Otsuka Information Technology Corp. AI Stock Analysis
Otsuka Information Technology Corp. (3570) AI Stock Analysis
Otsuka Information Technology Corp.
(TPEx:3570)
Otsuka Information Technology scores well on fundamentals and valuation, offset by poor price momentum. The company is effectively debt-free, generates consistent ~20%+ returns on equity, and converts nearly all of its profit into free cash flow, while revenue has more than doubled since 2020. Combined with a modest 10.9x P/E and a 6.3% dividend yield, the risk/reward on valuation looks favourable. The main drags are technical: the stock sits below all key moving averages with a negative MACD, though oversold RSI and Stochastic readings suggest selling may be stretched. Fundamentally, the key watch item is multi-year margin erosion and flat operating cash flow despite strong sales growth, implying rising working capital intensity rather than financial risk.
Otsuka Information Technology Corp. (3570) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 3.18B
- Dividend Yield
- 5.72%
- Average Volume (3M)
- 24.86K
- Price to Earnings (P/E)
- 13.0
- Beta (1Y)
- 0.34
- Revenue Growth
- 5.84%
- EPS Growth
- 6.04%
- Country
- TW
- Employees
- 203
- Sector
- General
- Sector Strength
- 55
- Industry
- Software - Application
Otsuka Information Technology Corp. Business Overview & Revenue Model
Company Description
Otsuka Information Technology Corp., together with its affiliated companies, provides a comprehensive suite of information technology solutions throughout Taiwan and China. The firm's core activities include the development, distribution, maintenance...
Otsuka Information Technology Corp. Financial Statement Overview
Summary
A financially sound profile anchored by an exceptionally strong balance sheet (score 88): debt-to-equity of just 0.03, equity funding ~71% of assets, and return on equity steady in the 19–22% range for six consecutive years. Cash flow is high quality (score 79), with operating cash flow converting ~93% of net income and free cash flow nearly 98% of net income on minimal capital spending. The income statement (score 74) shows strong growth — revenue more than doubled from NT$1.13bn in 2020 to NT$2.43bn, up ~16% in the latest year, with net income rising to NT$239m — but margins have steadily compressed (gross margin from 36.6% to 28.6%, net margin from 12.1% to 9.8%). Operating cash flow has also been flat near NT$220–233m for three years despite rising sales, pointing to growing working capital demands.
Income Statement
74PositiveBalance Sheet
88Very PositiveCash Flow
79Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.51B | 2.43B | 2.10B | 1.69B | 1.56B | 1.30B |
| Gross Profit | 699.13M | 695.63M | 625.53M | 558.32M | 498.36M | 454.49M |
| EBITDA | 336.27M | 328.37M | 307.88M | 260.46M | 244.40M | 203.49M |
| Net Income | 244.45M | 238.50M | 221.89M | 198.72M | 182.15M | 145.40M |
Balance Sheet | ||||||
| Total Assets | 1.78B | 1.53B | 1.60B | 1.25B | 1.12B | 1.01B |
| Cash, Cash Equivalents and Short-Term Investments | 669.62M | 729.55M | 662.40M | 598.02M | 550.87M | 486.61M |
| Total Debt | 114.94M | 32.73M | 47.77M | 54.65M | 16.50M | 18.63M |
| Total Liabilities | 716.66M | 443.72M | 594.40M | 340.43M | 281.98M | 252.53M |
| Stockholders Equity | 1.07B | 1.09B | 1.00B | 911.85M | 842.72M | 756.81M |
Cash Flow | ||||||
| Free Cash Flow | 168.64M | 217.41M | 215.73M | 221.72M | 188.15M | 94.36M |
| Operating Cash Flow | 188.27M | 222.50M | 227.95M | 233.29M | 193.79M | 101.80M |
| Investing Cash Flow | -88.13M | -5.96M | -17.13M | -12.90M | -13.66M | -47.21M |
| Financing Cash Flow | -172.06M | -170.49M | -152.27M | -143.05M | -118.38M | -104.91M |
Otsuka Information Technology Corp. Peers Comparison
Overall Rating
TW:247180Outperform
TW:315877Outperform- TW:357073Outperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:2471 | 80Outperform | TWD 2.57B | 12.38 | ― | 5.54% | 9.46% | 85.40% |
| TW:3158 | 77Outperform | TWD 2.48B | 10.66 | ― | 8.04% | ― | ― |
| TW:3570 | 73Outperform | TWD 2.76B | 13.01 | ― | 5.72% | 5.84% | 6.04% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:3570 | Otsuka Information Technology Corp. | 169.50 | 4.62 | 2.80% | |
| TW:2471 | Ares International Corp. | 59.80 | 12.42 | 26.22% | |
| TW:3158 | SysJust Co., Ltd. | 80.80 | -27.15 | -25.15% | |
| TW:6614 | International Integrated Systems, Inc. | 31.70 | -33.00 | -51.00% | |
| TW:6909 | Tricorntech Corporation | 40.85 | 3.86 | 10.42% | |
| TW:7721 | Microprogram Information Co Ltd | 51.20 | 1.64 | 3.31% |
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