PADAUK Technology Co., Ltd. (6716) AI Stock Analysis

PADAUK Technology Co., Ltd.

(TPEx:6716)

Select Model

Rating:47Neutral

Price Target:TWD 73.00▼(-4.20% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 47 reflects a company in a sharp cyclical downturn. The most significant factor is the severe deterioration in financial performance, with collapsing revenue, margins, and cash flow, which heavily weights down the score. Technical analysis confirms extreme bearish momentum with the stock in a clear downtrend and oversold conditions. A modest valuation provides some support, but the low P/E is likely a value trap given the rapid earnings decline. The company's low-debt balance sheet is the primary mitigating factor, offering a buffer but not enough to offset the operational challenges.

Positive Factors

Broad MCU and embedded-control applicationsPADAUK serves multiple embedded-control end markets rather than relying on a single product use case. Its low-power, cost-effective MCU focus can support adoption across consumer and appliance applications, while development tools and software deepen customer integration and support recurring design relevance.

Negative Factors

Cyclical and weakening profitabilityPADAUK’s earnings profile has become more cyclical, with profitability moving sharply across recent years rather than maintaining peak margins. This volatility makes future earnings less predictable and may limit the company’s ability to consistently convert its market position into strong shareholder returns.

PADAUK Technology Co., Ltd. (6716) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.36B
Dividend Yield: 2.10%
Average Volume (3M): 830.77K
Price to Earnings (P/E): 9.6
Beta (1Y): 1.89
Revenue Growth: 36.28%
EPS Growth: 399.93%
Country: TW
Employees: 73
Sector: General
Sector Strength: 55
Industry: Semiconductors

PADAUK Technology Co., Ltd. Business Overview & Revenue Model

Company Description

PADAUK Technology Company Limited is a company focused on the design, production, and distribution of microcontrollers. These sophisticated electronic components are utilized across a diverse range of products, including intelligent playthings, remot...

PADAUK Technology Co., Ltd. Financial Statement Overview

Summary

Financial performance is under severe pressure. Revenue has contracted 3.1% TTM, gross margins fell to 28.8% from 34.7%, and net margin nearly halved to 6.0%. Cash flow has collapsed, with operating cash flow down 76.5% and a weak 0.22 cash-to-net-income ratio. The balance sheet is a lone bright spot with low 0.25 debt-to-equity, but deteriorating returns on equity (8.7% vs 16.0%) highlight the earnings decline. Overall, deep operational headwinds overshadow a stable capital structure.

Income Statement

35Negative

Balance Sheet

72Positive

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.37B	1.08B	1.28B	1.06B	938.98M	966.27M
Gross Profit	494.27M	311.16M	443.76M	300.50M	395.52M	542.16M
EBITDA	222.53M	110.44M	205.73M	113.40M	209.93M	356.76M
Net Income	187.71M	64.79M	129.22M	59.34M	201.47M	282.43M
Balance Sheet
Total Assets	1.32B	1.14B	1.23B	1.15B	1.17B	1.13B
Cash, Cash Equivalents and Short-Term Investments	645.64M	596.16M	683.68M	337.93M	276.11M	553.14M
Total Debt	152.24M	189.44M	182.41M	192.97M	203.22M	67.71M
Total Liabilities	469.86M	393.93M	424.60M	423.36M	378.73M	304.18M
Stockholders Equity	848.97M	746.60M	807.87M	722.06M	790.56M	827.93M
Cash Flow
Free Cash Flow	176.62M	35.46M	287.84M	140.77M	-146.02M	344.56M
Operating Cash Flow	189.43M	78.22M	332.76M	169.12M	-110.44M	362.78M
Investing Cash Flow	-24.78M	-27.09M	71.01M	9.72M	-73.93M	-127.27M
Financing Cash Flow	-74.02M	-137.36M	-73.06M	-119.48M	-73.72M	-75.96M

PADAUK Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6716 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4951	73Outperform	TWD 2.52B	11.79	―	5.98%	3.87%	39.70%
TW:6233	56Neutral	TWD 2.85B	62.46	―	2.29%	2.62%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3438	52Neutral	TWD 2.36B	32.95	―	3.05%	-11.08%	111.39%
TW:6716	47Neutral	TWD 2.43B	9.61	―	2.10%	36.28%	399.93%
TW:6129	40Underperform	TWD 2.02B	-22.93	―	―	31.64%	62.85%
TW:3207	34Underperform	TWD 1.92B	-13.20	―	―	17.17%	-859.04%

* General Sector Average

Performance Comparison

TW:6716 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6716	PADAUK Technology Co., Ltd.	76.20	24.90	48.54%
TW:3207	Yao Sheng Electronic Co., Ltd.	30.50	-38.00	-55.47%
TW:3438	Advanced Analog Technology, Inc.	49.10	4.37	9.78%
TW:4951	Feature Integration Technology Inc.	75.20	9.47	14.41%
TW:6129	Princeton Technology Corporation	12.20	-4.27	-25.93%
TW:6233	Prolific Technology Inc.	32.80	13.59	70.74%

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 10, 2026

PADAUK Technology Co., Ltd. AI Stock Analysis