Syscom Computer Engineering Co., Ltd. (2453) AI Stock Analysis

Syscom Computer Engineering Co., Ltd.

(TWSE:2453)

Select Model

Rating:72Outperform

Price Target:TWD 59.00▲(1.90% Upside)

Action:initiatedcoverage

Date:11/09/26

Syscom scores well on financial strength: it is effectively debt-free, generates stable mid-teens return on equity, and converts earnings into cash reliably, which underpins an appealing 5.2% dividend yield. The principal drags are structurally thin margins that contracted in the latest year — leaving profit growth near flat despite higher revenue — and historically volatile operating cash flow tied to project timing. Technically the shares are neutral and range-bound, with price hugging its clustered moving averages and momentum indicators flat, while a 17.8x P/E leaves limited room for re-rating absent faster earnings growth. The result is a solid, low-risk income profile rather than a high-growth opportunity.

Positive Factors

Very Low LeverageExtremely low leverage reduces financial risk and preserves capacity to fund projects, maintain operations, or withstand weaker demand without relying heavily on borrowing. This conservative capital structure also gives Syscom greater flexibility for investment and shareholder returns over the next several quarters.

Negative Factors

Margin CompressionThe latest margin decline suggests higher costs or a less favorable project and service mix, which can limit operating leverage even as revenue grows. If this pressure persists, it could constrain earnings growth, reduce reinvestment capacity, and weaken profitability across future deployments.

Syscom Computer Engineering Co., Ltd. (2453) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.75B
Dividend Yield: 4.84%
Average Volume (3M): 483.84K
Price to Earnings (P/E): 18.3
Beta (1Y): 0.63
Revenue Growth: 5.94%
EPS Growth: 4.48%
Country: TW
Employees: 21,293
Sector: General
Sector Strength: 55
Industry: Information Technology Services

Syscom Computer Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

Syscom Computer Engineering Co., together with its subsidiaries, provides information technology services in Taiwan, China, the United States, and Southeast Asia. The company leases and sells computer systems; designs computer software; and offers se...

Syscom Computer Engineering Co., Ltd. Financial Statement Overview

Summary

Syscom combines a very strong balance sheet (score 83) with solid cash generation (72) and a decent but unspectacular income statement (68). The company is effectively debt-free, with total debt of just NT$14mn against NT$2.24bn of equity, and delivers a stable return on equity near 13.9%. Operating cash flow rebounded 51% to NT$388mn, producing NT$340mn of free cash flow that covered 88% of net income. Offsetting this, margins are structurally thin and compressed in the latest year — gross margin fell from 25.8% to 23.8% and operating margin from 5.5% to 4.7% — so profit growth of just 1.8% badly lagged roughly 7% revenue growth. Operating cash flow has also swung widely year to year due to lumpy project billing.

Income Statement

68Positive

Balance Sheet

83Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.63B	7.43B	6.93B	6.38B	5.95B	5.87B
Gross Profit	1.80B	1.77B	1.79B	1.66B	1.52B	1.42B
EBITDA	488.96M	473.63M	500.04M	458.41M	424.77M	386.66M
Net Income	315.99M	311.82M	306.40M	278.29M	250.73M	215.82M
Balance Sheet
Total Assets	4.56B	4.51B	4.88B	4.85B	4.43B	4.23B
Cash, Cash Equivalents and Short-Term Investments	579.63M	871.38M	984.13M	1.11B	823.62M	888.55M
Total Debt	310.00M	13.95M	236.79M	286.66M	217.89M	203.88M
Total Liabilities	2.43B	2.26B	2.70B	2.73B	2.38B	2.26B
Stockholders Equity	2.12B	2.24B	2.17B	2.11B	2.05B	1.96B
Cash Flow
Free Cash Flow	12.60M	339.93M	187.64M	593.69M	163.31M	151.62M
Operating Cash Flow	56.53M	387.93M	256.69M	653.61M	212.02M	191.93M
Investing Cash Flow	-44.27M	-34.54M	-111.09M	-108.24M	114.21M	69.57M
Financing Cash Flow	-404.30M	-480.37M	-305.31M	-277.07M	-203.64M	-171.30M

Syscom Computer Engineering Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2453 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6690	82Outperform	TWD 5.61B	17.36	―	4.71%	13.31%	14.02%
TW:5209	76Outperform	TWD 5.67B	11.38	―	5.94%	4.58%	32.53%
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%
TW:6689	65Neutral	TWD 5.16B	36.24	―	2.56%	-0.73%	16.72%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6163	46Neutral	TWD 5.43B	42.55	―	1.50%	24.16%	78.64%

* General Sector Average

Performance Comparison

TW:2453 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2453	Syscom Computer Engineering Co., Ltd.	57.90	5.33	10.14%
TW:3577	ICP Das Co., Ltd.	84.00	23.92	39.82%
TW:5209	CTCI Advanced Systems Inc.	218.00	59.87	37.86%
TW:6163	Hwacom Systems Inc	38.50	11.44	42.28%
TW:6689	eCloudvalley Digital Technology Co., Ltd.	78.00	14.33	22.51%
TW:6690	Acer Cyber Security, Inc.	191.00	27.92	17.12%

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

Syscom Computer Engineering Co., Ltd. AI Stock Analysis