SolidWizard Technology Co.,Ltd. (8416) AI Stock Analysis

SolidWizard Technology Co.,Ltd.

(TPEx:8416)

Select Model

Rating:73Outperform

Price Target:TWD 183.00▲(8.28% Upside)

Action:initiatedcoverage

Date:11/09/26

SolidWizard scores well on fundamentals and valuation, offset by poor price momentum. The strongest driver is financial quality: accelerating revenue, 52% gross and 22% net margins, 22.7% return on equity, and a virtually debt-free balance sheet with operating cash flow fully covering earnings. Valuation reinforces the case, with an 11.2 P/E and a 5.18% dividend yield. The main caution is the 2025 swing to negative free cash flow from a heavy investment cycle, which needs to normalise. Technically, the stock is the weakest link, trading below all major moving averages with a negative MACD and a subdued RSI, suggesting investors may want to see stabilisation in the trend before the fundamental and valuation strengths are rewarded.

Positive Factors

Accelerating Revenue GrowthThe sharp acceleration in revenue indicates stronger demand and expanding business activity rather than merely stable operations. If this growth persists over the next several quarters, it can support greater scale, reinforce market positioning, and provide a broader base for future earnings generation.

Negative Factors

Negative Free Cash FlowThe sharp free-cash-flow reversal introduces a meaningful risk to cash-generation durability even though operating cash flow improved. If elevated investment or working-capital needs continue, internally generated funds may be less available for dividends, reinvestment, or other capital allocation priorities.

SolidWizard Technology Co.,Ltd. (8416) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.87B
Dividend Yield: 5.03%
Average Volume (3M): 4,908
Price to Earnings (P/E): 10.9
Beta (1Y): 0.25
Revenue Growth: 10.14%
EPS Growth: 24.05%
Country: TW
Employees: 245
Sector: General
Sector Strength: 55
Industry: Software - Application

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

Company Description

Solidwizard Technology Co., Ltd., established in 1997 and headquartered in Taipei City, Taiwan, delivers a comprehensive array of technology solutions across Taiwan and China. The company specializes in providing software, hardware, and expert consul...

SolidWizard Technology Co.,Ltd. Financial Statement Overview

Summary

A high-quality, conservatively run niche software business. Revenue accelerated roughly 10% in 2025 to NT$1.70 billion, with gross margin improving to 52.0% and net margin to 22.4%, lifting net income 22% to NT$379.8 million. The balance sheet is effectively debt-free (debt-to-equity of 0.003) with equity funding ~79% of assets and return on equity of 22.7%. Operating cash flow rose 30% to NT$439.4 million and covered net income 1.06 times, confirming strong earnings quality. The key drag is cash flow: free cash flow swung to negative NT$329.3 million in 2025 on a heavy capital spending cycle, breaking an otherwise pristine record of converting nearly all profit into cash. A small revenue base and historically low-to-mid single-digit growth also temper the growth narrative.

Income Statement

85Very Positive

Balance Sheet

92Very Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.77B	1.70B	1.54B	1.45B	1.39B	1.38B
Gross Profit	945.27M	881.58M	765.88M	756.57M	747.81M	733.98M
EBITDA	518.46M	453.58M	409.94M	378.48M	413.48M	427.24M
Net Income	414.62M	379.80M	310.50M	288.61M	306.09M	320.29M
Balance Sheet
Total Assets	2.22B	2.12B	1.94B	1.82B	1.71B	1.64B
Cash, Cash Equivalents and Short-Term Investments	704.41M	478.47M	1.04B	929.74M	908.16M	839.34M
Total Debt	4.18M	4.61M	8.77M	9.00M	6.19M	11.50M
Total Liabilities	598.97M	449.75M	420.73M	392.19M	349.50M	367.38M
Stockholders Equity	1.62B	1.67B	1.51B	1.42B	1.36B	1.27B
Cash Flow
Free Cash Flow	-290.68M	-329.32M	336.62M	251.38M	298.92M	321.17M
Operating Cash Flow	488.20M	439.40M	338.52M	265.46M	303.72M	327.79M
Investing Cash Flow	-780.22M	-768.95M	-1.90M	-12.39M	-4.80M	-6.62M
Financing Cash Flow	-230.38M	-230.79M	-230.99M	-230.13M	-231.09M	-202.51M

SolidWizard Technology Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8416 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8416	73Outperform	TWD 4.80B	10.94	―	5.03%	10.14%	24.05%
TW:6689	65Neutral	TWD 5.16B	36.24	―	2.56%	-0.73%	16.72%
TW:2468	64Neutral	TWD 4.62B	50.22	―	1.46%	-1.96%	18.20%
TW:2427	62Neutral	TWD 4.28B	86.30	―	3.53%	21.74%	-84.64%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6776	47Neutral	TWD 4.58B	10.91	―	5.83%	25.60%	14.34%
TW:6163	46Neutral	TWD 5.43B	42.55	―	1.50%	24.16%	78.64%

* General Sector Average

Performance Comparison

TW:8416 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8416	SolidWizard Technology Co.,Ltd.	169.00	3.69	2.23%
TW:2427	Mercuries Data Systems Ltd.	19.85	-5.94	-23.04%
TW:2468	Fortune Information System Corp.	68.30	26.67	64.08%
TW:6163	Hwacom Systems Inc	38.50	11.44	42.28%
TW:6689	eCloudvalley Digital Technology Co., Ltd.	78.00	14.33	22.51%
TW:6776	WebLink International, Inc.	51.50	1.91	3.86%

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

SolidWizard Technology Co.,Ltd. AI Stock Analysis