Universal Incorporation (1325) AI Stock Analysis

Universal Incorporation

(TWSE:1325)

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Rating:41Neutral

Price Target:TWD 23.50▼(-7.11% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held down primarily by deteriorating fundamentals: a five-year revenue collapse, negative gross margins, a widening net loss of NT$59.6 million, and a swing to negative operating and free cash flow. The key mitigating factor is an exceptionally strong, essentially debt-free balance sheet with NT$2.59 billion of equity funding about 94% of assets, which makes the current cash burn manageable and buys management time to restructure. Technicals add further pressure, with the price below all major moving averages and a negative MACD, though deeply oversold RSI and Stochastic readings leave room for a short-term bounce. Valuation provides no support given negative earnings and only a modest 1.21% dividend yield. Evidence of revenue stabilization and a return to positive gross margins would be needed before the balance-sheet strength can translate into shareholder value.

Positive Factors

Exceptionally low leverageThe exceptionally low debt burden reduces financial strain and leaves the company less exposed to refinancing or interest-cost pressure. A large, stable equity base provides resilience while management works through operating weakness and preserves flexibility to fund essential needs internally.

Negative Factors

Multi-year revenue contractionRepeated revenue declines weaken scale, customer traction, and the company’s ability to absorb fixed costs. Continued contraction over the next several quarters would make a durable recovery harder, increase pressure on margins, and constrain the resources available for reinvestment.

Universal Incorporation (1325) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.16B
Dividend Yield: 1.19%
Average Volume (3M): 838.25K
Price to Earnings (P/E): -42.7
Beta (1Y): 0.48
Revenue Growth: -21.19%
EPS Growth: 47.07%
Country: TW
Employees: 11,544
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

Universal Incorporation Business Overview & Revenue Model

Company Description

Universal Incorporation, together with its subsidiaries, manufactures and sells nonwoven fabrics and its related products in Taiwan, the United States, Northeast Asia, and China. It offers SMMS and SMS fabrics for use in the hygiene, medical, and ind...

Universal Incorporation Financial Statement Overview

Summary

A severely weak operating profile offset only partly by balance-sheet strength. Revenue has fallen for five consecutive years, from roughly NT$4.06 billion in 2020 to about NT$291 million in 2025, and gross margin has turned negative (-18%), meaning production costs now exceed selling prices. Operating loss reached NT$94 million and the net loss widened to NT$59.6 million from NT$51.5 million. Cash flow also deteriorated, with operating cash flow swinging from +NT$50.3 million to -NT$9.7 million and free cash flow to -NT$26.7 million, confirming cash losses rather than accounting charges. The offsetting strength is a fortress balance sheet: effectively no debt (NT$104 thousand) against NT$2.59 billion of equity funding about 94% of assets, so the modest burn is manageable near term. However, equity and assets are steadily eroding and return on equity is negative at -2.3%.

Income Statement

11Very Negative

Balance Sheet

73Positive

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	248.16M	290.90M	317.39M	405.76M	553.97M	1.19B
Gross Profit	-64.81M	-52.77M	-36.70M	-375.00K	43.67M	439.79M
EBITDA	-25.88M	-16.86M	-6.65M	81.22M	82.15M	452.90M
Net Income	-33.88M	-59.57M	-51.54M	17.75M	16.58M	278.38M
Balance Sheet
Total Assets	2.74B	2.76B	2.86B	2.97B	3.01B	3.22B
Cash, Cash Equivalents and Short-Term Investments	1.50B	1.53B	1.58B	1.59B	1.54B	1.63B
Total Debt	80.00K	104.00K	148.00K	190.00K	16.05M	42.00K
Total Liabilities	86.23M	95.24M	99.78M	112.15M	126.34M	168.74M
Stockholders Equity	2.57B	2.59B	2.68B	2.77B	2.78B	2.95B
Cash Flow
Free Cash Flow	-9.90M	-26.74M	27.33M	96.33M	61.87M	-97.59M
Operating Cash Flow	12.61M	-9.73M	50.33M	124.65M	77.93M	-4.93M
Investing Cash Flow	-75.01M	-87.49M	-71.72M	-521.03M	679.29M	936.88M
Financing Cash Flow	-25.56M	-25.57M	-51.09M	-58.38M	-154.49M	-1.02B

Universal Incorporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1325 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4305	76Outperform	TWD 2.21B	8.55	―	7.70%	-5.79%	63.25%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1735	53Neutral	TWD 1.90B	16.50	―	3.37%	1.82%	132.90%
TW:1323	51Neutral	TWD 1.99B	17.09	―	4.15%	-3.86%	-37.34%
TW:1325	41Neutral	TWD 2.16B	-42.66	―	1.19%	-21.19%	47.07%
TW:6128	40Underperform	TWD 2.28B	-1.85	―	2.77%	-5.23%	-561.00%
TW:8935	39Underperform	TWD 1.96B	-28.69	―	―	-13.84%	12.29%

* General Sector Average

Performance Comparison

TW:1325 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1325	Universal Incorporation	25.30	-5.95	-19.04%
TW:1323	Yonyu Plastics Co., Ltd	21.70	2.99	15.98%
TW:1735	Evermore Chemical Industry Co., Ltd.	19.30	4.87	33.72%
TW:4305	Shih-Kuen Plastics Co., Ltd.	40.25	0.43	1.08%
TW:6128	General Plastic Industrial Co., Ltd.	18.05	-3.67	-16.89%
TW:8935	Pontex Polyblend Co. Ltd.	17.40	-1.25	-6.70%

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 Incorporation AI Stock Analysis