Rectron Ltd. AI Stock Analysis
Rectron Ltd. (2302) AI Stock Analysis
Rectron Ltd.
(TWSE:2302)
Rectron scores in the lower-middle range. Its greatest strength is a fortress balance sheet — virtually debt-free with ~69% equity funding — which comfortably supports a year of heavy capital investment. However, this is offset by deteriorating profitability (net income down ~35%, net margin down to 9.7%), negative free cash flow of NT$113 million, and a low 4.5% return on equity. Technicals reinforce caution, with the share price trading well below its 20-, 50- and 100-day moving averages and a negative MACD, although oversold RSI and Stochastic readings hint at the potential for a near-term rebound. Valuation adds further risk: a 35x P/E and a modest 1.0% dividend yield leave little margin for error until the current capital spending cycle translates into stronger earnings and cash generation.
Rectron Ltd. (2302) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 6.59B
- Dividend Yield
- 0.87%
- Average Volume (3M)
- 4.14M
- Price to Earnings (P/E)
- 37.3
- Beta (1Y)
- 1.27
- Revenue Growth
- 14.66%
- EPS Growth
- 124.79%
- Country
- TW
- Employees
- 671
- Sector
- General
- Sector Strength
- 55
- Industry
- Semiconductors
Rectron Ltd. Business Overview & Revenue Model
Company Description
Rectron Limited, headquartered in New Taipei City, Taiwan, is a company established in 1976 that specializes in the global production and distribution of discrete semiconductor devices. Its extensive product catalog offers a diverse range of essentia...
Rectron Ltd. Financial Statement Overview
Summary
A mixed picture. The balance sheet is excellent (score 86): total debt has fallen to just NT$4.4 million, debt-to-equity is effectively zero, and equity funds ~69% of assets, giving Rectron substantial financial flexibility. However, the income statement (57) shows margin compression — operating margin fell to 13.9% from 20.6% and net margin to 9.7% from 16.6%, with net income down ~35% to NT$82 million despite revenue growth to NT$846 million and stable ~36-39% gross margins. Cash flow is the weakest link (42): operating cash flow halved to NT$98 million and free cash flow swung to negative NT$113 million on roughly NT$211 million of capital spending. Return on equity of 4.5% indicates a safe but under-utilized capital base.
Income Statement
57NeutralBalance Sheet
86Very PositiveCash Flow
42Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 936.53M | 845.77M | 757.46M | 716.54M | 877.63M | 745.85M |
| Gross Profit | 327.29M | 309.80M | 276.04M | 257.40M | 343.85M | 251.63M |
| EBITDA | 216.24M | 169.18M | 207.96M | 161.71M | 228.53M | 150.07M |
| Net Income | 178.25M | 81.87M | 125.53M | 86.87M | 176.10M | 84.97M |
Balance Sheet | ||||||
| Total Assets | 2.80B | 2.61B | 2.65B | 2.33B | 2.15B | 2.15B |
| Cash, Cash Equivalents and Short-Term Investments | 804.26M | 700.19M | 696.97M | 596.22M | 271.62M | 188.16M |
| Total Debt | 2.81M | 4.44M | 7.90M | 22.52M | 36.79M | 121.18M |
| Total Liabilities | 958.80M | 797.99M | 811.75M | 558.71M | 304.98M | 349.89M |
| Stockholders Equity | 1.84B | 1.81B | 1.83B | 1.78B | 1.85B | 1.80B |
Cash Flow | ||||||
| Free Cash Flow | 112.56M | -112.75M | 153.05M | 137.42M | 296.48M | -17.36M |
| Operating Cash Flow | 144.75M | 98.48M | 197.22M | 143.57M | 328.96M | 44.43M |
| Investing Cash Flow | -83.35M | -114.58M | -110.90M | 355.16M | -66.13M | -81.92M |
| Financing Cash Flow | -99.58M | -99.52M | -69.15M | -153.95M | -189.36M | -94.53M |
Rectron Ltd. Peers Comparison
Overall Rating
TW:316971Outperform
TW:369467Neutral- TW:230254Neutral
TW:355845Neutral
TW:306243Neutral
TW:805439Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:3169 | 71Outperform | TWD 5.84B | 24.14 | ― | 3.45% | 4.81% | 4.09% |
| TW:3694 | 67Neutral | TWD 6.47B | 10.10 | ― | 5.69% | 15.44% | 18.33% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:2302 | 54Neutral | TWD 6.71B | 37.34 | ― | 0.87% | 14.66% | 124.79% |
| TW:3558 | 45Neutral | TWD 6.20B | 50.48 | ― | 2.90% | -3.32% | -69.25% |
| TW:3062 | 43Neutral | TWD 6.39B | -9.39 | ― | ― | -1.21% | -212.49% |
| TW:8054 | 39Underperform | TWD 7.00B | -73.04 | ― | ― | 109.58% | 74.96% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2302 | Rectron Ltd. | 40.05 | 21.14 | 111.79% | |
| TW:3062 | CyberTAN Technology, Inc. | 18.60 | -7.60 | -29.01% | |
| TW:3169 | Asix Electronics Co. Ltd. | 92.80 | 5.32 | 6.08% | |
| TW:3558 | Senao Networks, Inc. | 103.50 | -30.83 | -22.95% | |
| TW:3694 | AzureWave Technologies, Inc. | 40.45 | -23.47 | -36.72% | |
| TW:8054 | Alcor Micro Corp. | 65.70 | -69.74 | -51.49% |
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