DrayTek Corporation AI Stock Analysis
DrayTek Corporation (6216) AI Stock Analysis
DrayTek Corporation
(TWSE:6216)
DrayTek scores in the below-average range. The dominant drag is a sharp FY2025 earnings and cash flow reversal — revenue down roughly a third, net margin cut from 23% to under 8%, ROE at 3.3% and free cash flow close to zero — which leaves the trailing P/E at a stretched 51x. Technicals reinforce the caution, with the price below all key moving averages and negative MACD momentum. The key offsets are a fortress balance sheet with zero debt and equity funding ~94% of assets, stable mid-40s gross margins that suggest the franchise is intact, and a 5.5% dividend yield. This is a financially safe but cyclically depressed name; a rebound in order volumes could restore margins quickly, but investors should expect continued earnings volatility in the meantime.
DrayTek Corporation (6216) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 1.78B
- Dividend Yield
- 5.69%
- Average Volume (3M)
- 146.80K
- Price to Earnings (P/E)
- 885.7
- Beta (1Y)
- 0.49
- Revenue Growth
- -25.98%
- EPS Growth
- -97.11%
- Country
- TW
- Employees
- 219
- Sector
- General
- Sector Strength
- 55
- Industry
- Communication Equipment
DrayTek Corporation Business Overview & Revenue Model
Company Description
Established in 1997 and based in Hsinchu City, Taiwan, DrayTek Corporation delivers a comprehensive range of networking hardware and associated management solutions within the Taiwanese market. Their extensive product portfolio includes diverse route...
DrayTek Corporation Financial Statement Overview
Summary
A tale of two halves: the balance sheet is exceptional (score 85) with zero debt and equity funding ~94% of assets, giving DrayTek outstanding downside protection. However, FY2025 operating results were weak (income statement 43, cash flow 40) — revenue fell from NT$1.18bn to NT$757m, net margin compressed from 23.0% to 7.6%, ROE dropped to 3.3%, and free cash flow collapsed more than 90% to NT$21m. Gross margin held firm at 44.3%, suggesting the decline is volume and operating-leverage driven rather than structural, but the 2020–2025 record shows pronounced earnings lumpiness and low returns on a large, cash-heavy equity base.
Income Statement
43NeutralBalance Sheet
85Very PositiveCash Flow
40Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 627.18M | 757.20M | 1.18B | 775.28M | 899.29M | 931.01M |
| Gross Profit | 266.74M | 335.81M | 556.61M | 364.57M | 416.01M | 454.81M |
| EBITDA | 17.15M | 65.45M | 237.76M | 94.55M | 141.40M | 198.66M |
| Net Income | 36.27M | 57.61M | 271.63M | 122.97M | 175.83M | 160.95M |
Balance Sheet | ||||||
| Total Assets | 1.91B | 1.86B | 2.11B | 1.87B | 1.88B | 1.77B |
| Cash, Cash Equivalents and Short-Term Investments | 1.31B | 1.35B | 1.55B | 1.26B | 1.27B | 1.13B |
| Total Debt | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | 264.36M | 116.86M | 221.43M | 172.16M | 197.07M | 188.68M |
| Stockholders Equity | 1.65B | 1.75B | 1.89B | 1.70B | 1.68B | 1.58B |
Cash Flow | ||||||
| Free Cash Flow | -140.76M | 20.76M | 363.78M | 121.94M | 183.02M | 14.99M |
| Operating Cash Flow | -143.86M | 27.16M | 378.15M | 125.87M | 183.67M | 18.34M |
| Investing Cash Flow | 326.93M | 66.13M | -84.05M | -105.64M | -56.90M | 107.47M |
| Financing Cash Flow | -7.08M | -213.80M | -96.59M | -116.53M | -77.02M | -98.89M |
DrayTek Corporation Peers Comparison
Overall Rating
TW:647071Outperform
TW:808954Neutral- TW:621650Neutral
TW:302145Neutral
TW:805939Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:6470 | 71Outperform | TWD 1.73B | 9.58 | ― | 5.45% | -36.59% | -9.82% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:8089 | 54Neutral | TWD 1.98B | -11.79 | ― | 3.30% | -67.55% | -168.26% |
| TW:6216 | 50Neutral | TWD 1.76B | 885.71 | ― | 5.69% | -25.98% | -97.11% |
| TW:3021 | 45Neutral | TWD 2.01B | 28.00 | ― | 4.20% | -2.04% | ― |
| TW:8059 | 39Underperform | TWD 1.61B | -10.34 | ― | ― | 438.05% | 69.51% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:6216 | DrayTek Corporation | 18.10 | -7.45 | -29.14% | |
| TW:3021 | Welltend Technology Corporation | 21.50 | 5.06 | 30.75% | |
| TW:3473 | Fiber Logic Communications Inc | 71.50 | -18.40 | -20.47% | |
| TW:6470 | U-MEDIA Communications Inc | 45.90 | 5.66 | 14.07% | |
| TW:8059 | CastleNet Technology, Inc. | 13.80 | -25.19 | -64.61% | |
| TW:8089 | Comtrend Corp | 29.95 | -1.10 | -3.54% |
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