Symtek Automation Asia Co., Ltd. (6438) AI Stock Analysis

Symtek Automation Asia Co., Ltd.

(TWSE:6438)

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Rating:52Neutral

Price Target:TWD 128.00▼(-8.57% Downside)

Action:initiatedcoverage

Date:11/09/26

Symtek Automation Asia scores in the below-average range. The dominant drag is weak cash conversion — negative operating and free cash flow in the latest year despite NT$425 million of reported net income — combined with steadily compressing margins (gross margin down to 23.5%, net margin 6.6%) and ROE falling to 7.9%, even as revenue rebounded 26%. The conservative balance sheet (debt-to-equity of 0.17, equity covering over half of assets) is a genuine strength and gives the company room to absorb this period of cash burn. Technicals add further pressure, with the price well below all key moving averages and negative MACD, although deeply oversold RSI and Stochastic readings suggest the selloff is extended. A 3.95% dividend yield partly offsets a full 22.9x P/E on declining earnings. The investment case rests on management restoring margins and converting the larger revenue base into cash. No earnings call or corporate event data was available, so those components were excluded and their weight redistributed.

Positive Factors

Conservative LeverageThe company’s low and improving debt-to-equity ratio provides financial flexibility through the next business cycle. A conservative capital structure can reduce refinancing pressure, preserve borrowing capacity, and give management more room to fund equipment demand or absorb weaker operating periods.

Negative Factors

Negative Cash GenerationThe sharp reversal from positive 2024 cash generation to negative operating and free cash flow raises execution and funding concerns. Persistent cash conversion weakness could constrain internally funded growth, increase reliance on financing, and reduce resilience even with low leverage.

Symtek Automation Asia Co., Ltd. (6438) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 11.55B
Dividend Yield: 3.57%
Average Volume (3M): 986.45K
Price to Earnings (P/E): 24.5
Beta (1Y): 1.14
Revenue Growth: 18.41%
EPS Growth: -25.67%
Country: TW
Employees: 486
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Symtek Automation Asia Co., Ltd. Business Overview & Revenue Model

Company Description

Symtek Automation Asia Co., Ltd. is a company that designs and manufactures cutting-edge automation systems. They provide specialized equipment for various electronic components, including printed circuit boards (PCBs), flexible circuit boards, IC su...

Symtek Automation Asia Co., Ltd. Financial Statement Overview

Summary

A mixed financial profile. The balance sheet is the standout strength (score 76), with equity of NT$5.37 billion funding roughly 55% of assets and debt-to-equity down to a conservative 0.17, leaving ample flexibility. Revenue rebounded sharply to NT$6.47 billion (+26%), but profitability eroded materially: gross margin fell to 23.5% from 32.6% in 2021, operating margin to 8.1%, and net income declined to NT$424.7 million despite higher sales (income statement score 57). The weakest link is cash generation (score 31) — operating cash flow turned negative at about -NT$145 million and free cash flow at roughly -NT$646 million, as working capital and NT$500 million of capex absorbed earnings. Return on equity has fallen four straight years to 7.9%.

Income Statement

57Neutral

Balance Sheet

76Positive

Cash Flow

31Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.85B	6.47B	5.12B	5.81B	5.76B	4.91B
Gross Profit	1.63B	1.52B	1.36B	1.66B	1.64B	1.60B
EBITDA	714.65M	618.15M	816.37M	860.82M	983.22M	904.70M
Net Income	474.52M	424.67M	574.11M	647.80M	666.99M	651.65M
Balance Sheet
Total Assets	11.24B	9.68B	8.62B	7.95B	7.91B	6.18B
Cash, Cash Equivalents and Short-Term Investments	2.07B	1.91B	2.44B	1.93B	1.47B	1.95B
Total Debt	1.26B	891.73M	1.04B	1.56B	978.28M	314.67M
Total Liabilities	4.76B	4.16B	3.76B	3.86B	4.22B	2.85B
Stockholders Equity	6.34B	5.37B	4.72B	4.04B	3.65B	3.33B
Cash Flow
Free Cash Flow	-527.48M	-646.38M	180.35M	260.93M	-746.22M	664.34M
Operating Cash Flow	-119.55M	-144.95M	1.06B	597.77M	66.00M	678.36M
Investing Cash Flow	-447.09M	-788.69M	-136.41M	-399.91M	-812.34M	-264.97M
Financing Cash Flow	154.31M	379.80M	-522.41M	277.24M	274.71M	-15.39M

Symtek Automation Asia Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6438 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6788	78Outperform	TWD 12.24B	14.34	―	4.97%	20.87%	29.63%
TW:3498	57Neutral	TWD 11.25B	48.76	―	―	132.83%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6438	52Neutral	TWD 11.34B	24.48	―	3.57%	18.41%	-25.67%
TW:6125	40Underperform	TWD 10.21B	271.43	―	1.26%	28.63%	8.01%

* General Sector Average

Performance Comparison

TW:6438 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6438	Symtek Automation Asia Co., Ltd.	140.00	9.14	6.99%
TW:3498	USUN Technology Co.,Ltd	209.50	158.10	307.59%
TW:6125	Kenmec Mechanical Engineering Co., Ltd.	39.80	-24.74	-38.33%
TW:6788	Brillian Network & Automation Integrated System Co., Ltd.	302.00	81.56	37.00%
TW:7792	AM-Power Machine International Enterprise Co Ltd	289.00	100.50	53.31%
TW:7815	Sync-Tech System Corp.	315.00	166.93	112.73%

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

Symtek Automation Asia Co., Ltd. AI Stock Analysis