Evertex Fabrinology Ltd. (1470) AI Stock Analysis

Evertex Fabrinology Ltd.

(TWSE:1470)

Select Model

Rating:68Neutral

Price Target:TWD 26.00▲(11.35% Upside)

Action:initiatedcoverage

Date:11/09/26

Evertex Fabrinology scores well on financial resilience: a near debt-free balance sheet, equity funding close to 90% of assets, and operating cash flow comfortably above reported profits give it strong downside protection in a cyclical industry. Offsetting this are erratic revenue, a notable drop in 2025 net income and EBITDA from elevated 2024 levels, and a modest 6.6% return on equity that points to an underworked capital base. Technically, the stock has slipped below its short-term moving averages with a negative MACD, signalling fading momentum despite a still-intact longer-term uptrend and very low volatility. Valuation is fair-to-full at 18.1x earnings, though a 2.8% dividend yield supported by free cash flow adds some appeal. The result is a stable, low-risk holding that still needs to demonstrate more consistent growth and better returns on capital.

Positive Factors

Very Low LeverageThe very low debt burden and substantial equity base provide meaningful financial resilience. Limited leverage reduces interest and refinancing pressure, preserves flexibility during weaker demand, and leaves the company better positioned to fund operations or pursue opportunities without relying heavily on creditors.

Negative Factors

Sharp Revenue ContractionThe abrupt reversal from strong growth to a 40.4% revenue decline signals substantial pressure on demand, volume, or pricing. Such a contraction can weaken operating leverage and make future earnings less predictable, leaving the company dependent on a sustained recovery in sales.

Evertex Fabrinology Ltd. (1470) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.00B
Dividend Yield: 2.78%
Average Volume (3M): 13.82K
Price to Earnings (P/E): 18.1
Beta (1Y): 0.11
Revenue Growth: -7.41%
EPS Growth: 128.29%
Country: TW
Employees: 264
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Evertex Fabrinology Ltd. Business Overview & Revenue Model

Company Description

Evertex Fabrinology Limited is a company that specializes in the global manufacturing and distribution of various textile products. Their extensive product line features several distinct materials, including Janerino, a unique hybrid merino wool fabr...

Evertex Fabrinology Ltd. Financial Statement Overview

Summary

A very strong balance sheet (score 86) anchors the profile: debt-to-equity of just 0.04, equity funding roughly 87% of assets, and essentially no solvency or refinancing risk. Cash flow (76) is solid, with 2025 operating cash flow of NT$117.7M exceeding net income by about 1.75x and free cash flow of NT$78.6M, though capex lumpiness makes FCF uneven. The income statement (61) is the weak link: revenue is cyclical (NT$894.8M in 2021 to NT$655.2M in 2023, recovering to NT$803.7M in 2025) and 2025 net income fell to NT$67.3M from NT$97.3M, with net margin compressing to 8.4% and EBITDA margin dropping to 16.2%. Multi-year gross margin expansion to 24.2% is a genuine positive, but mid-single-digit ROE of 6.6% suggests an underutilized capital base.

Income Statement

61Positive

Balance Sheet

86Very Positive

Cash Flow

76Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	762.71M	803.71M	788.04M	655.22M	845.15M	894.79M
Gross Profit	199.42M	194.40M	199.38M	129.82M	174.32M	191.12M
EBITDA	153.10M	130.20M	172.19M	108.43M	103.25M	135.18M
Net Income	111.42M	67.27M	97.31M	49.35M	32.84M	65.20M
Balance Sheet
Total Assets	1.21B	1.16B	1.21B	1.15B	1.14B	1.25B
Cash, Cash Equivalents and Short-Term Investments	422.00M	378.57M	406.78M	445.31M	410.96M	358.38M
Total Debt	43.67M	42.03M	54.30M	54.80M	53.12M	106.41M
Total Liabilities	198.01M	146.85M	177.46M	160.10M	171.85M	248.93M
Stockholders Equity	1.01B	1.01B	1.03B	985.32M	972.98M	1.01B
Cash Flow
Free Cash Flow	101.50M	78.61M	84.96M	110.62M	162.17M	-1.32M
Operating Cash Flow	148.37M	117.75M	111.35M	144.74M	189.18M	43.83M
Investing Cash Flow	-49.93M	-77.52M	33.65M	-90.19M	-61.95M	34.48M
Financing Cash Flow	-98.46M	-98.67M	-58.89M	-42.22M	-72.17M	-39.92M

Evertex Fabrinology Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1470 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1470	68Neutral	TWD 2.00B	18.10	―	2.78%	-7.41%	128.29%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1323	51Neutral	TWD 1.99B	17.24	―	4.11%	-3.86%	-37.34%
TW:1468	51Neutral	TWD 2.17B	15.34	―	―	-39.42%	466.76%
TW:9944	50Neutral	TWD 1.81B	24.80	―	1.76%	10.50%	―
TW:1467	41Neutral	TWD 1.80B	29.61	―	―	1.24%	―
TW:8935	39Underperform	TWD 1.96B	-30.27	―	―	-13.84%	12.29%

* General Sector Average

Performance Comparison

TW:1470 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1470	Evertex Fabrinology Ltd.	23.35	1.25	5.64%
TW:1323	Yonyu Plastics Co., Ltd	21.90	3.19	17.05%
TW:1467	Tex-Ray Industrial Co., Ltd.	7.70	0.59	8.30%
TW:1468	Chang-Ho Fibre Corp.	13.50	2.05	17.90%
TW:8935	Pontex Polyblend Co. Ltd.	17.30	-1.65	-8.71%
TW:9944	Shinih Enterprise Co., Ltd.	17.05	0.63	3.84%

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

Evertex Fabrinology Ltd. AI Stock Analysis