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Microtek International, Inc. (2305) AI Stock Analysis

TW:2305

Microtek International, Inc.

(TWSE:2305)

Select Model
Rating:62Neutral
Price Target:TWD 45.00â–²(5.88% Upside)
Action:initiatedcoverage
Date:11/10/26

The strong balance sheet and positive cash generation are the main supports, but weak operating profitability and declining cash flow weigh on financial performance. Technical momentum is subdued, and the high P/E ratio limits the overall score.

Positive Factors
Margin ExpansionThe substantial improvement in gross margin indicates better economics on the company’s products and supports stronger earnings conversion. Combined with higher net profitability, this gives Microtek greater capacity to reinvest, compete, and absorb normal cost pressure over the next several quarters.
Negative Factors
Operating Profit VolatilityRepeatedly negative EBIT shows that core operations have not yet produced consistent profitability, even though net income remained positive. This weakens confidence in the durability of recent earnings improvement and may constrain the company’s ability to compound returns through its main business.

Microtek International, Inc. (2305) vs. SPDR S&P 500 ETF (SPY)

-100%0%100%200%300%400%500%600%TW:2305+293.52%SPY+14.30%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 8.33B
Dividend Yield
―
Average Volume (3M)
12.79M
Price to Earnings (P/E)
51.8
Beta (1Y)
1.35
Revenue Growth
40.37%
EPS Growth
―
Country
TW
Employees
461
Sector
General
Sector Strength
55
Industry
Computer Hardware

Microtek International, Inc. Business Overview & Revenue Model

Company Description

Microtek International, Inc., established in 1980 and headquartered in Hsinchu City, Taiwan, specializes in the development, production, and distribution of intelligent scanning devices and computer-related peripherals for markets in China and Taiwan...

Microtek International, Inc. Financial Statement Overview

Summary

Strong balance sheet with low leverage and substantial equity supports the score. Positive operating and free cash flow are additional strengths, but weak EBIT, sharply lower EBITDA, modest profitability, and declining free cash flow limit the rating.

Income Statement

62Positive

Balance Sheet

88Very Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.03B746.38M717.12M575.91M554.91M626.22M
Gross Profit442.83M297.11M261.13M175.65M152.48M204.70M
EBITDA192.55M30.49M111.54M91.63M88.36M100.50M
Net Income166.47M39.75M27.80M6.80M18.81M20.00M
Balance Sheet
Total Assets3.46B3.04B2.96B2.86B2.94B2.86B
Cash, Cash Equivalents and Short-Term Investments1.40B1.31B1.35B1.15B1.11B1.01B
Total Debt252.64M177.06M228.74M269.47M340.05M313.50M
Total Liabilities847.10M634.00M634.97M633.70M713.72M637.32M
Stockholders Equity2.44B2.29B2.25B2.17B2.18B2.17B
Cash Flow
Free Cash Flow181.18M136.70M206.73M124.11M54.61M-18.19M
Operating Cash Flow186.85M140.71M210.51M126.89M58.73M-10.36M
Investing Cash Flow-184.24M-89.73M5.96M-53.79M-33.08M83.16M
Financing Cash Flow38.11M-45.56M-51.15M-77.78M8.68M-38.56M

Microtek International, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:2305 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:3611TW:361168NeutralTWD 8.42B9.06―5.52%6.22%19.69%
TW:2305TW:230562NeutralTWD 9.26B51.83――40.37%―
TW:2414TW:241459NeutralTWD 8.50B10.81―6.22%35.65%43.54%
TW:3479TW:347959NeutralTWD 7.72B14.47―4.38%10.71%1.91%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:3059TW:305952NeutralTWD 10.74B29.01―2.71%6.61%1.93%
TW:2331TW:233151NeutralTWD 8.70B26.78―1.35%9.67%-52.16%

* General Sector Average

Performance Comparison

0%200%400%TW:2305TW:2331TW:2414TW:3059TW:3479TW:3611Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:2305 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:2305Microtek International, Inc.42.5031.50286.36%
TW:2331Elitegroup Computer Systems Co., Ltd.15.35-5.15-25.12%
TW:2414Unitech Computer Co., Ltd.48.008.9823.02%
TW:3059Altek Corporation36.80-4.40-10.68%
TW:3479Avalue Technology Inc.105.506.726.80%
TW:3611TSC Auto ID Technology Co., Ltd.181.00-10.03-5.25%
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