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

• Market Cap: $14.52B
• Dividend Yield: 6.64%
• Average Volume (3M): 29.00
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.63
• 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: 1.01
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.14
• Enterprise Value/Ebitda: 0.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $100.00 ▲(2.67% Upside)

Asustek Computer Inc. benefits from strong financial performance and a positive earnings call, highlighting record revenue and growth in key segments. However, bearish technical indicators and anticipated shipment declines pose risks. The stock's fair valuation and high dividend yield provide additional support.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

AI Server Performance

The robust growth in AI server revenue highlights ASUS's strategic positioning in a high-demand sector, promising sustained future growth.

Gaming Segment Success

Dominant market share in gaming PCs underscores ASUS's competitive edge and brand strength in a lucrative market segment.

Negative Factors

Quarter 4 Shipment Decline

Anticipated shipment declines could impact short-term revenue, signaling potential demand challenges or supply chain issues.

Macroeconomic Challenges

Economic uncertainties and tariff impacts may affect consumer sentiment and sales, posing risks to revenue stability.

Memory Price Surge

Rising memory prices could pressure margins and inventory costs, affecting profitability and cost management.

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

Company Description

Asustek Computer Inc., commonly known as ASUS, is a leading Taiwanese multinational computer hardware and electronics company. Founded in 1989, ASUS specializes in the design and manufacturing of a wide range of products, including laptops, desktops, motherboards, graphics cards, monitors, and networking equipment. The company operates in several sectors such as consumer electronics, gaming, and cloud computing, focusing on innovation and high-quality standards to deliver advanced technology solutions to consumers and businesses alike.

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 revenue growth and solid profitability metrics, with a robust balance sheet characterized by low leverage and high equity utilization. Cash flow improvements are notable, although historical fluctuations warrant cautious cash management.

Income Statement

Asustek Computer Inc. shows a strong revenue growth rate of 7.03% in the TTM, indicating robust sales performance. The gross profit margin of 16.23% and net profit margin of 5.60% reflect solid profitability, although slightly below the industry average. The EBIT and EBITDA margins are healthy at 7.27% and 7.72%, respectively, suggesting efficient operational management. However, the decline in EBIT margin from previous years indicates potential cost pressures.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.096, indicating conservative leverage and financial stability. The return on equity (ROE) of 13.84% is commendable, showcasing effective use of equity to generate profits. The equity ratio of 42.94% suggests a solid capital structure with a good proportion of assets financed by equity, reducing financial risk.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow growth at 87.54% in the TTM, highlighting enhanced cash generation capabilities. The operating cash flow to net income ratio of 0.21 and free cash flow to net income ratio of 0.96 indicate strong cash conversion efficiency. However, past volatility in cash flows suggests potential risks in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	656.18B	587.09B	482.31B	537.19B	535.23B	412.78B
Gross Profit	106.49B	103.47B	72.39B	72.37B	108.65B	73.21B
EBITDA	51.52B	45.82B	25.56B	25.00B	52.20B	36.69B
Net Income	36.74B	31.39B	15.93B	14.69B	44.55B	26.56B
Balance Sheet
Total Assets	568.61B	556.52B	480.08B	471.16B	504.15B	396.51B
Cash, Cash Equivalents and Short-Term Investments	101.41B	102.37B	82.30B	74.88B	73.82B	78.20B
Total Debt	23.47B	27.44B	17.97B	50.43B	11.01B	6.82B
Total Liabilities	299.88B	259.33B	221.10B	244.28B	257.72B	181.87B
Stockholders Equity	244.19B	269.54B	239.82B	212.38B	232.33B	201.76B
Cash Flow
Free Cash Flow	55.77B	5.47B	50.05B	-17.47B	30.51B	-5.11B
Operating Cash Flow	58.14B	8.03B	52.09B	-15.72B	32.69B	-2.09B
Investing Cash Flow	-9.19B	-3.19B	2.21B	-4.12B	-6.67B	-4.59B
Financing Cash Flow	-10.33B	4.81B	-45.24B	6.82B	-17.37B	-11.35B

Asustek Computer Inc. Sponsored GDR RegS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 97.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASUUY, the sentiment is Negative. The current price of 97.4 is below the 20-day moving average (MA) of 97.74, below the 50-day MA of 106.61, and below the 200-day MA of 102.28, indicating a bearish trend. The MACD of -3.10 indicates Negative momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	$57.74B	24.62	31.48%	0.19%	-16.35%	316.56%
NTAP	76 Outperform	$23.23B	20.41	125.35%	1.77%	2.64%	4.12%
ASUUY	71 Outperform	$14.52B	13.03	13.89%	6.64%	27.55%	5.89%
STX	68 Neutral	$59.54B	35.79	―	1.03%	31.56%	106.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	61 Neutral	$24.22B	9.78	―	4.47%	3.94%	-5.77%
SMCI	58 Neutral	$20.71B	27.80	12.79%	―	12.22%	-48.34%

Asustek Computer Inc. Sponsored GDR RegS Corporate Events

ASUS Earnings Call: Record Revenue Amid Challenges

Asustek Computer Inc. recently held its earnings call, revealing a strong performance characterized by record revenue and notable growth in AI servers and the gaming segment. Despite these achievements, the company acknowledged challenges such as anticipated shipment declines in Q4, macroeconomic uncertainties, and a surge in memory prices.

ASUS Earnings Call: Strong Growth Amid Challenges

ASUS Earnings Call Highlights Strong Growth Amidst Challenges

Asustek Computer Inc. Reports Mixed Financial Results

Asustek Computer Inc., a prominent player in the technology sector, specializes in the design, research, and sales of 3C products, including PCs, smartphones, and other handheld devices. The company is headquartered in Taipei, Taiwan, and operates globally with a strong presence in the electronics market.