Headway Advanced Materials Inc. (1776) AI Stock Analysis

Headway Advanced Materials Inc.

(TWSE:1776)

Select Model

Rating:55Neutral

Price Target:TWD 18.00▲(2.86% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by declining revenue, sharply reduced earnings, low profitability, and weak technical momentum. Lower leverage, solid operating cash flow, a moderate P/E ratio, and a 3.43% dividend yield provide support but do not offset the fundamental weakness.

Positive Factors

Cash GenerationOperating and free cash flow improved materially in 2025, providing internally generated funding even as reported earnings weakened. This supports ongoing investment and financial resilience, although the pack notes some year-to-year variability in cash generation.

Negative Factors

Revenue DeclineThe 2025 revenue contraction indicates weaker demand or business activity, reducing the scale over which fixed costs can be absorbed. Unless sales recover, the decline can continue to pressure earnings, cash generation and the company’s ability to reinvest for growth.

Headway Advanced Materials Inc. (1776) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.05B
Dividend Yield: 3.43%
Average Volume (3M): 65.61K
Price to Earnings (P/E): 19.2
Beta (1Y): 0.37
Revenue Growth: -14.61%
EPS Growth: 133.14%
Country: TW
Employees: 371
Sector: General
Sector Strength: 55
Industry: Chemicals

Headway Advanced Materials Inc. Business Overview & Revenue Model

Company Description

Headway Advanced Materials Inc. specializes in the development and supply of polyurethane resins and thermoplastic polyurethane (TPU) pellet products. The company serves customers across the Asia-Pacific region, offering a diverse array of materials....

Headway Advanced Materials Inc. Financial Statement Overview

Summary

Declining revenue and sharply lower net income weigh heavily on performance. The balance sheet is healthier, with lower leverage, and operating cash flow is solid, but low profitability and weak return on equity remain significant constraints.

Income Statement

42Neutral

Balance Sheet

70Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	1.03B	1.24B	1.21B	1.45B	1.48B
Gross Profit	220.60M	178.12M	224.58M	183.91M	194.24M	284.09M
EBITDA	146.56M	100.53M	110.67M	112.24M	98.32M	163.67M
Net Income	54.60M	16.53M	46.67M	26.02M	18.61M	47.02M
Balance Sheet
Total Assets	1.46B	1.47B	1.68B	1.68B	1.79B	1.83B
Cash, Cash Equivalents and Short-Term Investments	542.67M	592.65M	618.62M	555.69M	675.45M	689.12M
Total Debt	333.61M	381.85M	453.57M	491.75M	498.72M	417.40M
Total Liabilities	510.75M	540.62M	659.90M	689.98M	679.79M	663.69M
Stockholders Equity	885.77M	865.68M	918.85M	880.07M	1.01B	1.05B
Cash Flow
Free Cash Flow	41.07M	161.15M	110.43M	77.73M	45.45M	83.08M
Operating Cash Flow	61.86M	183.58M	146.04M	110.40M	92.66M	121.54M
Investing Cash Flow	-40.70M	-6.56M	-55.00K	-32.54M	-71.39M	378.89M
Financing Cash Flow	-154.88M	-155.49M	-67.35M	-204.53M	-23.13M	-223.01M

Headway Advanced Materials Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1776 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4754	71Outperform	TWD 1.14B	12.04	―	6.13%	0.78%	22.85%
TW:2904	60Neutral	TWD 988.50M	25.07	―	5.51%	-14.80%	-60.95%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1776	55Neutral	TWD 1.04B	19.23	―	3.43%	-14.61%	133.14%
TW:4711	49Neutral	TWD 973.84M	17.42	―	3.13%	12.14%	365.99%
TW:4304	45Neutral	TWD 1.05B	-45.63	―	―	-1.87%	80.46%
TW:1337	39Underperform	TWD 1.05B	-2.13	―	―	-13.60%	-6.67%

* General Sector Average

Performance Comparison

TW:1776 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1776	Headway Advanced Materials Inc.	17.50	2.86	19.54%
TW:1337	Asia Plastic Recycling Holding Limited	3.90	-1.24	-24.12%
TW:2904	Prime Oil Chemical Service Corporation	12.70	-3.43	-21.25%
TW:4304	Sunvic Technology Co., Ltd.	17.15	-9.85	-36.48%
TW:4711	Yong Shun Chemical Co.,Ltd	15.95	1.53	10.59%
TW:4754	International Carbide Technology Co. Ltd.	37.55	0.41	1.09%

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

Headway Advanced Materials Inc. AI Stock Analysis