Nextlink Technology Co Ltd AI Stock Analysis
Nextlink Technology Co Ltd (6997) AI Stock Analysis
Nextlink Technology Co Ltd
(TPEx:6997)
The score is anchored by a conservative, essentially debt-free balance sheet and a strong 2025 free cash flow recovery, tempered by thin and contracting margins, lower profits despite higher sales, and lumpy cash generation. Technically, the stock has regained its short-term moving averages with neutral momentum readings but still trades below its 200-day average. Valuation is mixed: an elevated 29.3x P/E is offset by a sizeable 6.6% dividend yield, leaving the shares as a stable, income-oriented but low-growth proposition.
Nextlink Technology Co Ltd (6997) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 1.48B
- Dividend Yield
- 6.60%
- Average Volume (3M)
- 4,124
- Price to Earnings (P/E)
- 29.3
- Beta (1Y)
- 0.10
- Revenue Growth
- 27.74%
- EPS Growth
- -42.02%
- Country
- TW
- Employees
- 204
- Sector
- General
- Sector Strength
- 55
- Industry
- Information Technology Services
Nextlink Technology Co Ltd Business Overview & Revenue Model
Company Description
Nextlink Technology Co.,Ltd., established in 2006 and headquartered in Taipei, Taiwan, specializes in the provision, resale, and deployment of cloud computing service platforms. As of November 5, 2018, the company functions as a subsidiary under New...
Nextlink Technology Co Ltd Financial Statement Overview
Summary
Nextlink combines a near debt-free balance sheet (debt-to-equity of roughly 0.05, equity up six-fold since 2020) and a strong 2025 cash-flow rebound (operating cash flow of NT$197 million versus negative NT$69 million in 2024, with free cash flow covering about 99% of net income) with structurally thin profitability. Revenue grew about 11% to NT$4.45 billion, but gross margin fell from 12.3% to 10.0%, operating profit slipped to NT$140 million and net income declined roughly 8% to NT$113 million, leaving a 2.5% net margin. ROE remains healthy at 18.0% but has compressed steadily from 36.8% in 2020, and operating cash flow has been lumpy, turning negative in two of the last four years on working-capital and project-timing swings.
Income Statement
58NeutralBalance Sheet
74PositiveCash Flow
66Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.07B | 4.45B | 4.00B | 4.75B | 3.51B | 5.06B |
| Gross Profit | 463.56M | 444.58M | 493.72M | 421.49M | 319.84M | 388.19M |
| EBITDA | 71.90M | 157.96M | 184.45M | 143.51M | 92.53M | 92.84M |
| Net Income | 44.63M | 112.87M | 123.04M | 90.33M | 60.26M | 60.66M |
Balance Sheet | ||||||
| Total Assets | 2.32B | 1.85B | 1.61B | 1.53B | 1.11B | 1.43B |
| Cash, Cash Equivalents and Short-Term Investments | 664.06M | 771.96M | 720.95M | 640.35M | 385.68M | 363.45M |
| Total Debt | 24.45M | 32.80M | 1.93M | 14.97M | 5.65M | 52.34M |
| Total Liabilities | 1.81B | 1.22B | 978.86M | 1.19B | 943.86M | 1.20B |
| Stockholders Equity | 505.58M | 625.75M | 628.29M | 336.49M | 164.53M | 228.54M |
Cash Flow | ||||||
| Free Cash Flow | 221.58M | 194.49M | -70.02M | 289.13M | 272.66M | -35.77M |
| Operating Cash Flow | 224.09M | 197.10M | -69.14M | 296.72M | 279.33M | -28.36M |
| Investing Cash Flow | -198.24M | -9.07M | -1.85M | -8.88M | -6.60M | -8.75M |
| Financing Cash Flow | -133.73M | -131.01M | 143.17M | -10.11M | -38.64M | 7.15M |
Nextlink Technology Co Ltd Peers Comparison
Overall Rating
TW:669778Outperform
TW:647071Outperform- TW:699764Neutral
TW:808954Neutral
TW:244443Neutral
TW:805939Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:6697 | 78Outperform | TWD 1.70B | 22.81 | ― | 3.80% | 8.27% | -1.22% |
| TW:6470 | 71Outperform | TWD 1.73B | 9.80 | ― | 5.49% | -36.59% | -9.82% |
| TW:6997 | 64Neutral | TWD 1.54B | 29.29 | ― | 6.60% | 27.74% | -42.02% |
| 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:2444 | 43Neutral | TWD 1.46B | -6.19 | ― | ― | -28.59% | -77.80% |
| TW:8059 | 39Underperform | TWD 1.61B | -9.42 | ― | ― | 438.05% | 69.51% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:6997 | Nextlink Technology Co Ltd | 69.70 | -22.41 | -24.33% | |
| TW:2444 | AboCom Systems, Inc. | 13.50 | 2.60 | 23.85% | |
| TW:6470 | U-MEDIA Communications Inc | 45.50 | 2.30 | 5.31% | |
| TW:6697 | Information Technology Total Services Co., Ltd. | 68.50 | 21.67 | 46.27% | |
| TW:8059 | CastleNet Technology, Inc. | 13.30 | -23.53 | -63.89% | |
| TW:8089 | Comtrend Corp | 32.90 | 2.00 | 6.47% |
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