Advanced Analog Technology, Inc. (3438) AI Stock Analysis

Advanced Analog Technology, Inc.

(TPEx:3438)

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Rating:52Neutral

Price Target:TWD 48.00▼(-3.13% Downside)

Action:initiatedcoverage

Date:11/09/26

Advanced Analog Technology scores modestly. Its greatest strength is financial resilience — virtually no debt, equity funding ~87% of assets and consistently positive free cash flow — which limits downside risk through the industry downturn. Offsetting this, profitability has deteriorated for a second year, with margins compressing, net income down ~34% and free cash flow down roughly three-quarters, leaving ROE at just 2.2%. Technicals are the weakest element, with the share price well below all major moving averages and negative MACD momentum. Valuation is mixed: an elevated 33.5x P/E on depressed earnings is only partly offset by a 3.13% dividend yield. A demand recovery and margin restoration would be needed to justify a higher score.

Positive Factors

Near-debt-free balance sheetEffectively negligible debt gives the company substantial financial flexibility and low solvency risk. This conservative funding structure can help it withstand demand weakness, preserve investment capacity, and avoid interest burdens that could otherwise pressure earnings and cash flow.

Negative Factors

Revenue decline and margin compressionThe 2025 revenue contraction and materially lower net and EBITDA margins indicate weaker demand or mix and reduced operating leverage. If this pattern persists, it could limit earnings growth, reduce reinvestment capacity, and leave profitability below the company’s earlier peak levels.

Advanced Analog Technology, Inc. (3438) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.44B
Dividend Yield: 3.03%
Average Volume (3M): 91.77K
Price to Earnings (P/E): 33.3
Beta (1Y): 1.19
Revenue Growth: -11.08%
EPS Growth: 111.39%
Country: TW
Employees: 127
Sector: General
Sector Strength: 55
Industry: Semiconductors

Advanced Analog Technology, Inc. Business Overview & Revenue Model

Company Description

Advanced Analog Technology, Inc. (AAT) specializes in the creation and advancement of analog integrated circuits, serving markets within Taiwan and globally. The company's extensive product range includes adaptable Power Management Integrated Circuit...

Advanced Analog Technology, Inc. Financial Statement Overview

Summary

A pristine balance sheet (score 81) is the anchor: essentially debt-free with NT$337 thousand of total debt against NT$2.14 billion of equity, which funds ~87% of assets, providing strong staying power through the semiconductor down-cycle. However, earnings quality is weak (income statement score 45): revenue of ~NT$1.01 billion is still ~36% below the 2021 peak, gross margin compressed to 33.8% from 38.1%, operating margin thinned to 4.8%, and net income fell ~34% to NT$47 million. Cash flow (score 58) remains positive and backs earnings (operating cash flow ~1.6x net income), but fell sharply to NT$76 million from NT$205 million, with free cash flow down to NT$42 million. Return on equity of just 2.2% signals an under-utilized capital base.

Income Statement

45Neutral

Balance Sheet

81Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	916.29M	1.01B	963.37M	879.69M	1.04B	1.58B
Gross Profit	327.25M	342.10M	367.35M	272.48M	354.65M	665.92M
EBITDA	98.83M	100.80M	140.11M	58.88M	182.23M	348.74M
Net Income	69.91M	47.09M	71.27M	42.00K	108.06M	242.48M
Balance Sheet
Total Assets	3.35B	2.47B	2.45B	2.13B	1.58B	2.00B
Cash, Cash Equivalents and Short-Term Investments	946.64M	724.84M	647.76M	413.95M	300.81M	555.50M
Total Debt	144.00K	337.00K	718.00K	1.09M	1.04M	87.25M
Total Liabilities	585.81M	328.64M	338.77M	244.92M	147.20M	442.95M
Stockholders Equity	2.76B	2.14B	2.11B	1.89B	1.43B	1.55B
Cash Flow
Free Cash Flow	58.57M	42.45M	166.13M	177.13M	5.42M	113.85M
Operating Cash Flow	73.58M	76.38M	204.95M	227.35M	60.52M	158.13M
Investing Cash Flow	273.20M	98.36M	-14.16M	-81.67M	-58.03M	16.81M
Financing Cash Flow	-71.13M	-71.12M	-23.99M	-65.54M	-257.17M	-71.10M

Advanced Analog Technology, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3438 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4951	73Outperform	TWD 2.53B	11.82	―	5.97%	3.87%	39.70%
TW:6716	60Neutral	TWD 2.31B	12.07	―	2.09%	36.28%	399.93%
TW:6233	56Neutral	TWD 2.74B	64.56	―	2.22%	2.62%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3438	52Neutral	TWD 2.34B	33.26	―	3.03%	-11.08%	111.39%
TW:3207	34Underperform	TWD 1.96B	-12.71	―	―	17.17%	-859.04%

* General Sector Average

Performance Comparison

TW:3438 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3438	Advanced Analog Technology, Inc.	49.55	3.35	7.26%
TW:3207	Yao Sheng Electronic Co., Ltd.	29.50	-34.40	-53.83%
TW:4951	Feature Integration Technology Inc.	75.40	5.63	8.07%
TW:6233	Prolific Technology Inc.	33.80	14.10	71.61%
TW:6423	Yield Microelectronics Corporation	79.50	6.82	9.38%
TW:6716	PADAUK Technology Co., Ltd.	76.50	23.03	43.08%

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

Advanced Analog Technology, Inc. AI Stock Analysis