Everlight Chemical Industrial Corporation (1711) AI Stock Analysis

Everlight Chemical Industrial Corporation

(TWSE:1711)

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Rating:44Neutral

Price Target:TWD 32.00▼(-13.16% Downside)

Action:initiatedcoverage

Date:11/09/26

Everlight Chemical scores poorly, driven primarily by deteriorating fundamentals: multi-year revenue declines, steadily compressing gross margins, and a swing to both operating and net losses, compounded by negative free cash flow as capital spending absorbed all operating cash. The conservative balance sheet — low leverage and equity covering nearly two-thirds of assets — is the main offsetting strength and limits financial risk. Technicals reinforce the caution, with the price below all key moving averages and negative MACD momentum, though oversold RSI and stochastic readings suggest selling may be extended. Valuation offers little support, as the extremely elevated P/E reflects depressed earnings and the sub-1% dividend yield provides limited compensation.

Positive Factors

Moderate, stable leverageModerate and relatively stable leverage gives Everlight financial capacity to navigate a softer operating cycle without immediate balance-sheet strain. Sizable equity relative to assets can support continued investment and reduce dependence on aggressive borrowing while management works to restore profitability.

Negative Factors

Profitability turned negativeThe shift from positive earnings to a net loss and negative operating profit materially weakens near-term earnings quality. It suggests that gross profit is no longer covering operating costs effectively, creating sustained pressure on capital efficiency and reducing internally generated funds for investment or shareholder returns.

Everlight Chemical Industrial Corporation (1711) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 21.89B
Dividend Yield: 0.80%
Average Volume (3M): 8.63M
Price to Earnings (P/E): 266.8
Beta (1Y): 1.11
Revenue Growth: -2.22%
EPS Growth: 33.13%
Country: TW
Employees: 1,675
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Everlight Chemical Industrial Corporation Business Overview & Revenue Model

Company Description

Everlight Chemical Industrial Corporation, founded in Taipei, Taiwan, in 1972, operates as a global producer and distributor of a diverse array of chemical products. Its extensive market reach spans Taiwan, the broader Asian region, the United States...

Everlight Chemical Industrial Corporation Financial Statement Overview

Summary

Financial results are weak overall. Revenue has declined in four of the last five years, falling 2.5% to NT$7.57 billion, while gross margin compressed to 19.0% and the company swung to an operating loss of NT$196 million and a net loss of NT$136 million (Income Statement score 31). The balance sheet is the clear strength, with equity funding 64% of assets and a conservative 0.37 debt-to-equity ratio, though return on equity has turned negative at -1.7% (Balance Sheet score 67). Cash flow is mixed: operating cash flow of NT$735 million remains solidly positive and well above the net loss, but heavy capital spending pushed free cash flow to negative NT$40 million, the weakest in five years (Cash Flow score 46).

Income Statement

31Negative

Balance Sheet

67Positive

Cash Flow

46Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.82B	7.57B	8.17B	7.86B	8.89B	9.20B
Gross Profit	1.54B	1.44B	1.79B	1.60B	2.00B	2.21B
EBITDA	639.18M	462.98M	1.04B	853.90M	1.23B	1.35B
Net Income	72.69M	-136.16M	243.59M	85.87M	374.43M	472.97M
Balance Sheet
Total Assets	14.03B	12.79B	13.24B	12.90B	13.13B	14.14B
Cash, Cash Equivalents and Short-Term Investments	1.42B	1.22B	1.41B	1.51B	1.28B	1.54B
Total Debt	3.18B	2.99B	2.93B	3.05B	3.03B	3.57B
Total Liabilities	4.85B	4.36B	4.43B	4.24B	4.33B	5.03B
Stockholders Equity	8.91B	8.18B	8.54B	8.34B	8.46B	8.81B
Cash Flow
Free Cash Flow	52.75M	-40.15M	267.04M	827.97M	420.96M	496.60M
Operating Cash Flow	832.91M	735.46M	979.53M	1.28B	853.17M	757.24M
Investing Cash Flow	-742.69M	-854.89M	-696.25M	-783.10M	-375.26M	-272.98M
Financing Cash Flow	-91.42M	-131.00M	-393.68M	-368.80M	-683.90M	-351.61M

Everlight Chemical Industrial Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1711 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1723	63Neutral	TWD 16.23B	19.91	―	2.65%	7.82%	10.83%
TW:1714	60Neutral	TWD 15.46B	13.39	―	1.14%	36.28%	243.10%
TW:1709	57Neutral	TWD 21.75B	22.80	―	2.19%	-3.01%	82.22%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1711	44Neutral	TWD 21.66B	266.83	―	0.80%	-2.22%	33.13%
TW:1313	40Underperform	TWD 15.17B	78.33	―	0.85%	-0.93%	―
TW:1312	30Underperform	TWD 19.04B	-3.07	―	―	28.15%	-81.09%

* General Sector Average

Performance Comparison

TW:1711 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1711	Everlight Chemical Industrial Corporation	36.85	17.91	94.59%
TW:1312	Grand Pacific Petrochemical Corp.	12.65	1.65	15.00%
TW:1313	UPC Technology Corporation	11.75	1.34	12.88%
TW:1709	Formosan Union Chemical Corp.	45.60	29.24	178.80%
TW:1714	Ho Tung Chemical Corp.	15.80	7.45	89.24%
TW:1723	China Steel Chemical Corporation	69.90	-8.21	-10.51%

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

Everlight Chemical Industrial Corporation AI Stock Analysis