# Accton Technology (2345.TW)

Canonical: https://gigainvestors.com/s/2345.TW

Analysis as of: 2026-10-16T07:34:12.455Z. Financial observations: FY2002–FY2025.

Listing currency: TWD. Reporting currency: TWD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: TWD 1,950.00 per share; close as of 2026-10-15.

Estimated value: low TWD 890.63 per share, central TWD 1,268.70 per share, high TWD 1,479.56 per share. Buy at or below the central value TWD 1,268.70 per share. Valuation as of 2026-10-16T07:34:12.455Z; scenarios are not confidence intervals.

Expected annual return: 7.6% at the stated quote. About 7.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; TW 10-year bond 2.0% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.09×

- FY2018: 0.08×

- FY2019: 0.11×

- FY2020: 0.12×

- FY2021: 0.09×

- FY2022: 0.12×

- FY2023: 0.14×

- FY2024: 0.12×

- FY2025: 0.13×

### moat: pass

- ROIC, median of available years: 85.3%

- ROIC, second-lowest year: 49.9%

- Typical minus recent gross margin: 2.1 pp

- Typical gross margin (annual median): 20.2%

- Recent gross margin (lower of latest and 3-year median): 18.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 72.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: 58.1%

- FY2018: 49.9%

- FY2019: >100%

- FY2020: 91.6%

- FY2021: 44.2%

- FY2022: 74.0%

- FY2023: >100%

- FY2024: 79.1%

- FY2025: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 0.95×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: TWD 57B

- Net income, five-year total: TWD 60B

- Return on incremental invested capital: 164.6%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -2.1 pp

- Working capital / revenue, final three-year average: 10.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.97×

- FY2022: 0.97×

- FY2023: 0.86×

- FY2024: 0.94×

- FY2025: 0.98×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 58.1% vs 255.9%

- Per-share earnings: 3.34 to 21.35 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.5%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: TWD 633B

- Cumulative retained earnings: TWD 39B

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 26.1%

- Per-share value change: TWD 18.01

- Per-share value, starting three-year median: TWD 3.34

- Per-share value, ending three-year median: TWD 21.35

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: TWD 825M

- Cumulative net income, 10 years: TWD 77B

- ROIC, first three-year median: 58.1%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2016: TWD 3.34

- FY2017: TWD 4.53

- FY2018: TWD 5.21

- FY2019: TWD 8.73

- FY2020: TWD 9.02

- FY2021: TWD 8.33

- FY2022: TWD 14.33

- FY2023: TWD 15.84

- FY2024: TWD 21.35

- FY2025: TWD 47.11

### accounting: pass

- Sloan accruals: -6.0%

- Receivables to sales index (DSRI): 0.79×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.32×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.5%

- FY2017: 19.4%

- FY2018: 4.0%

- FY2019: -12.4%

- FY2020: 5.1%

- FY2021: 9.5%

- FY2022: -3.4%

- FY2023: -16.7%

- FY2024: 2.4%

- FY2025: -6.0%

## Holders

## Price story

Down 22% since Jun 2026 · sales +124.9%

Story as of 2026-10-16T09:59:59.554Z; price observation 2026-10-15.

Price needs cash profits to grow 13.1% a year for ten years

### Sales · FY2024–2025

sales +124.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: TWD 29B 

- FY2017: TWD 36B 

- FY2018: TWD 43B 

- FY2019: TWD 55B 

- FY2020: TWD 54B 

- FY2021: TWD 60B 

- FY2022: TWD 77B 

- FY2023: TWD 84B 

- FY2024: TWD 110B 

- FY2025: TWD 248B 

### Gross margin · FY2025

gross margin 18.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 20.5% 

- FY2017: 19.7% 

- FY2018: 18.1% 

- FY2019: 19.9% 

- FY2020: 21.2% 

- FY2021: 19.0% 

- FY2022: 21.4% 

- FY2023: 22.9% 

- FY2024: 20.6% 

- FY2025: 18.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in communication equipment; annual sales are TWD 248.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2025: revenue 248319703000; grossProfit 44886464000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2345.TW: Accton Technology Corporation develops, manufactures, and sells computer network systems and wireless land area network (LAN) hardware and software products in Taiwan and internationally. The company offers 800G AI/ML fabrics, fiber optical transceivers, hyper network appliances, and edge servers, as well as data centers, metro ethernet, telecommunication networks, school/enterprise networks, and software-defined wide area network. It also provides data center switches, open packet transponders, cloud service appliances, and ethernet BOF; edge-computing; wired and wireless network solutions; carrier access platforms and disaggregated open solutions; and IoT integration solutions. In addition, the company engages in the production and sale of network switches; design, research, development, manufacture, and sale of switching hubs; and provision of information software and information technology services, as well as e-commerce apps, and advertising services. Further, it offers network products; and technical consulting and engineering design services. Additionally, the company provides data center networks, edge computing, cloud networks, carrier access, and IoT integration solutions. Accton Technology Corporation was incorporated in 1988 and is headquartered in Hsinchu City, Taiwan.

### Why customers stay

Margins ranged from 18.1% to 22.9% during 2023–25; it earns 85.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2023: grossProfit / revenue = 22.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2024: grossProfit / revenue = 20.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2025: grossProfit / revenue = 18.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); 10-year return on capital observations [[2016,2.4535768780652414],[2017,0.5811564482908859],[2018,0.4988513441931074],[2019,1.468062623531622],[2020,0.9159370604521188],[2021,0.4421205058228917],[2022,0.7404436062041277],[2023,2.559421795574942],[2024,0.7905702197781685],[2025,2.7558675443743663]]; median 0.8532536401151436. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 12.8% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2016: growth capex 0; upkeep 233889000; owner earnings 1972262000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2017: growth capex 0; upkeep 245393000; owner earnings 2592536000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2018: growth capex 77493000; upkeep 293478000; owner earnings 2952449000. Growth capex / owner earnings = 0.026247024080686913.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2019: growth capex 290136000; upkeep 539322000; owner earnings 4830382800. Growth capex / owner earnings = 0.06006480480180577.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2020: growth capex 0; upkeep 640529000; owner earnings 4935305000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2021: growth capex 0; upkeep 712380000; owner earnings 4565738200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2022: growth capex 204964000; upkeep 866654000; owner earnings 7886831200. Growth capex / owner earnings = 0.0259881306956335.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2023: growth capex 323549696.27149963; upkeep 1921335303.7285004; owner earnings 7633923296.2715. Growth capex / owner earnings = 0.04238314739545854.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2024: growth capex 1423037193.5298228; upkeep 1481167806.4701772; owner earnings 11273918193.529823. Growth capex / owner earnings = 0.12622383532519452.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); FY2025: growth capex 3303723000; upkeep 1726782000; owner earnings 25772346600. Growth capex / owner earnings = 0.1281886764630117.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); Incremental return on capital 1.64553469241462, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); Dividend observations: [[2016,1052036000],[2017,1687687000],[2018,2290529000],[2019,2221848000],[2020,3449054000],[2021,3622184000],[2022,3346320000],[2023,4184543000],[2024,5581745000],[2025,6147989000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 11.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2345.TW SharesStats.PercentInsiders = 11.613999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 13.1% yearly over ten years; actual growth was 33.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.455Z); Ten-year compound average after fade. Initial solved rate 0.2353083992347983. Price 1950; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.604809502843171 → FY2025 46.15457707130474. Closing-price date 2026-10-15.

## Monthly share-price history (TWD per share)

- 2016-10: TWD 50.40 per share

- 2016-11: TWD 43.50 per share

- 2016-12: TWD 50.90 per share

- 2017-01: TWD 56.50 per share

- 2017-02: TWD 56.50 per share

- 2017-03: TWD 66.90 per share

- 2017-04: TWD 68.50 per share

- 2017-05: TWD 67.10 per share

- 2017-06: TWD 77.60 per share

- 2017-07: TWD 80.50 per share

- 2017-08: TWD 79.00 per share

- 2017-09: TWD 98.40 per share

- 2017-10: TWD 97.20 per share

- 2017-11: TWD 110.00 per share

- 2017-12: TWD 106.00 per share

- 2018-01: TWD 117.00 per share

- 2018-02: TWD 112.00 per share

- 2018-03: TWD 96.60 per share

- 2018-04: TWD 68.40 per share

- 2018-05: TWD 86.30 per share

- 2018-06: TWD 88.20 per share

- 2018-07: TWD 102.00 per share

- 2018-08: TWD 109.50 per share

- 2018-09: TWD 85.00 per share

- 2018-10: TWD 85.20 per share

- 2018-11: TWD 97.50 per share

- 2018-12: TWD 98.60 per share

- 2019-01: TWD 107.50 per share

- 2019-02: TWD 108.50 per share

- 2019-03: TWD 124.50 per share

- 2019-04: TWD 131.00 per share

- 2019-05: TWD 122.50 per share

- 2019-06: TWD 131.50 per share

- 2019-07: TWD 134.00 per share

- 2019-08: TWD 165.50 per share

- 2019-09: TWD 163.50 per share

- 2019-10: TWD 181.50 per share

- 2019-11: TWD 159.00 per share

- 2019-12: TWD 168.00 per share

- 2020-01: TWD 163.00 per share

- 2020-02: TWD 163.50 per share

- 2020-03: TWD 163.00 per share

- 2020-04: TWD 217.50 per share

- 2020-05: TWD 241.50 per share

- 2020-06: TWD 228.00 per share

- 2020-07: TWD 229.50 per share

- 2020-08: TWD 234.00 per share

- 2020-09: TWD 222.50 per share

- 2020-10: TWD 207.50 per share

- 2020-11: TWD 239.00 per share

- 2020-12: TWD 316.00 per share

- 2021-01: TWD 269.50 per share

- 2021-02: TWD 262.50 per share

- 2021-03: TWD 276.00 per share

- 2021-04: TWD 318.00 per share

- 2021-05: TWD 307.50 per share

- 2021-06: TWD 330.50 per share

- 2021-07: TWD 326.00 per share

- 2021-08: TWD 280.50 per share

- 2021-09: TWD 263.00 per share

- 2021-10: TWD 243.50 per share

- 2021-11: TWD 288.50 per share

- 2021-12: TWD 260.00 per share

- 2022-01: TWD 265.00 per share

- 2022-02: TWD 252.00 per share

- 2022-03: TWD 222.50 per share

- 2022-04: TWD 233.00 per share

- 2022-05: TWD 232.00 per share

- 2022-06: TWD 238.50 per share

- 2022-07: TWD 248.00 per share

- 2022-08: TWD 283.50 per share

- 2022-09: TWD 272.50 per share

- 2022-10: TWD 243.00 per share

- 2022-11: TWD 271.50 per share

- 2022-12: TWD 234.50 per share

- 2023-01: TWD 243.50 per share

- 2023-02: TWD 283.00 per share

- 2023-03: TWD 319.00 per share

- 2023-04: TWD 299.00 per share

- 2023-05: TWD 353.00 per share

- 2023-06: TWD 349.00 per share

- 2023-07: TWD 382.00 per share

- 2023-08: TWD 478.00 per share

- 2023-09: TWD 493.00 per share

- 2023-10: TWD 498.50 per share

- 2023-11: TWD 533.00 per share

- 2023-12: TWD 523.00 per share

- 2024-01: TWD 529.00 per share

- 2024-02: TWD 519.00 per share

- 2024-03: TWD 463.00 per share

- 2024-04: TWD 461.50 per share

- 2024-05: TWD 504.00 per share

- 2024-06: TWD 555.00 per share

- 2024-07: TWD 507.00 per share

- 2024-08: TWD 508.00 per share

- 2024-09: TWD 532.00 per share

- 2024-10: TWD 552.00 per share

- 2024-11: TWD 657.00 per share

- 2024-12: TWD 773.00 per share

- 2025-01: TWD 763.00 per share

- 2025-02: TWD 673.00 per share

- 2025-03: TWD 576.00 per share

- 2025-04: TWD 594.00 per share

- 2025-05: TWD 745.00 per share

- 2025-06: TWD 730.00 per share

- 2025-07: TWD 892.00 per share

- 2025-08: TWD 1,015.00 per share

- 2025-09: TWD 1,045.00 per share

- 2025-10: TWD 1,080.00 per share

- 2025-11: TWD 1,025.00 per share

- 2025-12: TWD 1,185.00 per share

- 2026-01: TWD 1,115.00 per share

- 2026-02: TWD 1,400.00 per share

- 2026-03: TWD 1,510.00 per share

- 2026-04: TWD 2,280.00 per share

- 2026-05: TWD 2,430.00 per share

- 2026-06: TWD 2,495.00 per share

- 2026-07: TWD 2,125.00 per share

- 2026-08: TWD 2,035.00 per share

- 2026-09: TWD 1,775.00 per share

- 2026-10: TWD 2,040.00 per share

## Annual estimated value (TWD per share)

- FY2016: low TWD 33.83 per share, central TWD 36.67 per share, high TWD 40.45 per share

- FY2017: low TWD 57.21 per share, central TWD 78.33 per share, high TWD 90.62 per share

- FY2018: low TWD 76.17 per share, central TWD 105.90 per share, high TWD 123.22 per share

- FY2019: low TWD 108.48 per share, central TWD 147.49 per share, high TWD 170.20 per share

- FY2020: low TWD 111.23 per share, central TWD 151.54 per share, high TWD 175.01 per share

- FY2021: low TWD 120.31 per share, central TWD 165.58 per share, high TWD 192.44 per share

- FY2022: low TWD 184.26 per share, central TWD 253.08 per share, high TWD 293.16 per share

- FY2023: low TWD 224.34 per share, central TWD 303.24 per share, high TWD 349.19 per share

- FY2024: low TWD 300.12 per share, central TWD 418.83 per share, high TWD 485.03 per share

- FY2025: low TWD 742.54 per share, central TWD 1,045.00 per share, high TWD 1,213.69 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.