DFI Inc. (2397) AI Stock Analysis

DFI Inc.

(TWSE:2397)

Select Model

Rating:49Neutral

Price Target:TWD 52.00▼(-10.50% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is 49, reflecting a cautious outlook. The most significant factor is the weak technical picture, with the stock in a clear downtrend and deeply oversold, which heavily pressured the score. This is compounded by deteriorating financial performance, marked by declining margins and rising leverage. A moderate valuation and high dividend yield provide a partial offset, but are not enough to counter the strong negative momentum and fundamental headwinds.

Positive Factors

Positive Free Cash FlowPersistent positive free cash flow and near-one-to-one conversion with net income indicate that reported profits are translating into usable cash. This supports internal funding for operations, resilience during a weaker cycle, and more flexibility in capital allocation over the next several quarters.

Negative Factors

Revenue ContractionThe prolonged revenue step-down indicates that demand or commercial momentum has weakened beyond a single reporting period. Continued contraction can reduce operating leverage, limit investment capacity, and make recovery dependent on a sustained improvement in end-market activity.

DFI Inc. (2397) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.80B
Dividend Yield: 4.31%
Average Volume (3M): 240.60K
Price to Earnings (P/E): 17.0
Beta (1Y): 0.96
Revenue Growth: 16.92%
EPS Growth: -16.99%
Country: TW
Employees: 656
Sector: General
Sector Strength: 55
Industry: Computer Hardware

DFI Inc. Business Overview & Revenue Model

Company Description

Established in 1981 and headquartered in New Taipei City, Taiwan, DFI Inc. operates as a global leader in the design, manufacturing, and distribution of sophisticated board and system-level products for diverse embedded applications. DFI offers a com...

DFI Inc. Financial Statement Overview

Summary

Financial performance is under pressure. Revenue is volatile with a recent 3% dip, and profitability is declining with gross margin falling to 26% and net margin to 2.6%. The balance sheet shows rising leverage (D/E of 1.01) and a sharp drop in ROE to 8.4%. Positively, free cash flow conversion is strong at 0.97, but this is offset by weak operating cash flow quality.

Income Statement

45Neutral

Balance Sheet

48Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.12B	10.88B	9.58B	9.18B	16.19B	13.21B
Gross Profit	3.02B	2.83B	2.67B	2.44B	3.28B	2.52B
EBITDA	890.98M	842.97M	994.57M	875.64M	1.24B	1.27B
Net Income	312.12M	285.37M	396.61M	361.69M	528.23M	615.90M
Balance Sheet
Total Assets	14.68B	12.36B	12.34B	9.10B	13.14B	12.31B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.45B	2.54B	1.54B	1.73B	1.55B
Total Debt	4.37B	3.44B	3.45B	2.13B	3.76B	3.32B
Total Liabilities	8.99B	6.65B	6.50B	4.12B	7.32B	6.81B
Stockholders Equity	3.37B	3.40B	3.51B	3.16B	3.25B	3.06B
Cash Flow
Free Cash Flow	-491.66M	697.75M	890.09M	1.54B	395.25M	-2.06B
Operating Cash Flow	-333.25M	718.06M	937.87M	1.57B	622.02M	-1.05B
Investing Cash Flow	-379.26M	-179.85M	-1.15B	354.27M	-291.03M	-534.93M
Financing Cash Flow	1.00B	-664.96M	1.20B	-2.15B	-332.81M	1.25B

DFI Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2397 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2453	72Outperform	TWD 5.62B	18.32	―	4.84%	5.94%	4.48%
TW:3577	68Neutral	TWD 5.37B	16.44	―	2.38%	32.35%	164.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6215	51Neutral	TWD 6.49B	20.70	―	1.26%	48.31%	106.93%
TW:2397	49Neutral	TWD 6.35B	16.95	―	4.31%	16.92%	-16.99%
TW:2399	45Neutral	TWD 7.51B	10.82	―	―	-3.72%	―
TW:3062	43Neutral	TWD 6.39B	-9.39	―	―	-1.21%	-212.49%

* General Sector Average

Performance Comparison

TW:2397 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2397	DFI Inc.	58.10	-0.11	-0.19%
TW:2399	Biostar Microtech International Corp.	39.55	16.45	71.21%
TW:2453	Syscom Computer Engineering Co., Ltd.	58.80	7.47	14.55%
TW:3062	CyberTAN Technology, Inc.	18.40	-6.95	-27.42%
TW:3577	ICP Das Co., Ltd.	81.50	22.60	38.38%
TW:6215	Aurotek Corporation	78.50	-27.98	-26.27%

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 10, 2026

DFI Inc. AI Stock Analysis