AU Optronics (AUOTY) AI Stock Analysis

• Market Cap: $2.70B
• Dividend Yield: 2.16%
• Average Volume (3M): 239.52K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.83
• Revenue Growth: 3.64%
• EPS Growth: N/A
• Country: US
• Employees: 38,635
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.06
• Shares Outstanding: 754,709,900
• 10 Day Avg. Volume: 399,514
• 30 Day Avg. Volume: 239,517
• PEG Ratio: 0.43
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -29.30
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.19
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $3.50 ▼(-4.89% Downside)

AU Optronics' overall stock score is primarily impacted by its challenging financial performance, with declining revenue growth and significant cash flow issues. The technical analysis indicates a bearish trend, further weighing down the score. Valuation metrics are neutral, providing neither a strong positive nor negative influence. The absence of earnings call data and corporate events means these factors do not contribute to the score.

Positive Factors

Innovation in Healthcare

AU Optronics' involvement in smart healthcare through partnerships and advanced technology integration positions it for growth in a high-demand sector, enhancing its market position and diversifying revenue streams.

Improved Gross Profit Margin

The improvement in gross profit margin indicates better cost management and operational efficiency, which can lead to enhanced profitability and competitive advantage over time.

Stable Balance Sheet

A stable balance sheet with moderate leverage provides financial flexibility and resilience, allowing AU Optronics to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Declining Revenue Growth

The negative revenue growth rate suggests challenges in market demand or competitive pressures, which could hinder long-term revenue expansion and market share.

Cash Flow Challenges

Significant decline in free cash flow indicates cash generation issues, potentially limiting the company's ability to fund operations, invest in growth, and manage debt.

Low Net Profit Margin

A low net profit margin reflects ongoing operational inefficiencies and cost pressures, which could impact long-term profitability and shareholder value.

AU Optronics Business Overview & Revenue Model

Company Description

AU Optronics Corp. is a leading Taiwanese manufacturer specializing in the development and production of advanced display technologies. The company operates primarily in the sectors of flat panel displays, including Liquid Crystal Displays (LCDs) and Organic Light Emitting Diodes (OLEDs). AU Optronics provides a wide array of products, which are utilized in various applications such as televisions, computer monitors, tablets, and mobile devices. The company emphasizes innovation and sustainability, driving advancements in display technology to meet the evolving needs of consumers and businesses alike.

How the Company Makes Money

AU Optronics generates revenue primarily through the manufacturing and sale of display panels, including LCDs and OLEDs. The company sells its products to a diverse range of clients, including original equipment manufacturers (OEMs) and brands in the consumer electronics sector. Key revenue streams include bulk sales of display panels, as well as custom solutions for specific applications. Additionally, AU Optronics engages in strategic partnerships with technology firms, which enhance its market reach and product offerings. Factors contributing to its earnings include market demand for high-quality displays, advancements in display technology, and the overall growth of the consumer electronics industry.

AU Optronics Financial Statement Overview

Summary

AU Optronics faces a challenging financial environment with declining revenue growth and cash flow issues. Improvements in profitability and a stable balance sheet are positive, but operational inefficiencies and cash flow generation need enhancement. Moderate leverage and low return on equity suggest a need for strategic financial management.

Income Statement

AU Optronics has experienced declining revenue growth, with a negative growth rate of -1.74% in the TTM period. The gross profit margin has improved to 11.13% from 8.64% in the previous year, indicating better cost management. However, the net profit margin remains low at 2.06%, and EBIT margin is negative, reflecting operational challenges. Overall, the income statement shows mixed performance with some improvement in profitability but ongoing revenue and operational challenges.

Balance Sheet

The company's debt-to-equity ratio stands at 0.85, indicating moderate leverage. Return on equity has improved to 3.93% in the TTM period, showing better utilization of equity. The equity ratio is stable, suggesting a balanced capital structure. While the balance sheet reflects a stable financial position, the moderate leverage and low ROE highlight areas for improvement.

Cash Flow

Free cash flow has significantly declined, with a negative growth rate of -76.57% in the TTM period, indicating cash flow challenges. The operating cash flow to net income ratio is 0.21, suggesting limited cash flow generation relative to net income. The negative free cash flow to net income ratio further highlights cash flow issues. Overall, the cash flow statement indicates significant challenges in cash generation and management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	287.78B	280.25B	247.96B	246.79B	370.69B	270.96B
Gross Profit	32.04B	24.22B	4.61B	1.57B	90.77B	22.77B
EBITDA	43.95B	36.81B	13.55B	13.47B	102.29B	41.13B
Net Income	5.94B	-3.06B	-18.20B	-21.10B	61.33B	3.38B
Balance Sheet
Total Assets	379.94B	392.87B	383.47B	386.84B	424.81B	407.27B
Cash, Cash Equivalents and Short-Term Investments	60.67B	73.61B	84.55B	85.57B	92.29B	91.51B
Total Debt	125.12B	127.79B	121.18B	96.19B	64.49B	127.09B
Total Liabilities	223.10B	233.10B	218.11B	195.43B	186.84B	213.48B
Stockholders Equity	147.56B	153.30B	159.17B	185.10B	231.79B	182.80B
Cash Flow
Free Cash Flow	-459.85M	-3.78B	-16.79B	-8.98B	87.69B	10.15B
Operating Cash Flow	23.33B	23.15B	9.99B	26.97B	104.72B	25.75B
Investing Cash Flow	-17.37B	-33.09B	-24.15B	-31.91B	-30.35B	-17.71B
Financing Cash Flow	-20.29B	-7.39B	18.37B	2.35B	-83.47B	2.70B

AU Optronics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.68
• 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 AUOTY, the sentiment is Neutral. The current price of 3.68 is above the 20-day moving average (MA) of 3.60, below the 50-day MA of 4.11, and below the 200-day MA of 4.59, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 45.97 is Neutral, neither overbought nor oversold. The STOCH value of 66.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AUOTY.

AU Optronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEL	80 Outperform	$68.95B	38.04	14.78%	1.19%	8.94%	-39.90%
FN	78 Outperform	$17.14B	49.32	18.06%	―	19.71%	14.83%
GLW	75 Outperform	$73.71B	54.52	12.07%	1.30%	18.27%	771.78%
MKSI	75 Outperform	$10.94B	39.63	11.12%	0.54%	8.13%	780.20%
COHR	67 Neutral	$28.57B	261.98	3.08%	―	20.80%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AUOTY	46 Neutral	$2.70B	15.90	3.55%	2.16%	3.64%	―

AU Optronics Corporate Events

AUO Earnings Call: Mixed Sentiment with Strategic Growth

The recent earnings call for Au Optronics Corp (AUO) presented a mixed sentiment, highlighting both achievements and challenges. The company has successfully maintained profitability and made strategic advancements in its Mobility and Vertical Solutions segments. However, it faces challenges such as revenue decline due to unfavorable foreign exchange conditions and increased inventory turnover days. The overall sentiment suggests a stable yet cautious outlook for the company.