Solomon Technology Corp. (2359) AI Stock Analysis

Solomon Technology Corp.

(TWSE:2359)

Select Model

Rating:53Neutral

Price Target:TWD 94.00▼(-5.24% Downside)

Action:initiatedcoverage

Date:11/09/26

Solomon Technology scores in the below-average range. The dominant driver is mixed financial performance: a conservatively financed, low-leverage balance sheet and a visible revenue and free cash flow recovery are undermined by an operating margin of just ~1.6%, earnings that rely partly on non-operating items, and a modest 3.7% return on equity. Technicals weigh further on the score, with the price trading well beneath all major moving averages and a deeply negative MACD signalling a sustained downtrend. Valuation provides partial offset — a P/E of 14.3 is reasonable and a 1.07% yield adds modest income — but with thin and volatile core profitability, the discount appears to reflect genuine operational risk rather than a clear mispricing.

Positive Factors

Conservative balance sheetLow leverage and steadily expanding equity provide financial resilience and preserve flexibility for investment in automation capabilities or customer projects. This stronger capital position can help the company withstand earnings volatility without relying heavily on additional borrowing.

Negative Factors

Volatile profitabilityThe deterioration in operating profitability versus earlier years indicates that revenue growth has not yet translated into consistently strong earnings. Continued margin volatility could limit reinvestment, make results more sensitive to project mix, and weaken confidence in durable profit expansion.

Solomon Technology Corp. (2359) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 17.22B
Dividend Yield: 1.01%
Average Volume (3M): 4.53M
Price to Earnings (P/E): 14.8
Beta (1Y): 1.04
Revenue Growth: 2.64%
EPS Growth: ―
Country: TW
Employees: 787
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Solomon Technology Corp. Business Overview & Revenue Model

Company Description

Solomon Technology Corporation operates as a key distributor of electronic components, primarily serving the markets of the Asia-Pacific region and mainland China. The company offers an extensive and diverse product portfolio focused on industrial au...

Solomon Technology Corp. Financial Statement Overview

Summary

A strong balance sheet (score 72) is the clear anchor: equity has grown every year to NT$5.77 billion, funding ~57% of assets, while total debt fell to NT$863 million for a conservative debt-to-equity of roughly 0.15. Offsetting this, the income statement (52) shows a highly cyclical top line — revenue rebounded ~21% to NT$4.25 billion in 2025 after two down years, and gross margin held firm near 22.7% — but operating margin is razor-thin at ~1.6% versus 12.8% in 2022, and net income of NT$211 million leans on non-operating items. Cash flow (48) is improving yet erratic: operating cash flow of NT$320 million and free cash flow of NT$289 million covered ~90% of net income, but operating cash flow is only ~9% of revenue and has been negative in two of the past five years. Return on equity of just 3.7% underlines that the company is financially safe but under-earning.

Income Statement

52Neutral

Balance Sheet

72Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.32B	4.25B	3.50B	4.22B	5.25B	3.90B
Gross Profit	956.17M	962.62M	791.14M	968.72M	1.08B	793.96M
EBITDA	322.18M	138.48M	381.57M	727.00M	754.54M	356.01M
Net Income	1.15B	211.27M	144.01M	532.24M	458.23M	198.51M
Balance Sheet
Total Assets	11.28B	10.10B	9.94B	8.95B	8.45B	7.89B
Cash, Cash Equivalents and Short-Term Investments	5.23B	4.56B	4.56B	2.15B	2.72B	2.46B
Total Debt	925.03M	862.99M	968.75M	894.61M	1.04B	1.37B
Total Liabilities	4.31B	3.83B	3.70B	3.29B	3.12B	2.91B
Stockholders Equity	6.40B	5.77B	5.75B	5.22B	4.91B	4.57B
Cash Flow
Free Cash Flow	549.96M	289.13M	79.07M	-124.67M	1.04B	-319.14M
Operating Cash Flow	595.93M	319.70M	108.84M	-105.19M	1.08B	-296.36M
Investing Cash Flow	-75.11M	249.04M	-41.03M	-540.36M	483.68M	-386.66M
Financing Cash Flow	-339.74M	-310.16M	458.28M	-555.49M	-501.86M	793.12M

Solomon Technology Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2359 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8099	75Outperform	TWD 13.71B	37.15	―	1.53%	27.23%	58.65%
TW:6206	73Outperform	TWD 16.31B	12.64	―	4.82%	11.63%	24.44%
TW:2480	70Outperform	TWD 18.08B	18.38	―	4.59%	14.18%	17.00%
TW:3416	69Neutral	TWD 12.38B	16.15	―	3.16%	31.00%	32.07%
TW:3022	62Neutral	TWD 12.93B	9.75	―	4.78%	26.50%	43.52%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2359	53Neutral	TWD 17.00B	14.80	―	1.01%	2.64%	―

* General Sector Average

Performance Comparison

TW:2359 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2359	Solomon Technology Corp.	99.20	-28.87	-22.54%
TW:2480	Stark Technology, Inc.	170.00	24.15	16.56%
TW:3022	IEI Integration Corporation	73.20	5.74	8.51%
TW:3416	Winmate Inc.	146.50	7.06	5.06%
TW:6206	Flytech Technology Co. Ltd.	114.00	16.66	17.11%
TW:8099	Tatung System Technologies Inc.	137.00	66.99	95.68%

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

Solomon Technology Corp. AI Stock Analysis