MediaTek (2454.TW) Stock Analysis & Winston Score

§Winston Score History

MediaTek is a Taiwanese semiconductor company that designs chips used in smartphones, smart TVs, Wi-Fi routers, and other connected devices. It is one of the world's largest fabless chipmakers, meaning it designs chips but outsources manufacturing to foundries like TSMC. Its biggest customers include major Android smartphone brands such as Samsung, Xiaomi, and Oppo.

MediaTek earns revenue by selling its chip designs and licensing related technology to device makers. The company is headquartered in Hsinchu, Taiwan, and serves customers globally, with particularly strong presence in Asia. Its competitive advantage comes from offering high-performance chips at competitive price points, which has helped it gain significant market share in mid-range and flagship smartphones. Key growth drivers include expanding into automotive chips, AI-enabled processors, and advanced connectivity solutions, though the company faces risks from intense competition with Qualcomm and potential cyclical downturns in consumer electronics demand.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+1.2% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-12.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

NT$148.3B/ year

↑ Rising (+12% vs prior year)

24.9% of revenue

1.7x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

12.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

NT$382.1B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

MediaTek is putting 25% of revenue into R&D and that number is rising. That's 1.7x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.5% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 1.59B (2021) → 1.60B (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

41.8%

Healthy — 41.8% gross margin

Profit after running costs

Operating Margin

15.0%

Healthy — 15.0% operating margin

Return on the money invested

ROCE

19.3%

Strong — 19.3% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+3.5%

Slow sales growth (+3.5% YoY)

Profit growth

EPS YoY

-9.2%

Earnings shrinking (-9.2% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

113%

Turns 113% of profit into real cash

Spare cash per sale

FCF Margin

15.0%

Converts sales into free cash efficiently (15.0%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.10

Conservative — low debt load (0.10)

Covers its interest

Interest Cover

173.27x

Comfortably covers interest (173.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

74.2x

Expensive — P/E 74.2

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+42.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (74.2 → 31.8)

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Dividends

Dividend

Dividend Yield

1.08%

Small dividend — 1.08% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

-47.3%

Dividend cut (-47.3% YoY) — warning sign

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MediaTek

§How the score breaks down

§Winston Score History

Growth Profile

Share count broadly stable

Every number that matters to educated investors.

Quality

Growth

Cash Flow

Stability

Valuation

Dividends