New Era Electronics Co., Ltd. (4909) AI Stock Analysis

New Era Electronics Co., Ltd.

(TPEx:4909)

Select Model

Rating:46Neutral

Price Target:TWD 27.00▼(-10.30% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held down primarily by severely deteriorating earnings: revenue fell roughly 89% in 2025, gross margin turned negative and the company posted a NT$116.7m net loss, with no evidence of a stable, repeatable earnings engine after losses in four of the last six years. Technicals reinforce the caution, with the price well below all major moving averages and a negative MACD confirming a sustained downtrend, though oversold RSI and Stochastic readings hint at scope for a short-term bounce. Partially offsetting these risks is a fortress balance sheet — essentially debt-free with equity funding about 95% of assets — plus strong 2025 free cash flow, albeit largely from a one-off working-capital release. Valuation is unattractive on a 39.9 P/E against negative earnings, and the eye-catching 21.8% dividend yield should be treated with caution as it is unlikely to be sustained at current profitability levels.

Positive Factors

Very low leverageVery low leverage reduces solvency risk and preserves financial flexibility during weaker operating periods. A lightly indebted balance sheet can support continued investment, provide greater resilience against earnings volatility, and leave management more options for capital allocation.

Negative Factors

Sharp revenue deteriorationThe material 2025 revenue decline indicates that recent business performance has not been sustained. A shrinking top line can reduce operating leverage, weaken reinvestment capacity, and make it harder for the company to maintain stable earnings over the next several quarters.

New Era Electronics Co., Ltd. (4909) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.97B
Dividend Yield: 20.00%
Average Volume (3M): 491.38K
Price to Earnings (P/E): 41.4
Beta (1Y): 1.20
Revenue Growth: -87.35%
EPS Growth: -84.51%
Country: TW
Employees: 197
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

New Era Electronics Co., Ltd. Business Overview & Revenue Model

Company Description

New Era Electronics Co., Ltd, headquartered in Taoyuan City, Taiwan since its establishment in 1984, is a global manufacturer and seller of various printed circuit board (PCB) solutions. The company produces specialized microwave RF PCBs, which are i...

New Era Electronics Co., Ltd. Financial Statement Overview

Summary

A split picture. The balance sheet is a genuine strength (score 76): debt of just NT$20.2m against NT$2.55bn of equity, with equity funding roughly 95% of assets, leaving almost no leverage risk. Cash flow is mixed (score 55) — NT$594.2m operating and NT$579.2m free cash flow in 2025 with minimal capex, but this stemmed largely from a working-capital unwind after the 2024 revenue surge rather than profitable trading, and cash flow was negative in 2021 and 2022. The income statement is the clear weak point (score 24): revenue collapsed from NT$2.78bn in 2024 to NT$296.6m in 2025, gross margin turned negative (-10.1%) and the company swung to a NT$116.7m net loss, with losses in four of the last six years. The 2024 profit spike appears driven by non-core items, and equity has already shrunk about 21% as losses erode the capital base.

Income Statement

24Negative

Balance Sheet

76Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	229.83M	296.57M	2.78B	718.63M	494.66M	673.31M
Gross Profit	-49.67M	-30.00M	1.03B	75.86M	-64.50M	-16.71M
EBITDA	-5.22M	-77.62M	1.26B	69.45M	-13.27M	-91.93M
Net Income	69.23M	-116.66M	946.47M	38.89M	-54.77M	-117.86M
Balance Sheet
Total Assets	2.68B	2.69B	3.74B	2.61B	2.54B	2.67B
Cash, Cash Equivalents and Short-Term Investments	2.13B	2.13B	2.13B	1.82B	1.83B	1.93B
Total Debt	14.15M	20.21M	52.64M	26.70M	32.76M	140.78M
Total Liabilities	143.66M	146.38M	505.82M	229.79M	198.73M	291.30M
Stockholders Equity	2.54B	2.55B	3.23B	2.38B	2.34B	2.38B
Cash Flow
Free Cash Flow	-221.24M	579.21M	139.78M	3.85M	-79.12M	-116.25M
Operating Cash Flow	-207.19M	594.16M	167.75M	11.62M	-46.89M	-104.27M
Investing Cash Flow	2.03M	28.06M	345.22M	1.48M	59.29M	180.91M
Financing Cash Flow	-564.32M	-592.38M	-46.68M	0	-100.00M	-28.01M

New Era Electronics Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4909 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3025	74Outperform	TWD 2.78B	10.30	―	6.60%	33.73%	81.02%
TW:8011	60Neutral	TWD 2.29B	21.08	―	5.11%	-12.34%	-75.40%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4909	46Neutral	TWD 2.80B	41.40	―	20.00%	-87.35%	-84.51%
TW:2462	42Neutral	TWD 2.60B	27.86	―	1.18%	-4.39%	-87.95%
TW:3047	41Neutral	TWD 2.99B	-15.27	―	2.23%	-32.95%	-101.63%
TW:6142	41Neutral	TWD 2.53B	-26.86	―	―	11.42%	48.35%

* General Sector Average

Performance Comparison

TW:4909 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4909	New Era Electronics Co., Ltd.	30.10	-14.65	-32.74%
TW:2462	TAIWAN LINE TEK ELECTRONIC CO., LTD.	16.90	-5.21	-23.56%
TW:3025	Loop Telecommunication International, Inc.	48.50	5.26	12.17%
TW:3047	Edimax Technology Co., Ltd.	13.90	-4.95	-26.26%
TW:6142	Cameo Communications, Inc.	8.14	-2.21	-21.36%
TW:8011	Tai Tung Communication Co., Ltd.	13.70	-7.61	-35.70%

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

New Era Electronics Co., Ltd. AI Stock Analysis