Asustek Computer Inc. Sponsored GDR RegS (ASUUY) AI Stock Analysis

Asustek Computer Inc. Sponsored GDR RegS

(Other OTC:ASUUY)

Select Model

Rating:66Neutral

Price Target:$175.00▲(25.93% Upside)

Action:downgraded

Date:08/19/26

The overall score of 66 reflects a company with strong market momentum and attractive valuation, but with significant underlying financial risks. The most impactful positive factors are the bullish technical trend and the low P/E ratio combined with a high dividend yield. The most significant risk, and the primary drag on the score, is the severe cash flow deterioration, where strong reported earnings are not translating into cash generation, raising concerns about the sustainability of growth and dividends if the trend persists.

Positive Factors

Renewed Revenue GrowthThe return to solid top-line growth indicates renewed demand across ASUS’s computing and electronics portfolio. Sustained expansion can improve scale, support product investment, and strengthen channel relevance over the next several quarters if growth remains broad-based.

Negative Factors

Negative Cash GenerationNegative operating and free cash flow weakens the quality of reported earnings and can constrain funding for product investment, dividends, or debt reduction. Because cash conversion has reversed from positive prior periods, working-capital normalization is important to financial durability.

Asustek Computer Inc. Sponsored GDR RegS (ASUUY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $20.80B
Dividend Yield: 4.18%
Average Volume (3M): ―
Price to Earnings (P/E): 13.2
Beta (1Y): 0.48
Revenue Growth: 36.51%
EPS Growth: 42.71%
Country: US
Employees: 25,459
Sector: Technology
Sector Strength: 61
Industry: Computer Hardware

Asustek Computer Inc. Sponsored GDR RegS Business Overview & Revenue Model

Company Description

Founded in 1989 and based in Taipei, Taiwan, ASUSTeK Computer Inc. is a global technology leader involved in the research, development, design, manufacturing, sales, and repair of a diverse range of computers, communication devices, and consumer elec...

How the Company Makes Money

ASUS primarily makes money by selling branded hardware products through a global mix of distributors, resellers/retailers, e-commerce channels, and direct/enterprise-oriented sales depending on product line and region. Its key revenue streams are (1)...

Asustek Computer Inc. Sponsored GDR RegS Earnings Call Summary

Earnings Call Date:Nov 10, 2025(Q3-2025)|% Change Since:36.43%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

The earnings call presented a strong performance driven by record revenue, growth in AI servers, and gaming segment success. However, challenges such as anticipated shipment declines in Q4, macroeconomic uncertainties, and a surge in memory prices were acknowledged.

Positive Updates

Record-Breaking Revenue and Growth

ASUS achieved brand revenue of TWD 189.9 billion, marking a 21% year-over-year increase and an all-time high for a single quarter.

Negative Updates

Quarter 4 Shipment Decline

Expected quarter 4 PC shipments to decline 10% to 15% quarter-over-quarter, with components and servers potentially falling 5% to 10%.

Company Guidance

During the ASUS Quarter 3 2025 Online Investor Conference, CFO Nick Wu reported a record high ASUS brand revenue of TWD 189.9 billion, marking a 21% year-over-year growth. This impressive performance was primarily driven by the enterprise-related segments such as servers and commercial PCs. Operating income reached TWD 8.4 billion, with net income at TWD 10.5 billion, translating to a quarterly EPS of TWD 14.2. Gross margin improved to 12.9%, with an operating margin of 4.4%, supported by stable tariffs and exchange rates. ASUS achieved total nonoperating income of TWD 3.7 billion, with interest income at TWD 600 million, investment gains at TWD 1.06 billion, FX gains at TWD 1.2 billion, and dividend income at TWD 960 million. Cash and cash equivalents stood at roughly TWD 62 billion, with an inventory turnover averaging 98 days and a cash conversion cycle of around 102 days. Looking ahead to quarter 4, ASUS anticipates a 10% to 15% quarter-over-quarter decline in PC shipments, while components and server shipments may fall 5% to 10% quarter-on-quarter. However, year-on-year growth is expected to remain strong, with potential annual growth momentum anchored by upcoming cycles in AI PCs, gaming, the commercial segment, and servers.

Asustek Computer Inc. Sponsored GDR RegS Financial Statement Overview

Summary

Financial performance is mixed. Strong revenue growth and high return on equity (18.2%) are positives, but these are offset by a declining gross margin (15.6% TTM) and a critical cash flow problem. The TTM period shows deeply negative operating and free cash flow, indicating poor earnings quality as reported profits are not converting to cash.

Income Statement

72Positive

Balance Sheet

65Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	871.23B	742.95B	587.09B	482.31B	537.19B	535.23B
Gross Profit	136.49B	112.23B	103.47B	72.39B	72.37B	108.65B
EBITDA	59.63B	42.87B	45.82B	25.56B	25.00B	52.20B
Net Income	50.91B	44.80B	31.39B	15.93B	14.69B	44.55B
Balance Sheet
Total Assets	874.36B	629.88B	556.52B	480.08B	471.16B	504.15B
Cash, Cash Equivalents and Short-Term Investments	93.09B	98.91B	102.37B	82.30B	74.88B	73.82B
Total Debt	103.41B	31.68B	27.44B	17.97B	50.43B	11.01B
Total Liabilities	542.17B	333.15B	259.33B	221.10B	244.28B	257.72B
Stockholders Equity	303.38B	267.54B	269.54B	239.82B	212.38B	232.33B
Cash Flow
Free Cash Flow	-79.36B	30.55B	5.47B	50.05B	-17.47B	30.51B
Operating Cash Flow	-76.99B	32.81B	8.03B	52.09B	-15.72B	32.69B
Investing Cash Flow	3.26B	-15.43B	-3.19B	2.21B	-4.12B	-6.67B
Financing Cash Flow	51.98B	-21.32B	4.81B	-45.24B	6.82B	-17.37B

Asustek Computer Inc. Sponsored GDR RegS Technical Analysis

Technical Analysis SentimentNeutral

Last Price138.97

Price Trends

50DMA150.91Negative

100DMA135.27Positive

200DMA112.43Positive

Market Momentum

MACD-1.96Positive

RSI38.47Neutral

STOCH5.15Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASUUY, the sentiment is Neutral. The current price of 138.97 is below the 20-day moving average (MA) of 149.83, below the 50-day MA of 150.91, and above the 200-day MA of 112.43, indicating a neutral trend. The MACD of -1.96 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 5.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASUUY.

Asustek Computer Inc. Sponsored GDR RegS Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

ASUUY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRSR	75Outperform	$1.36B	40.18	5.52%	―	3.11%	―
HPE	74Outperform	$73.13B	27.41	10.87%	1.03%	26.63%	130.65%
SMCI	73Outperform	$21.65B	9.03	25.08%	―	77.79%	104.60%
DELL	70Outperform	$269.78B	24.25	-574.57%	0.57%	48.86%	152.40%
ASUUY	66Neutral	$20.60B	13.24	18.24%	4.18%	36.51%	42.71%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	59Neutral	$25.95B	10.86	-727.30%	4.17%	8.67%	-4.70%

* Technology Sector Average

Performance Comparison

ASUUY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ASUUY	Asustek Computer Inc. Sponsored GDR RegS	138.97	32.96	31.09%
HPQ	HP Inc	28.43	3.75	15.19%
SMCI	Super Micro Computer	30.44	-16.96	-35.78%
HPE	Hewlett Packard Enterprise	51.19	28.05	121.18%
DELL	Dell Technologies	392.78	239.75	156.68%
CRSR	Corsair Gaming, Inc.	12.60	5.08	67.55%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 19, 2026

Asustek Computer Inc. Sponsored GDR RegS AI Stock Analysis