Lite-On Technology Corp. (2301) AI Stock Analysis

Lite-On Technology Corp.

(TWSE:2301)

Select Model

Rating:54Neutral

Price Target:TWD 202.00▼(-11.40% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is constrained by a critical disconnect between strong reported profits and extremely weak cash flow generation, which is the most significant risk factor. This is compounded by a decisively bearish technical trend, with the stock price in a clear downtrend across all major moving averages and deeply oversold momentum indicators. The moderate valuation and decent dividend yield provide some support but are insufficient to offset the dominant financial and technical weaknesses.

Positive Factors

ProfitabilityLite-On combines current revenue growth with healthy and improving margins, indicating that its products retain meaningful economic value. Strong ROE also shows efficient use of shareholder capital, supporting internal investment and the potential for resilient earnings over the next several quarters.

Negative Factors

Weak Cash ConversionVery weak operating cash conversion means reported earnings are not currently translating into equivalent cash generation. Negative free cash flow can constrain self-funded investment, dividends, or debt reduction and raises the risk that earnings quality remains less durable over the coming quarters.

Lite-On Technology Corp. (2301) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 484.53B
Dividend Yield: 2.30%
Average Volume (3M): 21.87M
Price to Earnings (P/E): 24.4
Beta (1Y): 1.46
Revenue Growth: 23.65%
EPS Growth: 55.86%
Country: TW
Employees: 29,567
Sector: General
Sector Strength: 55
Industry: Computer Hardware

Lite-On Technology Corp. Business Overview & Revenue Model

Company Description

Lite-On Technology Corporation, operating globally through its various subsidiaries, specializes in the development, manufacturing, and distribution of computer software, hardware, peripherals, and a broad range of electronic components across Asia a...

Lite-On Technology Corp. Financial Statement Overview

Summary

Financial performance is mixed. The income statement shows a strong profitability rebound with expanding margins, but the balance sheet reflects rising leverage. Critically, the cash flow statement reveals a severe decline in operating cash and deeply negative free cash flow, indicating poor earnings quality. This cash flow weakness significantly drags down the overall financial health score.

Income Statement

78Positive

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	197.87B	166.08B	137.13B	148.33B	173.46B	164.83B
Gross Profit	48.25B	38.04B	29.63B	32.67B	33.26B	30.50B
EBITDA	30.02B	20.38B	21.18B	24.22B	23.10B	21.99B
Net Income	22.20B	15.11B	11.94B	14.57B	14.15B	13.89B
Balance Sheet
Total Assets	264.74B	205.69B	204.68B	188.97B	199.78B	183.54B
Cash, Cash Equivalents and Short-Term Investments	75.41B	81.98B	101.62B	93.34B	93.87B	69.06B
Total Debt	48.21B	24.33B	34.36B	26.79B	36.68B	29.53B
Total Liabilities	166.46B	115.71B	113.77B	103.90B	117.79B	110.67B
Stockholders Equity	97.45B	89.82B	90.77B	84.38B	81.36B	72.34B
Cash Flow
Free Cash Flow	-7.88B	7.87B	8.43B	23.46B	20.62B	8.24B
Operating Cash Flow	7.25B	14.73B	12.41B	27.27B	25.04B	12.16B
Investing Cash Flow	-22.83B	-7.49B	-4.84B	-3.34B	-4.52B	-3.10B
Financing Cash Flow	-1.65B	-23.13B	-3.35B	-22.05B	-2.23B	-11.78B

Lite-On Technology Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2301 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3533	70Outperform	TWD 198.06B	22.23	―	1.92%	12.66%	15.78%
TW:3665	67Neutral	TWD 305.35B	29.25	―	0.98%	33.39%	60.44%
TW:2385	64Neutral	TWD 63.95B	9.74	―	8.25%	-10.82%	-28.50%
TW:3706	60Neutral	TWD 102.99B	13.07	―	4.32%	50.91%	23.24%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3231	55Neutral	TWD 576.45B	14.16	22.15%	3.15%	104.89%	95.41%
TW:2301	54Neutral	TWD 515.76B	24.44	―	2.30%	23.65%	55.86%

* General Sector Average

Performance Comparison

TW:2301 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2301	Lite-On Technology Corp.	228.00	69.83	44.15%
TW:3231	Wistron Corporation	170.00	34.47	25.43%
TW:2385	Chicony Electronics Co. Ltd.	90.20	-29.84	-24.86%
TW:3533	Lotes Co., Ltd	1740.00	541.26	45.15%
TW:3665	BizLink Holding Inc.	1515.00	8.20	0.54%
TW:3706	MiTAC Holdings Corp.	65.30	-16.38	-20.05%

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: Nov 09, 2026

Lite-On Technology Corp. AI Stock Analysis