Avertronics Inc. (3597) AI Stock Analysis

Avertronics Inc.

(TPEx:3597)

Select Model

Rating:40Underperform

Price Target:TWD 33.00▼(-19.81% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 40 reflects a high-risk investment profile. The most significant factor is the company's precarious financial position, characterized by a highly leveraged balance sheet and massive cash burn that threatens its stability. This is compounded by weak near-term technical momentum and an extremely high valuation that is not justified by the company's deteriorating fundamentals. The stock's longer-term uptrend provides a minor offset, but the risks heavily outweigh any positive signals.

Positive Factors

Audio-component specializationA focused position in microphones, electromechanical components, and acoustic solutions gives Avertronics an established role in multiple consumer-electronics applications. Exposure across smartphones, headsets, and other devices can support durable customer relevance and broaden opportunities for product adoption.

Negative Factors

Higher financial leverageThe sharp increase in debt and debt-to-equity makes the capital structure materially more aggressive than in 2024. Higher leverage reduces financial flexibility, increases sensitivity to earnings weakness, and can constrain investment or shareholder returns over the coming quarters.

Avertronics Inc. (3597) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.64B
Dividend Yield: 0.97%
Average Volume (3M): 566.08K
Price to Earnings (P/E): 54.2
Beta (1Y): 0.78
Revenue Growth: 15.76%
EPS Growth: 65.35%
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 health is critically weak. The income statement shows razor-thin net margins of 1.5% and declining profitability. The balance sheet is highly leveraged with a debt-to-equity ratio of 1.41, and free cash flow is deeply negative at -TWD 536.9M, indicating the company is burning cash and relying on debt to fund operations and investments.

Income Statement

35Negative

Balance Sheet

30Negative

Cash Flow

15Very Negative

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3597 against its peers
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	-94.52	―	1.47%	-6.81%	55.44%
TW:4729	43Neutral	TWD 1.32B	30.33	―	―	3.32%	82.70%
TW:3597	40Underperform	TWD 1.47B	54.19	―	0.97%	15.76%	65.35%
TW:3516	39Underperform	TWD 1.38B	46.51	―	0.88%	8.10%	276.21%

* General Sector Average

Performance Comparison

TW:3597 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3597	Avertronics Inc.	41.15	15.79	62.27%
TW:3516	ADO Optronic Corp.	22.65	2.90	14.67%
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	11.98	31.92%
TW:7962	Yuden-Tech Co., Ltd.	50.00	-12.90	-20.51%

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

Avertronics Inc. AI Stock Analysis