AUO Corporation (2409.TW) stock analysis

In our weekly check, AUO Corporation is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 3, red flags: 10.

About AUO Corporation

AUO Corporation is a Technology company (Hardware, Equipment & Parts) based in Taiwan, listed on TAI as 2409.TW.

What our checks show for 2409.TW

Red flags

• Operating profit does not cover the interest bill (-1.4x): interest is paid from cash or new debt.
• The net margin fell by 15.9 points over 5 years, to 0.6%: the company keeps less of each sale as profit.
• The gross margin fell by 13.2 points, to 11.3%: costs are rising faster than prices.
• The net margin is only 0.6%: little room if costs rise.
• Free cash flow is only 0% of revenue.
• The dividend takes 128% of profit: little cushion if profit falls.
• The price swings a lot: 66.2% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 91% from a peak. Would you have held through that?
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Revenue grew only 4.3% a year over the last 3 years.
• Earnings per share fell 53.5% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 7.15x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 60.8% a year over the next years.
• Actively traded: about 328 million shares a day.

Next earnings report: 2026-10-29

Similar companies

HEXA-B.ST · 2313.TW · 3044.TW · 3533.TW · 3481.TW · APH

Questions

What grade does AUO Corporation (2409.TW) have?

In our weekly check, AUO Corporation is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 3, red flags: 10. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2409.TW stock?

This week's biggest flags for AUO Corporation: Weak interest cover, Margins falling, Gross margin falling. In total 13 of 24 checks show a warning or a red flag.

What does AUO Corporation do?

AUO Corporation is a Technology company (Hardware, Equipment & Parts) based in Taiwan, listed on TAI as 2409.TW.

When does AUO Corporation report earnings next?

The next earnings report is expected on 2026-10-29. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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