Tecom Co., Ltd. (2321) AI Stock Analysis
Tecom Co., Ltd.
(TWSE:2321)
Tecom's score is held back primarily by a high-risk financial profile: the company remains loss-making, carries roughly 3.0x debt-to-equity with equity at only about 16% of assets, and saw free cash flow turn negative in 2025 as operating cash flow collapsed to NT$2.8 million. Genuine green shoots exist — revenue returned to growth, gross margin has nearly doubled over five years, losses are narrowing, and leverage has been cut from 5.5x — but they have not yet converted into sustained profit. Technicals are the clear offset, with the price trading above all major moving averages and a positive MACD signalling momentum, though a stochastic above 81 hints the move may be near-term stretched. Valuation adds little support, with a 35.6x P/E against negative earnings and no dividend. The result is a below-average score that reflects a speculative turnaround where improving trends are not yet matched by financial durability.
Tecom Co., Ltd. (2321) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 502.08M
- Dividend Yield
- ―
- Average Volume (3M)
- 9,082
- Price to Earnings (P/E)
- 35.6
- Beta (1Y)
- 0.04
- Revenue Growth
- 2.67%
- EPS Growth
- ―
- Country
- TW
- Employees
- 790
- Sector
- General
- Sector Strength
- 55
- Industry
- Communication Equipment
Tecom Co., Ltd. Business Overview & Revenue Model
Company Description
Tecom Co., Ltd., established in 1980 and headquartered in Hsinchu City, Taiwan, is a leading provider and producer of telecommunications hardware. The company caters to a wide range of clients, encompassing corporate entities, telecommunication servi...
Tecom Co., Ltd. Financial Statement Overview
Summary
Tecom remains a work-in-progress turnaround. Revenue rebounded roughly 16% to NT$733 million in 2025 after three years of decline, and gross margin has expanded impressively from about 17% in 2020 to roughly 30%, while losses have narrowed for a third straight year. However, the company is still unprofitable at both the operating (-0.8% margin) and net (-1.7% margin) level, equity of NT$193 million represents only about 16% of assets against a 3.0x debt-to-equity ratio, and cash generation nearly dried up in 2025 with operating cash flow falling to NT$2.8 million and free cash flow turning negative. Deleveraging progress is encouraging, but the financial structure stays fragile until operating profit and cash flow recover.
Income Statement
36NegativeBalance Sheet
33NegativeCash Flow
28Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 734.17M | 732.51M | 631.41M | 804.03M | 1.01B | 1.07B |
| Gross Profit | 237.52M | 218.85M | 190.82M | 209.01M | 260.13M | 242.11M |
| EBITDA | 47.41M | 17.75M | 25.72M | 34.71M | 91.30M | 71.30M |
| Net Income | 1.20M | -12.25M | -14.69M | -36.81M | 32.59M | 17.99M |
Balance Sheet | ||||||
| Total Assets | 1.22B | 1.23B | 1.29B | 1.40B | 1.89B | 2.04B |
| Cash, Cash Equivalents and Short-Term Investments | 322.05M | 344.86M | 412.28M | 428.76M | 602.88M | 639.63M |
| Total Debt | 583.67M | 574.37M | 650.05M | 712.74M | 1.15B | 1.21B |
| Total Liabilities | 766.72M | 781.71M | 851.76M | 935.57M | 1.42B | 1.56B |
| Stockholders Equity | 188.79M | 192.66M | 199.30M | 205.62M | 211.07M | 226.46M |
Cash Flow | ||||||
| Free Cash Flow | -9.52M | -1.47M | 43.49M | 38.58M | 67.89M | -18.96M |
| Operating Cash Flow | -2.34M | 2.77M | 53.41M | 51.45M | 82.10M | -9.90M |
| Investing Cash Flow | 31.25M | -5.50M | 109.83M | 290.37M | 70.67M | 26.62M |
| Financing Cash Flow | -47.23M | -67.70M | -81.39M | -463.49M | -71.12M | 71.16M |
Tecom Co., Ltd. Peers Comparison
Overall Rating
TW:610344Neutral- TW:232144Neutral
TW:651243Neutral
TW:827743Neutral
TW:367235Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:6103 | 44Neutral | TWD 480.25M | 88.38 | ― | 0.53% | -4.14% | -100.17% |
| TW:2321 | 44Neutral | TWD 494.36M | 35.64 | ― | ― | 2.67% | ― |
| TW:6512 | 43Neutral | TWD 503.94M | -15.26 | ― | ― | -51.46% | -136.41% |
| TW:8277 | 43Neutral | TWD 525.35M | -36.96 | ― | ― | -50.82% | 41.49% |
| TW:3672 | 35Underperform | TWD 454.81M | -6.23 | ― | ― | -24.99% | 15.20% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2321 | Tecom Co., Ltd. | 30.65 | -2.26 | -6.88% | |
| TW:3672 | Connection Technology Systems, Inc. | 11.15 | -1.35 | -10.80% | |
| TW:6103 | Avid Electronics Corp. | 35.30 | -3.35 | -8.67% | |
| TW:6512 | GoMax Electronics, Inc. | 19.95 | -0.70 | -3.39% | |
| TW:8176 | Z-Com, Inc. | 10.55 | -1.68 | -13.73% | |
| TW:8277 | Unifosa Corp. | 13.30 | -20.68 | -60.86% |
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