• ▍Net margin 1.2%

Revenue TWD 171.29B, −13,4% YoY; Operating income −35,2% YoY.

• ▍Revenue TWD 171.29B, −13,4% YoY
• ▍Operating income −35,2% YoY
• ▍Net income −12,5% YoY
• ▍Free cash flow −68,9% YoY
• ▍Net margin 1.2%

Revenue TWD 176.29B, +7,6% YoY; Operating income +32,1% YoY.

• ▍Revenue TWD 176.29B, +7,6% YoY
• ▍Operating income +32,1% YoY
• ▍Net income +36,6% YoY
• ▍Free cash flow −18,3% YoY
• ▍Net margin 1.5%

Revenue TWD 186.58B, +21,0% YoY; Operating income +24,0% YoY.

• ▍Revenue TWD 186.58B, +21,0% YoY
• ▍Operating income +24,0% YoY
• ▍Net income +20,9% YoY
• ▍Free cash flow −38,2% YoY
• ▍Net margin 1.2%

Revenue TWD 157.03B; Operating income TWD 3.47B.

• ▍Revenue TWD 157.03B
• ▍Operating income TWD 3.47B
• ▍Net margin 1.1%

Revenue TWD 197.78B; Operating income TWD 3.92B.

• ▍Revenue TWD 197.78B
• ▍Operating income TWD 3.92B
• ▍Net margin 1.2%

Revenue TWD 163.82B; Operating income TWD 3.16B.

• ▍Revenue TWD 163.82B
• ▍Operating income TWD 3.16B
• ▍Net margin 1.2%

Revenue TWD 154.16B; Operating income TWD 2.60B.

• ▍Revenue TWD 154.16B
• ▍Operating income TWD 2.60B
• ▍Net margin 1.2%

Revenue TWD 691.19B, +7,0% YoY; Operating income +13,5% YoY.

• ▍Revenue TWD 691.19B, +7,0% YoY
• ▍Operating income +13,5% YoY
• ▍Net income +19,6% YoY
• ▍Free cash flow −221,2% YoY
• ▍Net margin 1.3%

Revenue TWD 646.26B, +25,6% YoY; Operating income +70,1% YoY.

• ▍Revenue TWD 646.26B, +25,6% YoY
• ▍Operating income +70,1% YoY
• ▍Net income +18,5% YoY
• ▍Free cash flow +53,0% YoY
• ▍Net margin 1.1%

Revenue TWD 514.75B, −5,0% YoY; Operating income +4,2% YoY.

• ▍Revenue TWD 514.75B, −5,0% YoY
• ▍Operating income +4,2% YoY
• ▍Net income +0,0% YoY
• ▍Free cash flow −4,9% YoY
• ▍Net margin 1.2%

Revenue TWD 541.75B, +4,2% YoY; Operating income +59,8% YoY.

• ▍Revenue TWD 541.75B, +4,2% YoY
• ▍Operating income +59,8% YoY
• ▍Net income −6,3% YoY
• ▍Free cash flow −237,4% YoY
• ▍Net margin 1.1%