Solomon Data International Corporation (5432) AI Stock Analysis

Solomon Data International Corporation

(TPEx:5432)

Select Model

Rating:68Neutral

Price Target:TWD 176.00▲(2.33% Upside)

Action:initiatedcoverage

Date:11/09/26

Solomon Data International scores solidly on financial strength: an almost debt-free balance sheet, multi-year-high gross margins of 27.3%, and a doubling of free cash flow to NT$71.3 million in 2025. Offsetting this are highly volatile revenues still below the 2023 peak, a slipping operating margin, and net income that is flattered by non-core items, which makes forward earnings hard to rely on. Technically, the recent pullback below the 20- and 50-day averages has pushed momentum indicators into oversold territory even though the longer-term trend above the 100- and 200-day averages remains intact. Valuation at 18.5x earnings is fair rather than compelling given the earnings-quality caveat, with a modest 0.93% dividend yield. The result is a financially safe, low-beta company with improving profitability but uneven growth and softening near-term price momentum.

Positive Factors

Conservative Balance SheetMinimal leverage materially reduces financial risk and preserves flexibility through weaker operating periods. The substantial equity base provides downside protection while allowing the company to fund operations and pursue opportunities without heavy dependence on borrowing or refinancing.

Negative Factors

Revenue VolatilityThe sharp year-to-year variation in revenue reduces confidence that recent growth represents a consistently durable trend. Uneven demand can make planning, resource allocation, and margin management more difficult, leaving future earnings more exposed to business-cycle or execution swings.

Solomon Data International Corporation (5432) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.49B
Dividend Yield: 0.87%
Average Volume (3M): 280.85K
Price to Earnings (P/E): 19.1
Beta (1Y): 0.86
Revenue Growth: 16.37%
EPS Growth: 526.93%
Country: TW
Employees: 22
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Solomon Data International Corporation Business Overview & Revenue Model

Company Description

Solomon Data International Corporation specializes in the development and distribution of liquid crystal display (LCD) modules, serving markets in Taiwan and China. Its comprehensive product portfolio includes monochromatic, intelligent, and integrat...

Solomon Data International Corporation Financial Statement Overview

Summary

A very strong balance sheet anchors the score: total debt of NT$6.3 million against NT$401.9 million of equity makes the company essentially debt-free, with equity funding about 86% of assets. Cash generation rebounded sharply in 2025, with operating cash flow more than doubling to NT$71.3 million and nearly all of it converting to free cash flow. Earnings quality and consistency are the weak spots — revenue is still well below the 2023 peak and has swung widely year to year, operating margin slipped to 12.8%, and 2025 net income of NT$47.5 million far exceeds operating profit of NT$25.5 million, indicating meaningful non-core contributions. Return on equity of 11.8% is only moderate given the large capital base.

Income Statement

66Positive

Balance Sheet

88Very Positive

Cash Flow

76Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	197.80M	198.61M	187.19M	259.04M	208.31M	100.48M
Gross Profit	57.63M	54.14M	42.14M	47.44M	43.58M	21.46M
EBITDA	33.39M	28.06M	32.07M	18.45M	23.83M	10.91M
Net Income	192.06M	47.49M	28.19M	29.20M	39.66M	6.70M
Balance Sheet
Total Assets	633.59M	467.50M	423.59M	431.58M	424.50M	372.84M
Cash, Cash Equivalents and Short-Term Investments	417.11M	269.57M	222.49M	211.43M	185.39M	222.87M
Total Debt	5.11M	6.30M	2.46M	4.88M	341.00K	2.64M
Total Liabilities	115.02M	65.56M	35.92M	45.36M	46.83M	35.70M
Stockholders Equity	518.58M	401.94M	387.67M	386.21M	377.67M	337.13M
Cash Flow
Free Cash Flow	-35.09M	71.32M	33.45M	50.89M	18.35M	-38.45M
Operating Cash Flow	-35.09M	71.32M	33.59M	51.15M	18.35M	-38.45M
Investing Cash Flow	-1.92M	103.08M	-20.42M	-144.29M	42.68M	18.65M
Financing Cash Flow	-23.13M	-23.16M	-23.12M	-23.00M	-2.30M	-2.29M

Solomon Data International Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5432 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6752	73Outperform	TWD 3.43B	13.05	―	5.01%	8.76%	-2.12%
TW:5432	68Neutral	TWD 3.33B	19.13	―	0.87%	16.37%	526.93%
TW:5410	63Neutral	TWD 3.10B	9.62	―	6.46%	27.65%	55.36%
TW:5493	56Neutral	TWD 3.52B	14.53	―	3.33%	17.73%	122.44%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3594	49Neutral	TWD 3.85B	33.07	―	0.95%	30.92%	271.46%
TW:8183	47Neutral	TWD 3.39B	8.15	―	2.84%	4.51%	64.07%

* General Sector Average

Performance Comparison

TW:5432 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5432	Solomon Data International Corporation	172.00	42.89	33.22%
TW:3594	ARBOR Technology Corp.	41.90	1.37	3.38%
TW:5410	Leo Systems, Inc.	32.10	2.83	9.68%
TW:5493	Sanlien Technology Corp.	81.20	-2.48	-2.96%
TW:6752	Galaxy Software Services Corporation	89.80	-26.48	-22.77%
TW:8183	Info-Tek Corporation	28.20	-6.31	-18.29%

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

Solomon Data International Corporation AI Stock Analysis