# Pegatron (4938.TW)

Canonical: https://gigainvestors.com/s/4938.TW

Analysis as of: 2026-10-16T07:36:19.273Z. Financial observations: FY2008–FY2025.

Listing currency: TWD. Reporting currency: TWD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: TWD 98.10 per share; close as of 2026-10-15.

Estimated value: low TWD 66.95 per share, central TWD 71.59 per share, high TWD 77.78 per share. Buy at or below the central value TWD 71.59 per share. Valuation as of 2026-10-16T07:36:19.273Z; scenarios are not confidence intervals.

Expected annual return: 7.1% at the stated quote. About 7.1% 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

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.36×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.03×

- FY2017: 0.02×

- FY2018: 0.01×

- FY2019: 0.01×

- FY2020: 0.01×

- FY2021: 0.01×

- FY2022: 0.02×

- FY2023: 0.01×

- FY2024: 0.01×

- FY2025: 0.01×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.3%

- ROIC, second-lowest year: 5.8%

- Typical minus recent gross margin: -0.0 pp

- Typical gross margin (annual median): 3.8%

- Recent gross margin (lower of latest and 3-year median): 3.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 5.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 35.5%

- FY2017: 15.8%

- FY2018: 5.8%

- FY2019: 12.1%

- FY2020: 11.0%

- FY2021: 9.6%

- FY2022: 9.0%

- FY2023: 6.0%

- FY2024: 6.3%

- FY2025: 5.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.52×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: TWD 43B

- Net income, five-year total: TWD 83B

- Return on incremental invested capital: -73.6%

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

- Working capital / revenue, change between three-year averages: -2.0 pp

- Working capital / revenue, final three-year average: 5.9%

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

- FY2021: 0.13×

- FY2022: 0.45×

- FY2023: 0.64×

- FY2024: 0.89×

- FY2025: 0.58×

### management: fail

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

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 15.8% vs 6.0%

- Per-share earnings: 7.38 to 5.83 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.6%

- Ordinary dilution, 5-year annual growth: 4.8%

- Market cap gain: TWD 29B

- Cumulative retained earnings: TWD 29B

- Diluted shares, 10-year annual growth: 2.6%

- Diluted shares, 5-year annual growth: 4.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -2.9%

- Per-share value change: TWD -1.55

- Per-share value, starting three-year median: TWD 7.38

- Per-share value, ending three-year median: TWD 5.83

- Buybacks concentrated in cheaper years (correlation): -0.20

- Average buyback yield: 0.1%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: TWD 339M

- Cumulative net income, 10 years: TWD 167B

- ROIC, first three-year median: 15.8%

- ROIC, last three-year median: 6.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: TWD 7.38

- FY2017: TWD 5.56

- FY2018: TWD 4.19

- FY2019: TWD 7.28

- FY2020: TWD 7.59

- FY2021: TWD 7.70

- FY2022: TWD 5.57

- FY2023: TWD 5.83

- FY2024: TWD 6.25

- FY2025: TWD 4.29

### accounting: pass

- Sloan accruals: -0.8%

- Receivables to sales index (DSRI): 0.87×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.36×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -11.8%

- FY2017: -0.8%

- FY2018: 5.9%

- FY2019: -10.2%

- FY2020: 7.3%

- FY2021: -6.4%

- FY2022: -0.6%

- FY2023: -12.9%

- FY2024: -5.8%

- FY2025: -0.8%

## Holders

## Price story

Price needs cash profits to grow 7.5% a year for ten years · "Nvidia Powers Big Gains For Quanta, Pegatron As AI Demand Explodes" (finance.yahoo.com, May 2025) · sales -0.7%

Story as of 2026-10-16T10:00:07.207Z; price observation 2026-10-15.

Price needs cash profits to grow 7.5% a year for ten years

- 2025-04-28: Market Chatter: Apple, Dell Supplier Pegatron Warns Trump Tariffs Could Cause US Shortages ([finance.yahoo.com](https://finance.yahoo.com/news/market-chatter-apple-dell-supplier-124250901.html))

- 2025-05-22: Nvidia Powers Big Gains For Quanta, Pegatron As AI Demand Explodes ([finance.yahoo.com](https://finance.yahoo.com/news/nvidia-powers-big-gains-quanta-190011721.html))

### Sales · FY2024–2025

sales -0.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: TWD 1.16T 

- FY2017: TWD 1.19T 

- FY2018: TWD 1.34T 

- FY2019: TWD 1.37T 

- FY2020: TWD 1.40T 

- FY2021: TWD 1.26T 

- FY2022: TWD 1.32T 

- FY2023: TWD 1.26T 

- FY2024: TWD 1.13T 

- FY2025: TWD 1.12T 

### Gross margin · FY2025

gross margin 3.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 5.4% 

- FY2017: 3.9% 

- FY2018: 3.0% 

- FY2019: 3.3% 

- FY2020: 3.5% 

- FY2021: 3.7% 

- FY2022: 4.3% 

- FY2023: 3.7% 

- FY2024: 4.1% 

- FY2025: 3.8% 

## Owner memo

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

### How it makes money

Operates in computer hardware; annual sales are TWD 1.1 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2025: revenue 1117160381000; grossProfit 42501260000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 4938.TW: Pegatron Corporation, together with its subsidiaries, designs, develops, manufactures, and sells computer, communication, and consumer electronic products in Europe, the United States, Taiwan, China, Japan, and internationally. The company offers notebooks, desktops, PCs, motherboards, rugged computers, and servers; tablets and game consoles; and smartphones, cable modems, set-top boxes, and network switches. It also provides automotive products; and smart electronics, including Internet of Things products, wearable devices, robots, virtual reality, and augmented reality products. In addition, the company offers after-sales services. Pegatron Corporation was incorporated in 2007 and is headquartered in Taipei, Taiwan.

### Why customers stay

Margins ranged from 3.7% to 4.1% during 2023–25; it earns 9.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2023: grossProfit / revenue = 3.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2024: grossProfit / revenue = 4.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2025: grossProfit / revenue = 3.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); 10-year return on capital observations [[2016,0.35468473397991945],[2017,0.1581996373607435],[2018,0.05762818061847688],[2019,0.12081449126152727],[2020,0.10996848679627468],[2021,0.09599079600422801],[2022,0.08960825094353131],[2023,0.059634860086585945],[2024,0.06321318849454449],[2025,0.05343338019398956]]; median 0.09279952347387965. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 4% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); Gross margin observations: [[2021,0.0371032628900902],[2022,0.043329844074544606],[2023,0.03668600191577643]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2016: growth capex 0; upkeep 16995693000; owner earnings 15247939000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2017: growth capex 2389689895.0719185; upkeep 25475026104.92808; owner earnings 2317116895.0719185. Growth capex / owner earnings = 1.0313203879158404.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2018: growth capex 8998213000; upkeep 16476073000; owner earnings 11114866000. Growth capex / owner earnings = 0.8095655854060678.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2019: growth capex 0; upkeep 11547664000; owner earnings 25836476800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2020: growth capex 1219138000; upkeep 18320715000; owner earnings 19689259800. Growth capex / owner earnings = 0.061918935114056446.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2021: growth capex 0; upkeep 31009736000; owner earnings 2571929000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2022: growth capex 3822289967.655369; upkeep 22343751032.34463; owner earnings 6848077767.655369. Growth capex / owner earnings = 0.5581551637320318.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2023: growth capex 0; upkeep 21045876000; owner earnings 10022496530.541561. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2024: growth capex 0; upkeep 17302845000; owner earnings 15020461635.13306. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); FY2025: growth capex 0; upkeep 21891450000; owner earnings 8413300703.725601. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); Dividend observations: [[2016,15172473000],[2017,14431721000],[2018,11570817000],[2019,10061913000],[2020,12553366000],[2021,13007325000],[2022,15720440000],[2023,13487770000],[2024,11969361000],[2025,13454899000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 26.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 4938.TW SharesStats.PercentInsiders = 26.36 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.5% yearly over ten years; actual decline was 12.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:19.273Z); Ten-year compound average after fade. Initial solved rate 0.094476758801782. Price 98.1; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 9.189225621501985 → FY2025 2.5040710769220884. Closing-price date 2026-10-15.

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

- 2016-10: TWD 85.00 per share

- 2016-11: TWD 75.90 per share

- 2016-12: TWD 77.00 per share

- 2017-01: TWD 75.10 per share

- 2017-02: TWD 80.70 per share

- 2017-03: TWD 89.80 per share

- 2017-04: TWD 88.90 per share

- 2017-05: TWD 92.80 per share

- 2017-06: TWD 95.30 per share

- 2017-07: TWD 98.60 per share

- 2017-08: TWD 95.00 per share

- 2017-09: TWD 78.70 per share

- 2017-10: TWD 78.00 per share

- 2017-11: TWD 68.30 per share

- 2017-12: TWD 72.00 per share

- 2018-01: TWD 79.00 per share

- 2018-02: TWD 75.00 per share

- 2018-03: TWD 73.20 per share

- 2018-04: TWD 69.50 per share

- 2018-05: TWD 63.30 per share

- 2018-06: TWD 62.70 per share

- 2018-07: TWD 68.10 per share

- 2018-08: TWD 66.20 per share

- 2018-09: TWD 61.10 per share

- 2018-10: TWD 56.30 per share

- 2018-11: TWD 52.30 per share

- 2018-12: TWD 51.40 per share

- 2019-01: TWD 51.80 per share

- 2019-02: TWD 52.80 per share

- 2019-03: TWD 53.30 per share

- 2019-04: TWD 58.30 per share

- 2019-05: TWD 51.50 per share

- 2019-06: TWD 53.70 per share

- 2019-07: TWD 50.90 per share

- 2019-08: TWD 52.40 per share

- 2019-09: TWD 54.00 per share

- 2019-10: TWD 59.30 per share

- 2019-11: TWD 68.00 per share

- 2019-12: TWD 68.40 per share

- 2020-01: TWD 63.60 per share

- 2020-02: TWD 62.70 per share

- 2020-03: TWD 58.00 per share

- 2020-04: TWD 66.10 per share

- 2020-05: TWD 64.50 per share

- 2020-06: TWD 64.00 per share

- 2020-07: TWD 61.70 per share

- 2020-08: TWD 62.50 per share

- 2020-09: TWD 63.80 per share

- 2020-10: TWD 61.50 per share

- 2020-11: TWD 65.30 per share

- 2020-12: TWD 67.30 per share

- 2021-01: TWD 78.40 per share

- 2021-02: TWD 74.60 per share

- 2021-03: TWD 74.10 per share

- 2021-04: TWD 73.60 per share

- 2021-05: TWD 73.50 per share

- 2021-06: TWD 68.80 per share

- 2021-07: TWD 67.30 per share

- 2021-08: TWD 64.80 per share

- 2021-09: TWD 67.00 per share

- 2021-10: TWD 68.00 per share

- 2021-11: TWD 66.60 per share

- 2021-12: TWD 69.10 per share

- 2022-01: TWD 69.30 per share

- 2022-02: TWD 69.10 per share

- 2022-03: TWD 72.40 per share

- 2022-04: TWD 70.30 per share

- 2022-05: TWD 69.60 per share

- 2022-06: TWD 57.00 per share

- 2022-07: TWD 62.20 per share

- 2022-08: TWD 63.60 per share

- 2022-09: TWD 58.50 per share

- 2022-10: TWD 59.00 per share

- 2022-11: TWD 62.00 per share

- 2022-12: TWD 63.50 per share

- 2023-01: TWD 64.50 per share

- 2023-02: TWD 68.00 per share

- 2023-03: TWD 69.70 per share

- 2023-04: TWD 70.00 per share

- 2023-05: TWD 75.30 per share

- 2023-06: TWD 74.80 per share

- 2023-07: TWD 76.40 per share

- 2023-08: TWD 78.00 per share

- 2023-09: TWD 76.60 per share

- 2023-10: TWD 75.40 per share

- 2023-11: TWD 81.20 per share

- 2023-12: TWD 87.30 per share

- 2024-01: TWD 82.70 per share

- 2024-02: TWD 85.50 per share

- 2024-03: TWD 100.50 per share

- 2024-04: TWD 97.70 per share

- 2024-05: TWD 106.00 per share

- 2024-06: TWD 104.50 per share

- 2024-07: TWD 100.50 per share

- 2024-08: TWD 102.50 per share

- 2024-09: TWD 103.00 per share

- 2024-10: TWD 99.00 per share

- 2024-11: TWD 94.30 per share

- 2024-12: TWD 91.90 per share

- 2025-01: TWD 96.70 per share

- 2025-02: TWD 95.00 per share

- 2025-03: TWD 83.90 per share

- 2025-04: TWD 80.80 per share

- 2025-05: TWD 83.90 per share

- 2025-06: TWD 76.80 per share

- 2025-07: TWD 80.00 per share

- 2025-08: TWD 70.20 per share

- 2025-09: TWD 70.80 per share

- 2025-10: TWD 74.20 per share

- 2025-11: TWD 72.10 per share

- 2025-12: TWD 68.60 per share

- 2026-01: TWD 69.70 per share

- 2026-02: TWD 73.50 per share

- 2026-03: TWD 76.20 per share

- 2026-04: TWD 82.30 per share

- 2026-05: TWD 88.50 per share

- 2026-06: TWD 83.80 per share

- 2026-07: TWD 84.40 per share

- 2026-08: TWD 91.10 per share

- 2026-09: TWD 89.80 per share

- 2026-10: TWD 102.50 per share

## Annual estimated value (TWD per share)

- FY2016: low TWD 98.24 per share, central TWD 107.01 per share, high TWD 118.68 per share

- FY2017: low TWD 98.35 per share, central TWD 107.32 per share, high TWD 119.25 per share

- FY2018: low TWD 107.27 per share, central TWD 121.64 per share, high TWD 136.45 per share

- FY2019: low TWD 127.91 per share, central TWD 145.64 per share, high TWD 161.75 per share

- FY2020: low TWD 144.42 per share, central TWD 171.87 per share, high TWD 191.34 per share

- FY2021: low TWD 90.77 per share, central TWD 96.69 per share, high TWD 104.55 per share

- FY2022: low TWD 69.00 per share, central TWD 75.08 per share, high TWD 83.18 per share

- FY2023: low TWD 69.07 per share, central TWD 74.68 per share, high TWD 82.14 per share

- FY2024: low TWD 73.00 per share, central TWD 78.01 per share, high TWD 84.67 per share

- FY2025: low TWD 51.59 per share, central TWD 55.36 per share, high TWD 60.38 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.