Falcon Power Co., Ltd. (1516) AI Stock Analysis

Falcon Power Co., Ltd.

(TWSE:1516)

Select Model

Rating:39Underperform

Price Target:TWD 18.00▼(-4.00% Downside)

Action:initiatedcoverage

Date:11/09/26

Falcon Power scores near the bottom of the range. The dominant issue is a rapidly shrinking, structurally low-margin business: revenue is down roughly 95% from its 2022 peak, the core operation remains loss-making at the EBIT level, and operating cash flow has been negative in five of the past six years, draining an already smaller asset base. A completely debt-free balance sheet is a genuine defensive positive and the only factor lifting the score, but equity has been halved by the 2024 loss and returns on equity are under 1%. Technicals reinforce the caution, with the price below all key moving averages and a negative MACD, though the deeply oversold Stochastic hints at scope for a short-term bounce. Valuation provides no cushion, with earnings too small to make the P/E meaningful and no dividend to support the shares. A sustained recovery in revenue and positive operating cash flow would be needed before the outlook improves.

Positive Factors

Conservative Balance SheetMinimal leverage reduces interest burden and refinancing exposure, while sizable equity provides a buffer during downturns. This conservative balance-sheet position gives Falcon Power more flexibility to absorb earnings volatility and fund operations than a heavily indebted structure would.

Negative Factors

Inconsistent Cash GenerationPersistent negative operating and free cash flow indicate that reported earnings have not translated reliably into cash. This weak conversion can increase funding needs, constrain investment capacity, and create liquidity pressure even when the company records accounting profits.

Falcon Power Co., Ltd. (1516) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 543.15M
Dividend Yield: ―
Average Volume (3M): 65.28K
Price to Earnings (P/E): 3548.1
Beta (1Y): 0.13
Revenue Growth: -10.15%
EPS Growth: ―
Country: TW
Employees: 9
Sector: General
Sector Strength: 55
Industry: Coal

Falcon Power Co., Ltd. Business Overview & Revenue Model

Company Description

Falcon Power Co., Ltd. specializes in the development of various energy solutions and provides a range of products connected to solar technology. The company's activities further extend to the practical implementation of solar energy applications. Th...

Falcon Power Co., Ltd. Financial Statement Overview

Summary

A debt-free balance sheet (Score 68) is the only real strength: equity of NT$206.7M funds virtually the entire NT$208.9M asset base, so there is no leverage or refinancing risk. Everything else is weak. The income statement (Score 27) shows revenue collapsing ~95% from the NT$1.50B 2022 peak to NT$78.8M, gross margins stuck below 6%, a NT$245M net loss in 2024, and a still-negative EBIT of -NT$13.2M in the latest period, meaning the small NT$1.8M profit came from non-operating items. Cash flow (Score 18) is the weakest link, negative in five of the last six years including -NT$32.4M in the latest period, with free cash flow down ~26% year over year. Equity has been halved and total assets have shrunk from NT$674M to NT$209M, pointing to a rapidly contracting business.

Income Statement

27Negative

Balance Sheet

68Positive

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	93.08M	78.81M	606.14M	852.72M	1.50B	1.19B
Gross Profit	5.54M	4.60M	32.37M	41.36M	75.19M	61.21M
EBITDA	122.00K	2.23M	-247.80M	17.03M	60.91M	69.22M
Net Income	333.00K	1.80M	-245.21M	13.20M	48.52M	61.54M
Balance Sheet
Total Assets	204.00M	208.91M	214.53M	483.36M	674.44M	513.56M
Cash, Cash Equivalents and Short-Term Investments	96.86M	100.76M	144.63M	192.57M	333.36M	66.06M
Total Debt	0	0	0	30.00M	0	0
Total Liabilities	2.57M	2.23M	9.65M	33.26M	224.10M	57.62M
Stockholders Equity	201.43M	206.68M	204.88M	450.09M	450.33M	455.94M
Cash Flow
Free Cash Flow	-22.47M	-32.40M	-18.52M	-157.35M	232.44M	-52.97M
Operating Cash Flow	-16.07M	-32.40M	-18.52M	-157.35M	233.32M	-52.97M
Investing Cash Flow	-5.41M	-27.10M	572.00K	72.04M	17.35M	-81.87M
Financing Cash Flow	0	0	-30.00M	16.56M	-55.41M	-12.89M

Falcon Power Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1516 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1516	39Underperform	TWD 553.65M	3548.08	―	―	-10.15%	―
TW:8087	34Underperform	TWD 730.41M	15604.00	―	5.29%	81.74%	―
TW:3043	32Underperform	TWD 715.20M	-10.48	―	―	-16.13%	-785.36%
TW:3018	29Underperform	TWD 745.49M	-2.79	―	―	-56.49%	-244.54%

* General Sector Average

Performance Comparison

TW:1516 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1516	Falcon Power Co., Ltd.	18.75	-4.11	-18.00%
TW:3018	Lung Ming Green Energy Technology Engineering Co Ltd.	9.15	-3.05	-25.00%
TW:3043	Powercom Co., Ltd.	18.25	-4.35	-19.25%
TW:6793	Tien Li Offshore Wind Technology Co., Ltd.	5.45	0.40	7.92%
TW:7758	Keelgoal Energy Co Ltd	31.55	-9.33	-22.82%
TW:8087	Leadsun Greentech Corporation	19.90	-17.80	-47.21%

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

Falcon Power Co., Ltd. AI Stock Analysis