ChipMOS TECHNOLOGIES INC Sponsored ADR Stock price
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $2.82b | Revenue (TTM) = $844.26m
Market Cap = $2.82b | Estimated Revenue = $980.47m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $2.93b | Revenue (TTM) = $844.26m
Enterprise Value = $2.93b | Forward Revenue = $980.47m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
ChipMOS TECHNOLOGIES INC Sponsored ADR Stock Analysis
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ChipMOS TECHNOLOGIES INC Sponsored ADR Events
Past Events
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Q2 2026 Earnings Call
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Q4 2025 Earnings Call
8 months ago
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ChipMOS TECHNOLOGIES INC Sponsored ADR — Q2 2026 Earnings Call
1. Management Discussion
Greetings, and welcome to the ChipMOS 2026 Results Semiannual Conference Call. [Operator Instructions] I would now like to turn the conference over to Dr. G.S. Shen of ChipMOS Technology Strategy and Investor Relations team to introduce the management team of the company in conference. Dr. Shen, you may begin.
Thank you, operator. Welcome, everyone, to ChipMOS 2026 Results Semiannual Conference Call. Joining us today from the company are Mr. S.J. Cheng, Chairman and President; and Ms. Silvia Su, Vice President of Finance and Accounting Management Center. We are also joined on the call today by Mr. Jesse Huang, Spokesperson and Senior Vice President of Strategy and Investor Relations.
S.J. will chair the meeting and review business highlights from the second quarter 2026 and provide more color on the operating environment. After Silvia's review of the company's key financial results, S.J. will provide our current business outlook. All company executives will then participate in an open Q&A session. Please note, we have posted a presentation on the MOPS and also on the ChipMOS' website, www.chipmos.com, to accompany today's conference call.
Before we begin the prepared comments, we remind you to review our forward-looking statements disclaimer, which is noted as the safe harbor notice on the second page of today's presentation and in the results press release we issued. As a reminder, today's conference call is being recorded, and a replay will be made available later today on the company's website.
At this time, I'd like to now turn the call over to our company's Chairman and President, Mr. S.J. Cheng. Please go ahead, sir.
Thank you, G.S. We appreciate everyone joining our call today. We delivered a strong start to 2026 with a real earnings inflection. Q2 revenue reached its highest level since 2014 as demand continues to exceed capacity. Better pricing, product mix and utilization are now translating demand strength into meaningful operating leverage. This also reflects our continued execution and sustained momentum across our business. Looking ahead, our customer visibility remains strong. Our investments positioned us with the right capacity and in the right markets. Importantly, AI-driven demand continues to outpace available supply. We are well positioned to build on this performance through the balance of the year and focused on building value for shareholders.
In terms of highlights, we achieved a record quarterly high revenue since 2014 with Q2 revenue up over 6.5% compared to Q1 and up 28.7% on a year-over-year basis. Q2 gross margin increased 420 basis points quarter-over-quarter to 18%. This strength was driven by favorable product mix, pricing and utilization. Q2 net earnings were TWD 1.28, which is a new record since Q3 2022, and accumulated net earnings for first half of 2026 were TWD 2.0. 2Q26 net earnings of USD 0.80 per basic ADS compared to 2Q25 net loss of USD 0.47 per basic ADS.
In terms of the details, our overall utilization rate was 72% in Q2. The assembly UT was up to 78% and the average test utilization was 74% in Q2. Regarding DDIC was 69% and bumping was 65%. Regarding our manufacturing business, assembly represented just over 31.8% of Q2 revenue. Mixed signal and memory testing represented about 25.4% and wafer bumping represented about 23.7% of Q2 revenue. On a product basis, DDIC represented just 18.1% of total revenue in Q2, with gold bumping representing about 21% of Q2 revenue. Revenue from DRAM and SRAM together represented over 21.5% of Q2 revenue. Our mixed signal products represented just under 9.8% of Q2 revenue.
As additional color, our memory products represented 51% of Q2 revenue. Memory product revenue increased approximately 6.7% compared to Q1 and increased more than 46% on a year-over-year basis. DRAM represented about 20.7% of Q2 revenue and increased about 1.3% compared to Q1. This was up more than 70% on a year-over-year basis. Niche DRAM increased 21.8% compared to Q1. Flash revenue represented about 29.5% of Q2 revenue, which was up about 9.9% compared to Q1. Flash revenue was up more than 32% on a year-over-year basis. NAND Flash represented about 34.6% of our Q2 Flash revenue. This is up 6.3% compared to Q1 and up 15.9% on a year-over-year basis. NOR Flash increased 15.8% compared to Q1 and increased over 43% on a year-over-year basis.
To reflect the material cost increase in Q2, we selectively raised the memory OSAT price. Our conversations with customers have been positive. We are a long-term partner and build long-term strategic relationships. We are not interested in trying to take advantage of customers when they need our support even more.
Moving on to Driver IC and Gold Bump revenue. We benefited from some rush orders and a favorable product mix for auto panel and OLED, which offset some industry-wide pockets of soft end market demand. This segment represented about 39.2% of Q2 revenue, which was up about 7.1% compared to Q1 and up about 14.1% on a year-over-year basis. Gold Bump revenue was up about 4.9% compared to Q1 and was up over 29% on a year-over-year basis. Our DDIC revenue was up 9.7% compared to Q1. Demand related to auto panels contributed more than 39% of our Q2 DDIC revenue, which increased over 8.2% compared to Q1 and was up about 23% on a year-over-year basis.
For OLED, we saw positive growth led by customers' inventory replenishments. OLED represented just under 21.9% of our Q2 DDIC revenue, and it was up 12.7% compared to Q1. For operation cost relief of DDIC product, the OSAT price hike in Q2. On an end market basis, total revenue from automotive and industrial represented just under 28.9% of Q2 revenue. This was about 14.1% higher than Q1, was up over 45% on a year-over-year basis. Smartphone revenue represented about 29.9% of Q2 revenue and was up about 2.8% compared to Q1. TV panel demand represented just over 12.6% of Q2 revenue, which was up 7.6% compared to Q1. Consumer represented just over 22.2% of Q2 revenue, which was up about 12.2% compared to Q1. Computing represented 6.4% of Q2 revenue, which represents a decrease of 23.7% compared to Q1.
Now let me turn the call to Ms. Silvia Su to review the second quarter 2026 financial results. Silvia, please go ahead.
Thank you, S.J. All dollar amounts cited in our presentation are in NT dollars. The following numbers are based on the exchange rates of TWD 31.85 against USD 1 as of June 30, 2026. All the figures were prepared in accordance with Taiwan International Financial Reporting Standards. Referencing presentation, Page 12, consolidated operating results summary. For the second quarter of 2026, total revenue was TWD 7,383 million. Net profit attributable to the company was TWD 892 million in Q2. Net earnings for the second quarter of 2026 were TWD 1.28 per basic common share or USD 0.80 per basic ADS. Return on equity in Q2 was 14.4%.
Referencing presentation, Page 13, consolidated statements of comprehensive income. Compared to Q1 2026, total Q2 2026 revenue increased 6.5% compared to Q1 2026. Q2 2026 gross profit was TWD 1,326 million, with gross margin at 18.0% compared to 13.8% in Q1 2026. This represents an increase of 4.2 ppts. Our operating expenses in Q2 2026 were TWD 487 million or 6.6% of total revenue, which increased 7.7% compared to Q1 2026. Operating profit for Q2 2026 was TWD 948 million, with operating profit margin at 12.8%, which is about a 5.3 ppts increase compared to Q1 2026. Net nonoperating income in Q2 2026 was TWD 79 million, which increased 0.5% compared to Q1 2026.
Profit attributable to the company in Q2 2026 increased 76.6% compared to Q1 2026. The difference is mainly due to an increase of operating profit of TWD 428 million and partially offset by the increase of income tax expense of TWD 42 million. Basic weighted average outstanding shares were 700 million shares. Compared to Q2 2025, total revenue for Q2 2026 increased 28.7% compared to Q2 2025. Gross margin at 18.0% increased 11.4 ppts compared to Q2 2025. Operating expenses increased 14.7% compared to Q2 2025. Operating profit margin at 12.8% increased 12.4 ppts compared to Q2 2025.
Net nonoperating income in Q2 2026 was TWD 79 million, compared to net nonoperating expense in Q2 2025 was TWD 682 million. The difference is mainly due to the decrease of foreign exchange loss of TWD 685 million and the positive impact on valuation of financial assets at fair value through profit or loss of TWD 80 million, from the loss on valuation of financial assets at fair value through profit or loss of TWD 2 million in Q2 2025 to gain on valuation of financial assets at fair value through profit or loss of TWD 78 million in Q2 2026.
Profit attributable to the company in Q2 2026 was TWD 892 million compared to loss attributable to the company in Q2 2025 was TWD 533 million. The difference is mainly due to an increase of operating profit of TWD 927 million, net nonoperating income of TWD 761 million, which was partially offset by the income tax change of TWD 263 million from the income tax benefit of TWD 128 million in Q2 2025 to income tax expense of TWD 135 million in Q2 2026.
Referencing presentation, Page 14, consolidated statements of financial position and key indices. Total assets at the end of Q2 2026 were TWD 46,964 million. Total liabilities at the end of Q2 2026 were TWD 22,114 million. Total equity at the end of Q2 2026 was TWD 24,850 million. Accounts receivable turnover days in Q2 2026 were 85 days. Inventory turnover days was 70 days in Q2 2026.
Referencing presentation, Page 15, consolidated statements of cash flows. As of June 30, 2026, our balance of cash and cash equivalents was TWD 12,552 million, which represents a decrease of TWD 2,307 million compared to the beginning of the year. Net free cash inflow for the first half of 2026 was TWD 736 million compared to TWD 1,667 million for the same period in 2025. The difference is mainly due to the TWD 1,757 million increase of CapEx and the change in income tax from a benefit of TWD 106 million in the first half of 2025 to an expense of TWD 229 million in the first half of 2026. This also reflects the TWD 125 million decrease of depreciation expenses, which was partially offset by the increase of operating profit of TWD 1,331 million.
Free cash flow was calculated by adding depreciation, amortization, interest income together with operating profit, and then subtracting CapEx, interest expense, income tax expense and dividend from the sum.
Referencing presentation, Page 16, capital expenditures and depreciation. We invested TWD 2,380 million in CapEx in Q2. The breakdown of CapEx in Q2 was 12.1% for bumping, 14.3% for LCD driver, 30.5% for assembly and 43.1% for testing. Depreciation expenses were TWD 1,218 million in Q2. As of July 31, 2026, the company's outstanding ADS number was approximately 3.7 million units, which represents around 10.4% of the company's issued common shares.
That concludes the financial review. I will now turn the call back to our Chairman, Mr. S.J. Cheng, for our outlook. Please go ahead, sir.
Thank you, Silvia. Looking ahead, the industry remains in a period of record growth. Our performance in the second half of 2026 is expected to remain strong, led by increased customer visibility, stable pricing and a favorable mix with DRAM leading, and DDIC rush orders.
Adding to our confidence, solid memory products momentum growth driven by customers' restocking is expected to help improve related UT levels of assembly and test. The momentum for memory is expected to be better than DDIC products. DRAM products will see more significant growth in the third quarter, driven by strong demand for DDR4 and the ramp-up of DDR5 products. While Flash products are affected by some customers' inventory adjustments, their momentum remains steady for the seasonal stocking, though slightly trailing DRAM.
In our DDIC product business, the momentum is expected to further improve in the second half, thanks to seasonal demand for OLED products, automotive panels and rush orders. In logic and mixed signal products, we plan to extend our product portfolio from TV SoC chips into mobile and AI ASIC-related fields to increase our future business growth momentum. Several mobile-related projects are ongoing with new high-end testing equipment arriving at the end of this year for production. We will expand capacity based on further customer demand and aim to broaden our scope to AI ASIC products to enhance our long-term growth and profitability for the mixed signal line.
To expand our business scope and enhance our growth momentum, we are also integrating and leveraging our wafer bumping, including copper pillar and gold bumping capacity with assembly technologies. This gives us a strong position as we focus on opportunities in the silicon photonics supply chain as a new long-term business growth driver.
The Board approved our increased 2026 CapEx plan today. This includes additional capacity expansion for memory assembly and testing bottleneck stations, continued investments in automation and AI across our operations. This also includes strategic investment to expand testing capacity for developing promising longer-term opportunities in silicon photonics and AI-related ASICs. As always, we are prudent with our CapEx and prioritize investing in high-return customer growth opportunities. Regarding the related capital for the expanded investment, we are monetizing the low-end and lower UT level DDIC assets and applying for the government's Invest Taiwan project for the investment budget subsidy to reduce the cost of capital and support upcoming new product projects.
To meet memory customers' capacity needs starting in 2027 and mixed signal customers' strategic capacity investment and expansion for new product projects, we also recently acquired a new facility in the Tainan Science Park area. We are not only building up memory testing capacity to establish turnkey assembly and testing capabilities in our recently acquired new facility at Tainan site, but also consolidating the clean room space and optimizing logistics efficiency to meet future business growth demand for the next 3 to 5 years.
Furthermore, we continue to optimize our product mix, control operating costs and improve product quality to enhance profitability and maintain our competitive advantage and growth momentum. Operator, that concludes our formal remarks. We can now take questions.
Our first question comes from Jerry Su from UBS.
2. Question Answer
Chairman and President, congratulations on the strong profit performance this quarter. I would first like to ask about the CapEx. You mentioned that the Board of Directors approved an upward adjustment today. How should we estimate the magnitude of this adjustment for the total annual amount? Also, you mentioned introducing logic testing for mobile phones or AI ASIC. What percentage of this year's CapEx will be invested in this segment? Additionally, do you have any preliminary thoughts regarding next year's CapEx?
Regarding this year's CapEx, as I mentioned, the Board adjusted it upward today. While we usually aim to control CapEx relative to annual revenue at about 20%, it will be higher this year, likely exceeding 25% of our revenue. As for the proportion for logic and mixed signal products, it will account for approximately 7% to 10% of our total CapEx for the full year 2026.
I see. Do you have any preliminary thoughts on next year's CapEx?
Next year's CapEx should also remain relatively high because we are investing to support growth. Therefore, it will likely exceed 25% of revenue again. While we hope to control it below 20% in the long term, for both this year and next, it will likely be above 25%.
You mentioned that logic and mixed signal account for about 7% to 10% of CapEx this year. I wonder if that proportion will increase next year as 7% to 10% feels like it only covers a few testing machines. If you are entering this market, the proportion for logic should see a more significant increase next year.
The proportion for next year should indeed be higher than this year's, though we still need to organize the specific weighting for the memory segment. Overall, however, the proportion will be higher.
One more question for the Chairman. You mentioned price adjustments for memory and Driver IC packaging/testing in the second quarter. Is there room for further upward adjustments for these 2 product lines in the second half of the year?
As everyone knows, material costs, including substrates, lead frames and gold, are rising, especially for gold. We will pass these price increases on to our customers. Secondly, for high-end probe cards in the Driver IC segment, the price increases have been quite substantial. We have reached agreements with customers to pass these costs through to maintain our competitive advantage.
And I am not showing any further questions in the queue. I would like to turn the call back over to G.S. Shen.
That concludes our question-and-answer session. Thank you for participating. I'll turn the floor back to Mr. S.J. Cheng for any closing comments.
Thank you, everyone, for joining our conference call. Please e-mail our IR team if you have any more questions. We appreciate your support. Goodbye.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.
ChipMOS TECHNOLOGIES INC Sponsored ADR — Q4 2025 Earnings Call
1. Management Discussion
Greetings, and welcome to the ChipMOS Fourth Quarter and Full Year 2025 Results Conference Call. [Operator Instructions]
I would now like to turn the conference over to Dr. G.S. Shen of ChipMOS Technologies' Strategy and Investor Relations team to introduce the management team of the company in conference. Dr. Shen, you may begin.
Thank you, operator. Welcome, everyone, to ChipMOS Fourth Quarter and Full Year 2025 Results Conference Call.
Joining us today from the company are Mr. S.J. Cheng, Chairman and President; and Ms. Silvia Su, Vice President of Finance and Accounting Management Center. We are also joined on the call today by Mr. Jesse Huang, Spokesperson and Senior Vice President of Strategy and Investor Relations. S.J. will chair the meeting and review business highlights and provide more color on the operating environment. After Silvia's review of the company's key financial results, S.J. will provide our current business outlook. All company executives will then participate in an open Q&A session.
Please note, we have posted a presentation on the MOPS and also on the ChipMOS website, www.chipmos.com, to accompany today's conference call.
Before we begin the prepared comments, we remind you to review our forward-looking statements disclaimer, which is noted as the safe harbor notice on the second page of today's presentation and in the results press release we issued. As a reminder, today's conference call is being recorded, and a replay will be made available later today on the company's website.
At this time, I'd like to now turn the call over to our company's Chairman and President, Mr. S.J. Cheng. Please go ahead, sir.
Thank you, G.S. We appreciate everyone joining our call today. We delivered strong fourth quarter results driven by improving demand for high-value memory solutions, particularly in data center and AI-related applications. This sustained strong demand more than offset continued softness in certain consumer end markets. Both the quarter and full year 2025 results reflect a better mix and ongoing pricing discipline, which supports our revenue momentum and expanding profitability.
We continue to execute from a position of technology and scale leadership while maintaining a highly disciplined approach to capital spending. We are prioritizing critical growth programs and customer commitments while protecting the strength of our balance sheet. Our focus remains clear: deepen strategic customer relationships, gain share in structurally growing markets, expand margins and build durable long-term shareholder value.
In terms of highlights. We achieved a record quarterly high revenue since Q3 2022 with Q4 revenue up over 6% compared to Q3 and up nearly 21% on a year-over-year basis. 2025 annual revenue increased 5.5% compared to 2024. Q4 gross margin increased 190 basis points quarter-over-quarter to 14.3%. This strength was driven by favorable product mix and assembly UT level. Q4 net earnings were TWD 0.72 and with accumulated net earnings for 2025 were TWD 0.70.
In terms of the details, our overall utilization rate was 65% in Q4 with an improvement in memory products led by strong demand in support of AI, computing and data centers. The assembly UT was up to 75% and the average test utilization was 65% in Q4.
Regarding DDIC was 60% and bumping was 53%. We are in a period of unprecedented growth and expect this to continue through 2026 based on visibility we have with our customers. Comments from across the broader semiconductor industry this earnings season show confidence going even further out.
Regarding our manufacturing business, assembly represented just over 31% of Q4 revenue led by strength in our memory products. Mixed signal and memory testing represented about 24% and wafer bumping represented about 22% of Q4 revenue.
On a product basis, DDIC represented just under 21% of total revenue in Q4, with gold bumping representing about 19% of Q4 revenue. Revenue from DRAM and SRAM together represented over 20% of Q4 revenue. Our mixed signal products represented just under 10% of Q4 revenue.
As additional color, our memory products represented just under 50% of Q4 revenue. Memory product revenue increased approximately 8% compared to Q3 and increased more than 55% on a year-over-year basis. Total memory product revenue in 2025 increased 26.6% compared to 2024. We benefited from pricing and volume and our position with leading customers.
DRAM represented about 20% of Q4 revenue and significantly increased about 20% compared to Q3. DRAM revenue in 2025 also significantly increased 24% compared to 2024. Niche DRAM and commodity DRAM increased 11.6% and more than 50% compared to Q3, respectively.
Flash revenue represented about 29% of Q4 revenue, which was slightly up about 1.6% compared to Q3 and was up more than 46% on a year-over-year basis. Flash revenue in 2025 significantly increased over 28% compared to 2024.
NAND Flash represented about 36% of our Q4 flash revenue. This is down 3.8% compared to Q3, but significantly up over 70% on a year-over-year basis. NAND flash revenue in 2025 significantly increased about 38% compared to 2024.
NOR Flash increased 2.3% compared to Q3 and increased over 34% on a year-over-year basis. NOR Flash revenue in 2025 increased about 27% compared to 2024.
Moving on to Driver IC and Gold Bump revenue. We benefited from a favorable product mix for auto panel and OLED, which offset some industry-wide pockets of soft end market demand. We are still in the early stages of an auto recovery, but we are starting to see some encouraging signs. This segment represented about 40% of Q4 revenue, which was up about 2.6% compared to Q3, but down about 5% on a year-over-year basis.
Gold bump revenue was up about 4% compared to Q3 and was up over 19% on a year-over-year basis. Our DDIC revenue was slightly up 1.2% compared to Q3. Demand related to auto panels contributed more than 41% of our Q4 DDIC revenue, which increased over 12% compared to Q3 and was up about 10% on a year-over-year basis.
For OLED, we saw positive growth led by customers' inventory replenishments. OLED represented just under 25% of our Q4 DDIC revenue, and it was up over 8% compared to Q3. On an end market basis, total revenue from automotive and industrial represented just under 27% of Q4 revenue. This was about 13.4% higher than Q3, was up over 27% on a year-over-year basis and increased about 16% in 2025 compared to 2024.
Smartphone revenue represented about 32% of Q4 revenue and was down about 5% compared to Q3. TV panel demand represented just over 12% of Q4 revenue, which was up 7.2% compared to Q3. Consumer represented just over 21% of Q4 revenue, which was up about 8% compared to Q3. Driven by strong customer demand and new products released to production, computing represented 7.5% of Q4 revenue, which represents a significant increase of 26% compared to Q3 and full year growth of over 57% compared to 2024.
Now let me turn the call to Ms. Silvia Su to review the fourth quarter and full year 2025 financial results. Silvia, please go ahead.
Thank you, S.J. All dollar amounts cited in our presentation are in NT dollars. The following numbers are based on the exchange rates of TWD 31.37 against USD 1 as of December 31, 2025. All the figures were prepared in accordance with Taiwan International Financial Reporting Standards.
Referencing presentation, Page 12, consolidated operating results summary. For the fourth quarter of 2025, total revenue was TWD 6,521 million. Net profit attributable to the company was TWD 500 million in Q4. Net earnings for the fourth quarter of 2025 were TWD 0.72 per basic common share or USD 0.46 per basic ADS. Return on equity in Q4 at 8.4%.
Referencing presentation, Page 13, consolidated statements of comprehensive income. Compared to Q3 2025, total Q4 2025 revenue increased 6.1% compared to Q3 2025. Q4 2025 gross profit was TWD 936 million, with gross margin at 14.3% compared to 12.4% in Q3 2025. This represents an increase of 1.9 ppts. Our operating expenses in Q4 2025 were TWD 443 million or 6.8% of total revenue, which increased 7.9% compared to Q3 2025.
Operating profit for Q4 2025 was TWD 636 million, with operating profit margin at 9.7%, which is about a 3.7 ppts increase compared to Q3 2025. Net nonoperating expenses in Q4 2025 was TWD 24 million compared to net nonoperating income in Q3 2025 was TWD 69 million. The difference is mainly due to the increase of share of loss of associates accounted for using equity method of TWD 99 million.
Profit attributable to the company in Q4 2025 increased 41.9% compared to Q3 2025. The difference was mainly due to the increase of operating profit of TWD 266 million and partially offset by the increase of net nonoperating expenses of TWD 93 million and the increase of income tax expense of TWD 26 million.
Basic weighted average outstanding shares were 698 million shares. Compared to Q4 2024, total revenue for Q4 2025 increased 20.8% compared to Q4 2024. Gross margin at 14.3% increased 4.8 ppts compared to Q4 2024. Operating expenses increased 2.6% compared to Q4 2024. Operating profit margin at 9.7% increased 7.5 ppts compared to Q4 2024.
Net nonoperating expenses in Q4 2025 was TWD 24 million compared to net nonoperating income in Q4 2024 was TWD 155 million. The difference is mainly due to the increase of share of loss of associates accounted for using equity method of TWD 110 million, the decrease of foreign exchange gains of TWD 53 million and the increase of interest expense of TWD 11 million.
Profit attributable to the company increased 115.2% compared to Q4 2024. The difference is mainly due to an increased operating profit of TWD 519 million and partially offset by the increase of net nonoperating expenses of TWD 179 million and increase of income tax expense of TWD 73 million.
Referencing presentation, Page 14, consolidated statements of comprehensive income. Compared to last year, total revenue for 2025 was TWD 23,933 million, which increased 5.5% compared to 2024. Gross margin at 10.8% decreased 2.2 ppts compared to 2024. Our operating expenses in 2025 were TWD 1,689 million, which decreased 4.6% compared to 2024.
Operating profit margin in 2025 was 4.8%, a decrease of 0.8 ppts compared to 2024. Net nonoperating expenses in 2025 was TWD 555 million compared to net nonoperating income in 2024 was TWD 373 million. The difference is mainly due to the adverse impact on the foreign exchange of TWD 703 million from the foreign exchange gains of TWD 243 million in 2024 to the foreign exchange losses of TWD 460 million in 2025. The adverse impact on share of associates accounted for using equity method of TWD 146 million from share of profit of associates accounted for using equity method of TWD 3 million in 2024 to share of loss of associates accounted for using equity method of TWD 143 million in 2025 and the gain on disposal of noncurrent assets held for sale of TWD 72 million in 2024.
Net profit in 2025 was TWD 495 million, which decreased 65.1% compared to 2024. The difference due to the increase of net nonoperating expenses of TWD 928 million, the decrease of operating profit of TWD 131 million and partially offset by the decrease of income tax expense of TWD 135 million. Net earnings for the full year 2025 were TWD 0.70 per basic common share compared to TWD 1.95 per basic common share for the full year 2024.
Referencing presentation, Page 15, consolidated statements of financial position and key indices. Total assets at the end of Q4 2025 were TWD 45,352 million. Total liabilities at the end of Q4 2025 were TWD 21,344 million. Total equity at the end of Q4 2025 was TWD 24,008 million. Accounts receivable turnover days in Q4 2025 were 85 days. Inventory turnover days was 54 days in Q4 2025.
Referencing presentation, Page 16, consolidated statements of cash flows. As of December 31, 2025, our balance of cash and cash equivalents was TWD 14,859 million, which represents a decrease of TWD 360 million compared to the beginning of the year.
Net free cash inflow for the full year 2025 was TWD 1,555 million compared to net free cash outflow of TWD 938 million for the full year 2024. The difference was mainly due to a reduction in CapEx of TWD 1,785 million, a cash dividend paid of TWD 436 million and the increase of depreciation expenses of TWD 245 million. We continue to balance our capital allocation strategy by investing in the long-term capacity and revenue generation areas that will drive our success while returning value to shareholders through the distribution of dividends.
Free cash flow was calculated by adding depreciation, amortization, interest income together with operating profit and then subtracting CapEx, interest expense, income tax expense and dividend from the sum.
Referencing presentation, Page 17, capital expenditures and depreciation. We invested TWD 1,711 million in CapEx in Q4 and TWD 3,666 million in CapEx in 2025. The breakdown of CapEx in Q4 was 7.7% for bumping, 16.5% for LCD driver, 20.6% for assembly and 55.2% for testing.
Depreciation expenses were TWD 1,244 million in Q4. Depreciation expenses were TWD 5,101 million in 2025. As of January 31, 2026, the company's outstanding ADS number was approximately 3.5 million units, which represents around 9.9% of the company's outstanding common shares.
That concludes the financial review.
I will now turn the call back to our Chairman, Mr. S.J. Cheng, for our outlook. Please go ahead, sir.
Thank you, Silvia. As you can see, both Q4 and the full year 2025 were very strong for ChipMOS. We do not expect this demand to strength to let up given visibility we have with customers, solid memory momentum and positive comments across the semiconductor industry this earnings season.
Our business momentum is expected to remain stable and results is optimistic compared to 2025. As is typical for our business, Q1 can be a little slower with the fewer working days. We expect normal seasonal patterns with the second half coming in stronger than the first half. In the meantime, we will manage our own capacity and work with customers to ensure they are properly supported. Adding to our confidence, solid memory products momentum growth driven by customers' restocking is expected to help improve related UT levels of assembly and test.
DRAM momentum is also expected to maintain solid driven by customers' strong demand for DDR4 and DDR5 release to production. Flash momentum has slightly slowed down, impacted by customer stock adjustments. Therefore, we expect memory momentum will be better than DDIC in Q1 and coming quarters.
Meanwhile, to reflect the continued rise in material costs, especially gold, we plan to increase memory products OSAT price again since Q1 to offset cost increases and maintain profitability.
In our DDIC product business, the momentum is expected to be remained soft in Q1, which is in line with the broader industry. However, automotive panel and wearable product momentum is relatively stable compared to other DDIC products. In addition, regarding mixed signal products, momentum is expected to increase this year, driven by the benefits of product diversification.
Regarding to 2026 CapEx, except memory product bottleneck capacity expansion and automation, we plan to invest in capacity expansion to meet customers' future demand for new products, projects and increased volumes. In the meantime, we will also continue our cost reductions, quality improvement and operating strength actions to further improve profit and maintain business growth momentum and competition advantage. This is a fundamental practice for us that is ongoing and never done.
We continue to execute from a position of technology and scale leadership while maintaining a highly disciplined approach to capital spending. Importantly, we continue to prioritize returning capital to shareholders as part of our overall shareholder-friendly capital allocation plan. I am pleased to report that pending shareholder approval at our May AGM, we will distribute TWD 1.23 per common share by capital surplus.
As I commented at the start of today's call, we are prioritizing critical growth programs and customer commitments while protecting the strength of our balance sheet. Our focus remains clear: deepen strategic customer relationships, gain share in structurally growing markets, expand margins and build durable long-term shareholder value.
Finally, we would like to announce again we have decided to move to semiannual conference calls from quarterly conference calls with the next call to be held for the first 6 months results of 2026. Financial reporting of operation results per regulation will remain reviewed by our accountant quarterly approved by our Board and then published. Although the timing of our calls is changing, we will remain very accessible to investors and analysts. We plan to continue participating in investment forums and conferences and other various investor and analyst meetings to enhance communication with investors and ensure a more complete understanding of our operating environment and financial results.
Operator, that concludes our formal remarks. We can now take questions.
Operator?
Our first question comes from Jerry Su from UBS.
2. Question Answer
The company mentioned increased memory OSAT prices again in Q1 '26. What percentage will prices increase? Will the price increase be reflected in Q2 '26? And what is the CapEx to sales ratio in 2026 and impact on depreciation?
Price increase are strategic and vary between customers and products. Therefore, it is not appropriate to provide a specific number here. Besides, a couple of customers prefer to consign the key assembly material. Under the current business environment, we would continue to negotiate the cost and price issue with customers.
On the contrary, some smaller customers with smaller lot size could not get the assembly and test priority even with double price, which could adversely impact productivity. As for 2026 CapEx, we still favor adopting the previous Invest Taiwan project budget with lower interest rate.
As for CapEx to sales ratio, it would roughly be between 22%, 27% of 2026 annual revenue. We expect the depreciation in coming quarters will have around a 1%, 3% quarterly increase from our 4Q '25 level. Operator?
The second question comes from Michael Hsu from Yuanta.
Michael Hsu, analyst, Yuanta. Will there be any new customers under this year's CapEx plan for memory, logic and DDIC?
Regarding memory product, we mainly serve current major customers. In order to maintain our productivity and efficiency, we don't provide service for those customers with smaller lot sizes. For the longer term, we continue to develop new customers in logic and mixed signal products segment.
Further, for example, the product application would be from MEMS and TV SoC products to include Mini LED and logic products for smart devices serving high tech and health care. We also invest flip chip assembly capacity in order to meet future edge AI device demand with high-speed/frequency DRAM.
Would you provide the CapEx allocation by product segment?
Memory Test would take around 50% of 2026 CapEx; logic about 10%; DDIC and bumping takes around 25%; and assembly around 20%.
Importantly, some of the CapEx would be protected with 3-year take-or-pay contract. The majority investment in bumping is for the non-DDIC portion, including flip chip and RDL.
And I am not showing any further questions in the queue. I would like to turn the call back over to G.S. Shen.
Thank you. I will read a question from our foreign institutional investors.
The question is about the low-cost bump solution situation. What is different about this from current solutions?
The current bump solution for DDIC is gold bump. It is well known that gold price is much higher than other precious metals, for example, silver, copper, et cetera, and the price keeps rising. Our solution implements silver alloy bump instead of pure gold in the bumping process. The silver alloy bump solution has been qualified both by IC level and panel level reliability tests. Now that performance is qualified, we can provide a very cost-effective bump solution to our customers about 50% to 60% lower who can then get a better competitive cost structure in the DDIC market. Silver alloy bump product is designing in tablet applications and sampling for mobile phones with customers.
That concludes our question-and-answer session. Thank you for participating. I'll turn the floor back to Mr. S.J. Cheng for any closing comments.
Thank you, everyone, for joining our conference call. Please e-mail our IR team if you have any more questions. We appreciate your support. Goodbye. Operator?
Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.
Financial data from ChipMOS TECHNOLOGIES INC Sponsored ADR
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 844 844 |
19%
19%
100%
|
|
| - Direct Costs | 720 720 |
12%
12%
85%
|
|
| Gross Profit | 124 124 |
76%
76%
15%
|
|
| - Selling and Administrative Expenses | 20 20 |
6%
6%
2%
|
|
| - Research and Development Expense | 36 36 |
3%
3%
4%
|
|
| EBITDA | 233 233 |
29%
29%
28%
|
|
| - Depreciation and Amortization | 156 156 |
2%
2%
18%
|
|
| EBIT (Operating Income) EBIT | 77 77 |
265%
265%
9%
|
|
| Net Profit | 70 70 |
1,193%
1,193%
8%
|
|
In millions USD.
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Company Profile
ChipMOS Technologies, Inc. provides total semiconductor testing and packaging solutions to fabless companies, integrated device manufacturers (IDM) and foundries. It operates through the segment Testing, Assembly, Crystal Display and other Flat-Panel Display Driver Semiconductors (LCDD), Bumping, and Others. The company was founded on July 28, 1997 and is headquartered in Hsinchu, Taiwan.
StocksGuide Premium
| Head office | Taiwan |
| CEO | Shih Cheng |
| Employees | 5,688 |
| Founded | 1997 |
| Website | www.chipmos.com |
