ABC Taiwan Electronics Corp. (3236) AI Stock Analysis

ABC Taiwan Electronics Corp.

(TPEx:3236)

Select Model

Rating:45Neutral

Price Target:$36.00▼(-11.11% Downside)

Action:initiatedcoverage

Date:11/09/26

ABC Taiwan Electronics scores below average. The dominant drag is weak earnings power: despite improving revenue and the best gross margin in years, net margin of 1.6% and return on equity of 2.1% leave profitability fragile, and capital intensity reduces operating cash flow of NT$168 million to just NT$17 million of free cash flow. A conservatively financed balance sheet, with declining debt and a 0.66 debt-to-equity ratio, is the main offset. Technicals compound the caution — the share price sits below all major moving averages with negative MACD and heavy selling pressure. Meanwhile, a P/E of 55.9 prices in a recovery that has yet to reach the bottom line, with only a 1.37% dividend yield as compensation. The investment case rests on whether recent margin gains can convert into meaningful earnings and cash flow growth.

Positive Factors

Revenue and Margin RecoveryThe 2025 rebound in revenue and gross margin indicates improving operating performance after a weaker prior year. If maintained, better pricing or product mix can strengthen earnings capacity, provide more room to absorb cost pressure, and support a more durable recovery over the next several quarters.

Negative Factors

Thin ProfitabilityVery thin margins and low returns on equity leave limited protection if demand, pricing, or costs deteriorate. They also constrain internally generated capital and make it harder for the company to compound earnings, meaning the recent recovery has not yet translated into strong shareholder returns.

ABC Taiwan Electronics Corp. (3236) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.31B
Dividend Yield: 1.23%
Average Volume (3M): 4.33M
Price to Earnings (P/E): 58.3
Beta (1Y): 1.27
Revenue Growth: 21.97%
EPS Growth: 203.91%
Country: TW
Employees: 774
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

ABC Taiwan Electronics Corp. Business Overview & Revenue Model

Company Description

ABC Taiwan Electronics Corp. (ABC), headquartered in Taoyuan City, Taiwan, is a leading manufacturer and global supplier of various electronic components. The company's extensive product line includes a wide range of inductive devices such as filter...

ABC Taiwan Electronics Corp. Financial Statement Overview

Summary

Blending the Income Statement (42), Balance Sheet (58), and Cash Flow (48) scores, the picture is one of a financially stable but low-return business in the early stages of recovery. Revenue grew roughly 11% to NT$2.07 billion and gross margin improved to a multi-year best of 25.3%, with operating results swinging back to a NT$95 million profit after a 2024 loss. The balance sheet is the clear strength: debt has fallen for three straight years to NT$1.04 billion, equity has risen to NT$1.59 billion, and debt-to-equity is a comfortable 0.66. However, bottom-line profitability remains very weak with a 1.6% net margin and 2.1% return on equity, sales remain about a third below the 2022 peak, and heavy capital intensity left only NT$17 million of free cash flow despite NT$168 million of operating cash flow.

Income Statement

42Neutral

Balance Sheet

58Neutral

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.25B	2.07B	1.86B	1.99B	3.03B	2.48B
Gross Profit	563.47M	523.10M	409.91M	449.63M	669.25M	492.30M
EBITDA	285.14M	273.60M	223.47M	247.15M	462.48M	280.96M
Net Income	75.41M	33.76M	4.45M	37.36M	208.02M	94.76M
Balance Sheet
Total Assets	3.49B	3.13B	3.11B	3.14B	3.20B	2.93B
Cash, Cash Equivalents and Short-Term Investments	672.98M	701.77M	768.18M	809.38M	639.30M	567.14M
Total Debt	1.00B	1.04B	1.11B	1.17B	1.03B	959.75M
Total Liabilities	1.70B	1.54B	1.56B	1.65B	1.70B	1.61B
Stockholders Equity	1.79B	1.59B	1.54B	1.49B	1.50B	1.32B
Cash Flow
Free Cash Flow	151.24M	16.53M	-69.16M	43.79M	6.91M	-229.61M
Operating Cash Flow	397.72M	168.23M	162.38M	287.44M	398.40M	132.63M
Investing Cash Flow	-237.97M	-102.08M	-128.84M	-227.83M	-349.04M	-339.01M
Financing Cash Flow	-168.29M	-105.47M	-89.15M	116.07M	12.64M	102.71M

ABC Taiwan Electronics Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3236 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6651	65Neutral	TWD 4.33B	14.28	―	3.20%	-2.52%	34.22%
TW:5299	64Neutral	TWD 4.05B	10.59	―	4.60%	-8.83%	69.15%
TW:3501	59Neutral	TWD 4.09B	20.00	―	5.78%	-11.11%	-65.06%
TW:6205	59Neutral	TWD 4.61B	22.05	―	2.68%	-3.83%	30.23%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3236	45Neutral	TWD 4.25B	58.25	―	1.23%	21.97%	203.91%
TW:3221	40Underperform	TWD 4.21B	31.10	―	0.68%	14.36%	6591.41%

* General Sector Average

Performance Comparison

TW:3236 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3236	ABC Taiwan Electronics Corp.	40.50	14.95	58.48%
TW:3221	Tai-Saw Technology Co., Ltd.	40.50	18.36	82.91%
TW:3501	Well Shin Technology Co., Ltd.	34.60	-12.14	-25.97%
TW:5299	Excelliance MOS Corp.	79.60	7.94	11.09%
TW:6205	Chant Sincere Co., Ltd.	56.00	16.55	41.94%
TW:6651	Cystech Electronics Corp.	125.00	53.20	74.11%

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

ABC Taiwan Electronics Corp. AI Stock Analysis