Ritek Corporation AI Stock Analysis
Ritek Corporation (2349) AI Stock Analysis
Ritek Corporation
(TWSE:2349)
Ritek scores poorly overall, driven primarily by a fragile financial profile: recurring losses, margin compression, a collapse in operating cash flow to NT$83 million, and deeply negative free cash flow of -NT$1.71 billion being funded by rising debt that pushed leverage to roughly 1.3 times a shrinking equity base. Technical signals reinforce the caution, with the price below all key moving averages and negative MACD, though oversold RSI and Stochastic readings hint at scope for a short-term bounce. Valuation provides no offset given negative earnings and no dividend. A sustained recovery in margins and a return to positive free cash flow would be the key signposts for improvement.
Ritek Corporation (2349) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 6.71B
- Dividend Yield
- ―
- Average Volume (3M)
- 1.90M
- Price to Earnings (P/E)
- -101.5
- Beta (1Y)
- 0.78
- Revenue Growth
- -0.59%
- EPS Growth
- ―
- Country
- TW
- Employees
- 536
- Sector
- General
- Sector Strength
- 55
- Industry
- Computer Hardware
Ritek Corporation Business Overview & Revenue Model
Company Description
RITEK Corporation, established in 1957 and based in Hsinchu City, Taiwan, is a diversified global enterprise. The company is a key manufacturer and distributor of optical storage media, such as CDs, DVDs, and Blu-ray discs, serving markets across Tai...
Ritek Corporation Financial Statement Overview
Summary
Ritek's financials are the weakest part of the story. Revenue has stagnated around NT$7.3–7.7 billion for years, gross margin compressed from roughly 18% to 13.7%, and the company swung to an operating loss of NT$109 million and a net loss of NT$247 million — losses in five of the last six years. The balance sheet is deteriorating, with equity eroding to NT$5.40 billion while total debt jumped from NT$5.31 billion to NT$7.01 billion, lifting debt-to-equity to about 1.30 and leaving ROE negative at -4.6%. Cash flow is the most concerning: operating cash flow collapsed to NT$83 million from NT$870 million, and free cash flow was deeply negative at -NT$1.71 billion on heavy capital spending funded by new borrowing. Mitigating factors are a large NT$18.2 billion asset base, still-positive operating cash flow and EBITDA of NT$325 million, and losses far below the 2020 trough.
Income Statement
25NegativeBalance Sheet
36NegativeCash Flow
20Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.31B | 7.49B | 7.26B | 7.63B | 7.74B | 7.48B |
| Gross Profit | 1.09B | 1.03B | 1.30B | 1.20B | 1.32B | 1.19B |
| EBITDA | 451.46M | 325.44M | 1.11B | 911.61M | 1.09B | 1.11B |
| Net Income | -62.49M | -246.73M | 46.75M | -303.31M | -68.15M | -126.13M |
Balance Sheet | ||||||
| Total Assets | 18.46B | 18.23B | 17.04B | 18.87B | 19.67B | 19.24B |
| Cash, Cash Equivalents and Short-Term Investments | 3.20B | 4.01B | 4.27B | 5.15B | 4.73B | 4.50B |
| Total Debt | 6.50B | 7.01B | 5.31B | 6.90B | 7.11B | 6.81B |
| Total Liabilities | 8.48B | 8.84B | 7.40B | 8.65B | 9.04B | 8.74B |
| Stockholders Equity | 5.61B | 5.40B | 5.69B | 5.45B | 5.83B | 5.83B |
Cash Flow | ||||||
| Free Cash Flow | -1.14B | -1.71B | -663.05M | 636.86M | 106.37M | 194.69M |
| Operating Cash Flow | 596.51M | 82.62M | 869.62M | 1.06B | 727.64M | 455.81M |
| Investing Cash Flow | -2.59B | -2.48B | -2.50B | -235.50M | -559.63M | -237.68M |
| Financing Cash Flow | 431.59M | 1.67B | 768.31M | -432.34M | -41.20M | -695.53M |
Ritek Corporation Peers Comparison
Overall Rating
TW:362272Outperform
TW:686163Neutral
TW:344161Neutral
TW:350446Neutral- TW:234931Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:3622 | 72Outperform | TWD 6.11B | 7.91 | ― | 7.97% | 7.76% | 5.37% |
| TW:6861 | 63Neutral | TWD 7.45B | 22.89 | ― | 1.10% | 40.99% | 129.85% |
| TW:3441 | 61Neutral | TWD 7.01B | 75.92 | ― | 0.47% | 26.87% | 117.51% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:3504 | 46Neutral | TWD 6.38B | 1375.00 | ― | ― | 6.51% | -89.54% |
| TW:2349 | 31Underperform | TWD 6.76B | -101.47 | ― | ― | -0.59% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2349 | Ritek Corporation | 9.63 | 0.21 | 2.23% | |
| TW:3441 | Unique Opto-Electronics Co.,Ltd | 179.00 | 146.71 | 454.37% | |
| TW:3504 | Young Optics Inc. | 57.00 | 5.00 | 9.62% | |
| TW:3622 | Young Fast Optoelectronics Co., Ltd | 40.15 | -23.59 | -37.01% | |
| TW:6861 | InnoCare Optoelectronics Corp. | 181.50 | 122.49 | 207.58% | |
| TW:7926 | Chunghwa Leading Photonics Tech Co., Ltd. | 427.00 | -310.00 | -42.06% |
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