NewSoft Technology Corporation (5202) AI Stock Analysis

NewSoft Technology Corporation

(TPEx:5202)

Select Model

Rating:50Neutral

Price Target:TWD 18.50▼(-12.32% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is held down primarily by weak profitability and persistent negative cash flow, despite a conservative balance sheet. Positive technical momentum and limited dividend support improve the outlook, but the negative P/E and weakening operating performance remain significant risks.

Positive Factors

Low LeverageVery low leverage gives NewSoft financial flexibility to withstand operating volatility and fund essential initiatives without heavy reliance on creditors. A predominantly equity-funded balance sheet also reduces interest burden and refinancing pressure, supporting resilience if profitability takes time to recover.

Negative Factors

Persistent Cash BurnMulti-year negative operating and free cash flow means the business is not currently funding operations through internally generated cash. Continued cash burn can limit investment capacity and increase execution risk, even with low leverage, particularly if losses persist or working-capital demands remain elevated.

NewSoft Technology Corporation (5202) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.78B
Dividend Yield: 0.95%
Average Volume (3M): 2.29M
Price to Earnings (P/E): -20.4
Beta (1Y): 0.40
Revenue Growth: -17.04%
EPS Growth: 21.24%
Country: TW
Employees: 318
Sector: General
Sector Strength: 55
Industry: Software - Application

NewSoft Technology Corporation Business Overview & Revenue Model

Company Description

NewSoft Technology Corporation provides digital transformation services in Taiwan, China, Japan, and internationally. It operates through software services, system services, and distribution channel business segments. The company also engages in trad...

NewSoft Technology Corporation Financial Statement Overview

Summary

Weak overall financial quality: a strong, low-leverage balance sheet is outweighed by declining revenue, recurring operating losses, volatile earnings, and persistently negative operating and free cash flow.

Income Statement

24Negative

Balance Sheet

82Very Positive

Cash Flow

14Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	137.96M	150.09M	163.76M	135.44M	168.66M	182.62M
Gross Profit	89.08M	104.37M	122.87M	94.52M	110.32M	109.29M
EBITDA	-25.69M	-34.36M	176.19M	179.56M	-62.63M	23.16M
Net Income	-87.20M	-54.63M	155.60M	161.58M	-78.77M	-18.76M
Balance Sheet
Total Assets	1.13B	1.23B	1.35B	1.21B	1.04B	929.21M
Cash, Cash Equivalents and Short-Term Investments	428.30M	493.76M	690.42M	773.18M	788.70M	494.34M
Total Debt	19.73M	24.94M	34.05M	8.42M	18.35M	35.53M
Total Liabilities	79.06M	75.97M	93.60M	74.09M	74.43M	145.52M
Stockholders Equity	1.05B	1.16B	1.26B	1.14B	963.75M	665.63M
Cash Flow
Free Cash Flow	-46.29M	-32.54M	-170.25M	-164.51M	-206.95M	31.64M
Operating Cash Flow	-44.83M	-29.86M	-161.92M	-160.95M	-204.47M	32.70M
Investing Cash Flow	3.33M	107.81M	144.79M	98.76M	-440.42M	202.32M
Financing Cash Flow	-55.25M	-54.94M	-73.14M	-10.21M	622.15M	-9.56M

NewSoft Technology Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5202 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8272	84Outperform	TWD 1.85B	21.09	―	5.34%	7.21%	1.97%
TW:6697	78Outperform	TWD 1.70B	22.81	―	3.80%	8.27%	-1.22%
TW:7547	76Outperform	TWD 1.75B	15.96	―	3.46%	15.37%	10.25%
TW:5212	75Outperform	TWD 1.70B	10.78	―	8.41%	2.66%	20.97%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5202	50Neutral	TWD 1.71B	-20.44	―	0.95%	-17.04%	21.24%

* General Sector Average

Performance Comparison

TW:5202 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5202	NewSoft Technology Corporation	21.10	3.69	21.22%
TW:5212	Hyweb Technology Co., Ltd.	49.95	4.66	10.28%
TW:6697	Information Technology Total Services Co., Ltd.	68.50	21.67	46.27%
TW:6819	Oriental System Technology Inc	45.30	18.20	67.16%
TW:7547	Intumit, Inc.	51.40	-21.73	-29.71%
TW:8272	Changing Information Technology, Inc.	97.30	12.56	14.82%

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 10, 2026

NewSoft Technology Corporation AI Stock Analysis