Hon Hai Precision Industry (HNHPF)
OTHER OTC:HNHPF
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Hon Hai Precision Industry
(OTC:HNHPF)
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Rating:57Neutral
Price Target:
$15.00
▲(14.94% Upside)
Action:ReiteratedDate:03/18/26
The score is mainly held back by inconsistent and recently weaker cash flow plus bearish technical trend signals. These risks are partially offset by solid scale and improving earnings, a moderately leveraged balance sheet, and a reasonable valuation with a ~2.9% dividend yield.
Positive Factors
Sustained revenue growth
Multi-year revenue expansion and rising net income into 2025 indicate durable demand and successful program ramps. Sustained top-line growth supports fixed-cost absorption in high-volume manufacturing, enabling steadier production runs and a stronger bargaining position with suppliers and customers over coming quarters.
Negative Factors
Volatile cash generation
Large swings in operating and free cash flow reduce the company's ability to consistently fund capex, dividends, or strategic investments from operations. With cash conversion recently weaker, the firm may need to rely on external financing in downturns, raising long-run funding and execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth
Multi-year revenue expansion and rising net income into 2025 indicate durable demand and successful program ramps. Sustained top-line growth supports fixed-cost absorption in high-volume manufacturing, enabling steadier production runs and a stronger bargaining position with suppliers and customers over coming quarters.
Read all positive factors
Hon Hai Precision Industry (HNHPF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$100.75B
Dividend Yield2.71%
Average Volume (3M)7.03K
Price to Earnings (P/E)17.7
Beta (1Y)0.80
Revenue Growth22.28%
EPS Growth28.40%
CountryUS
Employees826,608
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)27.26
Shares Outstanding7,001,701,700
10 Day Avg. Volume9,705
30 Day Avg. Volume7,033
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.81
Price to Sales (P/S)0.39
P/FCF Ratio42.23
Enterprise Value/Market Cap34.56
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit6.97
Enterprise Value/Ebitda8.26
Forecast
1Y Price Target
$21.00Price Target Upside60.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.08
Revenue Forecast (FY)$316.80B
Hon Hai Precision Industry Business Overview & Revenue Model
Company Description
Hon Hai Precision Industry Co., Ltd. provides technology solutions in Japan, Ireland, the United States, Singapore, China, Taiwan, and internationally. The company manufactures, sells, and services connectors, cases, thermal modules, wired/wireles...
How the Company Makes Money
Hon Hai primarily makes money by providing contract manufacturing and related services to brand customers, earning revenue from the sale of finished goods it manufactures/assembles on customers’ behalf and from manufacturing service fees embedded ...
Hon Hai Precision Industry Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance in terms of revenue and growth, particularly in the AI server and cloud products segments. However, challenges such as decreased cash flow, increased debt ratio, and exchange rate fluctuations were noted. Despite some lowlights, the company's strategic growth in AI and cloud products suggests a positive outlook.Positive Updates
Record-Breaking Q2 Revenue
Q2 revenues reached TWD1.79 trillion, representing a 16% increase YoY and a record high for the same period in previous years. In US dollars, this represents an approximately 18.6% YoY increase.
Negative Updates
Decrease in Cash and Net Cash
Cash and net cash decreased by TWD164.9 billion from the end of June last year, primarily due to exchange rate fluctuations and increased working capital demands driven by revenue growth.
Read all updates
Q2-2025 Updates
Positive
Negative
Record-Breaking Q2 Revenue
Q2 revenues reached TWD1.79 trillion, representing a 16% increase YoY and a record high for the same period in previous years. In US dollars, this represents an approximately 18.6% YoY increase.
Read all positive updates
Company Guidance
In the recent call, Hon Hai Precision Industry provided comprehensive guidance on several key metrics and strategic initiatives. For Q2 of 2025, the company reported record revenues of TWD1.79 trillion, a 16% YoY increase, with gross profit margin slightly declining to 6.33% due to exchange rate fluctuations. Operating profit margin improved to 3.16%, driven by a lower expense ratio, while net profit margin rose to 2.47%, and EPS increased by TWD0.66 to TWD3.19. The cash conversion cycle extended to 48 days, and the debt ratio increased to 61%. The company emphasized its strong growth trajectory in AI servers, anticipating a 170% YoY revenue increase in Q3, and highlighted its strategic plans for expanding AI infrastructure and EV production. Despite challenges from tariffs and exchange rates, Hon Hai maintained its full-year operating profit margin target, driven by significant revenue growth and strategic investments in various sectors, including AI, EVs, and digital health.Hon Hai Precision Industry Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
67
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.15T | 6.86T | 6.16T | 6.63T | 5.99T |
| Gross Profit | 500.89B | 428.95B | 387.95B | 400.09B | 362.13B |
| EBITDA | 358.38B | 336.55B | 355.55B | 292.08B | 291.01B |
| Net Income | 190.39B | 152.71B | 142.10B | 141.48B | 139.32B |
Balance Sheet | |||||
| Total Assets | 5.09T | 4.39T | 3.94T | 4.13T | 3.91T |
| Cash, Cash Equivalents and Short-Term Investments | 1.59T | 1.32T | 1.35T | 1.08T | 1.11T |
| Total Debt | 1.28T | 961.56B | 943.07B | 974.01B | 871.55B |
| Total Liabilities | 3.12T | 2.54T | 2.25T | 2.48T | 2.34T |
| Stockholders Equity | 1.77T | 1.65T | 1.49T | 1.45T | 1.38T |
Cash Flow | |||||
| Free Cash Flow | 75.90B | 21.99B | 326.60B | 8.05B | -192.71B |
| Operating Cash Flow | 250.67B | 166.03B | 445.55B | 109.71B | -98.21B |
| Investing Cash Flow | -353.28B | -300.05B | -137.87B | -45.44B | -92.08B |
| Financing Cash Flow | 201.61B | -164.07B | -160.64B | -87.87B | 24.28B |
Hon Hai Precision Industry Technical Analysis
Neutral
13.05
Price Trends
13.47
Negative
13.92
Negative
13.85
Negative
Market Momentum
-0.10
Negative
52.66
Neutral
97.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNHPF, the sentiment is Neutral. The current price of 13.05 is above the 20-day moving average (MA) of 12.49, below the 50-day MA of 13.47, and below the 200-day MA of 13.85, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 97.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HNHPF.
Hon Hai Precision Industry Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $173.50B | 41.15 | 45.74% | 0.54% | 54.40% | 68.63% | |
76 Outperform | $33.77B | 23.76 | 16.83% | ― | 4.89% | -9.65% | |
75 Outperform | $59.92B | 17.32 | 22.71% | 1.21% | 16.66% | 114.94% | |
70 Outperform | $137.67B | 79.05 | 15.65% | 1.25% | 20.05% | 298.15% | |
69 Neutral | $35.96B | 31.64 | 58.99% | 0.14% | 19.00% | 78.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $100.75B | 17.66 | 11.63% | 2.71% | 22.28% | 28.40% |
* Technology Sector Average
HNHPF
Hon Hai Precision Industry
14.39
4.96
52.59%
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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.