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Edison Opto Corporation (3591) AI Stock Analysis

TW:3591

Edison Opto Corporation

(TWSE:3591)

Select Model
Rating:50Neutral
Price Target:TWD 22.00â–¼(-13.21% Downside)
Action:initiatedcoverage
Date:11/09/26

Edison Opto scores in the lower-middle range. The decisive negative is a swing to a net loss on falling revenue and sharply compressed margins, leaving return on equity negative and the P/E meaningless. Technicals reinforce the caution, with the price below all major moving averages and negative MACD momentum. Supporting the score are a conservative balance sheet (debt-to-equity of 0.17, equity funding two-thirds of assets), still-positive operating and free cash flow, and a 5.18% dividend yield that offers income — though its durability depends on a margin recovery that has yet to materialise.

Positive Factors
Conservative Balance SheetLow leverage and a substantial equity base provide financial flexibility during weaker industry conditions. This supports continued operations, reduces balance-sheet strain, and leaves more capacity to fund products or absorb earnings volatility without relying heavily on additional borrowing.
Negative Factors
Profitability DeteriorationThe latest annual results show a material weakening in earnings quality, with lower revenue, compressed gross margin, and a swing to a net loss. This reduces internally generated capital, weakens returns, and raises concern that profitability may remain sensitive to pricing or cost pressure.

Edison Opto Corporation (3591) vs. SPDR S&P 500 ETF (SPY)

-10%0%10%20%30%40%50%60%TW:3591+29.55%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 3.28B
Dividend Yield
4.54%
Average Volume (3M)
1.29M
Price to Earnings (P/E)
138.0
Beta (1Y)
0.88
Revenue Growth
7.16%
EPS Growth
163.81%
Country
TW
Employees
470
Sector
General
Sector Strength
55
Industry
Hardware, Equipment & Parts

Edison Opto Corporation Business Overview & Revenue Model

Company Description

Edison Opto Corporation is a company dedicated to the development, production, and global distribution of light-emitting diode (LED) lighting solutions. Their extensive product portfolio encompasses a wide range of offerings, from core LED components...

Edison Opto Corporation Financial Statement Overview

Summary

A mixed picture dominated by a weakening income statement (score 33): revenue fell ~5% to NT$2.31bn and the company swung from a NT$142m profit to a NT$47m net loss, with gross margin down to 21.2% and operating margin collapsing to 0.2%. The balance sheet is the key support (score 71), with equity of NT$2.80bn funding two-thirds of assets and debt-to-equity of just 0.17, though total debt rose ~62% and ROE turned negative at -1.7%. Cash flow (score 62) remains positive — NT$188m operating cash flow and NT$74m free cash flow — but both declined sharply year-over-year amid heavy capex.

Income Statement

33Negative

Balance Sheet

71Positive

Cash Flow

62Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.39B2.31B2.56B1.99B1.84B2.11B
Gross Profit478.30M489.96M632.40M511.35M462.56M510.21M
EBITDA150.07M121.77M307.99M189.12M201.03M287.24M
Net Income-20.05M-47.24M141.91M47.53M25.65M120.26M
Balance Sheet
Total Assets4.69B4.10B4.19B3.88B3.83B4.05B
Cash, Cash Equivalents and Short-Term Investments1.27B1.24B1.22B1.13B1.16B1.18B
Total Debt872.41M486.59M300.25M342.32M582.99M726.19M
Total Liabilities1.61B1.13B1.00B915.67M1.05B1.26B
Stockholders Equity2.89B2.80B3.01B2.84B2.64B2.64B
Cash Flow
Free Cash Flow-285.68M74.38M158.16M65.52M70.70M-360.04M
Operating Cash Flow130.51M188.10M237.91M136.09M162.83M127.00M
Investing Cash Flow-541.08M-240.10M-151.34M-80.97M24.64M-515.76M
Financing Cash Flow145.24M-4.07M-72.87M-111.62M-234.82M316.12M

Edison Opto Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:3591 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:3038TW:303860NeutralTWD 2.87B15.37―6.43%-9.99%1.97%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:3591TW:359150NeutralTWD 3.16B138.00―4.54%7.16%163.81%
TW:3580TW:358047NeutralTWD 3.49B53.58―1.40%-19.96%-63.63%
TW:4956TW:495641NeutralTWD 3.22B90.03――1.03%―
TW:8104TW:810433UnderperformTWD 2.74B-31.81―0.37%-25.80%-414.29%

* General Sector Average

Performance Comparison

0%50%100%150%TW:3591TW:3038TW:3580TW:4956TW:6775TW:8104Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:3591 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:3591Edison Opto Corporation25.355.3026.45%
TW:3038Emerging Display Technologies Corp18.65-1.56-7.73%
TW:3580UVAT Technology Co., Ltd.86.0028.1748.70%
TW:4956Epileds Technologies, Inc.32.9513.6570.73%
TW:6775Entire Technology Co Ltd28.60-0.73-2.51%
TW:8104RiTdisplay Corp26.30-5.00-15.97%
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