Eternal Materials Co., Ltd. (1717) AI Stock Analysis

Eternal Materials Co., Ltd.

(TWSE:1717)

Select Model

Rating:48Neutral

Price Target:TWD 57.00▼(-9.52% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is constrained primarily by weakening profitability and especially poor cash conversion. The stock is also in a pronounced technical downtrend, while its elevated P/E limits valuation support; oversold momentum and manageable leverage provide only modest offsets.

Positive Factors

Continued ProfitabilityThe company remains profitable despite a softer operating environment, providing an earnings base to support ongoing operations and investment. Positive gross, EBITDA, and net margins indicate that the business still converts sales into profit, even though profitability is below prior peaks.

Negative Factors

Negative Revenue GrowthThe reversal from modest growth to a 2.7% annual revenue decline signals weaker demand, pricing, or sales mix than in the prior period. If the softer top-line trend persists, it can limit operating leverage and make future profit improvement more dependent on cost control.

Eternal Materials Co., Ltd. (1717) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 74.37B
Dividend Yield: 1.58%
Average Volume (3M): 10.81M
Price to Earnings (P/E): 33.2
Beta (1Y): 1.32
Revenue Growth: -1.57%
EPS Growth: 36.18%
Country: TW
Employees: 4,898
Sector: General
Sector Strength: 55
Industry: Chemicals

Eternal Materials Co., Ltd. Business Overview & Revenue Model

Company Description

Eternal Materials Co., Ltd., established in 1964 and based in Kaohsiung, Taiwan, is a leading producer and distributor of a broad spectrum of chemical products, encompassing resin, high-performance, and electronic materials. The company, which was fo...

Eternal Materials Co., Ltd. Financial Statement Overview

Summary

Profitability and revenue momentum are weakening, while balance-sheet leverage remains manageable. Cash generation is the primary weakness, with free cash flow falling sharply and covering only 20.3% of net income.

Income Statement

48Neutral

Balance Sheet

62Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.39B	40.68B	44.19B	42.45B	49.01B	50.47B
Gross Profit	9.06B	7.82B	8.82B	8.15B	10.16B	10.69B
EBITDA	5.26B	3.97B	5.05B	4.74B	5.96B	6.84B
Net Income	2.23B	1.66B	1.83B	1.50B	2.62B	3.55B
Balance Sheet
Total Assets	67.01B	60.15B	62.42B	58.54B	59.46B	60.54B
Cash, Cash Equivalents and Short-Term Investments	10.36B	6.90B	8.37B	7.62B	6.67B	4.44B
Total Debt	24.21B	22.17B	22.24B	22.19B	23.23B	22.56B
Total Liabilities	34.69B	31.93B	33.43B	33.32B	34.38B	35.87B
Stockholders Equity	31.12B	27.68B	28.31B	24.73B	24.76B	24.24B
Cash Flow
Free Cash Flow	1.45B	791.11M	1.02B	3.36B	3.78B	-1.31B
Operating Cash Flow	4.02B	3.90B	4.61B	6.51B	6.58B	749.57M
Investing Cash Flow	-474.50M	-3.14B	-3.06B	-3.35B	-3.64B	-2.22B
Financing Cash Flow	-67.39M	-1.67B	-1.04B	-2.07B	-1.89B	-156.09M

Eternal Materials Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1717 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4763	73Outperform	TWD 42.98B	10.47	―	7.00%	-36.33%	-49.76%
TW:4766	72Outperform	TWD 41.72B	14.59	―	5.29%	2.93%	9.20%
TW:1773	70Outperform	TWD 44.70B	17.46	―	2.66%	19.58%	31.55%
TW:4749	62Neutral	TWD 62.81B	55.74	―	1.14%	19.16%	38.15%
TW:1722	57Neutral	TWD 38.22B	128.47	―	5.14%	3.95%	-81.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1717	48Neutral	TWD 74.84B	33.16	―	1.58%	-1.57%	36.18%

* General Sector Average

Performance Comparison

TW:1717 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1717	Eternal Materials Co., Ltd.	63.00	23.49	59.47%
TW:1722	Taiwan Fertilizer Co., Ltd.	38.90	-6.64	-14.58%
TW:1773	Shiny Chemical Industrial Co., Ltd.	150.50	10.72	7.67%
TW:4749	Advanced Echem Materials Company Limited	703.00	-96.36	-12.05%
TW:4763	Jinan Acetate Chemical Co., Ltd.	43.55	-8.99	-17.11%
TW:4766	Nan Pao Resins Chemical Co. Ltd.	340.00	13.12	4.01%

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 10, 2026

Eternal Materials Co., Ltd. AI Stock Analysis