Realtek Semiconductor Corp

Realtek Semiconductor Corp maintains a conservative capital structure with a debt-to-equity ratio of 0.13, indicating a low reliance on debt financing. The company's liquidity position is strong, as evidenced by a current ratio of 1.6 and cash and equivalents of 6,363,040,000 TWD. This liquidity provides a buffer against short-term obligations and supports operational flexibility.

In terms of profitability, Realtek's return on equity (ROE) of 6.58% and return on assets (ROA) of 3.13% suggest moderate returns relative to its equity and asset base. These figures are in line with industry norms, indicating that the company is generating returns consistent with its peers. The gross profit margin of 50.8% and operating margin of 10.7% further support the company's ability to maintain profitability in a competitive market.

Geographically, Realtek's revenue is concentrated in a few key markets, with a significant portion derived from Asia. The company's exposure to this region is a strategic advantage given the high demand for semiconductors in consumer electronics and telecommunications. However, this concentration also introduces potential risks related to regional economic fluctuations and geopolitical tensions.

Realtek's growth trajectory is supported by a strong operating cash flow of 4,419,317,000 TWD and a free cash flow of 2,312,601,000 TWD. These figures indicate the company's ability to fund operations and invest in future growth. The capital expenditure of -1,604,376,000 TWD suggests a focus on optimizing existing assets rather than aggressive expansion.

The risk assessment for Realtek indicates low liquidity and dilution risks, with no immediate filing-based flags detected. The company's conservative debt levels and strong cash reserves mitigate the risk of financial distress. Additionally, the absence of dilution potential in the near term supports investor confidence in the company's capital structure.

Recent events, including analyst estimates and price targets, suggest a positive outlook for Realtek. The mean price target of 588.80 TWD and median price target of 590.00 TWD reflect analyst confidence in the company's future performance. The mean recommendation of 2.30, with a strong-buy count of 5 and a buy count of 4, further supports this positive sentiment.

Revenue grew 8.2% year-over-year to TWD 122.7 billion in fiscal 2026, demonstrating top-line expansion.

A debt-to-equity ratio of 0.13 is well below the 0.24 cohort median, reflecting a conservative capital structure.

Cash conversion of 1.41 exceeds the 0.91 cohort median, highlighting efficient working capital management.

Net income declined 3.5% year-over-year to TWD 14.8 billion, despite revenue growth, indicating margin compression.

Net income CAGR of -3.3% over four years suggests a long-term trend of declining profitability.

Return on equity of 6.6% lags significantly behind peer NVIDIA's 29.8%, indicating lower capital efficiency.

Revenue TWD 26.28B, −0,2% YoY; Operating income −17,4% YoY.

• ▍Revenue TWD 26.28B, −0,2% YoY
• ▍Operating income −17,4% YoY
• ▍Net income −21,9% YoY
• ▍Free cash flow −36,0% YoY
• ▍Net margin 10.1%

Revenue TWD 29.49B, −4,1% YoY; Operating income −20,2% YoY.

• ▍Revenue TWD 29.49B, −4,1% YoY
• ▍Operating income −20,2% YoY
• ▍Net income −21,6% YoY
• ▍Free cash flow −12,1% YoY
• ▍Net margin 11.6%

Revenue TWD 31.91B, +4,0% YoY; Operating income +0,9% YoY.

• ▍Revenue TWD 31.91B, +4,0% YoY
• ▍Operating income +0,9% YoY
• ▍Net income −10,9% YoY
• ▍Free cash flow −19,9% YoY
• ▍Net margin 12.2%

Revenue TWD 35.02B, +36,7% YoY; Operating income +78,8% YoY.

• ▍Revenue TWD 35.02B, +36,7% YoY
• ▍Operating income +78,8% YoY
• ▍Net income +52,1% YoY
• ▍Free cash flow +79,0% YoY
• ▍Net margin 13.6%

Revenue TWD 26.34B; Operating income TWD 2.83B.

• ▍Revenue TWD 26.34B
• ▍Operating income TWD 2.83B
• ▍Net margin 12.9%

Revenue TWD 30.75B; Operating income TWD 3.91B.

• ▍Revenue TWD 30.75B
• ▍Operating income TWD 3.91B
• ▍Net margin 14.2%

Revenue TWD 30.67B; Operating income TWD 3.97B.

• ▍Revenue TWD 30.67B
• ▍Operating income TWD 3.97B
• ▍Net margin 14.3%

Revenue TWD 25.62B; Operating income TWD 2.74B.

• ▍Revenue TWD 25.62B
• ▍Operating income TWD 2.74B
• ▍Net margin 12.2%

Revenue TWD 122.71B, +8,2% YoY; Operating income +6,8% YoY.

• ▍Revenue TWD 122.71B, +8,2% YoY
• ▍Operating income +6,8% YoY
• ▍Net income −3,5% YoY
• ▍Free cash flow −89,1% YoY
• ▍Net margin 12.0%

Revenue TWD 113.39B, +19,1% YoY; Operating income +102,1% YoY.

• ▍Revenue TWD 113.39B, +19,1% YoY
• ▍Operating income +102,1% YoY
• ▍Net income +67,1% YoY
• ▍Free cash flow +226,2% YoY
• ▍Net margin 13.5%

Revenue TWD 95.18B, −14,9% YoY; Operating income −57,7% YoY.

• ▍Revenue TWD 95.18B, −14,9% YoY
• ▍Operating income −57,7% YoY
• ▍Net income −43,5% YoY
• ▍Free cash flow −1 124,9% YoY
• ▍Net margin 9.6%

Revenue TWD 111.79B, +6,0% YoY; Operating income −9,2% YoY.

• ▍Revenue TWD 111.79B, +6,0% YoY
• ▍Operating income −9,2% YoY
• ▍Net income −3,9% YoY
• ▍Free cash flow −93,8% YoY
• ▍Net margin 14.5%