Foxconn Industrial Internet Co., Ltd. (601138.SS) stock analysis

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

About Foxconn Industrial Internet Co., Ltd.

Foxconn Industrial Internet Co., Ltd. is a Technology company (Communication Equipment) based in China, listed on SHH as 601138.SS.

What our checks show for 601138.SS

Red flags

• The gross margin fell by 1 points, to 7.1%: costs are rising faster than prices.
• Operating cash flow is only 0.25x net profit: part of the reported profit does not arrive as cash.
• The net margin is only 4.3%: little room if costs rise.
• Free cash flow is negative (-0.8% of revenue): the business spends more cash than it brings in.
• The price swings a lot: 58% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 68% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 0.3 points over 5 years, to 4.3%: the company keeps less of each sale as profit.
• Analysts expect the net margin to shrink by 1.4 points from today's 4.3%.
• The dividend takes 81% of profit: little cushion if profit falls.
• Beta 1.38: the stock usually moves more than the market, both up and down.

Strengths

• Operating profit covers interest 14.6 times over.
• Analysts expect earnings per share to grow about 40.5% a year over the next years.
• Analysts expect revenue to grow about 53.1% a year over the next years.
• Revenue grew 29% a year over the last 3 years.
• Earnings per share grew 32.4% a year over the last 3 years.
• Net profit grew 32.7% a year over the last 3 years.

Next earnings report: 2026-10-30

Similar companies

2345.TW · 300308.SZ · CSCO · ERIC-B.ST · 6869.HK

Questions

What grade does Foxconn Industrial Internet Co., Ltd. (601138.SS) have?

In our weekly check, Foxconn Industrial Internet Co., Ltd. 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 601138.SS stock?

This week's biggest flags for Foxconn Industrial Internet Co., Ltd.: Gross margin falling, Profits not backed by cash, Thin margins. In total 11 of 25 checks show a warning or a red flag.

What does Foxconn Industrial Internet Co., Ltd. do?

Foxconn Industrial Internet Co., Ltd. is a Technology company (Communication Equipment) based in China, listed on SHH as 601138.SS.

When does Foxconn Industrial Internet Co., Ltd. report earnings next?

The next earnings report is expected on 2026-10-30. 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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