TYC Brother Industrial Co, Ltd. (1522) AI Stock Analysis

TYC Brother Industrial Co, Ltd.

(TWSE:1522)

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Rating:36Underperform

Price Target:TWD 22.00▼(-7.17% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is very low, driven primarily by severe financial weaknesses. The company's profitability has collapsed despite revenue growth, and it faces a strained balance sheet with high leverage and critically negative free cash flow. Technical analysis confirms a strong downtrend with the stock in oversold territory. A high dividend yield provides some support but does not offset the fundamental risks.

Positive Factors

Revenue Re-acceleration2025 revenue growth of 15.4% shows demand and sales execution re-accelerated after near-flat 2024. Higher volume gives the suspension and chassis business a broader revenue base, although the benefit will be durable only if profitability recovers.

Negative Factors

Sharp Margin CompressionProfitability deteriorated sharply despite higher sales, with gross, operating, and net margins all declining in 2025. Sustained cost, pricing, or product-mix pressure would reduce earnings conversion and limit the financial benefit of continued revenue growth.

TYC Brother Industrial Co, Ltd. (1522) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 7.42B
Dividend Yield: 5.06%
Average Volume (3M): 403.25K
Price to Earnings (P/E): -120.4
Beta (1Y): 0.61
Revenue Growth: 34.54%
EPS Growth: -119.31%
Country: TW
Employees: 4,246
Sector: General
Sector Strength: 55
Industry: Auto - Parts

TYC Brother Industrial Co, Ltd. Business Overview & Revenue Model

Company Description

TYC Brother Industrial Co., Ltd. focuses on the production and distribution of automotive lighting solutions throughout Taiwan. In addition to its primary line of vehicle lights, the company offers a diverse array of other car components, including m...

TYC Brother Industrial Co, Ltd. Financial Statement Overview

Summary

Financial performance is weak. While revenue grew 15.4%, profitability deteriorated sharply with gross margin falling to 21.9% and net margin to 2.4%. The balance sheet is strained with a high debt-to-equity ratio of 1.81x and declining ROE to 5.9%. Cash flow is a critical concern, with free cash flow deeply negative at -TWD 2.0 billion, indicating poor cash conversion.

Income Statement

45Neutral

Balance Sheet

30Negative

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.53B	24.42B	20.12B	19.28B	19.21B	16.58B
Gross Profit	5.26B	5.34B	5.89B	5.17B	4.18B	3.01B
EBITDA	3.54B	3.45B	4.08B	3.47B	3.11B	2.06B
Net Income	327.98M	597.78M	1.54B	1.09B	932.53M	193.27M
Balance Sheet
Total Assets	38.86B	39.20B	27.22B	25.83B	26.05B	24.05B
Cash, Cash Equivalents and Short-Term Investments	2.77B	2.81B	1.63B	2.00B	1.94B	1.07B
Total Debt	19.20B	18.23B	10.91B	11.31B	12.11B	11.22B
Total Liabilities	28.88B	28.69B	16.73B	16.32B	16.88B	15.86B
Stockholders Equity	9.57B	10.06B	10.16B	9.18B	8.85B	7.89B
Cash Flow
Free Cash Flow	-1.66B	-2.02B	734.73M	1.98B	49.35M	-669.29M
Operating Cash Flow	867.35M	1.03B	3.15B	3.85B	1.38B	440.43M
Investing Cash Flow	-1.83B	-3.71B	-2.41B	-1.93B	-1.29B	-1.24B
Financing Cash Flow	1.79B	3.47B	-1.26B	-1.94B	625.30M	786.11M

TYC Brother Industrial Co, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1522 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4571	71Outperform	TWD 7.81B	16.78	―	3.49%	-0.89%	-0.66%
TW:2233	57Neutral	TWD 7.11B	19.16	―	3.56%	-2.23%	-20.63%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2254	55Neutral	TWD 7.11B	-26.96	―	―	-78.81%	-761.63%
TW:4566	47Neutral	TWD 8.39B	28.36	―	0.90%	18.15%	370.19%
TW:1522	36Underperform	TWD 7.47B	-120.36	―	5.06%	34.54%	-119.31%

* General Sector Average

Performance Comparison

TW:1522 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1522	TYC Brother Industrial Co, Ltd.	23.70	-21.81	-47.92%
TW:2233	Turvo International Co., Ltd.	112.50	-83.68	-42.65%
TW:2254	Coplus Inc.	110.00	52.00	89.66%
TW:4566	GLOBAL TEK FABRICATION CO., Ltd.	76.00	23.72	45.38%
TW:4571	Khgears International Ltd.	151.00	-5.74	-3.66%
TW:7907	Laienparts Technology Co., Ltd.	224.00	-178.41	-44.34%

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 10, 2026

TYC Brother Industrial Co, Ltd. AI Stock Analysis