Innolux Corporation (3481.TW) stock analysis

In our weekly check, Innolux Corporation is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 9 pass, warnings: 7, red flags: 7.

About Innolux Corporation

Innolux Corporation is a Technology company (Hardware, Equipment & Parts) based in Taiwan, listed on TAI as 3481.TW.

What our checks show for 3481.TW

Red flags

• Operating profit does not cover the interest bill (0.9x): interest is paid from cash or new debt.
• The net margin fell by 13.9 points over 5 years, to 2.5%: the company keeps less of each sale as profit.
• The gross margin fell by 14.6 points, to 11.6%: costs are rising faster than prices.
• The net margin is only 2.5%: little room if costs rise.
• The price swings a lot: 71.4% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 97% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.4%.

Warning signs

• Analysts expect earnings per share to shrink about 4% a year.
• Analysts expect only about 4.3% a year of growth in revenue.
• Analysts expect the net margin to shrink by 0.5 points from today's 2.5%.
• Revenue grew only 3.1% a year over the last 3 years.
• Earnings per share fell 35.4% a year over the last 3 years.
• The stock is still below its previous peak.
• Beta 1.4: the stock usually moves more than the market, both up and down.

Strengths

• Debt is low: 0.28x equity.
• Operating cash flow is 4.66x net profit: the profit arrives as real cash.
• A large company: market value $11.45 billion.
• The share count fell by 13.9% in 2 years: the company buys back its own shares.
• Actively traded: about 223 million shares a day.
• Pay in shares is only 0% of free cash flow.

Similar companies

6274.TWO · 3044.TW · 2313.TW · HEXA-B.ST · 2409.TW · 2368.TW

Questions

What grade does Innolux Corporation (3481.TW) have?

In our weekly check, Innolux Corporation is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 9 pass, warnings: 7, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 3481.TW stock?

This week's biggest flags for Innolux Corporation: Weak interest cover, Margins falling, Gross margin falling. In total 14 of 23 checks show a warning or a red flag.

What does Innolux Corporation do?

Innolux Corporation is a Technology company (Hardware, Equipment & Parts) based in Taiwan, listed on TAI as 3481.TW.

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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