Davicom Semiconductor, Inc. (3094) AI Stock Analysis

Davicom Semiconductor, Inc.

(TWSE:3094)

Select Model

Rating:53Neutral

Price Target:TWD 41.00▼(-8.07% Downside)

Action:initiatedcoverage

Date:11/09/26

Davicom scores in the low-50s, reflecting a very safe but under-performing business. The dominant factor is financial performance: an almost debt-free balance sheet, 76% gross margins and positive free cash flow are offset by revenue still ~39% below the 2022 peak, break-even operating profit and a ~2% return on equity, with earnings propped up by non-operating income. Technicals are the next biggest drag, with the price well below its 20-, 50- and 100-day averages and negative MACD, though deeply oversold RSI and stochastic readings hint at a possible short-term bounce. Valuation adds further caution, as a 66.6x P/E and a sub-1% dividend yield leave little room for disappointment. A sustained re-rating would require the core chip business to return to meaningful operating profitability.

Positive Factors

Conservative Balance SheetVery low leverage and a large equity base provide a substantial financial cushion. This reduces balance-sheet stress, preserves flexibility to fund operations, and improves resilience if demand remains weak over the next several quarters.

Negative Factors

Multi-Year Revenue ContractionSeveral years of revenue contraction indicate a sustained deterioration in demand or product mix rather than a single temporary setback. Continued top-line weakness can reduce operating leverage, limit reinvestment, and weaken the company’s competitive position.

Davicom Semiconductor, Inc. (3094) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.72B
Dividend Yield: 0.56%
Average Volume (3M): 7.78M
Price to Earnings (P/E): 58.0
Beta (1Y): 1.23
Revenue Growth: 18.10%
EPS Growth: 175.45%
Country: TW
Employees: 75
Sector: General
Sector Strength: 55
Industry: Semiconductors

Davicom Semiconductor, Inc. Business Overview & Revenue Model

Company Description

Davicom Semiconductor, Inc., established in Hsinchu, Taiwan, in 1996, specializes in the global research, development, manufacturing, and distribution of integrated circuits for communication networks. Its comprehensive product portfolio includes a v...

Davicom Semiconductor, Inc. Financial Statement Overview

Summary

A tale of two halves. The balance sheet is a fortress (score 83): equity funds ~91% of assets, debt-to-equity is just 6.6%, leaving minimal solvency risk through the semiconductor downcycle. Cash flow is solid but small (score 64): operating cash flow rose ~47% to ~NT$27.5m, free cash flow of ~NT$27.2m converts at ~99% of net income, and capital intensity is negligible. The income statement is the clear weak link (score 46): revenue remains ~39% below the 2022 peak despite a mid-teens rebound to ~NT$188m, gross margin is excellent at ~76%, but operating profit is effectively break-even and reported net income of ~NT$20m leans on non-operating/investment gains. Return on equity of ~2% shows an under-utilised balance sheet.

Income Statement

46Neutral

Balance Sheet

83Very Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	200.04M	187.76M	165.86M	242.57M	307.09M	283.47M
Gross Profit	147.22M	142.04M	111.19M	163.63M	219.84M	201.57M
EBITDA	34.13M	8.33M	27.25M	69.78M	101.54M	94.06M
Net Income	51.70M	20.36M	14.36M	50.74M	69.03M	69.66M
Balance Sheet
Total Assets	1.18B	1.13B	1.12B	1.15B	1.19B	1.17B
Cash, Cash Equivalents and Short-Term Investments	702.13M	679.64M	666.16M	695.33M	727.90M	678.99M
Total Debt	72.82M	67.96M	71.67M	73.22M	74.74M	63.63M
Total Liabilities	140.33M	103.57M	108.43M	118.60M	128.85M	128.10M
Stockholders Equity	1.04B	1.02B	1.01B	1.03B	1.06B	1.05B
Cash Flow
Free Cash Flow	72.62M	27.24M	18.00M	51.65M	108.87M	72.27M
Operating Cash Flow	72.90M	27.50M	18.77M	52.12M	109.45M	75.80M
Investing Cash Flow	-572.00K	-562.00K	-3.08M	-521.00K	-1.72M	-7.46M
Financing Cash Flow	-17.18M	-8.77M	-51.94M	-84.12M	-68.72M	-66.93M

Davicom Semiconductor, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3094 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3257	74Outperform	TWD 3.23B	23.41	―	6.91%	-24.76%	-42.52%
TW:6546	62Neutral	TWD 3.61B	13.18	―	4.63%	-9.74%	69.07%
TW:6568	62Neutral	TWD 3.20B	20.86	―	1.85%	14.19%	67.12%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3094	53Neutral	TWD 3.51B	57.99	―	0.56%	18.10%	175.45%
TW:3024	41Neutral	TWD 3.24B	308.71	―	1.88%	-63.48%	-92.67%

* General Sector Average

Performance Comparison

TW:3094 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3094	Davicom Semiconductor, Inc.	44.60	19.76	79.58%
TW:3024	Action Electronics Co., Ltd	11.70	0.70	6.34%
TW:3257	Champion Microelectronic Corp.	40.50	-21.94	-35.14%
TW:6546	AMPAK Technology, Inc.	54.00	-11.11	-17.06%
TW:6568	Rafael Microelectronics, Inc.	108.00	5.90	5.77%
TW:6980	Rapidtek Technologies Inc.	109.00	56.98	109.55%

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

Davicom Semiconductor, Inc. AI Stock Analysis