Mayer Steel Pipe Corporation (2020) AI Stock Analysis

Mayer Steel Pipe Corporation

(TWSE:2020)

Select Model

Rating:53Neutral

Price Target:TWD 22.50▲(2.27% Upside)

Action:initiatedcoverage

Date:11/09/26

Mayer Steel Pipe scores modestly as fundamental weakness outweighs a cheap valuation. The dominant issue is cash flow: a second consecutive year of negative operating and free cash flow, funded by a step-up in debt that pushed debt-to-equity to 0.87, alongside two years of revenue decline and halved operating margins. Technicals reinforce caution, with the shares below all key moving averages and a negative MACD. Partially offsetting this, the company remains profitable with gross margins at a multi-year high of 18.3%, a reasonable equity cushion, an inexpensive 10.6x P/E and an 8.2% dividend yield — though that payout's durability depends on working capital unwinding and cash generation returning, as it did in 2022-2023.

Positive Factors

Resilient Net ProfitabilityHealthy net margins of about 12–16% in 2023–2025 show the company continues to convert sales into meaningful earnings despite recent revenue pressure. This profitability provides an operating cushion and supports ongoing investment and resilience over the next several quarters.

Negative Factors

Declining Revenue and Operating MomentumRevenue declined in both 2024 and 2025 while EBITDA margin dropped sharply in 2025. Sustained contraction can reduce operating scale and weaken the company’s ability to spread fixed costs, while lower operating profitability may limit reinvestment and earnings resilience.

Mayer Steel Pipe Corporation (2020) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.91B
Dividend Yield: 8.18%
Average Volume (3M): 1.20M
Price to Earnings (P/E): 10.6
Beta (1Y): 0.23
Revenue Growth: 2.35%
EPS Growth: 1.68%
Country: TW
Employees: 76,000
Sector: General
Sector Strength: 55
Industry: Steel

Mayer Steel Pipe Corporation Business Overview & Revenue Model

Company Description

Mayer Steel Pipe Corporation, together with its subsidiaries, engages in production and sales of black steel and galvanized steel pipes, and stainless-steel coils for pipes in Taiwan. It operates through Steel Department, Real Estate Investment Depar...

Mayer Steel Pipe Corporation Financial Statement Overview

Summary

A profitable but weakening cyclical profile. Revenue has contracted two years running (NT$7.0bn in 2023 to NT$4.74bn), operating margin halved to 8.0% from 17.6% and EBITDA margin fell to 11.1%, with net profit exceeding operating profit — meaning a meaningful part of earnings came from non-operating sources (Income Statement: 56). The balance sheet remains adequate, with equity funding roughly half of assets, but debt rose to NT$3.89bn from NT$2.90bn, lifting debt-to-equity to 0.87 from 0.63, while ROE slid to 12.7% from 18.0% (Balance Sheet: 60). The decisive drag is cash conversion: operating cash flow was negative NT$464m and free cash flow negative NT$557m, a second straight year of burn versus NT$1.5bn of operating cash flow in 2023, forcing reliance on borrowings (Cash Flow: 22). The offsets are a multi-year-high gross margin of 18.3% and sustained profitability through the full commodity cycle.

Income Statement

56Neutral

Balance Sheet

60Neutral

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.65B	4.74B	5.24B	7.01B	6.62B	6.56B
Gross Profit	963.92M	867.45M	796.31M	840.28M	424.42M	857.72M
EBITDA	795.44M	526.51M	1.07B	1.44B	451.65M	985.12M
Net Income	553.05M	568.35M	826.07M	1.07B	266.63M	782.91M
Balance Sheet
Total Assets	9.39B	9.10B	8.29B	7.48B	7.39B	8.13B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.23B	771.68M	1.63B	685.56M	710.43M
Total Debt	4.34B	3.89B	2.90B	2.39B	3.44B	3.67B
Total Liabilities	5.12B	4.61B	3.70B	3.41B	4.18B	4.51B
Stockholders Equity	4.26B	4.48B	4.58B	4.07B	3.20B	3.62B
Cash Flow
Free Cash Flow	1.10B	-557.27M	-315.85M	1.38B	1.04B	80.25M
Operating Cash Flow	1.27B	-463.69M	-197.40M	1.50B	1.14B	175.87M
Investing Cash Flow	-229.97M	209.12M	-94.23M	-284.87M	-222.38M	-45.81M
Financing Cash Flow	-904.67M	384.28M	106.93M	-1.18B	-833.93M	167.16M

Mayer Steel Pipe Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2020 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2221	69Neutral	TWD 6.43B	56.44	―	0.90%	18.85%	87.57%
TW:2008	58Neutral	TWD 5.86B	47.87	―	3.23%	-3.73%	39.65%
TW:2029	58Neutral	TWD 6.74B	17.65	―	2.84%	-11.60%	86.76%
TW:9905	58Neutral	TWD 6.33B	12.07	―	5.28%	21.06%	36.11%
TW:1315	56Neutral	TWD 6.76B	28.61	―	6.45%	-8.65%	262.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2020	53Neutral	TWD 5.94B	10.58	―	8.18%	2.35%	1.68%

* General Sector Average

Performance Comparison

TW:2020 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2020	Mayer Steel Pipe Corporation	22.00	0.51	2.36%
TW:1315	Tah Hsin Industrial Corp.	69.80	9.63	16.00%
TW:2008	Kao Hsing Chang Iron & Steel Corporation	30.95	4.03	14.98%
TW:2029	Sheng Yu Steel Co., Ltd.	21.15	0.80	3.93%
TW:2221	Tachia Yung Ho Machine Industry Co., Ltd.	167.00	139.45	506.28%
TW:9905	Great China Metal Industry Co., Ltd.	20.85	1.88	9.93%

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

Mayer Steel Pipe Corporation AI Stock Analysis