Micro-Star International Co., Ltd. (2377) AI Stock Analysis

Micro-Star International Co., Ltd.

(TWSE:2377)

Select Model

Rating:50Neutral

Price Target:TWD 137.00▼(-2.14% Downside)

Action:initiatedcoverage

Date:11/09/26

Micro-Star scores in the lower-middle range, driven primarily by weakening financial performance: four straight years of margin compression have cut net income to roughly a third of its 2021 peak, and cash conversion has deteriorated to the point where free cash flow has nearly evaporated despite record sales. Technicals reinforce the caution, with the price having fallen below its 20-, 50- and 100-day averages alongside a negative MACD, though the stock is deeply oversold and still holds above its 200-day average. Valuation is the main offset — a 12.8 P/E, 3.07% dividend yield and a solid balance sheet with low leverage provide downside support — but the combination of razor-thin margins and shrinking cash generation keeps the overall score subdued.

Positive Factors

Broad gaming and computing product portfolioMSI operates across multiple computing categories while maintaining a strong focus on gaming and performance hardware. This breadth can support cross-selling, diversify revenue across product cycles, and reinforce brand visibility across consumer and industrial computing markets over the medium term.

Negative Factors

Weakening cash conversionThe recent deterioration in operating and free cash flow means reported earnings are converting into cash less effectively. If this pattern persists, MSI may have less internally generated funding for investment, dividends, or balance-sheet strengthening, increasing reliance on working-capital management.

Micro-Star International Co., Ltd. (2377) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 117.86B
Dividend Yield: 3.00%
Average Volume (3M): 9.74M
Price to Earnings (P/E): 12.1
Beta (1Y): 0.82
Revenue Growth: 1.41%
EPS Growth: 111.21%
Country: TW
Employees: 13,000
Sector: General
Sector Strength: 55
Industry: Computer Hardware

Micro-Star International Co., Ltd. Business Overview & Revenue Model

Company Description

Micro-Star International Co., Ltd., widely recognized as MSI, is a Taiwan-based technology corporation focused on developing and globally distributing a diverse range of electronic goods. Its offerings span from fundamental PC components like motherb...

Micro-Star International Co., Ltd. Financial Statement Overview

Summary

Revenue hit a record NT$230.2 billion (+16%), but profitability is eroding fast: gross margin fell to 10.95% from 18.95% in 2021 and net income has halved over two years to NT$5.75 billion (Income Statement score 44). The balance sheet is the bright spot (Score 68) with equity funding ~45% of assets and a modest 0.21 debt-to-equity, though borrowings jumped to NT$11.7 billion and ROE slid to 10.5%. Cash flow is the clear weak link (Score 33): operating cash flow covers only ~70% of net income and free cash flow collapsed ~91% to NT$0.45 billion as working capital and capex absorb cash. Net result: a solvent, scale-driven hardware business with deteriorating earnings quality and razor-thin margins.

Income Statement

44Neutral

Balance Sheet

68Positive

Cash Flow

33Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	221.51B	230.20B	197.87B	182.97B	180.41B	201.81B
Gross Profit	29.31B	25.21B	24.20B	22.85B	25.73B	38.24B
EBITDA	12.07B	7.78B	9.89B	10.56B	13.73B	21.89B
Net Income	9.74B	5.75B	6.79B	7.53B	9.96B	16.92B
Balance Sheet
Total Assets	128.61B	120.95B	96.62B	90.52B	86.85B	101.46B
Cash, Cash Equivalents and Short-Term Investments	26.03B	31.25B	24.39B	25.91B	27.77B	23.75B
Total Debt	7.09B	11.70B	900.26M	672.45M	580.68M	2.34B
Total Liabilities	70.55B	66.35B	43.75B	40.34B	38.45B	54.38B
Stockholders Equity	58.06B	54.60B	52.87B	50.18B	48.40B	47.08B
Cash Flow
Free Cash Flow	-282.13M	447.90M	2.69B	4.32B	14.82B	11.05B
Operating Cash Flow	1.75B	4.00B	5.00B	4.96B	15.64B	12.61B
Investing Cash Flow	-3.78B	-2.41B	-3.18B	-604.98M	-842.34M	-968.64M
Financing Cash Flow	-4.41B	6.27B	-4.86B	-5.90B	-11.14B	-6.41B

Micro-Star International Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2377 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2451	82Outperform	TWD 100.50B	4.03	―	5.06%	331.33%	997.91%
TW:3260	67Neutral	TWD 108.32B	3.69	―	11.50%	125.32%	984.80%
TW:2385	64Neutral	TWD 63.95B	9.80	―	8.20%	-8.44%	-23.86%
TW:3706	60Neutral	TWD 102.99B	12.88	―	4.22%	50.91%	23.24%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2377	50Neutral	TWD 118.28B	12.14	―	3.00%	1.41%	111.21%
TW:2352	44Neutral	TWD 47.26B	30.20	―	10.69%	1.60%	19.60%

* General Sector Average

Performance Comparison

TW:2377 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2377	Micro-Star International Co., Ltd.	140.00	33.64	31.63%
TW:2352	Qisda Corporation	29.90	2.63	9.64%
TW:2385	Chicony Electronics Co. Ltd.	87.80	-32.71	-27.15%
TW:2451	Transcend Information, Inc.	233.00	25.66	12.37%
TW:3260	ADATA Technology Co., Ltd.	304.50	103.25	51.30%
TW:3706	MiTAC Holdings Corp.	71.10	-13.92	-16.37%

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

Micro-Star International Co., Ltd. AI Stock Analysis