Phison Electronics Corp

Phison maintains a capital structure with a debt-to-equity ratio of 0.28, indicating a relatively conservative leverage position compared to the industry median of 0.45. The company's liquidity position is mixed, with cash and equivalents of TWD 4.34 billion but negative net cash after subtracting total debt. Free cash flow of TWD 1.52 billion in the latest period suggests some operational flexibility, though operating cash flow was negative at TWD -7.9 billion.

Profitability metrics show a return on equity of 5.2% and return on assets of 3.19%, both below the industry median of 8.7% and 5.4% respectively. Gross margin of 33.9% (TWD 5.61 billion gross profit on TWD 16.53 billion revenue) is in line with the 34.2% median for the Semiconductors industry, but operating margin of 7.6% (TWD 1.25 billion operating income) lags behind the 11.3% median.

Geographically, Phison's revenue is concentrated in Asia, with 82% of revenue derived from the region in the latest reporting period. The company's exposure to the gaming and consumer electronics markets makes it sensitive to cyclical demand shifts in these sectors.

Growth trajectory appears mixed, with revenue of TWD 16.53 billion in the latest period but no year-over-year growth data available. The company's price-to-earnings ratio of 227.9 and price-to-book ratio of 11.85 suggest a premium valuation relative to earnings and book value, though these metrics are consistent with the high-growth expectations in the semiconductor industry.

Risk factors include liquidity constraints due to negative net cash and a high price-to-earnings ratio that may not be sustainable in a downturn. Dilution risk is currently low, with no near-term pressure from share issuance or convertible debt. However, the company's operating cash flow deficit raises concerns about its ability to fund operations without external financing.

Recent events include a mixed analyst outlook, with a mean price target of TWD 2,370.44 and a median of TWD 2,400.00. The mean recommendation of 1.62 (on a 1-5 scale) indicates a generally positive sentiment, though the wide range of price targets (TWD 1,800 to TWD 3,000) reflects uncertainty about the company's near-term performance.

Operating income surged 134% year-over-year to TWD 8.27 billion in FY2026, demonstrating significant operational leverage and profitability expansion.

Revenue grew 23.3% year-over-year to TWD 72.66 billion in FY2026, signaling strong top-line momentum and market demand recovery.

Analysts maintain a buy recommendation with a mean price target of TWD 2,370, implying 2.8% upside from the current market price.

Return on equity of 5.2% exceeds the semiconductor cohort median of 2.1%, reflecting efficient capital utilization compared to peers.

Cash conversion ratio of -3.26 places the company in the bottom quartile of the semiconductor cohort, indicating poor cash generation efficiency.

The company faces high credit risk, suggesting potential vulnerabilities in its financial stability or counterparty exposure within the sector.

Long-term debt increased to TWD 6.72 billion in FY2025 before declining, showing a recent history of elevated leverage levels.

Net income CAGR of only 1.8% over four years indicates sluggish long-term earnings growth despite recent revenue spikes.

Revenue TWD 22.80B, +81,3% YoY; Operating income +455,8% YoY.

• ▍Revenue TWD 22.80B, +81,3% YoY
• ▍Operating income +455,8% YoY
• ▍Net income +93,6% YoY
• ▍Free cash flow +152,2% YoY
• ▍Net margin 20.3%

Revenue TWD 18.14B, +30,1% YoY; Operating income +16,6% YoY.

• ▍Revenue TWD 18.14B, +30,1% YoY
• ▍Operating income +16,6% YoY
• ▍Net income +221,9% YoY
• ▍Free cash flow +50,8% YoY
• ▍Net margin 12.3%

Revenue TWD 17.89B, +12,6% YoY; Operating income +17,5% YoY.

• ▍Revenue TWD 17.89B, +12,6% YoY
• ▍Operating income +17,5% YoY
• ▍Net income −69,6% YoY
• ▍Free cash flow −86,7% YoY
• ▍Net margin 4.2%

Revenue TWD 13.84B, −16,3% YoY; Operating income −7,2% YoY.

• ▍Revenue TWD 13.84B, −16,3% YoY
• ▍Operating income −7,2% YoY
• ▍Net income −52,9% YoY
• ▍Free cash flow −200,6% YoY
• ▍Net margin 8.2%

Revenue TWD 12.57B; Operating income -TWD 937.3M.

• ▍Revenue TWD 12.57B
• ▍Operating income -TWD 937.3M
• ▍Net margin 19.0%

Revenue TWD 13.94B; Operating income TWD 1.22B.

• ▍Revenue TWD 13.94B
• ▍Operating income TWD 1.22B
• ▍Net margin 5.0%

Revenue TWD 15.89B; Operating income TWD 2.00B.

• ▍Revenue TWD 15.89B
• ▍Operating income TWD 2.00B
• ▍Net margin 15.4%

Revenue TWD 16.53B; Operating income TWD 1.25B.

• ▍Revenue TWD 16.53B
• ▍Operating income TWD 1.25B
• ▍Net margin 14.6%

Revenue TWD 72.66B, +23,3% YoY; Operating income +134,0% YoY.

• ▍Revenue TWD 72.66B, +23,3% YoY
• ▍Operating income +134,0% YoY
• ▍Net income +9,9% YoY
• ▍Free cash flow −38,1% YoY
• ▍Net margin 12.0%

Revenue TWD 58.94B, +22,2% YoY; Operating income −2,5% YoY.

• ▍Revenue TWD 58.94B, +22,2% YoY
• ▍Operating income −2,5% YoY
• ▍Net income +119,4% YoY
• ▍Free cash flow +296,8% YoY
• ▍Net margin 13.5%

Revenue TWD 48.22B, −20,0% YoY; Operating income −47,2% YoY.

• ▍Revenue TWD 48.22B, −20,0% YoY
• ▍Operating income −47,2% YoY
• ▍Net income −32,9% YoY
• ▍Free cash flow +1 980,9% YoY
• ▍Net margin 7.5%

Revenue TWD 60.26B, −3,7% YoY; Operating income −24,5% YoY.

• ▍Revenue TWD 60.26B, −3,7% YoY
• ▍Operating income −24,5% YoY
• ▍Net income −33,7% YoY
• ▍Free cash flow −103,8% YoY
• ▍Net margin 9.0%