Avertronics Inc. AI Stock Analysis
Avertronics Inc. (3597) AI Stock Analysis
Avertronics Inc.
(TPEx:3597)
Avertronics scores low primarily due to weak financial fundamentals: despite a 17% revenue recovery, net margin compressed to 1.5%, leverage jumped to 1.41x equity after debt tripled, and free cash flow was deeply negative at roughly -NT$537 million amid a heavy capital spending cycle. Valuation adds pressure, with a P/E of 44 and a modest 1.15% dividend yield pricing in an earnings recovery that has yet to materialise. Technicals are the relative bright spot — the shares still sit above their 50-, 100- and 200-day averages with positive MACD — but a sharp recent pullback and oversold short-term indicators point to fading near-term momentum. Margin recovery, lower capex and debt reduction would be the key signals of improvement.
Avertronics Inc. (3597) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 1.60B
- Dividend Yield
- 1.07%
- Average Volume (3M)
- 547.29K
- Price to Earnings (P/E)
- 51.4
- Beta (1Y)
- 0.77
- Revenue Growth
- 8.95%
- EPS Growth
- -7.55%
- Country
- TW
- Employees
- 448
- Sector
- General
- Sector Strength
- 55
- Industry
- Hardware, Equipment & Parts
Avertronics Inc. Business Overview & Revenue Model
Company Description
Avertronics Inc. engages in the manufacturing and sales of waterproof connectors and wire harnesses in Taiwan, Mainland China, and internationally. The company offers temperature control components, special wires, terminals, connectors, network acces...
Avertronics Inc. Financial Statement Overview
Summary
Financial quality is below average. Revenue recovered about 17% to roughly NT$860 million, but profitability thinned sharply — operating margin fell to 6.3% from 9.6% and net income dropped to NT$13.3 million from NT$51.5 million (net margin just 1.5%). The balance sheet weakened materially as debt tripled to about NT$825 million, lifting debt-to-equity to 1.41 from 0.46, while return on equity collapsed to 2.3%. Cash flow is the weakest link: operating cash flow of NT$46.2 million was dwarfed by capital spending of roughly NT$583 million, leaving free cash flow near -NT$537 million for a second consecutive negative year. The aggressive, debt-funded expansion could support future capacity, but until margins and cash generation scale up, leverage and earnings volatility remain key risks.
Income Statement
45NeutralBalance Sheet
37NegativeCash Flow
28Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 916.75M | 860.48M | 738.20M | 611.24M | 1.05B | 1.06B |
| Gross Profit | 222.15M | 203.39M | 183.39M | 125.23M | 248.75M | 272.05M |
| EBITDA | 88.59M | 77.87M | 93.93M | 44.14M | 146.50M | 137.16M |
| Net Income | 31.26M | 13.31M | 51.51M | 9.74M | 80.35M | 76.70M |
Balance Sheet | ||||||
| Total Assets | 1.65B | 1.60B | 1.06B | 1.03B | 1.14B | 1.09B |
| Cash, Cash Equivalents and Short-Term Investments | 277.67M | 261.11M | 313.35M | 419.28M | 364.56M | 287.10M |
| Total Debt | 817.88M | 824.58M | 273.62M | 357.02M | 360.10M | 271.38M |
| Total Liabilities | 1.06B | 1.01B | 463.57M | 479.66M | 525.36M | 489.92M |
| Stockholders Equity | 592.65M | 586.20M | 598.76M | 550.30M | 616.12M | 599.87M |
Cash Flow | ||||||
| Free Cash Flow | -483.73M | -536.95M | -19.50M | 119.43M | 51.89M | 35.56M |
| Operating Cash Flow | -8.08M | 46.22M | -5.59M | 135.75M | 75.76M | 43.61M |
| Investing Cash Flow | -486.38M | -596.67M | 67.22M | -121.91M | -13.11M | 11.92M |
| Financing Cash Flow | 462.31M | 516.23M | -98.54M | -61.89M | -423.00K | -17.45M |
Avertronics Inc. Peers Comparison
Overall Rating
TW:523055Neutral
TW:472943Neutral- TW:359742Neutral
TW:351639Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:5230 | 55Neutral | TWD 1.74B | -86.02 | ― | 1.62% | -6.81% | 55.44% |
| TW:4729 | 43Neutral | TWD 1.32B | 37.69 | ― | ― | 3.32% | 82.70% |
| TW:3597 | 42Neutral | TWD 1.47B | 51.44 | ― | 1.07% | 8.95% | -7.55% |
| TW:3516 | 39Underperform | TWD 1.38B | 47.64 | ― | 0.86% | 8.10% | 276.21% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:3597 | Avertronics Inc. | 41.15 | 15.69 | 61.64% | |
| TW:3516 | ADO Optronic Corp. | 22.65 | 2.95 | 14.96% | |
| TW:4729 | Mildex Optical Inc. | 17.05 | -3.35 | -16.42% | |
| TW:5230 | Ledlink Optics, Inc. | 33.90 | 17.95 | 112.53% | |
| TW:6729 | Luminescence Technology Corp. | 49.50 | 10.76 | 27.77% | |
| TW:7962 | Yuden-Tech Co., Ltd. | 50.00 | -12.90 | -20.51% |
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