Leader Electronics, Inc. (3058) AI Stock Analysis

Leader Electronics, Inc.

(TWSE:3058)

Select Model

Rating:39Underperform

Price Target:TWD 7.00▲(0.43% Upside)

Action:initiatedcoverage

Date:11/09/26

Leader Electronics scores near the bottom of the range. The dominant factor is a weak financial profile: sharp gross margin compression to 9.3%, an operating loss of NT$367 million, six straight years of negative free cash flow, and persistent losses that have eroded equity by roughly 20% in a year while leverage climbed above 1.0x. Technicals reinforce the caution, with the stock below all major moving averages and a negative MACD, although the oversold RSI and Stochastic readings suggest selling pressure may be stretched in the near term. Valuation provides no offset — earnings are negative, making the P/E unusable, and there is no dividend. Modest positives include stabilizing revenue and a narrowing net loss, but a sustained recovery in gross margin and a return to positive operating cash flow are needed before the risk profile improves.

Positive Factors

Sharp Revenue ReboundThe 2025 revenue rebound shows that Leader Electronics can regain substantial sales volume after a weaker period. If this recovery reflects improving customer demand and continues, it could provide a broader base for operating leverage and support future earnings normalization.

Negative Factors

Persistent Losses and Margin CompressionThe sharp decline in gross margin, combined with operating and net losses, indicates that higher revenue is not yet translating into sustainable profitability. Continued pricing or cost pressure could limit operating leverage, weaken retained capital, and delay a durable earnings recovery over coming quarters.

Leader Electronics, Inc. (3058) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.41B
Dividend Yield: ―
Average Volume (3M): 439.60K
Price to Earnings (P/E): -4.1
Beta (1Y): 0.68
Revenue Growth: 0.98%
EPS Growth: -100.47%
Country: TW
Employees: 83,293
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Leader Electronics, Inc. Business Overview & Revenue Model

Company Description

Leader Electronics Inc., together with its subsidiaries, produces and sells transformers, power converters, and power supply units in Taiwan, Mainland China, the Philippines, the United States, Germany, Malaysia, and internationally. The company offe...

Leader Electronics, Inc. Financial Statement Overview

Summary

Very weak across all three statements. Revenue has stabilized near NT$3.15 billion after two consecutive 17% declines, and the net loss narrowed to NT$288 million from NT$388 million, but gross margin collapsed to 9.3% from 14.3%, producing an operating loss of NT$367 million (-7.5% margin) and negative EBITDA. The balance sheet is deteriorating: equity fell to NT$1.54 billion from NT$1.92 billion while debt rose to NT$1.67 billion, lifting debt-to-equity to 1.08 and driving ROE to -18.7%. Cash generation is the weakest link, with operating cash flow back to -NT$63 million and free cash flow of -NT$306 million, the worst in six years and negative in every one of those years. The company has been profitable only once in six years, pointing to a structural rather than cyclical problem.

Income Statement

21Negative

Balance Sheet

36Negative

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.18B	3.15B	3.13B	3.77B	4.54B	4.72B
Gross Profit	301.32M	293.65M	446.28M	548.99M	502.40M	358.69M
EBITDA	-199.48M	-62.56M	-186.46M	247.30M	45.41M	-114.34M
Net Income	-340.61M	-287.75M	-388.40M	44.25M	-158.72M	-323.81M
Balance Sheet
Total Assets	5.17B	5.28B	4.97B	4.38B	4.50B	5.24B
Cash, Cash Equivalents and Short-Term Investments	318.85M	450.48M	685.12M	482.06M	328.18M	640.50M
Total Debt	1.65B	1.67B	1.55B	1.51B	1.71B	1.92B
Total Liabilities	3.49B	3.62B	2.94B	2.79B	3.08B	3.74B
Stockholders Equity	1.57B	1.54B	1.92B	1.58B	1.41B	1.49B
Cash Flow
Free Cash Flow	-632.65M	-306.29M	-260.93M	-79.94M	-17.16M	-282.03M
Operating Cash Flow	-806.96M	-62.70M	66.33M	30.72M	45.77M	-112.27M
Investing Cash Flow	635.32M	-311.70M	-205.23M	209.06M	-153.26M	-169.06M
Financing Cash Flow	12.06M	147.15M	394.05M	-142.75M	-212.40M	120.61M

Leader Electronics, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3058 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6419	54Neutral	TWD 1.58B	4.34	―	2.25%	36.78%	583.03%
TW:6570	47Neutral	TWD 1.60B	17.13	―	2.56%	14.53%	96.60%
TW:6674	46Neutral	TWD 1.26B	-5.35	―	―	-40.57%	-73.29%
TW:2444	43Neutral	TWD 1.46B	-6.19	―	―	-28.59%	-77.80%
TW:8059	39Underperform	TWD 1.61B	-9.42	―	―	438.05%	69.51%
TW:3058	39Underperform	TWD 1.40B	-4.11	―	―	0.98%	-100.47%

* General Sector Average

Performance Comparison

TW:3058 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3058	Leader Electronics, Inc.	6.97	-4.28	-38.04%
TW:2444	AboCom Systems, Inc.	13.50	2.60	23.85%
TW:6419	Nuuo, Inc.	125.50	74.20	144.64%
TW:6570	Aplex Technology Inc.	43.00	4.19	10.78%
TW:6674	Compal Broadband Networks, Inc.	18.45	-2.75	-12.97%
TW:8059	CastleNet Technology, Inc.	13.30	-23.53	-63.89%

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

Leader Electronics, Inc. AI Stock Analysis