MiTAC Holdings Corp. (3706) AI Stock Analysis

MiTAC Holdings Corp.

(TWSE:3706)

Select Model

Rating:60Neutral

Price Target:TWD 71.00▼(-0.14% Downside)

Action:initiatedcoverage

Date:11/09/26

MiTAC Holdings scores in the middle of the range. Fundamentals are mixed: rapid revenue and earnings growth and a conservatively financed balance sheet are undermined by thin, compressing margins, reliance on non-operating income, and a sharp deterioration in cash generation that left free cash flow negative while borrowings rose. Technicals are the biggest drag, with the share price below all major moving averages and negative MACD momentum, although oversold RSI and Stochastic readings suggest selling may be stretched. A low P/E of 12.7 and a 4.41% dividend yield provide valuation support and help lift the overall score, but investors will want to see profits convert into cash before the growth story is fully credited.

Positive Factors

Improving Revenue GrowthAccelerating revenue growth indicates improving demand across MiTAC’s enterprise, industrial, and infrastructure activities. If sustained, stronger sales can support operating leverage, broaden customer adoption, and provide a durable foundation for earnings and cash generation over the coming quarters.

Negative Factors

Weak Recent Cash GenerationThe sharp deterioration in operating and free cash flow means recent accounting profits are not translating reliably into cash. Persistent weakness would constrain self-funded investment, reduce financial flexibility, and make the company more dependent on working-capital improvement or external financing.

MiTAC Holdings Corp. (3706) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 100.88B
Dividend Yield: 4.22%
Average Volume (3M): 8.77M
Price to Earnings (P/E): 12.9
Beta (1Y): 0.96
Revenue Growth: 50.91%
EPS Growth: 23.24%
Country: TW
Employees: 6,650
Sector: General
Sector Strength: 55
Industry: Computer Hardware

MiTAC Holdings Corp. Business Overview & Revenue Model

Company Description

MiTAC Holdings Corporation, established in 1982 and headquartered in Taoyuan City, Taiwan, is a global enterprise that conceives, engineers, produces, and supplies a comprehensive range of computer hardware, auxiliary equipment, and communication pro...

MiTAC Holdings Corp. Financial Statement Overview

Summary

Growth and balance sheet strength are offset by poor cash conversion. Revenue surged roughly 72% to NT$105.6 billion and net income rose about 73% to NT$6.84 billion, lifting return on equity to near 10%. The balance sheet is conservatively financed, with equity of NT$68.5 billion funding about half of total assets and debt-to-equity near 0.18, though total debt quadrupled to NT$12.5 billion in one year. The weak link is cash flow: operating cash flow fell to NT$419 million, converting only about 6% of net income into cash, and free cash flow swung to negative NT$1.62 billion after roughly NT$2.0 billion of capital spending. Margins are also thin and slipping (gross margin about 11.3%, operating margin near 5%), with net profit exceeding operating profit — a sign that a meaningful portion of earnings comes from non-operating sources rather than core operations.

Income Statement

71Positive

Balance Sheet

76Positive

Cash Flow

33Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	128.11B	105.58B	61.36B	35.54B	47.83B	42.19B
Gross Profit	12.98B	11.98B	7.37B	4.49B	3.84B	4.36B
EBITDA	8.21B	6.69B	4.27B	3.26B	12.61B	16.62B
Net Income	7.43B	6.84B	3.96B	1.78B	9.29B	11.96B
Balance Sheet
Total Assets	180.02B	130.92B	114.96B	88.75B	85.58B	76.35B
Cash, Cash Equivalents and Short-Term Investments	22.29B	21.64B	10.97B	11.10B	9.33B	9.16B
Total Debt	37.38B	12.48B	3.01B	1.83B	4.23B	4.05B
Total Liabilities	102.16B	61.27B	54.48B	27.32B	24.89B	23.74B
Stockholders Equity	76.27B	68.46B	60.07B	61.32B	60.64B	52.56B
Cash Flow
Free Cash Flow	-22.29B	-1.62B	682.22M	4.14B	746.89M	-1.24B
Operating Cash Flow	-17.42B	418.74M	1.48B	4.71B	1.75B	-144.68M
Investing Cash Flow	6.99B	4.91B	-1.02B	-278.53M	1.36B	574.07M
Financing Cash Flow	22.68B	5.49B	-703.91M	-3.82B	-2.12B	496.63M

MiTAC Holdings Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3706 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3005	77Outperform	TWD 66.83B	12.65	―	6.34%	8.59%	8.19%
TW:6414	61Neutral	TWD 52.49B	12.92	―	4.13%	8.27%	19.95%
TW:3706	60Neutral	TWD 102.99B	12.88	―	4.22%	50.91%	23.24%
TW:6285	59Neutral	TWD 92.58B	15.99	―	2.25%	29.79%	88.44%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2377	50Neutral	TWD 118.28B	12.14	―	3.00%	1.41%	111.21%
TW:2352	44Neutral	TWD 47.26B	30.20	―	10.69%	1.60%	19.60%

* General Sector Average

Performance Comparison

TW:3706 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3706	MiTAC Holdings Corp.	71.10	-12.78	-15.23%
TW:2352	Qisda Corporation	29.90	2.00	7.17%
TW:2377	Micro-Star International Co., Ltd.	140.00	33.15	31.03%
TW:3005	Getac Holdings Corporation	107.00	-21.26	-16.57%
TW:6285	WNC Corporation	191.50	89.72	88.14%
TW:6414	Ennoconn Corp.	334.00	61.71	22.66%

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

MiTAC Holdings Corp. AI Stock Analysis