GemTek Technology Co., Ltd. AI Stock Analysis
GemTek Technology Co., Ltd. (4906) AI Stock Analysis
GemTek Technology Co., Ltd.
(TWSE:4906)
GemTek scores below average overall. The dominant drag is deteriorating earnings power: four straight years of revenue decline, a near-zero operating margin and a 2025 net loss that pushed return on equity negative, compounded by a distorted 232x P/E that leaves no valuation cushion. Technicals add to the caution, with the share price below all major moving averages and negative MACD momentum, though deeply oversold RSI and Stochastic readings suggest the selling may be extended. Offsetting these risks are genuine balance-sheet strength — low leverage and equity covering roughly 60% of assets — and healthy free cash flow of NT$2.0bn, which provide downside protection while the company awaits a volume recovery. The modest 1.5% dividend yield offers limited additional support.
GemTek Technology Co., Ltd. (4906) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 15.92B
- Dividend Yield
- 1.33%
- Average Volume (3M)
- 7.60M
- Price to Earnings (P/E)
- 719.0
- Beta (1Y)
- 0.89
- Revenue Growth
- -20.19%
- EPS Growth
- ―
- Country
- TW
- Employees
- 5,193
- Sector
- General
- Sector Strength
- 55
- Industry
- Communication Equipment
GemTek Technology Co., Ltd. Business Overview & Revenue Model
Company Description
Gemtek Technology Co., Ltd., established in 1988 and based in Hsinchu, Taiwan, is a global company specializing in the full lifecycle of wireless communication technologies, from development and manufacturing to sales. Its extensive product range inc...
GemTek Technology Co., Ltd. Financial Statement Overview
Summary
A conservative balance sheet (debt-to-equity of 0.21, equity funding ~60% of assets) and robust cash generation (NT$2.81bn operating cash flow and NT$2.01bn free cash flow in 2025) provide meaningful downside protection. However, the income statement is the clear weak link: revenue has fallen for four consecutive years and dropped sharply to NT$16.5bn in 2025, operating margin collapsed to 0.4%, and the company swung to a NT$108m net loss with return on equity turning negative (-0.9%). Gross margin improving to a six-year high of 12.0% suggests the issue is volume and fixed-cost absorption rather than pricing, but equity and total assets have shrunk, and cash flow is being generated by a contracting business rather than earnings growth.
Income Statement
34NegativeBalance Sheet
71PositiveCash Flow
76Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.87B | 16.49B | 25.63B | 26.14B | 27.90B | 22.91B |
| Gross Profit | 1.61B | 1.98B | 3.04B | 2.77B | 2.87B | 2.06B |
| EBITDA | 558.43M | 738.77M | 1.66B | 1.51B | 1.57B | 1.23B |
| Net Income | 56.45M | -108.33M | 647.27M | 609.15M | 664.68M | 679.79M |
Balance Sheet | ||||||
| Total Assets | 19.26B | 18.97B | 21.62B | 21.97B | 24.83B | 20.22B |
| Cash, Cash Equivalents and Short-Term Investments | 4.20B | 6.40B | 5.00B | 3.53B | 1.03B | 1.56B |
| Total Debt | 2.04B | 2.41B | 2.02B | 2.28B | 2.63B | 3.01B |
| Total Liabilities | 7.63B | 7.21B | 8.55B | 8.77B | 11.45B | 8.30B |
| Stockholders Equity | 11.26B | 11.41B | 12.73B | 12.84B | 13.07B | 11.69B |
Cash Flow | ||||||
| Free Cash Flow | -1.21B | 2.01B | 1.51B | 1.80B | 131.57M | -1.12B |
| Operating Cash Flow | 68.03M | 2.81B | 2.25B | 2.61B | 956.42M | -572.91M |
| Investing Cash Flow | -1.44B | -1.16B | -314.29M | -83.39M | -662.69M | -167.98M |
| Financing Cash Flow | 855.74M | -207.84M | -332.97M | -520.40M | -704.11M | 308.62M |
GemTek Technology Co., Ltd. Peers Comparison
Overall Rating
TW:809975Outperform
TW:370457Neutral- TW:490652Neutral
TW:530942Neutral
TW:338039Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:8099 | 75Outperform | TWD 13.71B | 44.91 | ― | 1.40% | 27.23% | 58.65% |
| TW:3704 | 57Neutral | TWD 14.44B | 11.19 | ― | 1.13% | 4.90% | 31.87% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:4906 | 52Neutral | TWD 15.97B | 719.00 | ― | 1.33% | -20.19% | ― |
| TW:5309 | 42Neutral | TWD 13.18B | 299.47 | ― | 0.89% | 11.31% | 81.90% |
| TW:3380 | 39Underperform | TWD 15.57B | 60.80 | ― | 1.75% | 10.82% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:4906 | GemTek Technology Co., Ltd. | 35.50 | 8.84 | 33.17% | |
| TW:3380 | Alpha Networks Inc. | 28.60 | -1.53 | -5.09% | |
| TW:3704 | Zyxel Group Corporation | 35.30 | -0.49 | -1.37% | |
| TW:5309 | Sysgration Ltd. | 55.90 | -0.44 | -0.78% | |
| TW:7805 | QNAP Systems, Inc. | 388.50 | -177.87 | -31.41% | |
| TW:8099 | Tatung System Technologies Inc. | 150.50 | 80.58 | 115.26% |
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