Pegatron Corporation (4938.TW) stock analysis

In our weekly check, Pegatron Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 4, red flags: 7.

About Pegatron Corporation

Pegatron Corporation is a Technology company (Computer Hardware) based in Taiwan, listed on TAI as 4938.TW.

What our checks show for 4938.TW

Red flags

• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Revenue fell 6% a year over the last 3 years.
• The net margin is only 1.4%: little room if costs rise.
• Free cash flow is negative (-4% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 94% from a peak. Would you have held through that?
• The share count grew by 26.2% in 2 years: each shareholder owns a smaller slice.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 0.2 points over 5 years, to 1.4%: the company keeps less of each sale as profit.
• The dividend takes 85% of profit: little cushion if profit falls.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 5.2%.

Strengths

• Debt is low: 0.47x equity.
• Operating profit covers interest 124 times over.
• The gross margin is 4.3% and has risen by 0.6 points: pricing power is holding.
• Analysts expect earnings per share to grow about 14.1% a year over the next years.
• Analysts expect revenue to grow about 19.6% a year over the next years.
• Beta 0.4: the stock usually moves less than the market.

Next earnings report: 2026-11-18

Similar companies

DELL · 0992.HK · 2376.TW · ANET · 2356.TW · SNDK

Questions

What grade does Pegatron Corporation (4938.TW) have?

In our weekly check, Pegatron Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 4, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 4938.TW stock?

This week's biggest flags for Pegatron Corporation: Profits not backed by cash, Weak revenue growth, Thin margins. In total 11 of 25 checks show a warning or a red flag.

What does Pegatron Corporation do?

Pegatron Corporation is a Technology company (Computer Hardware) based in Taiwan, listed on TAI as 4938.TW.

When does Pegatron Corporation report earnings next?

The next earnings report is expected on 2026-11-18. 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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