Compal Broadband Networks, Inc. (6674) AI Stock Analysis

Compal Broadband Networks, Inc.

(TWSE:6674)

Select Model

Rating:46Neutral

Price Target:TWD 18.00▼(-2.17% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held down primarily by weak fundamentals: a roughly 80% revenue decline from 2021 levels, four straight years of losses, and a return to negative operating and free cash flow in the latest period. A negative P/E and no dividend provide no valuation cushion. Offsetting these risks, the balance sheet is effectively debt-free with equity covering about three-quarters of assets, gross margin has doubled to 34.6% and net losses have more than halved — giving management time to execute a turnaround. Technicals are the brightest spot, with the price above its 50-, 100- and 200-day moving averages and positive MACD momentum, though the stock is consolidating near its 20-day average. Investors should look for revenue stabilisation and a return to positive operating cash flow before the margin recovery can be treated as a durable inflection.

Positive Factors

Conservative balance sheetVery low leverage gives Compal Broadband Networks financial flexibility and reduces refinancing pressure while the business works through weak operating results. A conservative capital structure can support continued investment in broadband products and help the company withstand volatility without relying heavily on new borrowing.

Negative Factors

Persistent revenue contractionSeveral years of declining revenue point to sustained pressure on the company’s commercial performance rather than a single temporary setback. Continued contraction can reduce scale, weaken operating leverage, and make it harder for Compal Broadband Networks to convert its broadband infrastructure position into durable growth.

Compal Broadband Networks, Inc. (6674) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.23B
Dividend Yield: ―
Average Volume (3M): 138.31K
Price to Earnings (P/E): -8.0
Beta (1Y): 0.53
Revenue Growth: -40.57%
EPS Growth: -73.29%
Country: TW
Employees: 142
Sector: General
Sector Strength: 55
Industry: Communication Equipment

Compal Broadband Networks, Inc. Business Overview & Revenue Model

Company Description

Compal Broadband Networks, Inc. develops and sells networking, home security, home entertainment, and wireless accessories in Taiwan, Belgium, Turkey, the Netherlands, the United States, Brazil, Vietnam, and China. The company offers communication pr...

Compal Broadband Networks, Inc. Financial Statement Overview

Summary

Fundamentals remain weak. Revenue has collapsed roughly 80% from its 2021 peak to about NT$598 million, with a further 36% decline year-over-year, and the company has now reported losses for four consecutive years (Income Statement score 27). Cash generation is the weakest link (score 23): operating cash flow swung back to negative NT$121 million and free cash flow to negative NT$157 million after a single positive year that was driven largely by working-capital release. The one genuine strength is the balance sheet (score 66) — essentially debt-free with a 0.016 debt-to-equity ratio and equity funding about 77% of assets — which provides runway for restructuring. Gross margin doubling to 34.6% and net loss narrowing to NT$76 million show a real improving trajectory, but shrinking scale, a thinning equity base and negative ROE of -8.4% keep the overall financial score low.

Income Statement

27Negative

Balance Sheet

66Positive

Cash Flow

23Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	500.60M	597.89M	941.93M	1.16B	2.51B	2.91B
Gross Profit	112.08M	207.02M	166.82M	82.86M	369.59M	572.63M
EBITDA	-74.64M	-6.43M	-81.32M	-241.52M	-148.00K	89.72M
Net Income	-156.29M	-76.21M	-165.94M	-326.11M	-63.15M	32.74M
Balance Sheet
Total Assets	1.11B	1.19B	1.55B	1.67B	2.64B	3.24B
Cash, Cash Equivalents and Short-Term Investments	120.75M	355.82M	520.10M	321.31M	660.96M	1.05B
Total Debt	10.43M	14.37M	40.61M	55.81M	68.48M	83.41M
Total Liabilities	325.30M	276.44M	567.34M	520.46M	1.13B	1.61B
Stockholders Equity	779.98M	912.28M	978.76M	1.15B	1.51B	1.62B
Cash Flow
Free Cash Flow	-358.37M	-156.84M	223.83M	-295.91M	-303.02M	-383.62M
Operating Cash Flow	-329.48M	-121.20M	246.76M	-249.52M	-236.63M	-287.60M
Investing Cash Flow	-30.37M	-36.36M	-29.34M	-46.42M	-65.51M	-106.04M
Financing Cash Flow	-7.84M	-7.60M	-14.26M	-48.57M	-83.91M	-83.04M

Compal Broadband Networks, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6674 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6154	56Neutral	TWD 1.09B	11.93	―	3.75%	3.43%	163.60%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6140	48Neutral	TWD 1.31B	-50.48	―	―	-9.26%	-23.58%
TW:6674	46Neutral	TWD 1.26B	-7.99	―	―	-40.57%	-73.29%
TW:6118	43Neutral	TWD 1.32B	87.65	―	―	9.38%	-10.15%
TW:3541	37Underperform	TWD 1.25B	70.26	―	―	0.16%	―

* General Sector Average

Performance Comparison

TW:6674 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6674	Compal Broadband Networks, Inc.	18.40	-2.85	-13.41%
TW:3541	Cypress Technology Co. Ltd.	22.30	-1.25	-5.31%
TW:6118	Xander International Corp.	14.55	-5.85	-28.68%
TW:6140	Dimension Computer Technology Co., Ltd.	23.90	-6.10	-20.33%
TW:6154	Sunfar Computer Co., Ltd.	13.60	0.49	3.73%
TW:7801	Asustor, Inc.	79.50	-23.57	-22.87%

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

Compal Broadband Networks, Inc. AI Stock Analysis