ELTA Technology Co., Ltd. (8487) AI Stock Analysis

ELTA Technology Co., Ltd.

(TWSE:8487)

Select Model

Rating:60Neutral

Price Target:TWD 67.00▲(3.88% Upside)

Action:initiatedcoverage

Date:11/09/26

ELTA Technology earns a middling score. The dominant drivers are financial: a very conservatively financed balance sheet with almost no leverage and healthy 27% gross and 10.5% net margins, offset by a sharp revenue and profit contraction and, most concerning, a swing to negative operating and free cash flow despite reported profits. Technically, the shares are in a sustained downtrend, trading below all key moving averages with negative MACD, though momentum readings are now deeply oversold. Supporting the score is an inexpensive valuation at roughly 12x earnings paired with a high dividend yield near 7.5%, which cushions downside provided cash generation recovers. Investors should watch for stabilising revenue and a return to positive operating cash flow as confirmation that the latest setback was a one-off.

Positive Factors

Conservative Balance SheetVery low leverage and a sizable equity base provide financial flexibility for ELTA to support radar-system development and customer deployments. This reduces balance-sheet strain, improves resilience if operating conditions weaken, and preserves capacity to fund strategic needs without relying heavily on debt.

Negative Factors

Revenue ContractionThe decline in revenue shows that recent demand and business momentum have not been consistent, which can reduce operating leverage and make earnings less predictable. Sustained contraction would limit reinvestment capacity and weaken the benefits of ELTA’s specialized radar positioning.

ELTA Technology Co., Ltd. (8487) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.71B
Dividend Yield: 7.45%
Average Volume (3M): 15.44K
Price to Earnings (P/E): 11.8
Beta (1Y): 0.04
Revenue Growth: 42.93%
EPS Growth: 16.45%
Country: TW
Employees: 151
Sector: General
Sector Strength: 55
Industry: Entertainment

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

Company Description

ELTA Technology Co.,Ltd., established in 2000 and based in Taipei City, Taiwan, offers extensive digital content platform solutions throughout the country. The company handles a broad spectrum of multimedia audio and video formats, such as WMV, AVI,...

ELTA Technology Co., Ltd. Financial Statement Overview

Summary

A tale of two halves. The balance sheet is excellent (score 79): debt-to-equity of just 0.08, equity funding roughly two-thirds of assets, and a 16% return on equity provide ample cushion. The income statement is respectable but softening (score 63): gross margin improved to 27.2% and net margin stayed at 10.5%, yet revenue fell about 31% to NT$1.02bn and net income dropped from NT$179m to NT$107m amid lumpy, project-driven sales. The weak link is cash flow (score 35): operating cash flow swung to roughly negative NT$159m and free cash flow to negative NT$167m despite reported profits, breaking four years of positive cash generation and signalling poor earnings-to-cash conversion.

Income Statement

63Positive

Balance Sheet

79Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.34B	1.02B	1.49B	968.41M	981.13M	933.99M
Gross Profit	333.71M	277.28M	390.23M	342.87M	189.97M	145.32M
EBITDA	204.62M	165.91M	256.39M	197.62M	102.79M	82.37M
Net Income	141.00M	106.96M	179.40M	136.16M	61.14M	43.43M
Balance Sheet
Total Assets	1.27B	1.01B	1.03B	832.48M	680.20M	849.93M
Cash, Cash Equivalents and Short-Term Investments	339.22M	231.55M	566.32M	404.55M	221.53M	237.52M
Total Debt	80.94M	52.47M	20.17M	40.33M	23.93M	114.75M
Total Liabilities	639.54M	341.68M	333.02M	297.07M	361.28M	569.19M
Stockholders Equity	630.18M	670.23M	701.28M	535.42M	318.92M	280.73M
Cash Flow
Free Cash Flow	353.68M	-166.56M	194.74M	124.58M	98.76M	21.03M
Operating Cash Flow	417.29M	-159.35M	205.58M	133.58M	104.95M	27.76M
Investing Cash Flow	8.38M	167.43M	-115.68M	-121.28M	-7.73M	-7.19M
Financing Cash Flow	-246.80M	-162.28M	-38.02M	54.95M	-115.17M	16.52M

ELTA Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8487 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6470	71Outperform	TWD 1.73B	9.80	―	5.49%	-36.59%	-9.82%
TW:8487	60Neutral	TWD 1.64B	11.81	―	7.45%	42.93%	16.45%
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:6216	50Neutral	TWD 1.76B	885.71	―	5.60%	-25.98%	-97.11%
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

TW:8487 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8487	ELTA Technology Co., Ltd.	64.50	-7.14	-9.97%
TW:2444	AboCom Systems, Inc.	13.50	2.60	23.85%
TW:6216	DrayTek Corporation	18.40	-7.29	-28.37%
TW:6470	U-MEDIA Communications Inc	45.50	2.30	5.31%
TW:8059	CastleNet Technology, Inc.	13.30	-23.53	-63.89%
TW:8089	Comtrend Corp	32.90	2.00	6.47%

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

ELTA Technology Co., Ltd. AI Stock Analysis