AU Optronics (AUOTY)
OTHER OTC:AUOTY
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AU Optronics
(OTC:AUOTY)
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Rating:57Neutral
Price Target:
$4.50
▼(-5.26% Downside)
Action:ReiteratedDate:03/14/26
The score is held back mainly by weak/unstable operating performance and persistently negative free cash flow. Offsetting this, the technical setup is constructive and valuation is inexpensive on P/E, while the latest earnings call points to strategic progress and balance-sheet improvement but with near-term revenue softness and ongoing execution/cost risks.
Positive Factors
Revenue mix shift to Mobility & Vertical
A durable shift toward Mobility and Vertical (higher‑margin) businesses reduces reliance on commoditized large‑panel sales. Management targets continued growth here, which structurally improves revenue quality, supports higher margins over time and lowers cyclicality exposure.
Negative Factors
Persistent negative free cash flow
Negative FCF over multiple years means reported profits aren't translating into cash available for reinvestment or returns. This creates ongoing pressure to fund CapEx or strategy via asset sales, debt reduction, or equity, risking sustainability of investments and payouts.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue mix shift to Mobility & Vertical
A durable shift toward Mobility and Vertical (higher‑margin) businesses reduces reliance on commoditized large‑panel sales. Management targets continued growth here, which structurally improves revenue quality, supports higher margins over time and lowers cyclicality exposure.
Read all positive factors
AU Optronics (AUOTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.83B
Dividend Yield2.24%
Average Volume (3M)239.52K
Price to Earnings (P/E)13.3
Beta (1Y)1.08
Revenue Growth3.64%
EPS GrowthN/A
CountryUS
Employees38,635
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.12
Shares Outstanding754,709,900
10 Day Avg. Volume399,514
30 Day Avg. Volume239,517
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.60
Price to Sales (P/S)0.32
P/FCF Ratio-12.89
Enterprise Value/Market Cap49.73
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit5.86
Enterprise Value/Ebitda6.58
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.11
Revenue Forecast (FY)$9.32B
AU Optronics Business Overview & Revenue Model
Company Description
AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays. It operates through two segments, Display and Energy. The company also designs, manufactures, and sell...
How the Company Makes Money
AU Optronics primarily makes money by selling display panels and display modules to brand owners and original equipment manufacturers (OEMs) that integrate these components into finished products (e.g., TVs, monitors, notebooks, and other devices)...
AU Optronics Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed clear signs of strategic progress: revenue mix is shifting toward higher‑margin Mobility and Vertical businesses, gross margins improved YoY, FY profitability was achieved and the balance sheet was strengthened through asset sales and debt reduction. Commercial traction for Mobility (AMSC) and selective Vertical solutions is notable, and micro LED/AI technologies show promising development and early commercialization. However, near‑term operational profitability remains weak (Q4 OP loss), OpEx is elevated, the energy subsegment materially dragged Vertical results, and supply‑chain and component cost pressures along with macro/geopolitical uncertainties present tangible short‑term headwinds. Overall the narrative is of a company in positive transformation but with near‑term execution and market risks to monitor.Positive Updates
Q4 Revenue and FX Tailwind
Q4 revenue of TWD 70.1 billion was roughly flat Q-o-Q; ~3% positive revenue impact from NTD depreciation versus USD.
Negative Updates
Operating Loss Persisted in Q4
Q4 operating margin was negative 2.7% with an operating loss of TWD 1.9 billion (similar to prior quarter); positive net profit in Q4 was materially supported by non‑operating income from asset disposal (~TWD 4.8 billion).
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue and FX Tailwind
Q4 revenue of TWD 70.1 billion was roughly flat Q-o-Q; ~3% positive revenue impact from NTD depreciation versus USD.
Read all positive updates
Company Guidance
The company guided that Q1 2026 will be seasonally softer: Mobility Solutions revenue is expected to fall by a high single‑digit percentage versus Q4, Vertical Solutions to be flat or slightly down, and Display to decline vs Q4 (fewer working days, off‑season and memory shortages); for 2026 management expects depreciation of ~TWD 28 billion and CapEx not to exceed TWD 20 billion (CapEx was TWD 18.2b and D&A TWD 29.8b in 2025). Key 2025 baselines cited were Q4 revenue TWD 70.1b, gross margin 10.7% (+1.1pp Q‑o‑Q), OpEx ratio 13.4% (short‑term target 11–12%, mid‑term 10%), OP margin −2.7% (OP loss TWD 1.9b), Q4 net profit TWD 2.88b (EPS TWD 0.38) and FY2025 revenue TWD 281.4b with net profit attributable TWD 6.8b (EPS TWD 0.9); balance sheet metrics include cash TWD 55.6b, short‑ & long‑term loans TWD 109.1b, gearing 32.6% (−6.5pp), inventory TWD 36.2b with 52 days turnover. Looking ahead, AMSC (Mobility) targets low‑teens USD growth in 2026 and double‑digit CAGR longer term, Vertical Solutions targets ~20% USD growth in 2026 and double‑digit CAGR thereafter, and management aims for Mobility+Vertical to comprise ~70% of revenue by 2030.AU Optronics Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 282.93B | 280.25B | 247.96B | 246.79B | 370.69B |
| Gross Profit | 32.53B | 24.22B | 4.61B | 1.57B | 90.77B |
| EBITDA | 28.95B | 36.81B | 13.55B | 13.47B | 102.29B |
| Net Income | 6.88B | -3.06B | -18.20B | -21.10B | 61.33B |
Balance Sheet | |||||
| Total Assets | 380.95B | 392.87B | 383.47B | 386.84B | 424.81B |
| Cash, Cash Equivalents and Short-Term Investments | 56.12B | 73.61B | 84.55B | 85.57B | 92.29B |
| Total Debt | 117.11B | 127.79B | 121.18B | 96.19B | 64.49B |
| Total Liabilities | 217.57B | 233.10B | 218.11B | 195.43B | 186.84B |
| Stockholders Equity | 151.57B | 153.30B | 159.17B | 185.10B | 231.79B |
Cash Flow | |||||
| Free Cash Flow | -7.08B | -3.78B | -16.79B | -8.98B | 87.69B |
| Operating Cash Flow | 11.19B | 23.15B | 9.99B | 26.97B | 104.72B |
| Investing Cash Flow | -5.92B | -33.09B | -24.15B | -31.91B | -30.35B |
| Financing Cash Flow | -18.82B | -7.39B | 18.37B | 2.35B | -83.47B |
AU Optronics Technical Analysis
Positive
4.75
Price Trends
4.81
Positive
4.38
Positive
4.47
Positive
Market Momentum
0.01
Negative
54.46
Neutral
87.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUOTY, the sentiment is Positive. The current price of 4.75 is below the 20-day moving average (MA) of 4.80, below the 50-day MA of 4.81, and above the 200-day MA of 4.47, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of 87.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AUOTY.
AU Optronics Risk Analysis
AU Optronics disclosed 65 risk factors in its most recent earnings report. AU Optronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AU Optronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $19.98B | 38.01 | 18.39% | ― | 19.71% | 14.83% | |
72 Outperform | $61.91B | 22.78 | 16.50% | 1.21% | 8.94% | -39.90% | |
69 Neutral | $16.02B | 36.46 | 11.54% | 0.54% | 8.13% | 780.20% | |
66 Neutral | $127.42B | 47.18 | 14.13% | 1.25% | 18.27% | 771.78% | |
63 Neutral | $47.83B | 48.81 | 3.58% | ― | 20.80% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $3.83B | 13.27 | 4.57% | 2.24% | 3.64% | ― |
* Technology Sector Average
AUOTY
AU Optronics
4.98
1.83
58.30%
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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.