Goodway Machine Corp. (1583) AI Stock Analysis

Goodway Machine Corp.

(TWSE:1583)

Select Model

Rating:40Underperform

Price Target:TWD 45.00▼(-3.64% Downside)

Action:initiatedcoverage

Date:11/09/26

Goodway Machine scores low primarily because of deteriorating fundamentals: four consecutive years of revenue decline, margin compression, a swing to both operating and net losses in 2025, and a second straight year of negative free cash flow funded by rising debt. Leverage has climbed to roughly 1.0x debt-to-equity while equity shrank nearly 14%, leaving a thinner buffer against further losses. Technicals are more neutral — the stock holds above its 100- and 200-day averages but has stalled below shorter-term averages with flat momentum readings — and the optically low P/E is distorted by negative earnings while the 0.21% dividend yield offers little support. The main upside case rests on the cyclical nature of the machinery market and the company's demonstrated ability to generate strong cash flow when order intake recovers.

Positive Factors

Automation-Focused Industrial BusinessThe company operates in industrial automation, a business area tied to factory production efficiency and equipment modernization. Its design, manufacturing, and solution capabilities provide a defined position in industrial machinery and can support customer relevance across production environments over the medium term.

Negative Factors

Sharp Profitability DeteriorationThe shift from healthy profitability to a sizable net loss is a material deterioration in earnings quality. Compressed margins and negative operating performance reduce internal funding capacity, raise uncertainty around cost control, and make future returns more dependent on a successful operational recovery.

Goodway Machine Corp. (1583) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.54B
Dividend Yield: 0.21%
Average Volume (3M): 26.14K
Price to Earnings (P/E): 59.9
Beta (1Y): 0.55
Revenue Growth: 3.58%
EPS Growth: -65.42%
Country: TW
Employees: 1,070
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Goodway Machine Corp. Business Overview & Revenue Model

Company Description

Goodway Machine Corp. manufactures and sells CNC lathes and processing machinery in Taiwan, Asia, the United States, Europe, and internationally. The company provides multi-axis, SWISS, vertical, horizontal, flat-bed, and wheel turning products; cyli...

Goodway Machine Corp. Financial Statement Overview

Summary

Financials are the weakest part of the story. Revenue has fallen four years running, from roughly NT$6.73bn in 2021 to NT$3.89bn in 2025, with gross margin compressing from 26.3% to 18.1% and the company swinging to an operating loss of about NT$150m and a net loss of roughly NT$530m. Cash flow has deteriorated in step, with operating cash flow turning negative (-NT$51m) and free cash flow at about -NT$409m for a second consecutive year of burn. The balance sheet is the relative bright spot, with equity funding about 40% of the NT$14.19bn asset base, but it is eroding: equity fell nearly 14% while total debt rose to NT$5.71bn, pushing debt-to-equity to roughly 1.0x with effectively no interest coverage from core earnings. The company's proven ability to generate over NT$1.1bn of free cash flow in stronger years (2023) suggests the stress is cyclical rather than structural, which prevents an even lower score.

Income Statement

21Negative

Balance Sheet

46Neutral

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.98B	3.89B	4.42B	5.32B	6.39B	6.73B
Gross Profit	726.18M	705.02M	956.84M	1.24B	1.68B	1.53B
EBITDA	1.14B	51.39M	1.85B	1.29B	1.40B	910.11M
Net Income	479.56M	-529.79M	1.26B	713.30M	708.19M	363.69M
Balance Sheet
Total Assets	14.17B	14.19B	14.85B	13.25B	15.21B	13.09B
Cash, Cash Equivalents and Short-Term Investments	4.23B	4.35B	5.17B	4.30B	5.07B	3.49B
Total Debt	5.46B	5.71B	5.07B	4.58B	6.73B	4.92B
Total Liabilities	6.93B	6.99B	6.44B	6.08B	8.38B	6.51B
Stockholders Equity	5.67B	5.66B	6.58B	5.53B	5.21B	5.05B
Cash Flow
Free Cash Flow	212.31M	-408.89M	-222.80M	1.17B	333.60M	715.12M
Operating Cash Flow	278.21M	-50.59M	168.44M	1.29B	394.97M	811.83M
Investing Cash Flow	533.71M	476.13M	28.95M	191.91M	-812.96M	-330.32M
Financing Cash Flow	-703.24M	175.13M	-549.21M	-2.36B	1.49B	-366.83M

Goodway Machine Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1583 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2221	69Neutral	TWD 6.43B	56.44	―	0.90%	18.85%	87.57%
TW:3485	65Neutral	TWD 6.99B	28.85	―	2.42%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6215	51Neutral	TWD 6.49B	20.70	―	1.26%	48.31%	106.93%
TW:4533	44Neutral	TWD 5.25B	51.00	―	0.58%	-0.25%	42.76%
TW:1583	40Underperform	TWD 5.56B	59.87	―	0.21%	3.58%	-65.42%
TW:4540	37Underperform	TWD 5.89B	-382.86	―	―	36.77%	94.53%

* General Sector Average

Performance Comparison

TW:1583 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1583	Goodway Machine Corp.	46.70	5.13	12.34%
TW:2221	Tachia Yung Ho Machine Industry Co., Ltd.	167.00	139.45	506.28%
TW:3485	Eclat Forever Machinery Co., Ltd.	186.00	106.12	132.84%
TW:4533	Shieh Yih Machinery Industry Co., Ltd.	30.80	10.55	52.07%
TW:4540	TBI MOTION TECHNOLOGY CO LTD	53.00	16.60	45.60%
TW:6215	Aurotek Corporation	79.40	-30.05	-27.45%

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

Goodway Machine Corp. AI Stock Analysis