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Roundtop Machinery Industries Co., Ltd (1540) AI Stock Analysis

TW:1540

Roundtop Machinery Industries Co., Ltd

(TWSE:1540)

Select Model
Rating:67Neutral
Price Target:TWD 18.50â–²(6.32% Upside)
Action:initiatedcoverage
Date:11/10/26

The score is primarily supported by the exceptionally strong balance sheet and attractive valuation. However, sharply weaker earnings and cash generation, combined with a bearish technical trend, substantially limit the overall score.

Positive Factors
Conservative Balance SheetThe company’s very low leverage and equity-heavy capital structure reduce financial risk through industry cycles. This provides flexibility to fund operations, withstand weaker demand, and pursue business needs without the burden of substantial debt service or refinancing pressure.
Negative Factors
Revenue ContractionDeclining revenue indicates that recent operating momentum has weakened and that the company is not currently expanding its top line. Continued contraction could reduce scale benefits, limit reinvestment capacity, and make future earnings growth more dependent on cost control.

Roundtop Machinery Industries Co., Ltd (1540) vs. SPDR S&P 500 ETF (SPY)

-20%-10%0%10%20%30%TW:1540-16.71%SPY+14.30%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 1.48B
Dividend Yield
5.75%
Average Volume (3M)
125.59K
Price to Earnings (P/E)
14.3
Beta (1Y)
0.53
Revenue Growth
-11.52%
EPS Growth
60.68%
Country
TW
Employees
97
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

Roundtop Machinery Industries Co., Ltd Business Overview & Revenue Model

Company Description

Roundtop Machinery Industries Co., Ltd. specializes in the engineering and production of machine tools, catering to markets both in Taiwan and worldwide. Their comprehensive product lineup features a diverse array of machining centers, such as vertic...

Roundtop Machinery Industries Co., Ltd Financial Statement Overview

Summary

The company has an exceptionally strong balance sheet and remains profitable, but sharply weaker earnings, revenue, operating cash flow, and free cash flow materially reduce the financial score.

Income Statement

72Positive

Balance Sheet

94Very Positive

Cash Flow

38Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue406.94M495.44M498.10M575.70M473.29M360.79M
Gross Profit75.36M165.46M173.16M184.55M141.34M58.31M
EBITDA66.90M108.23M112.12M124.04M143.15M3.51M
Net Income104.54M94.87M180.95M111.08M108.14M-3.62M
Balance Sheet
Total Assets1.64B1.64B1.84B1.72B1.56B1.52B
Cash, Cash Equivalents and Short-Term Investments1.12B1.02B1.15B1.07B904.92M847.70M
Total Debt5.04M8.50M13.64M10.01M5.87M36.12M
Total Liabilities224.44M161.12M317.29M285.74M184.98M229.11M
Stockholders Equity1.41B1.48B1.52B1.43B1.37B1.29B
Cash Flow
Free Cash Flow132.53M8.60M106.42M204.44M87.19M-39.90M
Operating Cash Flow132.64M8.74M110.96M207.30M88.48M-36.58M
Investing Cash Flow-20.55M-48.02M335.72M-303.70M-471.25M378.56M
Financing Cash Flow-138.50M-141.91M-94.02M-51.28M-49.60M-45.59M

Roundtop Machinery Industries Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:1540 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:4568TW:456874OutperformTWD 1.57B25.43―4.07%11.82%-2.07%
TW:4503TW:450371OutperformTWD 1.41B4.93――-12.40%1140.31%
TW:1540TW:154067NeutralTWD 1.50B14.26―5.75%-11.52%60.68%
TW:1541TW:154164NeutralTWD 1.52B11.19―2.59%-30.14%21.52%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:4543TW:454353NeutralTWD 1.46B9.82―0.84%15.97%―
TW:1599TW:159939UnderperformTWD 1.55B-143.67―2.29%-18.88%-116.38%

* General Sector Average

Performance Comparison

-50%0%50%TW:1540TW:1541TW:1599TW:4503TW:4543TW:4568Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:1540 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:1540Roundtop Machinery Industries Co., Ltd17.40-3.92-18.39%
TW:1541Chang Type Industrial Co., Ltd.19.70-4.90-19.92%
TW:1599Aeontek Co Ltd21.80-4.87-18.25%
TW:4503Gold Rain Enterprises Corp.18.70-29.10-60.88%
TW:4543Man Zai Industrial Co., Ltd.23.851.757.91%
TW:4568Koge Micro Tech Co., Ltd.48.658.7121.81%
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