Cryomax Cooling System Corp. (1587) AI Stock Analysis

Cryomax Cooling System Corp.

(TWSE:1587)

Select Model

Rating:39Underperform

Price Target:TWD 19.00▼(-4.28% Downside)

Action:initiatedcoverage

Date:11/09/26

Cryomax Cooling System scores poorly overall, driven primarily by weak financial fundamentals: although revenue hit a six-year high and the company returned to profitability, margins have compressed sharply, return on equity is only 1.9%, and free cash flow remains negative with operating cash flow barely positive. Technicals compound the concern, with the share price below all key moving averages and a negative MACD confirming a sustained downtrend. Valuation offers little support, as the ~91x P/E sits well above what current thin earnings justify, with only a 2.5% dividend yield and low beta as modest positives. The case for improvement rests on management restoring gross margin and converting the revenue rebound into sustainable cash generation.

Positive Factors

2025 Revenue ReboundThe 2025 revenue rebound indicates renewed demand for Cryomax’s cooling-system products after a period of limited growth. If maintained, stronger sales can improve operating leverage, support investment in product capabilities, and reinforce the company’s position across industrial and commercial applications.

Negative Factors

Deeply Negative Free Cash FlowSustained negative free cash flow is a material constraint because accounting earnings are not translating into cash available for debt reduction, reinvestment, or shareholder returns. The sharp 2025 deterioration also suggests that working-capital swings or investment needs could remain a recurring burden.

Cryomax Cooling System Corp. (1587) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.59B
Dividend Yield: 2.51%
Average Volume (3M): 141.32K
Price to Earnings (P/E): -180.5
Beta (1Y): 0.69
Revenue Growth: 13.58%
EPS Growth: -152.92%
Country: TW
Employees: 528
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Cryomax Cooling System Corp. Business Overview & Revenue Model

Company Description

Cryomax Cooling System Corp. engages in the manufacturing, processing, and trading of metal water storage tanks for various vehicles in Taiwan, the United States, Asia, Europe, and internationally. The company offers copper and aluminum radiators for...

Cryomax Cooling System Corp. Financial Statement Overview

Summary

Revenue rebounded to a six-year high of roughly NT$2.65 billion and the company returned to a small profit (about NT$30 million) after a prior-year loss, but the quality of that recovery is weak. Gross margin has eroded from ~26% in 2020 to ~19%, operating margin is just 2.5% and net margin 1.1%, while return on equity sits at only 1.9%. The balance sheet is adequately capitalized (equity ~42% of assets) with leverage range-bound near 0.9x debt-to-equity, offering stability but little cushion. Cash flow is the weakest link: operating cash flow of only ~NT$23 million covered just 0.8x net income and free cash flow was negative at ~NT$76 million, the fourth negative year in six, leaving growth dependent on external funding.

Income Statement

41Neutral

Balance Sheet

48Neutral

Cash Flow

27Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.81B	2.65B	2.15B	2.12B	2.54B	2.35B
Gross Profit	487.95M	505.29M	451.84M	444.67M	589.39M	531.65M
EBITDA	228.24M	228.05M	172.48M	266.90M	397.52M	327.19M
Net Income	17.19M	29.91M	-33.80M	42.06M	136.91M	102.48M
Balance Sheet
Total Assets	3.62B	3.71B	3.40B	3.33B	3.13B	3.03B
Cash, Cash Equivalents and Short-Term Investments	587.37M	460.54M	468.29M	564.04M	558.77M	398.23M
Total Debt	1.35B	1.40B	1.26B	1.44B	1.23B	1.25B
Total Liabilities	2.00B	2.14B	1.84B	1.96B	1.73B	1.74B
Stockholders Equity	1.62B	1.57B	1.56B	1.37B	1.40B	1.29B
Cash Flow
Free Cash Flow	-74.83M	-75.72M	-158.36M	-112.30M	205.08M	-92.68M
Operating Cash Flow	-4.03M	23.26M	-35.72M	345.47M	366.72M	19.80M
Investing Cash Flow	-63.36M	-84.64M	-114.27M	-428.75M	-146.16M	-105.26M
Financing Cash Flow	-67.26M	98.23M	11.42M	97.30M	-95.74M	67.48M

Cryomax Cooling System Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1587 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1541	64Neutral	TWD 1.52B	11.19	―	2.59%	-30.14%	21.52%
TW:6791	63Neutral	TWD 1.78B	18.84	―	3.98%	7.37%	15.05%
TW:4552	62Neutral	TWD 1.50B	11.80	―	4.46%	-5.79%	-17.94%
TW:4581	62Neutral	TWD 1.61B	11.55	―	6.40%	8.55%	-19.58%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4543	53Neutral	TWD 1.46B	9.82	―	0.84%	15.97%	―
TW:1587	39Underperform	TWD 1.60B	-180.45	―	2.51%	13.58%	-152.92%

* General Sector Average

Performance Comparison

TW:1587 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1587	Cryomax Cooling System Corp.	19.85	-22.40	-53.02%
TW:1541	Chang Type Industrial Co., Ltd.	19.70	-4.85	-19.76%
TW:4543	Man Zai Industrial Co., Ltd.	23.85	1.56	6.99%
TW:4552	Lida Holdings Ltd.	13.45	-8.83	-39.63%
TW:4581	World Known MFG (Cayman) Limited	46.90	-3.77	-7.43%
TW:6791	Taiwan Auto-Design Co.	88.00	-14.99	-14.56%

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

Cryomax Cooling System Corp. AI Stock Analysis