AzureWave Technologies, Inc. (3694) AI Stock Analysis

AzureWave Technologies, Inc.

(TWSE:3694)

Select Model

Rating:67Neutral

Price Target:TWD 42.00▲(3.83% Upside)

Action:initiatedcoverage

Date:11/09/26

AzureWave scores moderately well, driven primarily by improving fundamentals: a 23% revenue rebound, margin expansion across all lines, ~48% profit growth, and a near debt-free balance sheet with ROE at a five-year high of 16.8%. Valuation reinforces the case, with a modest 10.4x P/E and a high 5.88% dividend yield. These strengths are tempered by a sharp deterioration in cash generation — operating and free cash flow roughly halved as growth absorbed working capital — alongside structurally thin margins and a history of volatile revenue. The biggest drag is price action: the stock sits well below all major moving averages with a deeply negative MACD, and depressed RSI and Stochastic readings point to an entrenched downtrend that investors should see stabilise before the improving fundamentals are rewarded.

Positive Factors

Conservative balance sheetAzureWave has materially reduced leverage while steadily building equity, giving the business stronger financial flexibility. The low debt burden can support resilience through weaker periods and preserve capacity to fund operations, investment, or shareholder returns over the next several quarters.

Negative Factors

Choppy revenue trajectoryThe uneven multi-year revenue path indicates that demand and growth have not been consistently durable. Although 2025 improved, repeated periods of contraction can limit operating leverage, make earnings planning less predictable, and increase reliance on a sustained recovery in subsequent quarters.

AzureWave Technologies, Inc. (3694) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.29B
Dividend Yield: 5.69%
Average Volume (3M): 556.39K
Price to Earnings (P/E): 10.1
Beta (1Y): 1.12
Revenue Growth: 15.44%
EPS Growth: 18.33%
Country: TW
Employees: 4,800
Sector: General
Sector Strength: 55
Industry: Communication Equipment

AzureWave Technologies, Inc. Business Overview & Revenue Model

Company Description

AzureWave Technologies, Inc. engages in the manufacture and sale of wireless connectivity and image processing solutions worldwide. The company offers wireless modules, including M.2 socket type, M.2 solder-own, solder-down stamp, wireless IOT module...

AzureWave Technologies, Inc. Financial Statement Overview

Summary

Fundamentals are solid and improving. Revenue rebounded sharply (+23% to NT$11.41bn) after three down years, margins expanded across gross, operating and net lines, and net income jumped ~48% to NT$615m. The balance sheet is a standout strength with debt-to-equity of just 0.10, equity funding ~51% of assets, and ROE at a five-year high of 16.8%. The clear offset is cash flow: operating cash flow fell ~42% and free cash flow ~53% as growth consumed working capital and capex stayed elevated, cutting FCF-to-net-income conversion to ~66%. Structurally thin single-digit net margins and a historically volatile top line add cyclical risk.

Income Statement

73Positive

Balance Sheet

81Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.86B	11.41B	9.25B	9.53B	10.07B	11.45B
Gross Profit	1.69B	1.67B	1.34B	1.27B	1.24B	1.21B
EBITDA	850.83M	999.88M	791.96M	758.34M	788.45M	820.95M
Net Income	612.76M	615.19M	417.02M	333.44M	295.12M	308.88M
Balance Sheet
Total Assets	8.16B	7.17B	6.28B	5.52B	5.64B	6.40B
Cash, Cash Equivalents and Short-Term Investments	2.24B	2.49B	2.17B	1.17B	477.01M	273.93M
Total Debt	552.74M	348.67M	155.81M	208.06M	558.34M	1.32B
Total Liabilities	4.50B	3.51B	2.87B	2.57B	3.02B	4.32B
Stockholders Equity	3.66B	3.67B	3.40B	2.95B	2.62B	2.09B
Cash Flow
Free Cash Flow	526.78M	529.29M	1.13B	1.16B	917.72M	-633.55M
Operating Cash Flow	793.94M	801.08M	1.38B	1.23B	1.07B	-122.39M
Investing Cash Flow	85.84M	-330.54M	-271.15M	-89.41M	-146.29M	-358.32M
Financing Cash Flow	-105.99M	-61.53M	-231.78M	-426.67M	-797.51M	299.10M

AzureWave Technologies, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3694 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3169	71Outperform	TWD 5.84B	24.14	―	3.45%	4.81%	4.09%
TW:3694	67Neutral	TWD 6.47B	10.10	―	5.69%	15.44%	18.33%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3558	45Neutral	TWD 6.20B	50.48	―	2.90%	-3.32%	-69.25%
TW:8040	44Neutral	TWD 6.60B	787.78	―	―	13.49%	―
TW:3062	43Neutral	TWD 6.39B	-9.39	―	―	-1.21%	-212.49%

* General Sector Average

Performance Comparison

TW:3694 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3694	AzureWave Technologies, Inc.	40.45	-23.47	-36.72%
TW:3062	CyberTAN Technology, Inc.	18.60	-7.60	-29.01%
TW:3169	Asix Electronics Co. Ltd.	92.80	5.32	6.08%
TW:3558	Senao Networks, Inc.	103.50	-30.83	-22.95%
TW:7689	Climax Technology Co., Ltd.	100.00	-67.24	-40.20%
TW:8040	IC Plus Corp.	70.20	20.10	40.12%

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

AzureWave Technologies, Inc. AI Stock Analysis