ACES Electronics Co., Ltd. (3605) AI Stock Analysis

ACES Electronics Co., Ltd.

(TWSE:3605)

Select Model

Rating:58Neutral

Price Target:TWD 135.00▲(5.47% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 58 reflects a company with a strong fundamental recovery that is being overshadowed by weak technical momentum. The primary strength is the financial performance, driven by impressive revenue growth and a significantly improved balance sheet. However, the most significant risk is the current bearish technical trend, with the stock price falling below key moving averages and showing weak momentum. The persistent negative free cash flow adds a layer of financial caution, while the valuation remains neutral. The score is weighted heavily towards the positive financial turnaround, but the technical headwinds prevent a higher rating.

Positive Factors

Revenue and Margin RecoveryThe rebound in revenue, gross margin, and net margin shows stronger operating performance across consecutive years after the 2023 downturn. If maintained, improved profitability can support reinvestment, strengthen customer competitiveness, and provide a more durable earnings base over the next several quarters.

Negative Factors

Persistently Negative Free Cash FlowDespite better operating cash flow, ACES has not consistently produced surplus cash after investment needs. Persistent negative free cash flow can constrain self-funded growth, increase dependence on financing, and weaken the practical benefits of improved profitability if cash conversion does not recover.

ACES Electronics Co., Ltd. (3605) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 23.31B
Dividend Yield: 1.15%
Average Volume (3M): 15.75M
Price to Earnings (P/E): 33.3
Beta (1Y): 1.53
Revenue Growth: 13.61%
EPS Growth: -8.06%
Country: TW
Employees: 15,702
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

ACES Electronics Co., Ltd. Business Overview & Revenue Model

Company Description

ACES Electronics Co., Ltd. researches, develops, manufactures, and sells electronic connectors in Taiwan, China, the Philippines, the United States, and internationally. It operates through Connectors, Cable Groups, Investments and Others segments. T...

ACES Electronics Co., Ltd. Financial Statement Overview

Summary

ACES Electronics shows a strong operational turnaround with 21% TTM revenue growth and restored profitability, reflected in solid Income Statement (72) and Balance Sheet (78) scores. However, persistent negative free cash flow (Cash Flow Score: 55) is a significant concern, indicating capital-intensive growth. The overall financial picture is a recovery story tempered by weak cash generation.

Income Statement

72Positive

Balance Sheet

78Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.67B	10.86B	9.77B	8.49B	10.39B	10.58B
Gross Profit	2.94B	2.82B	2.32B	1.75B	2.23B	2.43B
EBITDA	1.31B	1.32B	1.24B	545.47M	1.10B	1.23B
Net Income	666.45M	661.23M	344.06M	-266.54M	225.32M	510.86M
Balance Sheet
Total Assets	16.12B	14.85B	13.60B	12.25B	12.84B	12.87B
Cash, Cash Equivalents and Short-Term Investments	2.66B	2.55B	2.00B	2.06B	2.46B	2.73B
Total Debt	2.52B	3.24B	3.56B	4.14B	3.89B	3.52B
Total Liabilities	7.18B	6.92B	7.13B	6.99B	7.19B	7.34B
Stockholders Equity	8.93B	7.93B	6.46B	5.25B	5.64B	5.51B
Cash Flow
Free Cash Flow	-35.57M	-101.03M	-268.97M	-334.91M	-15.43M	-12.80M
Operating Cash Flow	1.14B	1.21B	1.02B	663.32M	1.14B	1.04B
Investing Cash Flow	-964.91M	-984.01M	-1.12B	-1.05B	-1.14B	-1.12B
Financing Cash Flow	98.03M	147.12M	-30.09M	43.10M	-39.09M	1.00B

ACES Electronics Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3605 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6290	70Outperform	TWD 33.68B	18.60	―	3.11%	12.38%	32.24%
TW:6197	68Neutral	TWD 29.56B	19.38	―	2.80%	21.34%	60.27%
TW:2328	61Neutral	TWD 24.34B	1.23	―	1.90%	-13.85%	-78.67%
TW:3605	58Neutral	TWD 22.61B	33.29	―	1.15%	13.61%	-8.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2392	45Neutral	TWD 16.68B	4.41	―	2.92%	-10.50%	1834.43%
TW:2367	44Neutral	TWD 26.41B	-51.36	―	0.51%	96.36%	-186.89%

* General Sector Average

Performance Comparison

TW:3605 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3605	ACES Electronics Co., Ltd.	128.00	64.00	99.99%
TW:2328	Pan-International Industrial Corp.	45.75	-3.28	-6.68%
TW:2367	Unitech Printed Circuit Board Corp.	38.75	14.09	57.12%
TW:2392	Cheng Uei Precision Industry Co., Ltd.	33.55	-6.59	-16.41%
TW:6197	Jess-Link Products Co., Ltd.	232.00	92.83	66.70%
TW:6290	Longwell Company	189.00	7.12	3.91%

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 10, 2026

ACES Electronics Co., Ltd. AI Stock Analysis