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Hon Hai Precision Industry Co (2317) AI Stock Analysis

TW:2317

Hon Hai Precision Industry Co

(TWSE:2317)

Select Model
Rating:58Neutral
Price Target:TWD 233.00â–¼(-3.52% Downside)
Action:initiatedcoverage
Date:11/08/26

The score is mainly supported by improving financial performance (rebounding revenue and steady returns on equity) and reasonable valuation with a solid dividend yield. This is offset by the most significant risk factors: volatile cash-flow generation (notably weaker free cash flow in 2025) and weak technicals, with the stock in a downtrend despite oversold readings.

Positive Factors
Revenue ReboundThe return to stronger revenue growth indicates renewed demand across Hon Hai's business base and improves operating leverage potential. Sustained top-line expansion would support capacity utilization, investment in newer initiatives, and continued development of the company's global manufacturing platform.
Negative Factors
Structurally Thin MarginsPersistently thin gross and net margins leave limited protection against pricing pressure, volume weakness, or operating inefficiency. Even when revenue grows, modest changes in product mix or execution can have an outsized effect on earnings, making profitability less resilient than the company's scale might suggest.

Hon Hai Precision Industry Co (2317) vs. SPDR S&P 500 ETF (SPY)

-30%-20%-10%0%10%20%30%TW:2317+3.19%SPY+12.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 45.83B
Dividend Yield
2.97%
Average Volume (3M)
39.35M
Price to Earnings (P/E)
15.9
Beta (1Y)
1.04
Revenue Growth
25.43%
EPS Growth
16.04%
Country
TW
Employees
826,608
Sector
Technology
Sector Strength
61
Industry
Hardware, Equipment & Parts

Hon Hai Precision Industry Co Business Overview & Revenue Model

Company Description

Hon Hai Precision Industry Co., Ltd., established in 1974 and headquartered in New Taipei City, Taiwan, operates as a global provider of technology solutions. Its extensive reach encompasses Japan, Ireland, the United States, Singapore, China, Taiwan...

How the Company Makes Money

Hon Hai primarily makes money by providing contract manufacturing and related supply-chain services to brand owners and technology companies. Its main revenue stream comes from building and assembling finished electronic devices and systems (and in s...

Hon Hai Precision Industry Co Financial Statement Overview

Summary

Strong revenue rebound and improving operating profitability support the score, and leverage remains generally manageable. However, profitability is structurally thin (low gross and net margins) and cash generation is the key weakness due to highly volatile operating cash flow and a sharp contraction in free cash flow in 2025.

Income Statement

74Positive

Balance Sheet

70Positive

Cash Flow

54Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue9.31T8.10T6.86T6.16T6.63T5.99T
Gross Profit569.60B498.16B428.95B387.95B400.09B362.13B
EBITDA467.42B428.75B342.47B355.55B298.71B272.61B
Net Income219.82B189.35B152.71B142.10B141.48B139.32B
Balance Sheet
Total Assets5.62T5.10T4.39T3.94T4.13T3.91T
Cash, Cash Equivalents and Short-Term Investments1.53T1.60T1.32T1.35T1.08T1.11T
Total Debt1.35T1.29T961.56B943.25B975.12B912.36B
Total Liabilities3.50T3.13T2.54T2.25T2.48T2.33T
Stockholders Equity1.91T1.77T1.65T1.49T1.45T1.38T
Cash Flow
Free Cash Flow-38.58B75.49B21.99B326.60B8.05B-192.71B
Operating Cash Flow139.52B249.30B166.03B445.55B109.71B-98.21B
Investing Cash Flow-319.19B-351.35B-300.05B-137.87B-45.44B-92.08B
Financing Cash Flow169.93B200.52B-164.07B-160.64B-87.87B24.28B

Hon Hai Precision Industry Co Technical Analysis

Technical Analysis SentimentPositive
Last Price241.50

Price Trends

50DMA247.96Negative
100DMA248.24Negative
200DMA235.71Positive

Market Momentum

MACD-2.99Positive
RSI47.97Neutral
STOCH54.88Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TW:2317, the sentiment is Positive. The current price of 241.50 is below the 20-day moving average (MA) of 242.80, below the 50-day MA of 247.96, and above the 200-day MA of 235.71, indicating a neutral trend. The MACD of -2.99 indicates Positive momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 54.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TW:2317.

Hon Hai Precision Industry Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

TW:2317 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
TW:2317TW:231758NeutralTWD 3.40T15.8812.39%2.97%25.43%16.04%

* Technology Sector Average

Performance Comparison

-20%-10%0%10%20%TW:2317Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:2317 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:2317Hon Hai Precision Industry Co 241.50-3.21-1.31%
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 08, 2026