Taiwan Fertilizer Co., Ltd. (1722) AI Stock Analysis

Taiwan Fertilizer Co., Ltd.

(TWSE:1722)

Select Model

Rating:57Neutral

Price Target:TWD 41.00▲(5.40% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily supported by the exceptionally strong balance sheet and positive free cash flow, but materially reduced by declining profitability, weak technical momentum, and a very high P/E ratio. The dividend yield provides a partial valuation offset.

Positive Factors

Very Low LeverageDebt-to-equity of roughly 0.15%–0.99% across 2024–2025 indicates an unusually conservative funding structure. This limits solvency and refinancing pressure, preserves flexibility for operations or investment, and provides resilience if fertilizer or chemical conditions weaken.

Negative Factors

Sharp Margin CompressionNet margin fell to about 7.7% in 2025 from 16.6% in 2024 and 26.1% in 2023, while EBIT margin declined to 3.0%. This sharp compression reduces earnings conversion from sales and leaves less buffer to absorb cost or demand pressure.

Taiwan Fertilizer Co., Ltd. (1722) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 38.22B
Dividend Yield: 5.14%
Average Volume (3M): 2.84M
Price to Earnings (P/E): 128.5
Beta (1Y): 0.19
Revenue Growth: 3.95%
EPS Growth: -81.06%
Country: TW
Employees: 20,410
Sector: General
Sector Strength: 55
Industry: Agricultural Inputs

Taiwan Fertilizer Co., Ltd. Business Overview & Revenue Model

Company Description

Taiwan Fertilizer Co., Ltd., together with its subsidiaries, manufactures and sells inorganic and organic fertilizers, and other chemical products in Taiwan and internationally. It operates in three segments: Fertilizer and Chemical; Real Estate and...

Taiwan Fertilizer Co., Ltd. Financial Statement Overview

Summary

An exceptionally strong balance sheet and positive free cash flow are offset by sharply weaker profitability, margins, earnings, and operating cash flow.

Income Statement

45Neutral

Balance Sheet

90Very Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.50B	12.09B	11.87B	15.01B	15.05B	13.66B
Gross Profit	1.73B	1.58B	1.78B	4.12B	1.29B	2.14B
EBITDA	2.13B	1.80B	2.07B	5.61B	980.97M	4.96B
Net Income	820.66M	932.24M	1.97B	3.92B	2.67B	3.03B
Balance Sheet
Total Assets	83.16B	81.52B	81.11B	81.53B	80.75B	79.34B
Cash, Cash Equivalents and Short-Term Investments	4.43B	3.64B	5.19B	5.08B	3.35B	2.96B
Total Debt	2.03B	536.69M	82.01M	125.64M	154.38M	213.04M
Total Liabilities	30.21B	27.25B	25.42B	26.79B	27.69B	26.72B
Stockholders Equity	52.95B	54.27B	55.69B	54.74B	53.06B	52.63B
Cash Flow
Free Cash Flow	1.41B	1.90B	3.18B	5.65B	5.25B	2.58B
Operating Cash Flow	1.83B	2.37B	3.71B	6.06B	5.58B	3.11B
Investing Cash Flow	-2.14B	-2.98B	-1.32B	-2.05B	-2.76B	-1.34B
Financing Cash Flow	18.74M	-1.53B	-2.63B	-2.42B	-2.77B	-2.28B

Taiwan Fertilizer Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1722 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
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:4772	68Neutral	TWD 32.12B	37.98	―	1.38%	163.69%	66.91%
TW:1409	57Neutral	TWD 36.07B	10.43	―	3.94%	-7.23%	195.60%
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:1314	32Underperform	TWD 28.88B	-9.58	―	―	-34.68%	-40.38%

* General Sector Average

Performance Comparison

TW:1722 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1722	Taiwan Fertilizer Co., Ltd.	38.90	-6.64	-14.58%
TW:1314	China Petrochemical Development Corporation	7.56	-1.32	-14.86%
TW:1409	Shinkong Synthetic Fibers Corporation	22.85	8.11	54.97%
TW:1773	Shiny Chemical Industrial Co., Ltd.	150.50	10.72	7.67%
TW:4766	Nan Pao Resins Chemical Co. Ltd.	340.00	13.12	4.01%
TW:4772	Taiwan Speciality Chemicals Corporation	218.00	-77.33	-26.19%

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

Taiwan Fertilizer Co., Ltd. AI Stock Analysis