DrayTek Corporation (6216) AI Stock Analysis

DrayTek Corporation

(TWSE:6216)

Select Model

Rating:54Neutral

Price Target:TWD 19.00▲(3.26% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by deteriorating earnings and cash generation, despite an exceptionally strong debt-free balance sheet. Weak technical momentum and an elevated P/E further limit the score, while the high dividend yield provides partial support.

Positive Factors

Zero-debt balance sheetA debt-free balance sheet gives DrayTek substantial resilience during demand downturns and reduces refinancing and interest burdens. Its large equity base also preserves flexibility to fund product development, channel investment, and other priorities internally.

Negative Factors

Revenue contractionRecent revenue deterioration signals weaker demand, mix, or market execution and reduces operating leverage across the business. Continued top-line pressure would make it harder to sustain the company’s historical profitability and support investment in its networking portfolio.

DrayTek Corporation (6216) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.81B
Dividend Yield: 5.60%
Average Volume (3M): 145.04K
Price to Earnings (P/E): 885.7
Beta (1Y): 0.51
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

The debt-free balance sheet is exceptionally strong, but this is offset by declining revenue, sharply lower profitability, and an 81.6% year-over-year decline in free cash flow.

Income Statement

40Negative

Balance Sheet

96Very Positive

Cash Flow

35Negative

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6216 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6470	71Outperform	TWD 1.73B	9.80	―	5.49%	-36.59%	-9.82%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8089	54Neutral	TWD 1.98B	-12.87	―	3.30%	-67.55%	-168.26%
TW:6216	54Neutral	TWD 1.76B	885.71	―	5.60%	-25.98%	-97.11%
TW:3021	45Neutral	TWD 2.01B	28.73	―	4.20%	-2.04%	―
TW:8059	39Underperform	TWD 1.61B	-9.42	―	―	438.05%	69.51%

* General Sector Average

Performance Comparison

TW:6216 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6216	DrayTek Corporation	18.40	-7.53	-29.03%
TW:3021	Welltend Technology Corporation	21.50	4.33	25.23%
TW:3473	Fiber Logic Communications Inc	85.00	-4.30	-4.82%
TW:6470	U-MEDIA Communications Inc	45.50	2.77	6.47%
TW:8059	CastleNet Technology, Inc.	13.30	-22.19	-62.53%
TW:8089	Comtrend Corp	32.90	1.90	6.13%

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

DrayTek Corporation AI Stock Analysis