Edimax Technology Co., Ltd. (3047) AI Stock Analysis

Edimax Technology Co., Ltd.

(TWSE:3047)

Select Model

Rating:41Neutral

Price Target:TWD 11.50▼(-17.27% Downside)

Action:initiatedcoverage

Date:11/09/26

Edimax scores low primarily because of deteriorating fundamentals: a steep revenue decline has driven the company into operating and net losses, free cash flow has turned negative and return on equity is below zero. Technicals compound the concern, with the stock trading well below all major moving averages and a negative MACD, although deeply oversold RSI and Stochastic readings hint at scope for a near-term bounce. Valuation provides little clarity given negative earnings, with a 2.48% dividend yield the main offset. The key supports are a de-leveraged balance sheet where equity exceeds debt, gross margins at the top of their historical range, and still-positive operating cash flow — enough to suggest stability, but not yet a turnaround.

Positive Factors

Improved LeverageLower debt-to-equity indicates meaningful balance-sheet de-risking and gives the company more financial flexibility than in prior years. This can reduce pressure from financing costs, support continued operations during weaker demand, and preserve capacity for future investment.

Negative Factors

Revenue ContractionA sharp annual revenue decline signals weaker demand, reduced market traction, or pressure in the company’s networking equipment business. Sustained contraction would reduce operating leverage, make fixed costs harder to absorb, and limit the company’s ability to rebuild earnings without renewed sales growth.

Edimax Technology Co., Ltd. (3047) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.08B
Dividend Yield: 2.23%
Average Volume (3M): 853.13K
Price to Earnings (P/E): -15.3
Beta (1Y): 0.86
Revenue Growth: -32.95%
EPS Growth: -101.63%
Country: TW
Employees: 285
Sector: General
Sector Strength: 55
Industry: Communication Equipment

Edimax Technology Co., Ltd. Business Overview & Revenue Model

Company Description

EDIMAX Technology Co., Ltd., established in Taipei, Taiwan, in 1986, specializes in the innovation, production, and marketing of network connectivity solutions. The company caters to a wide spectrum of clients, from small office/home office (SOHO) us...

Edimax Technology Co., Ltd. Financial Statement Overview

Summary

Financials are weak and currently in a cyclical downswing. Revenue nearly halved to about NT$3.65bn from NT$6.82bn, flipping the company into an operating loss of NT$272m and a net loss of NT$201m (-5.5% net margin), with return on equity at -8.0%. Cash flow deteriorated sharply, with operating cash flow falling to NT$137m from NT$956m and free cash flow turning negative at roughly -NT$81m. The offset is a solid balance sheet: debt reduced to NT$1.77bn from NT$2.58bn in 2022, equity of NT$2.50bn exceeding borrowings, and debt-to-equity improved to 0.71. Gross margin resilience at 27.6%, the best of the six-year span, is encouraging, but thin historical net margins and heavy operating leverage leave little cushion in down-years.

Income Statement

28Negative

Balance Sheet

55Neutral

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	2.96B	3.65B	6.82B	4.26B	5.96B	5.25B
Gross Profit	763.49M	1.01B	1.87B	1.06B	1.45B	1.18B
EBITDA	-275.27M	-144.92M	742.96M	-61.04M	471.02M	113.58M
Net Income	-216.57M	-200.84M	112.89M	-30.96M	252.66M	-72.18M
Balance Sheet
Total Assets	6.36B	6.08B	7.30B	6.43B	7.63B	7.36B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.68B	1.80B	1.19B	1.71B	1.12B
Total Debt	1.89B	1.77B	1.69B	2.09B	2.58B	2.44B
Total Liabilities	3.28B	2.90B	3.71B	3.43B	4.27B	4.51B
Stockholders Equity	2.46B	2.50B	2.73B	2.45B	2.57B	2.07B
Cash Flow
Free Cash Flow	-325.75M	-80.97M	854.05M	218.82M	237.05M	-841.11M
Operating Cash Flow	-121.53M	136.82M	955.56M	290.59M	490.03M	-772.00M
Investing Cash Flow	-197.21M	-246.30M	-83.49M	-24.96M	-264.87M	-125.79M
Financing Cash Flow	43.17M	-62.14M	-282.90M	-837.46M	306.84M	-117.12M

Edimax Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3047 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3025	74Outperform	TWD 2.78B	10.30	―	6.60%	33.73%	81.02%
TW:8048	70Outperform	TWD 2.96B	14.93	―	4.12%	29.69%	39.16%
TW:3669	61Neutral	TWD 2.77B	10.17	―	3.33%	9.13%	395.29%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3564	43Neutral	TWD 3.11B	84.03	―	0.47%	22.54%	-10.60%
TW:6142	41Neutral	TWD 2.53B	-26.86	―	―	11.42%	48.35%
TW:3047	41Neutral	TWD 2.99B	-15.27	―	2.23%	-32.95%	-101.63%

* General Sector Average

Performance Comparison

TW:3047 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3047	Edimax Technology Co., Ltd.	13.90	-4.95	-26.26%
TW:3025	Loop Telecommunication International, Inc.	48.50	5.26	12.17%
TW:3564	AEWIN Technologies Co., Ltd.	57.80	9.94	20.77%
TW:3669	Aver Information Inc.	30.00	1.43	5.01%
TW:6142	Cameo Communications, Inc.	8.14	-2.21	-21.36%
TW:8048	Ruby Tech Corporation	48.50	3.25	7.19%

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

Edimax Technology Co., Ltd. AI Stock Analysis