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GemTek Technology Co., Ltd. (4906) AI Stock Analysis

TW:4906

GemTek Technology Co., Ltd.

(TWSE:4906)

Select Model
Rating:50Neutral
Price Target:TWD 32.00â–¼(-9.86% Downside)
Action:initiatedcoverage
Date:11/10/26

The score is primarily constrained by weak financial performance and an extremely high P/E ratio. A strong balance sheet and positive cash generation provide support, but bearish technical trends and declining profitability materially reduce the overall score.

Positive Factors
Conservative LeverageLow leverage gives GemTek greater financial flexibility during the operating downturn. A debt-to-equity ratio of 0.21 limits balance-sheet strain and leaves more capacity to support investment, absorb weaker earnings, and manage obligations without relying heavily on additional borrowing.
Negative Factors
Sustained Revenue DeclineThe repeated revenue contraction indicates a sustained deterioration in demand or commercial performance rather than a single-period fluctuation. Continued top-line weakness can reduce scale benefits, pressure customer and product economics, and make a durable earnings recovery more difficult over the next several quarters.

GemTek Technology Co., Ltd. (4906) vs. SPDR S&P 500 ETF (SPY)

-20%0%20%40%60%80%100%TW:4906+34.41%SPY+14.30%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
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

Low leverage and positive operating and free cash flow support the score, but the 2025 revenue decline, sharply lower EBIT, net loss, negative ROE, and declining free cash flow are significant weaknesses.

Income Statement

35Negative

Balance Sheet

78Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.87B16.49B25.63B26.14B27.90B22.91B
Gross Profit1.61B1.98B3.04B2.77B2.87B2.06B
EBITDA558.43M738.77M1.66B1.51B1.57B1.23B
Net Income56.45M-108.33M647.27M609.15M664.68M679.79M
Balance Sheet
Total Assets19.26B18.97B21.62B21.97B24.83B20.22B
Cash, Cash Equivalents and Short-Term Investments4.20B6.40B5.00B3.53B1.03B1.56B
Total Debt2.04B2.41B2.02B2.28B2.63B3.01B
Total Liabilities7.63B7.21B8.55B8.77B11.45B8.30B
Stockholders Equity11.26B11.41B12.73B12.84B13.07B11.69B
Cash Flow
Free Cash Flow-1.21B2.01B1.51B1.80B131.57M-1.12B
Operating Cash Flow68.03M2.81B2.25B2.61B956.42M-572.91M
Investing Cash Flow-1.44B-1.16B-314.29M-83.39M-662.69M-167.98M
Financing Cash Flow855.74M-207.84M-332.97M-520.40M-704.11M308.62M

GemTek Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:4906 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:8099TW:809975OutperformTWD 13.71B44.91―1.40%27.23%58.65%
TW:3704TW:370457NeutralTWD 14.44B11.19―1.13%4.90%31.87%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:4906TW:490650NeutralTWD 15.97B719.00―1.33%-20.19%―
TW:5309TW:530942NeutralTWD 13.18B299.47―0.89%11.31%81.90%
TW:3380TW:338039UnderperformTWD 15.57B60.80―1.75%10.82%―

* General Sector Average

Performance Comparison

0%50%100%TW:4906TW:3380TW:3704TW:5309TW:7805TW:8099Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:4906 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:4906GemTek Technology Co., Ltd.35.508.3530.74%
TW:3380Alpha Networks Inc.28.60-1.14-3.84%
TW:3704Zyxel Group Corporation35.300.401.15%
TW:5309Sysgration Ltd.55.900.751.37%
TW:7805QNAP Systems, Inc.388.50-189.67-32.81%
TW:8099Tatung System Technologies Inc.150.5081.26117.36%
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