Universal Cement Corporation (1104) AI Stock Analysis

Universal Cement Corporation

(TWSE:1104)

Select Model

Rating:69Neutral

Price Target:TWD 29.00▲(12.19% Upside)

Action:initiatedcoverage

Date:11/09/26

Universal Cement scores well on financial strength and valuation. Minimal leverage, a heavily equity-funded asset base, five consecutive years of gross margin expansion and consistently positive free cash flow make this a low-risk, income-oriented holding, reinforced by a cheap 10.4x P/E and a 7.1% dividend yield. The main drags are technical: the shares trade below all key moving averages with a negative MACD and subdued momentum readings. Fundamentally, the stock also needs renewed top-line and operating momentum, as revenue has flattened, EBITDA and operating cash flow fell in 2025, returns on equity remain modest, and a sizeable portion of profit stems from non-core investment income. No earnings call or corporate event data was available, so those factors were excluded and their weight redistributed.

Positive Factors

2025 Revenue and Margin ExpansionThe sharp 2025 improvement in revenue and profitability indicates stronger operating performance across the cement and building-materials business. Higher margins can support reinvestment, improve resilience through the construction cycle, and provide a stronger earnings base over the next several quarters.

Negative Factors

Weak Cash Conversion and FCF DeclineThe large 2025 free-cash-flow decline and low operating-cash-flow conversion show that reported earnings are not translating consistently into cash. Working-capital or capital-spending swings could therefore make liquidity and shareholder distributions less predictable over the next several quarters.

Universal Cement Corporation (1104) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 17.85B
Dividend Yield: 7.16%
Average Volume (3M): 706.89K
Price to Earnings (P/E): 10.3
Beta (1Y): 0.21
Revenue Growth: -4.70%
EPS Growth: 7.95%
Country: TW
Employees: 347
Sector: General
Sector Strength: 55
Industry: Construction Materials

Universal Cement Corporation Business Overview & Revenue Model

Company Description

Headquartered in Taipei, Taiwan, Universal Cement Corporation, established in 1959, focuses primarily on the manufacturing and distribution of a variety of construction materials within Taiwan, such as cement, ready-mixed concrete, and gypsum board p...

Universal Cement Corporation Financial Statement Overview

Summary

A very conservative balance sheet anchors the story: debt-to-equity of just 0.15, equity funding about 78% of assets, and book value compounding steadily since 2020. Profitability is respectable, with gross margin expanding for five straight years to 23.2% and net margin recovering to 22.2% in 2025, while free cash flow has stayed positive every year and covered roughly 88% of net income. Offsetting this, revenue has plateaued at about NT$7.9bn, operating earnings (EBITDA) and operating cash flow both declined in 2025, returns on equity are modest at about 7.3%, and a meaningful share of net income comes from non-core investment gains, which reduces earnings predictability.

Income Statement

64Positive

Balance Sheet

81Very Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.58B	7.92B	7.95B	7.80B	7.06B	6.08B
Gross Profit	1.98B	1.84B	1.60B	1.54B	1.37B	1.13B
EBITDA	2.06B	1.45B	2.07B	1.98B	1.78B	1.07B
Net Income	1.85B	1.76B	1.48B	2.11B	2.04B	1.09B
Balance Sheet
Total Assets	31.74B	31.08B	29.63B	28.19B	27.81B	25.10B
Cash, Cash Equivalents and Short-Term Investments	5.25B	5.12B	4.81B	4.25B	3.24B	3.01B
Total Debt	2.87B	3.72B	2.67B	2.70B	3.75B	3.36B
Total Liabilities	6.34B	6.11B	5.17B	5.51B	6.29B	5.71B
Stockholders Equity	24.64B	24.18B	23.66B	21.87B	20.92B	19.23B
Cash Flow
Free Cash Flow	1.51B	1.26B	1.73B	1.35B	686.61M	1.17B
Operating Cash Flow	1.84B	1.43B	1.91B	1.55B	1.01B	1.38B
Investing Cash Flow	-1.06B	-1.11B	-175.27M	1.02B	48.89M	-880.32M
Financing Cash Flow	-949.69M	-174.63M	-1.58B	-1.94B	-569.53M	-504.52M

Universal Cement Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1104 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:9930	69Neutral	TWD 14.27B	13.27	―	6.97%	-2.13%	-14.04%
TW:1104	69Neutral	TWD 17.99B	10.26	―	7.16%	-4.70%	7.95%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:1104 and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	TW:1104	Universal Cement Corporation	25.85	-3.36	-11.49%
	TW:9930	CHC Resources Corporation	57.40	-9.08	-13.65%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Universal Cement Corporation AI Stock Analysis