Yageo Corp

Yageo Corp maintains a capital structure with a debt-to-equity ratio of 1.0, indicating a balanced mix of debt and equity financing. The company's liquidity position is characterized as medium, with a current ratio of 1.24, suggesting it can cover its short-term obligations but with limited buffer. Free cash flow stands at 7,047.66 million TWD, which is a positive sign for operational efficiency and financial flexibility.

In terms of profitability, Yageo's return on equity (ROE) is 3.78%, and its return on assets (ROA) is 1.52%. These figures are below the industry median for ROE and ROA, indicating that the company is underperforming relative to its peers in terms of generating returns from equity and assets.

Yageo's revenue is primarily derived from the sale of electronic components, with a significant portion attributed to the Asia-Pacific region. The company's revenue concentration in this region exposes it to regional economic fluctuations and geopolitical risks. There is no detailed breakdown of revenue by segment or geography in the provided data, but the company's exposure to the electronics manufacturing sector is evident.

The company's growth trajectory is expected to remain stable, with no significant changes in revenue forecasted for the current fiscal year. The absence of a detailed outlook for the next fiscal year suggests that the company may not be experiencing rapid growth or contraction. The company's capital expenditure of -2,778.49 million TWD indicates a reduction in investment in physical assets, which could be a strategic move to preserve cash or a sign of reduced expansion plans.

Yageo's risk assessment indicates a medium liquidity risk and a low dilution risk. The company's net cash position is negative after subtracting total debt, which could pose a challenge in maintaining liquidity if cash flow from operations were to decline. The company's dilution risk is low, suggesting that there is little likelihood of a significant increase in shares outstanding that could dilute existing shareholders' equity.

Recent events and filings do not indicate any major changes in the company's operations or financial strategy. The company's recent financial performance and analyst estimates suggest a generally positive outlook, with a mean price target of 393.00 TWD and a median price target of 379.50 TWD. The absence of recent transcripts or filings with material implications suggests that the company is operating in a stable environment.

Operating and net margins are best-in-class, significantly exceeding the Electronic Equipment & Parts cohort medians of 4.1% and 3.5%.

Free cash flow is projected to grow 23.3% year-over-year to TWD 17.0 billion in fiscal 2026.

Cash conversion ratio of 2.22 places the company in the top quartile of its 466-firm peer cohort.

Net income is forecast to increase 22.1% year-over-year to TWD 23.6 billion in fiscal 2026.

Return on equity of 3.78% exceeds the cohort median of 2.42%, indicating above-average capital efficiency.

Debt-to-equity ratio of 1.0 places the company in the bottom quartile of its 487-firm peer cohort.

Long-term debt is projected to rise to TWD 150.9 billion in fiscal 2026, up from TWD 92.2 billion in 2022.

The company carries a high credit risk flag, signaling potential concerns regarding its ability to meet financial obligations.

Revenue growth has been sluggish, with a four-year CAGR of only 2.1% from fiscal 2022 to 2026.

Revenue TWD 38.17B, +22,7% YoY; Operating income +48,7% YoY.

• ▍Revenue TWD 38.17B, +22,7% YoY
• ▍Operating income +48,7% YoY
• ▍Net income +44,7% YoY
• ▍Free cash flow +39,3% YoY
• ▍Net margin 21.0%

Revenue TWD 35.97B, +19,9% YoY; Operating income +55,4% YoY.

• ▍Revenue TWD 35.97B, +19,9% YoY
• ▍Operating income +55,4% YoY
• ▍Net income +85,2% YoY
• ▍Free cash flow +71,5% YoY
• ▍Net margin 18.8%

Revenue TWD 33.09B, +4,2% YoY; Operating income +14,3% YoY.

• ▍Revenue TWD 33.09B, +4,2% YoY
• ▍Operating income +14,3% YoY
• ▍Net income +12,9% YoY
• ▍Free cash flow +28,4% YoY
• ▍Net margin 19.2%

Revenue TWD 32.77B, +4,3% YoY; Operating income +9,0% YoY.

• ▍Revenue TWD 32.77B, +4,3% YoY
• ▍Operating income +9,0% YoY
• ▍Net income −8,0% YoY
• ▍Free cash flow −20,4% YoY
• ▍Net margin 15.3%

Revenue TWD 31.10B; Operating income TWD 6.46B.

• ▍Revenue TWD 31.10B
• ▍Operating income TWD 6.46B
• ▍Net margin 17.8%

Revenue TWD 30.01B; Operating income TWD 5.62B.

• ▍Revenue TWD 30.01B
• ▍Operating income TWD 5.62B
• ▍Net margin 12.2%

Revenue TWD 31.74B; Operating income TWD 6.62B.

• ▍Revenue TWD 31.74B
• ▍Operating income TWD 6.62B
• ▍Net margin 17.7%

Revenue TWD 31.42B; Operating income TWD 6.46B.

• ▍Revenue TWD 31.42B
• ▍Operating income TWD 6.46B
• ▍Net margin 17.3%

Revenue TWD 132.93B, +9,3% YoY; Operating income +26,2% YoY.

• ▍Revenue TWD 132.93B, +9,3% YoY
• ▍Operating income +26,2% YoY
• ▍Net income +22,1% YoY
• ▍Free cash flow +23,3% YoY
• ▍Net margin 17.8%

Revenue TWD 121.67B, +13,1% YoY; Operating income +15,1% YoY.

• ▍Revenue TWD 121.67B, +13,1% YoY
• ▍Operating income +15,1% YoY
• ▍Net income +11,1% YoY
• ▍Free cash flow +165,1% YoY
• ▍Net margin 15.9%

Revenue TWD 107.61B, −11,1% YoY; Operating income −28,9% YoY.

• ▍Revenue TWD 107.61B, −11,1% YoY
• ▍Operating income −28,9% YoY
• ▍Net income −23,3% YoY
• ▍Free cash flow −53,3% YoY
• ▍Net margin 16.2%

Revenue TWD 121.09B, −0,9% YoY; Operating income +5,8% YoY.

• ▍Revenue TWD 121.09B, −0,9% YoY
• ▍Operating income +5,8% YoY
• ▍Net income −0,8% YoY
• ▍Free cash flow −14,0% YoY
• ▍Net margin 18.8%