Asustek Computer Inc. Sponsored GDR RegS (ASUUY) AI Stock Analysis

• Market Cap: $12.24B
• Dividend Yield: 7.47%
• Average Volume (3M): 29.00
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.58
• Revenue Growth: 27.55%
• EPS Growth: 5.89%
• Country: US
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 2.29
• Shares Outstanding: 148,552,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 29
• PEG Ratio: 0.15
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 81.67
• Enterprise Value/Market Cap: 29.67
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: 7.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 8.11
• Revenue Forecast (FY): $24.95B

• Rating: 74 Outperform
• Price Target: $89.00 ▲(6.02% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

Asustek Computer Inc. scores well due to its strong financial performance and positive earnings call, highlighting record revenue and strategic growth areas. The valuation is attractive with a reasonable P/E ratio and high dividend yield. However, technical indicators suggest bearish momentum, and cash flow management needs improvement.

Positive Factors

Strong Balance Sheet

Low leverage and rising ROE provide durable financial flexibility: the company can fund R&D, product launches, and working capital through cycles without relying heavily on debt. This supports long-term investment capacity and reduces solvency risk during industry downturns.

Rapid AI Server / Enterprise Growth

Sustained doubling of AI server revenue signals durable diversification into higher-growth enterprise markets. Enterprise contracts and server demand are structural trends that reduce consumer-PC cyclicality, supporting more recurring, higher-margin revenue streams over multiple quarters.

Leading Gaming Brand and Product Innovation

High share in premium gaming and recognized product innovation underpin brand pricing power and customer loyalty. Durable advantages in the gaming ecosystem (ROG line, peripherals) support sustained margins and cross-sell opportunities across consoles, PCs, and accessories.

Negative Factors

Sharp Free Cash Flow Decline

A large drop in free cash flow growth materially reduces internal funding for capex, dividends, and strategic initiatives. Persistently weaker FCF can force higher reliance on working capital or asset sales and constrains long-term capital allocation flexibility.

Poor Operating Cash Conversion

Low conversion of earnings into cash highlights earnings quality and working-capital pressure. Over time, weak cash conversion increases liquidity risk, complicates sustainable dividend policy or buybacks, and makes the business more sensitive to inventory and receivable swings.

Margin Pressure from Component Costs

Hardware OEM margins are vulnerable to component-cost inflation. Rising memory and SSD prices, plus shrinking operating margins, indicate persistent cost pressure that can compress profitability if the company cannot fully pass costs to customers or improve product mix.

Asustek Computer Inc. Sponsored GDR RegS Business Overview & Revenue Model

Company Description

ASUSTeK Computer Inc. researches and develops, designs, manufactures, sells, and repairs computers, communications, and consumer electronic products in Taiwan, China, Singapore, Europe, the United States, and internationally. The company offers Internet information services; maintenance and operating services for information hardware; services information technology and communication products; and leases real estate property. It provides ink-jet print heads and digital image output technology, high-speed analog circuits, integrated circuits, industrial and medical computers, interface cards, and medical robots; invests in computer peripheral, Internet service, and automotive electronics businesses; and researches, develops, sells, and consults information system software; provides marketing support and repair services for medical computers and peripherals. ASUSTeK Computer Inc. was founded in 1989 and is headquartered in Taipei, Taiwan.

How the Company Makes Money

ASUS generates revenue primarily through the sale of its hardware products, with key revenue streams including the sales of laptops, desktops, and components like motherboards and graphics cards. The gaming segment, particularly under the Republic of Gamers (ROG) brand, has become a significant contributor to revenue due to the growing popularity of gaming among consumers. Additionally, ASUS earns income from its networking products, such as routers and switches. The company also engages in partnerships with various technology firms and distributors, enhancing its market reach and enabling bundled sales. Furthermore, ASUS invests in research and development to innovate and maintain a competitive edge, which helps sustain its profitability in the rapidly evolving tech landscape.

Asustek Computer Inc. Sponsored GDR RegS Financial Statement Overview

Summary

Asustek Computer Inc. demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is solid with low leverage and high return on equity, indicating financial stability. However, the decline in free cash flow growth and lower operating cash flow conversion highlight areas for improvement in cash management.

Income Statement

Asustek Computer Inc. shows a solid revenue growth rate of 5.14% in the TTM, indicating a positive trajectory in sales. The gross profit margin has slightly decreased over the years but remains stable at 16.23% in the TTM. The net profit margin has improved to 5.60% in the TTM, reflecting enhanced profitability. However, EBIT and EBITDA margins have slightly declined, suggesting potential cost pressures.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.096 in the TTM, indicating prudent financial leverage. The return on equity has improved to 13.84% in the TTM, showcasing efficient use of equity to generate profits. The equity ratio remains robust, reflecting financial stability and a strong asset base.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, down by 63.28% in the TTM, which could be a concern for liquidity. The operating cash flow to net income ratio is relatively low at 0.21, indicating potential challenges in converting profits into cash. However, the free cash flow to net income ratio is strong at 0.96, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	689.90B	587.09B	482.31B	537.19B	535.23B	412.78B
Gross Profit	105.31B	103.47B	72.39B	72.37B	108.65B	73.21B
EBITDA	49.20B	45.82B	25.56B	25.00B	52.20B	36.69B
Net Income	34.79B	31.39B	15.93B	14.69B	44.55B	26.56B
Balance Sheet
Total Assets	589.19B	556.52B	480.08B	471.16B	504.15B	396.51B
Cash, Cash Equivalents and Short-Term Investments	83.80B	102.37B	82.30B	74.88B	73.82B	78.20B
Total Debt	42.09B	27.44B	17.97B	50.43B	11.01B	6.82B
Total Liabilities	304.92B	259.33B	221.10B	244.28B	257.72B	181.87B
Stockholders Equity	257.45B	269.54B	239.82B	212.38B	232.33B	201.76B
Cash Flow
Free Cash Flow	20.48B	5.47B	50.05B	-17.47B	30.51B	-5.11B
Operating Cash Flow	22.90B	8.03B	52.09B	-15.72B	32.69B	-2.09B
Investing Cash Flow	-10.75B	-3.19B	2.21B	-4.12B	-6.67B	-4.59B
Financing Cash Flow	-12.83B	4.81B	-45.24B	6.82B	-17.37B	-11.35B

Asustek Computer Inc. Sponsored GDR RegS Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 83.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASUUY, the sentiment is Neutral. The current price of 83.95 is above the 20-day moving average (MA) of 81.48, above the 50-day MA of 83.92, and below the 200-day MA of 101.07, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 47.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASUUY.

Asustek Computer Inc. Sponsored GDR RegS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDC	79 Outperform	$91.73B	27.16	41.27%	0.18%	-16.35%	316.56%
ASUUY	74 Outperform	$12.24B	10.96	13.89%	7.47%	27.55%	5.89%
NTAP	72 Outperform	$19.78B	17.38	125.35%	1.89%	2.64%	4.12%
STX	70 Outperform	$86.36B	44.78	―	1.02%	31.56%	106.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SMCI	58 Neutral	$18.65B	24.95	13.19%	―	12.22%	-48.34%
HPQ	57 Neutral	$16.71B	6.87	―	5.09%	4.09%	-5.77%