Tai Roun Products Co.,Ltd. (1220) AI Stock Analysis

Tai Roun Products Co.,Ltd.

(TWSE:1220)

Select Model

Rating:40Underperform

Price Target:TWD 10.00▲(1.32% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is driven primarily by weak financial performance, especially declining profitability and negative free cash flow. Bearish technical trends and an exceptionally high P/E ratio provide additional downside pressure, partially offset by the company's low leverage.

Positive Factors

Conservative Balance SheetModest leverage and a substantial equity base provide financial resilience relative to a more highly indebted structure. This supports the company’s ability to continue operating through weaker earnings periods and preserves flexibility for investment, working capital, and capital allocation.

Negative Factors

Sharp Profitability DeteriorationThe latest annual results show a material weakening in earnings quality, with lower revenue accompanied by a severe contraction in net margin. If this reset persists, reduced profit generation could limit reinvestment, weaken returns to shareholders, and make the company more sensitive to further changes in costs, pricing, or product mix.

Tai Roun Products Co.,Ltd. (1220) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.74B
Dividend Yield: 2.03%
Average Volume (3M): 108.19K
Price to Earnings (P/E): 154.7
Beta (1Y): 0.27
Revenue Growth: -5.47%
EPS Growth: -79.97%
Country: TW
Employees: 246
Sector: General
Sector Strength: 55
Industry: Packaged Foods

Tai Roun Products Co.,Ltd. Business Overview & Revenue Model

Company Description

Tai Roun Products Co., Ltd. operates within Taiwan, primarily focusing on the manufacturing and distribution of animal feed. Their extensive product line caters to a diverse range of livestock and aquatic species, including swine, poultry (chickens,...

Tai Roun Products Co.,Ltd. Financial Statement Overview

Summary

Financial performance is weak overall: declining revenue and sharply compressed margins, negative free cash flow, and deteriorating cash generation outweigh the conservatively leveraged balance sheet.

Income Statement

28Negative

Balance Sheet

72Positive

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.28B	3.33B	3.48B	3.29B	3.54B	3.22B
Gross Profit	329.45M	320.53M	557.72M	438.09M	308.99M	467.13M
EBITDA	136.78M	124.39M	387.80M	286.86M	169.30M	319.61M
Net Income	12.16M	13.53M	207.41M	133.27M	45.88M	177.91M
Balance Sheet
Total Assets	3.48B	3.53B	3.48B	3.20B	3.20B	3.29B
Cash, Cash Equivalents and Short-Term Investments	476.83M	424.60M	529.76M	393.38M	235.74M	462.45M
Total Debt	577.78M	507.51M	317.38M	294.87M	330.50M	157.75M
Total Liabilities	991.87M	968.75M	811.77M	661.89M	768.89M	698.08M
Stockholders Equity	2.28B	2.34B	2.45B	2.32B	2.22B	2.36B
Cash Flow
Free Cash Flow	-296.78M	-58.34M	76.04M	346.65M	-215.07M	62.35M
Operating Cash Flow	-194.46M	48.91M	177.60M	394.46M	-103.42M	265.39M
Investing Cash Flow	-70.63M	-147.44M	-94.62M	-52.73M	-94.59M	-199.24M
Financing Cash Flow	235.69M	-9.91M	-10.00M	-161.49M	-63.55M	-117.51M

Tai Roun Products Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1220 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4911	72Outperform	TWD 1.74B	18.66	―	4.66%	-26.73%	-34.96%
TW:6968	66Neutral	TWD 1.92B	14.79	―	3.42%	14.75%	11.14%
TW:1295	59Neutral	TWD 1.58B	10.17	―	7.14%	-5.28%	-27.33%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1220	40Underperform	TWD 1.79B	154.70	―	2.03%	-5.47%	-79.97%

* General Sector Average

Performance Comparison

TW:1220 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1220	Tai Roun Products Co.,Ltd.	9.87	-2.66	-21.20%
TW:1295	Synbio Tech Inc	41.90	-52.13	-55.44%
TW:4911	G&E Herbal Biotechnology Co., Ltd.	25.00	-18.60	-42.66%
TW:6808	3D Global Biotech Inc.	26.10	-19.30	-42.51%
TW:6968	Wonder Pets Enterprises Corp.	38.00	-15.85	-29.43%
TW:7705	Mercuries F&B Co Ltd	28.20	-10.76	-27.61%

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

Tai Roun Products Co.,Ltd. AI Stock Analysis