MiTAC Holdings Corporation (3706.TW) stock analysis

In our weekly check, MiTAC Holdings Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7.

About MiTAC Holdings Corporation

MiTAC Holdings Corporation is a Technology company (Computer Hardware) based in Taiwan, listed on TAI as 3706.TW.

What our checks show for 3706.TW

Red flags

• The net margin fell by 22.6 points over 5 years, to 5.8%: the company keeps less of each sale as profit.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Free cash flow is negative (-17.4% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 81% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 11 years.
• Return on capital (ROCE) is only 4.9%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect the net margin to shrink by 1.6 points from today's 5.8%.
• Earnings per share fell 8.2% a year over the last 3 years.
• Net profit fell 7.2% a year over the last 3 years.
• The net margin is only 5.8%: little room if costs rise.
• The price swings a lot: 37.9% annual volatility. Expect large ups and downs.

Strengths

• Operating profit covers interest 13.2 times over.
• Analysts expect earnings per share to grow about 22.3% a year over the next years.
• Analysts expect revenue to grow about 41.2% a year over the next years.
• Revenue grew 38.9% a year over the last 3 years.
• The dividend takes 19% of profit: there is a cushion.
• The price is 14.1 times earnings (P/E), reasonable for its growth.

Next earnings report: 2026-11-17

Similar companies

3406.TW · 3324.TWO · 2377.TW · WDC · 2353.TW

Questions

What grade does MiTAC Holdings Corporation (3706.TW) have?

In our weekly check, MiTAC Holdings Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 3706.TW stock?

This week's biggest flags for MiTAC Holdings Corporation: Margins falling, Profits not backed by cash, Weak free cash flow. In total 12 of 25 checks show a warning or a red flag.

What does MiTAC Holdings Corporation do?

MiTAC Holdings Corporation is a Technology company (Computer Hardware) based in Taiwan, listed on TAI as 3706.TW.

When does MiTAC Holdings Corporation report earnings next?

The next earnings report is expected on 2026-11-17. 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 2026-10-31

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