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AU Optronics (AUOTY)
OTHER OTC:AUOTY
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AU Optronics
(OTC:AUOTY)
Rating:51Neutral
Price Target:
$4.50
▼(-2.81% Downside)
AU Optronics (AUOTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.19B
Dividend Yield1.77%
Average Volume (3M)73.41K
Price to Earnings (P/E)18.8
Beta (1Y)0.92
Revenue Growth6.87%
EPS GrowthN/A
CountryUS
Employees38,635
SectorTechnology
Sector Strength86
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.09
Shares Outstanding754,709,900
10 Day Avg. Volume80,919
30 Day Avg. Volume73,407
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.02
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.21
Enterprise Value/Ebitda0.15
Forecast
1Y Price Target
$4.50Price Target Upside-2.81% Downside
Rating ConsensusHold
Number of Analyst Covering0
AU Optronics Business Overview & Revenue Model
Company DescriptionAU Optronics Corp. is a leading Taiwanese manufacturer of flat panel displays and optical solutions. The company specializes in the production of thin-film transistor liquid crystal displays (TFT-LCDs) used in various applications, including televisions, monitors, laptops, and mobile devices. With a focus on innovation and technology, AU Optronics also engages in research and development to enhance display technologies and expand into new sectors such as automotive displays and smart devices.
How the Company Makes MoneyAU Optronics generates revenue primarily through the manufacturing and sale of TFT-LCD panels. Its revenue model is largely driven by the demand for displays across consumer electronics, including televisions, smartphones, and tablets. Key revenue streams include sales to original equipment manufacturers (OEMs) and direct sales to brand-name companies in the electronics sector. Additionally, the company has established strategic partnerships with major tech firms and participates in joint ventures to expand its market reach. The fluctuation in global demand for displays, advancements in display technology, and the company's ability to manage production costs effectively are significant factors influencing its earnings.
AU Optronics Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While AUO reported improved profitability and strategic advancements, revenue declines due to forex impacts and challenges in the Mobility Solution segment were significant. The company's strategic acquisitions and focus on high-value products offer potential for future growth, but current external economic conditions pose challenges.Q2-2025 Updates
Positive Updates
Improvement in Gross and Operating Margins
Despite a 4% decline in revenue due to unfavorable foreign exchange conditions, gross margin improved to 13.5% and operating profit margin rose to 2.2%.
Continued Profitability
AUO marked its third consecutive quarter of profitability, with a net profit of TWD 1.9 billion and an EPS of TWD 0.26.
Strong Performance in Vertical Solutions
Vertical Solution segment reported revenue growth, benefiting from contributions in smart retail and premium products, with a projected high teens percentage growth for the full year.
Strategic Acquisition and Consolidation of ADLINK
AUO gained control of ADLINK Technologies, expected to boost future revenue and margins, with full consolidation beginning from next quarter.
Smart Mobility Developments
Positive developments in Mobility Solution, including a new order from a large global automotive OEM and the unveiling of BHTC's Bulgaria plant expansion.
Negative Updates
Revenue Decline Due to Forex Impact
Revenue declined by 4% quarter-over-quarter, largely due to unfavorable foreign exchange conditions, with a 4.6% negative impact.
Mobility Solution Revenue Decline
Mobility Solution revenue was down 5% quarter-over-quarter due to ForEx conditions, though it was up 4% year-over-year.
Inventory and Cash Flow Challenges
Inventory turnover days increased to 53, and cash levels decreased by TWD 13 billion from the previous quarter, primarily due to the consolidation of ADLINK and forex losses.
Potential Impact of Tariffs
Uncertainty regarding tariffs was noted, with some customers front-loading inventories in anticipation, which could affect future demand and sales timing.
Company Guidance
During the AUO Corporation's 2025 Q2 financial results conference, the guidance for Q3 was detailed by CFO David Chang. The company forecasted a decline in Mobility Solution revenue by mid-single-digit percentage points quarter-over-quarter (Q-o-Q) due to foreign exchange (ForEx) fluctuations, while Vertical Solution revenue is expected to grow by low to mid-20% Q-o-Q, driven by the consolidation of ADLINK. The Display segment is projected to experience a modest decline Q-o-Q, influenced by ForEx fluctuations and tariff uncertainties. Despite a 4% revenue dip in Q2, AUO maintained profitability with a gross margin improvement to 13.5% and an operating profit margin of 2.2%, alongside a net profit of TWD 1.9 billion. The company's strategic transformation continues with a focus on increasing the proportion of high value-added products and maintaining strict cost controls, with a midterm goal for Mobility and Vertical Solutions to account for over half of total revenue by 2027.AU Optronics Financial Statement Overview
Summary
AU Optronics is facing financial challenges with some recovery signs. Revenue growth is positive, but profitability is hindered by operational inefficiencies. The balance sheet shows increased leverage, posing potential risks, and cash flow issues persist due to high capital expenditures.Income Statement
AU Optronics has shown a significant decline in profitability over the recent periods, with the Net Profit Margin turning positive to 1.28% in TTM (Trailing-Twelve-Months) from a negative margin in previous years. The Gross Profit Margin for TTM is 10.6%, indicating some improvement from the prior period. However, the negative EBIT Margin of -0.81% suggests challenges in operational efficiency. Revenue has grown by 4.5% compared to the last annual period, which is a positive sign of top-line recovery.45
Neutral
Balance Sheet
The company's Debt-to-Equity Ratio has increased to 0.86 in the TTM, indicating a rise in leverage, which could pose financial risks. However, the Equity Ratio of 38.7% suggests a reasonable proportion of assets are financed by equity. Return on Equity (ROE) has improved to 2.46% in TTM from negative values, indicating a recovery in shareholder returns.55
Neutral
Cash Flow
Cash flow analysis reveals a negative Free Cash Flow in TTM, though it has improved from the previous year. The Operating Cash Flow to Net Income Ratio is 6.21, showing strong cash generation relative to reported earnings. However, the Free Cash Flow to Net Income Ratio is negative, highlighting ongoing capital expenditure challenges.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 292.87B | 280.25B | 247.96B | 246.79B | 370.69B | 270.96B |
| Gross Profit | 31.03B | 24.22B | 4.61B | 1.57B | 90.77B | 22.77B |
| EBITDA | 42.87B | 36.81B | 13.55B | 13.47B | 102.29B | 41.13B |
| Net Income | 3.76B | -3.06B | -18.20B | -21.10B | 61.33B | 3.38B |
Balance Sheet | ||||||
| Total Assets | 393.84B | 392.87B | 383.47B | 386.84B | 424.81B | 407.27B |
| Cash, Cash Equivalents and Short-Term Investments | 73.83B | 73.61B | 84.55B | 85.57B | 92.29B | 91.51B |
| Total Debt | 131.35B | 127.79B | 121.18B | 96.19B | 64.49B | 127.09B |
| Total Liabilities | 234.93B | 233.10B | 218.11B | 195.43B | 186.84B | 213.48B |
| Stockholders Equity | 152.40B | 153.30B | 159.17B | 185.10B | 231.79B | 182.80B |
Cash Flow | ||||||
| Free Cash Flow | -1.96B | -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 | -33.08B | -33.09B | -24.15B | -31.91B | -30.35B | -17.71B |
| Financing Cash Flow | -11.81B | -7.39B | 18.37B | 2.35B | -83.47B | 2.70B |
AU Optronics Technical Analysis
Positive
4.63
Price Trends
4.59
Positive
4.85
Negative
4.65
Positive
Market Momentum
0.01
Negative
58.99
Neutral
89.57
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 4.63 is above the 20-day moving average (MA) of 4.39, above the 50-day MA of 4.59, and below the 200-day MA of 4.65, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 89.57 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $7.16B | 27.08 | 11.12% | 0.82% | 4.47% | 2887.37% | |
72 Outperform | $11.81B | 36.24 | 17.84% | ― | 18.60% | 12.99% | |
72 Outperform | $61.14B | 42.72 | 11.63% | 1.31% | 4.86% | -56.43% | |
71 Outperform | $57.74B | 71.36 | 7.55% | 1.62% | 14.63% | 86.61% | |
61 Neutral | $36.05B | 6.66 | -10.10% | 1.86% | 8.68% | -8.81% | |
59 Neutral | $14.27B | ― | 0.63% | ― | 23.42% | 71.17% | |
51 Neutral | $3.19B | 18.80 | 3.81% | 1.77% | 6.87% | ― |
* Technology Sector Average
Performance Comparison
AUOTY
AU Optronics
4.72
-0.42
-8.17%
GLW
Corning
68.93
28.05
68.62%
FN
Fabrinet
355.05
112.18
46.19%
COHR
Coherent Corp
95.20
17.48
22.49%
MKSI
MKS
107.52
-8.65
-7.45%
TEL
TE Connectivity
208.04
59.02
39.61%
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.