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AU Optronics (AUOTY)
OTHER OTC:AUOTY
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AU Optronics
(OTC:AUOTY)
Rating:51Neutral
Price Target:
$5.00
▼(-2.91%Downside)
AU Optronics (AUOTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.26B
Dividend Yield5.36%
Average Volume (3M)34.36K
Price to Earnings (P/E)34.4
Beta (1Y)0.97
Revenue Growth10.62%
EPS GrowthN/A
CountryUS
Employees38,635
SectorTechnology
Sector Strength87
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.14
Shares Outstanding754,709,900
10 Day Avg. Volume53,784
30 Day Avg. Volume34,364
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)7.05
Price to Sales (P/S)0.00
P/FCF Ratio-145.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
AU Optronics Business Overview & Revenue Model
Company DescriptionAU Optronics Corporation (AUOTY) is a leading global manufacturer of optoelectronic solutions, specializing in the design, development, and production of display panels and related products. Headquartered in Hsinchu, Taiwan, the company primarily operates in the display technology sector, providing a wide range of products including liquid crystal display (LCD) panels, organic light-emitting diode (OLED) panels, and other advanced display technologies for various applications such as televisions, monitors, mobile devices, and industrial equipment.
How the Company Makes MoneyAU Optronics generates revenue primarily through the sale of its diverse range of display panels. The company's key revenue streams include the production and sale of LCD panels, which are widely used in consumer electronics such as televisions, computer monitors, and mobile devices. In addition to consumer electronics, AUO also supplies display solutions for industrial, automotive, and medical applications. The company often partners with major electronics manufacturers to supply display components that are integral to their end products. Significant revenue is also derived from the company's innovation in advanced display technologies, such as OLED and other emerging display formats, which cater to the growing demand for high-performance visual solutions. AUO's strategic focus on research and development helps maintain its competitive edge in the rapidly evolving display market, contributing to its financial performance.
AU Optronics Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 2.59%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a positive financial performance in Q1 with revenue growth and a return to profitability. However, there are significant concerns related to tariff impacts and potential revenue decline in Q2. The company's strong financial structure and advancements in technology are positive, but the uncertainties around tariffs pose challenges.Q1-2025 Updates
Positive Updates
Revenue Growth and Profitability
Net sales for Q1 were NT$72.1 billion, up by 5% QoQ. The company returned to profitability at the operating level, generating NT$1.1 billion in OP profit, with a net profit attributable to the owner of NT$3.3 billion and an EBITDA margin improved to 12.2%.
Strong Performance in Display and Mobility Solutions
The Display segment benefited from stock replacement and trade-in policy in China. Mobility Solution saw better-than-expected performance due to stronger demand for high-value-added products and subsidies from China.
Advancements in Micro LED Technology
Demonstrated 114-inch Micro LED TV and transparent Micro LED applications at Touch Taiwan. Announced production capabilities and future projects with major automotive OEMs.
Resilient Financial Structure
Maintained a healthy financial structure with a gearing ratio of 34.5% and cash and cash equivalents of NT$67.4 billion.
Negative Updates
Tariff-related Uncertainties
Ongoing uncertainties related to tariffs are expected to disrupt seasonal patterns and impact global consumption and economic growth.
Potential Revenue Decline in Q2
Anticipated revenue decline in Q2 for Mobility Solutions and Display segment due to a higher base period and tariff-related uncertainties.
Debt and Gearing Ratio Increase
Debt increased to NT$122.2 billion, and the gearing ratio rose by 3.3% due to peak employee compensation payments and share buybacks leading to increased borrowings.
Company Guidance
During AU Optronics' 2025 first-quarter financial results conference, the company outlined its guidance and performance metrics for the second quarter. The company's net sales reached NT$72.1 billion, marking a 5% QoQ increase, driven by growth across its three main segments: Display, Mobility Solution, and Vertical Solution. The Display segment, benefiting from stock replacement and trade-in policies in China, is expected to experience a slight revenue decline QoQ in Q2. Conversely, the Vertical Solution segment is anticipated to see revenue growth in the mid-to-high single-digit range, supported by demand recovery and new project volumes. The Mobility Solution segment is projected to post a low single-digit percentage revenue decline due to a higher base period and customer project timelines. On profitability, AUO reported a gross margin improvement to 12.2% and an operating profit of NT$1.1 billion, while the net profit attributable to owners was NT$3.3 billion with an EPS of NT$0.43. The EBITDA margin improved to 12.2%, supported by revenue growth, product mix optimizations, and cost improvements. The company also highlighted its strategic response to tariff uncertainties, emphasizing its global manufacturing footprint and the need for prudent management of CapEx and OpEx to maintain financial stability.AU Optronics Financial Statement Overview
Summary
AU Optronics is experiencing financial challenges with some recovery signs. Revenue is growing, but profitability is hampered by operational inefficiencies, as reflected in a negative EBIT margin. The balance sheet shows increased leverage, raising financial risk, while 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
5.15
Price Trends
5.48
Negative
4.91
Positive
4.88
Positive
Market Momentum
-0.14
Positive
47.61
Neutral
60.22
Neutral
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 5.15 is below the 20-day moving average (MA) of 5.23, below the 50-day MA of 5.48, and above the 200-day MA of 4.88, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 60.22 is Neutral, 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.65B | 18.80 | 9.79% | 3.93% | 0.61% | 80.97% | |
72 Outperform | $5.19B | 25.69 | 7.88% | ― | 5.22% | -58.99% | |
64 Neutral | $5.00B | ― | -14.77% | ― | 2.16% | -55.38% | |
58 Neutral | $3.41B | ― | -28.93% | ― | 17.34% | 34.72% | |
57 Neutral | $6.64B | ― | -7.09% | ― | -30.91% | -148.73% | |
57 Neutral | $1.15B | 27.35 | -27.06% | 10.34% | 10.83% | -5.57% | |
51 Neutral | $3.26B | 34.43 | 2.46% | 5.36% | 10.62% | ― |
* Technology Sector Average
Performance Comparison
AUOTY
AU Optronics
5.15
-0.19
-3.56%
HIMX
Himax Technologies
9.42
1.66
21.39%
LPL
LG Display
3.61
-0.90
-19.96%
SLAB
Silicon Laboratories
153.48
38.33
33.29%
TSEM
Tower
46.40
5.38
13.12%
ALGM
Allegro MicroSystems
35.93
4.53
14.43%
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.