Cameo Communications, Inc. (6142) AI Stock Analysis

Cameo Communications, Inc.

(TWSE:6142)

Select Model

Rating:41Neutral

Price Target:TWD 7.50▼(-7.86% Downside)

Action:initiatedcoverage

Date:11/09/26

Cameo Communications scores low primarily because of weak fundamentals: continued net losses, negative free cash flow for a fifth year in six, thin single-digit gross margins, and highly erratic revenue that remains far below the 2022 peak. The conservatively capitalized balance sheet — around 70% equity-funded with debt-to-equity of just 0.20 — is the main strength and gives management time to execute, and 2025's 33% revenue rebound with sharply improved gross margin and halved net loss shows genuine progress. Technically, the shares trade below all major moving averages with negative MACD, confirming a persistent downtrend, though deeply oversold RSI and Stochastic readings suggest scope for a near-term bounce. Valuation offers little support given the negative P/E and absence of a dividend. Investors should look for sustained revenue growth translating into positive operating cash flow before the turnaround can be considered proven.

Positive Factors

Revenue reboundThe strong 2025 revenue rebound indicates that demand and customer activity can recover meaningfully after weakness. If the company sustains this growth, a larger revenue base could improve operating leverage, support investment in networking solutions, and strengthen its position in connectivity infrastructure.

Negative Factors

Persistent unprofitabilityContinued net and operating losses show that revenue recovery has not yet translated into a durable earnings engine. Negative ROE also means shareholder capital is not currently generating returns, limiting internally funded growth and leaving future performance dependent on successful margin and cost improvements.

Cameo Communications, Inc. (6142) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.47B
Dividend Yield: ―
Average Volume (3M): 395.62K
Price to Earnings (P/E): -26.9
Beta (1Y): 0.62
Revenue Growth: 11.42%
EPS Growth: 48.35%
Country: TW
Employees: 613
Sector: General
Sector Strength: 55
Industry: Communication Equipment

Cameo Communications, Inc. Business Overview & Revenue Model

Company Description

Headquartered in Taipei, Taiwan, Cameo Communications, Inc. primarily manufactures and assembles a diverse range of computer networking and communication devices. Established in 1991, the company's comprehensive product lineup includes managed and we...

Cameo Communications, Inc. Financial Statement Overview

Summary

Cameo Communications is an early-stage turnaround with mixed signals. The balance sheet is the clear strength (score 66): equity funds roughly 70% of assets and debt-to-equity has fallen to a conservative 0.20 after years of deleveraging. However, the income statement (33) and cash flow (24) remain weak — the company is still loss-making at both operating and net levels, revenue is only about half the 2022 peak despite a 33% rebound in 2025, gross margins are thin at 9.4%, and free cash flow was negative NT$130 million, the fifth cash-burn year in six. Narrowing losses and improving margins are encouraging, but the business is not yet self-funding and accumulated losses continue to erode equity.

Income Statement

33Negative

Balance Sheet

66Positive

Cash Flow

24Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.80B	1.80B	1.18B	2.54B	3.38B	2.49B
Gross Profit	148.89M	168.94M	19.14M	172.91M	290.22M	30.21M
EBITDA	-109.53M	14.76M	-55.65M	129.81M	252.92M	742.47M
Net Income	-98.70M	-84.46M	-164.56M	-37.16M	94.97M	390.65M
Balance Sheet
Total Assets	3.98B	4.13B	4.13B	4.26B	5.60B	5.26B
Cash, Cash Equivalents and Short-Term Investments	698.05M	850.62M	1.18B	1.64B	1.49B	1.66B
Total Debt	462.26M	582.13M	561.12M	703.44M	959.43M	1.16B
Total Liabilities	1.16B	1.24B	1.10B	1.11B	2.37B	2.13B
Stockholders Equity	2.82B	2.89B	3.03B	3.15B	3.23B	3.13B
Cash Flow
Free Cash Flow	-165.38M	-129.96M	-160.13M	489.35M	-322.94M	-372.85M
Operating Cash Flow	-106.27M	-110.50M	-132.86M	511.53M	-314.32M	-347.96M
Investing Cash Flow	6.25M	57.55M	-198.89M	-335.81M	300.37M	968.07M
Financing Cash Flow	-61.63M	-10.96M	-142.81M	-329.00M	-179.92M	218.26M

Cameo Communications, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6142 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:8048	70Outperform	TWD 2.96B	14.93	―	4.12%	29.69%	39.16%
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: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:6142 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6142	Cameo Communications, Inc.	8.14	-2.21	-21.36%
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:4909	New Era Electronics Co., Ltd.	30.10	-14.65	-32.74%
TW:8011	Tai Tung Communication Co., Ltd.	13.70	-7.61	-35.70%
TW:8048	Ruby Tech Corporation	48.50	3.25	7.19%

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

Cameo Communications, Inc. AI Stock Analysis