# Novatek Microelectronics (3034.TW)

Canonical: https://gigainvestors.com/s/3034.TW

Analysis as of: 2026-10-16T07:35:47.764Z. 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 565.00 per share; close as of 2026-10-15.

Estimated value: low TWD 463.81 per share, central TWD 515.96 per share, high TWD 585.39 per share. Buy at or below the central value TWD 515.96 per share. Valuation as of 2026-10-16T07:35:47.764Z; scenarios are not confidence intervals.

Expected annual return: 9.3% at the stated quote. About 9.3% 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: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.37×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.12×

- FY2018: 0.14×

- FY2019: 0.15×

- FY2020: 0.18×

- FY2021: 0.36×

- FY2022: 0.31×

- FY2023: 0.24×

- FY2024: 0.21×

- FY2025: 0.18×

### moat: pass

- ROIC, median of available years: 71.0%

- ROIC, second-lowest year: 49.6%

- Typical minus recent gross margin: -0.7 pp

- Typical gross margin (annual median): 35.7%

- Recent gross margin (lower of latest and 3-year median): 36.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.2%

- ROIC including acquisitions, ten-year median: 55.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 49.6%

- FY2017: 45.4%

- FY2018: 62.1%

- FY2019: 59.6%

- FY2020: 77.9%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: 64.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: TWD 127B

- Net income, five-year total: TWD 127B

- Return on incremental invested capital: 60.0%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -2.2 pp

- Working capital / revenue, final three-year average: 17.0%

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

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 0.98×

- FY2025: 1.00×

### 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: 49.6% vs 106.6%

- Per-share earnings: 8.24 to 33.38 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: TWD 163B

- Cumulative retained earnings: TWD 24B

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 19.1%

- Per-share value change: TWD 25.14

- Per-share value, starting three-year median: TWD 8.24

- Per-share value, ending three-year median: TWD 33.38

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: TWD 776M

- Cumulative net income, 10 years: TWD 163B

- ROIC, first three-year median: 49.6%

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

Chart: Earnings per share; fiscal year observations.

- FY2016: TWD 8.24

- FY2017: TWD 8.24

- FY2018: TWD 10.50

- FY2019: TWD 13.04

- FY2020: TWD 19.43

- FY2021: TWD 63.88

- FY2022: TWD 45.96

- FY2023: TWD 38.28

- FY2024: TWD 33.38

- FY2025: TWD 26.90

### accounting: pass

- Sloan accruals: 2.7%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.84×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.9%

- FY2017: 1.6%

- FY2018: -3.4%

- FY2019: 1.7%

- FY2020: -6.1%

- FY2021: -2.4%

- FY2022: 5.3%

- FY2023: -6.4%

- FY2024: 3.6%

- FY2025: 2.7%

## Holders

## Price story

Price needs cash profits to grow 2.2% a year for ten years · sales -2.1%

Story as of 2026-10-16T10:00:06.113Z; price observation 2026-10-15.

Price needs cash profits to grow 2.2% a year for ten years

### Sales · FY2024–2025

sales -2.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: TWD 46B 

- FY2017: TWD 47B 

- FY2018: TWD 55B 

- FY2019: TWD 64B 

- FY2020: TWD 80B 

- FY2021: TWD 135B 

- FY2022: TWD 110B 

- FY2023: TWD 110B 

- FY2024: TWD 103B 

- FY2025: TWD 101B 

### Gross margin · FY2025

gross margin 36.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 28.4% 

- FY2017: 28.8% 

- FY2018: 31.0% 

- FY2019: 32.0% 

- FY2020: 35.0% 

- FY2021: 49.8% 

- FY2022: 46.3% 

- FY2023: 41.8% 

- FY2024: 40.3% 

- FY2025: 36.4% 

## Owner memo

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

### How it makes money

Operates in semiconductors; annual sales are TWD 100.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2025: revenue 100660000000; grossProfit 36679299000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 3034.TW: Novatek Microelectronics Corp., a fabless chip design company, designs, develops and sells a range of display driver integrated circuits (IC) and system-on-a-chip (SoC) solutions in Taiwan, Asia, and internationally. The company offers display driver ICs for LCD displays, televisions (TVs), notebook computers, desktop monitors, cameras, tablets, PCs, automotive displays, smartphones, and wearable products. The company also provides SoC solutions, including timing controllers, LCD monitors, TVs, power management, and digital image controllers, as well as CMOS image sensors. In addition, it is involved in the sale, development, testing, and related consulting services for IC system application software. The company was incorporated in 1997 and is headquartered in Hsinchu City, Taiwan.

### Why customers stay

Margins ranged from 36.4% to 41.8% during 2023–25; it earns 71% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2023: grossProfit / revenue = 41.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2024: grossProfit / revenue = 40.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2025: grossProfit / revenue = 36.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); 10-year return on capital observations [[2016,0.49649928998225146],[2017,0.4539480373262178],[2018,0.6205187153056411],[2019,0.596481788038046],[2020,0.7792757830276411],[2021,5.596884525085186],[2022,2.290233310232544],[2023,1.896013057557171],[2024,1.0658534150331904],[2025,0.6414907214152562]]; median 0.7103832522214486. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2016: growth capex 0; upkeep 527863000; owner earnings 4912172000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2017: growth capex 0; upkeep 341389000; owner earnings 5227389000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2018: growth capex 309557343.48979354; upkeep 951181656.5102065; owner earnings 6033585343.489794. Growth capex / owner earnings = 0.05130570396651541.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2019: growth capex 452302679.60550356; upkeep 1450141320.3944964; owner earnings 7311719879.605503. Growth capex / owner earnings = 0.061859957308690976.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2020: growth capex 880448125.5708795; upkeep 2756669874.4291205; owner earnings 10007931325.570879. Growth capex / owner earnings = 0.0879750366912771.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2021: growth capex 284785000; upkeep 1099667000; owner earnings 38816059600. Growth capex / owner earnings = 0.007336782840265425.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2022: growth capex 0; upkeep 1158756000; owner earnings 28001827600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2023: growth capex 0; upkeep 1163398000; owner earnings 23419097200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2024: growth capex 0; upkeep 1557247000; owner earnings 20007725200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); FY2025: growth capex 0; upkeep 1211393000; owner earnings 16350648800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); Dividend observations: [[2016,5476603000],[2017,4259580000],[2018,4320432000],[2019,5354901000],[2020,6389371000],[2021,9492779000],[2022,31338341000],[2023,22514924000],[2024,19472367000],[2025,17038321000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 6.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 3034.TW SharesStats.PercentInsiders = 6.308999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 2.2% yearly over ten years; actual growth was 11.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:47.764Z); Ten-year compound average after fade. Initial solved rate 0.019232961456246013. Price 565; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 9.415886802478237 → FY2025 26.896584351579516. Closing-price date 2026-10-15.

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

- 2016-10: TWD 118.50 per share

- 2016-11: TWD 106.00 per share

- 2016-12: TWD 106.50 per share

- 2017-01: TWD 110.50 per share

- 2017-02: TWD 115.00 per share

- 2017-03: TWD 117.50 per share

- 2017-04: TWD 116.00 per share

- 2017-05: TWD 119.50 per share

- 2017-06: TWD 123.00 per share

- 2017-07: TWD 115.00 per share

- 2017-08: TWD 117.50 per share

- 2017-09: TWD 114.50 per share

- 2017-10: TWD 111.50 per share

- 2017-11: TWD 114.50 per share

- 2017-12: TWD 113.50 per share

- 2018-01: TWD 122.50 per share

- 2018-02: TWD 126.50 per share

- 2018-03: TWD 132.50 per share

- 2018-04: TWD 125.00 per share

- 2018-05: TWD 135.50 per share

- 2018-06: TWD 137.50 per share

- 2018-07: TWD 148.00 per share

- 2018-08: TWD 150.50 per share

- 2018-09: TWD 151.00 per share

- 2018-10: TWD 136.50 per share

- 2018-11: TWD 130.00 per share

- 2018-12: TWD 142.00 per share

- 2019-01: TWD 158.00 per share

- 2019-02: TWD 171.00 per share

- 2019-03: TWD 198.00 per share

- 2019-04: TWD 201.50 per share

- 2019-05: TWD 167.50 per share

- 2019-06: TWD 173.00 per share

- 2019-07: TWD 166.00 per share

- 2019-08: TWD 186.00 per share

- 2019-09: TWD 178.00 per share

- 2019-10: TWD 196.00 per share

- 2019-11: TWD 223.50 per share

- 2019-12: TWD 219.00 per share

- 2020-01: TWD 218.00 per share

- 2020-02: TWD 195.50 per share

- 2020-03: TWD 172.00 per share

- 2020-04: TWD 186.50 per share

- 2020-05: TWD 205.00 per share

- 2020-06: TWD 228.00 per share

- 2020-07: TWD 290.00 per share

- 2020-08: TWD 240.00 per share

- 2020-09: TWD 265.50 per share

- 2020-10: TWD 267.00 per share

- 2020-11: TWD 299.00 per share

- 2020-12: TWD 369.00 per share

- 2021-01: TWD 394.00 per share

- 2021-02: TWD 474.00 per share

- 2021-03: TWD 575.00 per share

- 2021-04: TWD 624.00 per share

- 2021-05: TWD 534.00 per share

- 2021-06: TWD 499.00 per share

- 2021-07: TWD 511.00 per share

- 2021-08: TWD 449.00 per share

- 2021-09: TWD 410.00 per share

- 2021-10: TWD 415.50 per share

- 2021-11: TWD 465.50 per share

- 2021-12: TWD 539.00 per share

- 2022-01: TWD 471.00 per share

- 2022-02: TWD 456.50 per share

- 2022-03: TWD 426.50 per share

- 2022-04: TWD 398.50 per share

- 2022-05: TWD 406.00 per share

- 2022-06: TWD 302.00 per share

- 2022-07: TWD 265.00 per share

- 2022-08: TWD 263.50 per share

- 2022-09: TWD 219.00 per share

- 2022-10: TWD 241.00 per share

- 2022-11: TWD 298.50 per share

- 2022-12: TWD 315.50 per share

- 2023-01: TWD 355.00 per share

- 2023-02: TWD 407.50 per share

- 2023-03: TWD 431.50 per share

- 2023-04: TWD 418.50 per share

- 2023-05: TWD 425.50 per share

- 2023-06: TWD 426.50 per share

- 2023-07: TWD 424.00 per share

- 2023-08: TWD 399.50 per share

- 2023-09: TWD 423.00 per share

- 2023-10: TWD 454.50 per share

- 2023-11: TWD 511.00 per share

- 2023-12: TWD 517.00 per share

- 2024-01: TWD 511.00 per share

- 2024-02: TWD 601.00 per share

- 2024-03: TWD 599.00 per share

- 2024-04: TWD 618.00 per share

- 2024-05: TWD 593.00 per share

- 2024-06: TWD 606.00 per share

- 2024-07: TWD 523.00 per share

- 2024-08: TWD 540.00 per share

- 2024-09: TWD 518.00 per share

- 2024-10: TWD 503.00 per share

- 2024-11: TWD 484.00 per share

- 2024-12: TWD 502.00 per share

- 2025-01: TWD 524.00 per share

- 2025-02: TWD 545.00 per share

- 2025-03: TWD 545.00 per share

- 2025-04: TWD 519.00 per share

- 2025-05: TWD 516.00 per share

- 2025-06: TWD 545.00 per share

- 2025-07: TWD 475.00 per share

- 2025-08: TWD 435.00 per share

- 2025-09: TWD 426.50 per share

- 2025-10: TWD 393.00 per share

- 2025-11: TWD 389.50 per share

- 2025-12: TWD 374.00 per share

- 2026-01: TWD 375.00 per share

- 2026-02: TWD 393.00 per share

- 2026-03: TWD 379.50 per share

- 2026-04: TWD 409.00 per share

- 2026-05: TWD 477.00 per share

- 2026-06: TWD 535.00 per share

- 2026-07: TWD 519.00 per share

- 2026-08: TWD 540.00 per share

- 2026-09: TWD 546.00 per share

- 2026-10: TWD 546.00 per share

## Annual estimated value (TWD per share)

- FY2016: low TWD 125.87 per share, central TWD 138.98 per share, high TWD 156.42 per share

- FY2017: low TWD 123.26 per share, central TWD 136.37 per share, high TWD 153.83 per share

- FY2018: low TWD 154.03 per share, central TWD 181.46 per share, high TWD 206.45 per share

- FY2019: low TWD 171.89 per share, central TWD 205.49 per share, high TWD 235.31 per share

- FY2020: low TWD 226.17 per share, central TWD 286.30 per share, high TWD 329.16 per share

- FY2021: low TWD 440.50 per share, central TWD 587.74 per share, high TWD 673.47 per share

- FY2022: low TWD 388.48 per share, central TWD 520.25 per share, high TWD 596.97 per share

- FY2023: low TWD 607.51 per share, central TWD 831.49 per share, high TWD 961.91 per share

- FY2024: low TWD 468.11 per share, central TWD 522.02 per share, high TWD 593.78 per share

- FY2025: low TWD 450.30 per share, central TWD 503.22 per share, high TWD 573.67 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.

## Reported holder observations