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AU Optronics (AUOTY)
OTHER OTC:AUOTY
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AU Optronics
(OTC:AUOTY)
49Neutral
AU Optronics (AUOTY) vs. S&P 500 (SPY)
Market Cap
$2.82B
Dividend Yield5.04%
Average Volume (3M)34.91K
Price to Earnings (P/E)―
Beta (1Y)0.48
Revenue Growth9.74%
EPS Growth83.51%
CountryUS
Employees38,635
SectorTechnology
Sector Strength45
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.13
Shares Outstanding766,788,100
10 Day Avg. Volume51,702
30 Day Avg. Volume34,914
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.67
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
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 DescriptionAUO 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 sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. In addition, it sells and leases content management system and related hardware; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. Further, the company engages in the design, manufacture, and sale of InGaN epi wafers and chips, and light emitting diode packages and modules; development, manufacturing, and sale of medical equipment; services related to educational activities and site rental; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Additionally, it develops and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as related consulting services; and investment services. The company operates in the People's Republic of China, Taiwan, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.
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 Financial Statement Overview
Summary
AU Optronics struggles with profitability and cash generation, despite operational efficiency improvements and stable balance sheet leverage. Revenue growth is inconsistent with significant net losses, impacting financial health.Income Statement
AU Optronics has experienced inconsistent revenue growth with significant fluctuations in profitability. Gross profit margin improved from 1.85% in 2022 to 8.64% in 2023, indicating better cost management. However, the net profit margin remains negative due to substantial net losses, even though there was some improvement from -7.34% in 2022 to -1.09% in 2023. EBIT margin is negative, but EBITDA margin improved to 5.48% in 2023, reflecting some operational efficiency gains. Overall, the company is struggling with profitability amid a volatile revenue trajectory.45
Neutral
Balance Sheet
AU Optronics maintains a moderate debt-to-equity ratio of 0.83 in 2023, indicating a balanced leverage position. Return on equity remains negative due to ongoing net losses, although the equity ratio is relatively stable at 41.50%, showing a solid equity foundation. The company has a strong liquidity position with substantial cash reserves despite declining equity levels over the years. The balance sheet reflects stability in terms of asset management but is hindered by profitability issues.60
Neutral
Cash Flow
The company's cash flow performance shows some improvement with operating cash flow rising significantly from 2022 to 2023. However, free cash flow remains negative, indicating ongoing challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is positive, suggesting robust operating activities compared to net income losses. Despite improvements, the company's cash flow statements reflect persistent difficulties in achieving sustainable cash generation.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 280.25B | 247.96B | 246.79B | 370.69B | 270.96B | Gross Profit |
| 24.22B | 4.61B | 1.57B | 90.77B | 22.77B | EBIT |
| 0.00 | -21.96B | -18.00B | 68.62B | 5.73B | EBITDA |
| 36.81B | 13.55B | 13.47B | 102.29B | 41.13B | Net Income Common Stockholders |
| -3.06B | -18.20B | -20.97B | 61.33B | 3.38B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 73.61B | 84.55B | 85.57B | 92.29B | 91.51B | Total Assets |
| 392.87B | 383.47B | 386.84B | 424.81B | 407.27B | Total Debt |
| 127.79B | 121.18B | 96.19B | 64.49B | 127.09B | Net Debt |
| 59.34B | 37.21B | 15.58B | -15.46B | 36.82B | Total Liabilities |
| 233.10B | 218.11B | 195.43B | 186.84B | 213.48B | Stockholders Equity |
| 153.30B | 159.17B | 185.10B | 231.79B | 182.80B |
| Cash Flow | Free Cash Flow | |||
| -3.78B | -16.79B | -8.98B | 87.65B | 10.15B | Operating Cash Flow |
| 23.15B | 9.99B | 26.97B | 104.72B | 25.75B | Investing Cash Flow |
| -33.09B | -24.15B | -31.91B | -30.35B | -17.71B | Financing Cash Flow |
| -7.39B | 18.37B | 2.35B | -83.47B | 2.70B |
AU Optronics Technical Analysis
Negative
3.70
Price Trends
4.29
Negative
4.38
Negative
4.77
Negative
Market Momentum
-0.17
Negative
40.79
Neutral
52.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUOTY, the sentiment is Negative. The current price of 3.7 is below the 20-day moving average (MA) of 3.91, below the 50-day MA of 4.29, and below the 200-day MA of 4.77, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 40.79 is Neutral, neither overbought nor oversold. The STOCH value of 52.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $4.09B | 19.88 | 8.17% | ― | 0.94% | -60.23% | |
63 Neutral | $1.19B | 15.19 | 9.11% | 4.05% | -4.43% | 57.01% | |
59 Neutral | $10.59B | 10.09 | -6.37% | 3.05% | 7.44% | -10.67% | |
56 Neutral | $4.09B | ― | -6.32% | ― | -28.33% | -129.75% | |
52 Neutral | $3.37B | ― | -16.69% | ― | -25.29% | -449.44% | |
51 Neutral | $2.93B | ― | -37.33% | ― | 19.52% | 24.03% | |
49 Neutral | $2.82B | ― | -1.99% | 5.04% | 9.74% | 83.51% |
* Technology Sector Average
Performance Comparison
AUOTY
AU Optronics
3.70
-1.67
-31.10%
HIMX
Himax Technologies
7.08
2.21
45.38%
LPL
LG Display
2.90
-1.05
-26.58%
SLAB
Silicon Laboratories
102.76
-19.37
-15.86%
TSEM
Tower
37.45
5.09
15.73%
ALGM
Allegro MicroSystems
19.12
-10.98
-36.48%
AU Optronics Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -11.06% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call revealed significant challenges in the short term, particularly with a quarterly revenue decline and ongoing operating losses. However, there are positive long-term growth prospects in the Mobility Solution segment and notable achievements in sustainability. Despite these positive aspects, the immediate financial challenges weigh heavily on the overall sentiment.Highlights
Full Year Revenue Growth
Net sales for 2024 were NT$280.2 billion, up by 13% YoY, attributable to Display’s demand recovery, more favorable market conditions, and higher demand for automotive displays.
Mobility Solution Expansion
The Mobility Solution segment saw revenue increase by 60% due to organic growth and the inclusion of BHTC, with expectations of double-digit growth in the coming years.
Sustainability Achievements
AUO was included in the DJSI for the 14th year, ranked top two in its subgroup, and achieved a 39% reduction in carbon emissions since 2018.
Strategic Asset Sales
AUO decided to sell the east side fab of AUO Crystal to Micron, totaling NT$3.75 billion, to focus more on semiconductor material business.
Lowlights
Quarterly Revenue Decline
Net sales in Q4 2024 were NT$68.7 billion, down by 12% QoQ due to decreased shipments and weaker demand in several markets.
Vertical Solution Challenges
Vertical Solution revenue dropped due to slower market demand and less than expected solar PV module demand.
Operating Loss
AUO experienced an operating loss of NT$3.3 billion in Q4, exacerbated by weak market conditions for solar PV modules.
Profitability Concerns
Despite efforts, AUO did not return to profitability at the operating level for the full year 2024, with a net loss of NT$3.1 billion.
Company Guidance
The recent conference call provided a detailed overview of AUO's fiscal year 2024 fourth-quarter results and guidance for 2025, with a focus on various financial metrics and business strategies. AUO reported net sales of NT$68.7 billion for Q4 2024, marking a 12% decrease quarter-over-quarter but an increase year-over-year, reflecting industry progress. The gross margin fell to 7.9% due to weaker market conditions, resulting in an operating loss of NT$3.3 billion. However, a non-operating gain of NT$4.8 billion helped net profit attributable to owners reach NT$1.6 billion. EBITDA stood at NT$4.7 billion, with an EBITDA margin of 6.9%. Full-year results for 2024 showed net sales of NT$280.2 billion, up 13% year-over-year, driven by demand recovery and expanded business scale, despite an overall net loss of NT$3.1 billion. AUO anticipates a high single-digit QoQ decline in Mobility Solution revenue for Q1 2025, while expecting low to mid-teens growth in Vertical Solutions. The company aims to improve profitability, cost structure, and product mix, with a focus on asset-light models and carbon reduction schemes. Additionally, AUO plans to maintain a robust financial structure, highlighted by a gearing ratio of 31.2% and healthy inventory turnover of 49 days.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.