Sun Race Sturmey-Archer Inc. (1526) AI Stock Analysis

Sun Race Sturmey-Archer Inc.

(TWSE:1526)

Select Model

Rating:53Neutral

Price Target:TWD 16.50▼(-0.30% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by weak profitability: Sun Race Sturmey-Archer is still loss-making after a severe bicycle industry destocking cycle, with margins roughly half their 2022 levels and a negative P/E alongside no dividend. Offsetting this, the balance sheet is conservatively financed with falling debt, and free cash flow of NT$200 million shows the business can still generate cash through the downturn, while the 2025 revenue uptick, narrower loss and doubled EBITDA point to a possible trough. Technicals are modestly constructive, with the price above its short- and medium-term averages and positive MACD momentum, though it still sits beneath the 200-day average. A return to positive operating profit and gross margin recovery would be the key catalysts for a higher score.

Positive Factors

Manageable LeverageManageable leverage and a sizable equity base provide financial stability through the next several quarters. This structure should preserve some flexibility to support operations and investment, while reducing the balance-sheet pressure that would otherwise amplify weakness in earnings or demand.

Negative Factors

Contracting RevenueSeveral years of revenue contraction indicate sustained pressure on demand, customer activity, or the company’s market position. Lower sales reduce operating scale and make it harder to absorb fixed costs, potentially limiting margin recovery even if recent earnings have improved.

Sun Race Sturmey-Archer Inc. (1526) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 996.00M
Dividend Yield: ―
Average Volume (3M): 233.85K
Price to Earnings (P/E): -20.8
Beta (1Y): 0.18
Revenue Growth: -17.98%
EPS Growth: -160.26%
Country: TW
Employees: 177
Sector: General
Sector Strength: 55
Industry: Leisure

Sun Race Sturmey-Archer Inc. Business Overview & Revenue Model

Company Description

Sun Race Sturmey-Archer Corporation acts as a worldwide supplier of essential bicycle parts. Their extensive inventory features a broad array of cycling equipment, including gear shifters, both front and rear derailleur systems, crank assemblies, spr...

Sun Race Sturmey-Archer Inc. Financial Statement Overview

Summary

A mixed picture dominated by a weak income statement (score 34): revenue has fallen roughly two-thirds from the 2022 peak, gross margin compressed from 34.5% to 19.3%, and the company posted a second consecutive annual loss with an operating loss near NT$52 million. Encouragingly, 2025 revenue ticked up for the first time in three years, the net loss narrowed sharply to NT$6.6 million and EBITDA more than doubled to NT$84 million, hinting at a cyclical bottom. The balance sheet (61) provides a solid anchor with 59% equity funding, debt-to-equity reduced to 0.61 and a stable capital base, though return on equity is still slightly negative. Cash flow (71) is the standout, with operating cash flow of NT$214 million and free cash flow of NT$200 million despite the loss — but much of this stems from one-off inventory destocking that is unlikely to repeat at this level.

Income Statement

34Negative

Balance Sheet

61Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	691.86M	771.04M	720.68M	995.16M	2.20B	1.89B
Gross Profit	103.67M	148.95M	151.57M	287.13M	757.83M	542.14M
EBITDA	5.97M	84.07M	34.55M	162.28M	581.23M	391.59M
Net Income	-48.00M	-6.63M	-54.70M	45.50M	386.60M	262.95M
Balance Sheet
Total Assets	2.29B	2.33B	2.44B	2.67B	2.90B	2.83B
Cash, Cash Equivalents and Short-Term Investments	476.51M	424.31M	306.83M	353.07M	459.27M	805.17M
Total Debt	838.76M	829.20M	916.00M	1.00B	830.78M	898.11M
Total Liabilities	969.67M	964.97M	1.09B	1.28B	1.47B	1.54B
Stockholders Equity	1.32B	1.36B	1.35B	1.40B	1.43B	1.29B
Cash Flow
Free Cash Flow	110.67M	200.39M	68.89M	-324.62M	188.33M	-168.76M
Operating Cash Flow	123.36M	213.80M	90.67M	-163.86M	269.75M	-117.26M
Investing Cash Flow	-12.48M	-12.70M	-20.86M	-158.30M	-200.39M	-49.13M
Financing Cash Flow	-15.47M	-110.45M	-120.36M	231.03M	-394.54M	442.89M

Sun Race Sturmey-Archer Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1526 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:1526	53Neutral	TWD 954.00M	-20.75	―	―	-17.98%	-160.26%
TW:5460	50Neutral	TWD 949.27M	89.62	―	―	-5.78%	―
TW:8928	46Neutral	TWD 1.04B	8.19	―	3.89%	-12.55%	122.09%
TW:4558	43Neutral	TWD 847.50M	19.93	―	―	10.33%	―
TW:1591	40Underperform	TWD 1.22B	-25.54	―	―	107.83%	-35.87%
TW:4502	37Underperform	TWD 900.72M	-22.64	―	―	-5.95%	-25.08%

* General Sector Average

Performance Comparison

TW:1526 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1526	Sun Race Sturmey-Archer Inc.	16.55	-1.60	-8.82%
TW:1591	Inmax Holding Co., Ltd.	32.80	-20.60	-38.58%
TW:4502	Jian Sin Industrial Co., Ltd.	15.85	-0.30	-1.86%
TW:4558	Alformer Industrial Co Ltd	17.95	-2.50	-12.22%
TW:5460	Mustang Industrial Corp.	15.90	2.00	14.39%
TW:8928	Dynamic Precision Industry Corp.	20.55	-5.69	-21.68%

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

Sun Race Sturmey-Archer Inc. AI Stock Analysis