Tycoons Group Enterprise Co., Ltd. (2022) AI Stock Analysis

Tycoons Group Enterprise Co., Ltd.

(TWSE:2022)

Select Model

Rating:37Underperform

Price Target:TWD 6.00▼(-6.25% Downside)

Action:initiatedcoverage

Date:11/09/26

Tycoons Group scores at the low end of the range. The dominant issue is financial fragility: two consecutive years of negative operating and free cash flow, a sharp rise in leverage to fund growth, and a bottom line still in the red despite an encouraging revenue and margin recovery. Technicals reinforce the caution, with the stock trading below all major moving averages and a negative MACD signalling a persistent downtrend, though extremely oversold readings leave room for a short-term bounce. Valuation provides no offset, as negative earnings make the P/E meaningless and no dividend is paid. A credible turnaround requires a return to positive operating cash flow and sustained profitability.

Positive Factors

Revenue recoveryThe return to year-over-year revenue growth indicates that the business regained some sales momentum after the 2024 decline. If sustained, this recovery can improve operating leverage, support more efficient use of the asset base, and provide a foundation for rebuilding profitability over the next several quarters.

Negative Factors

Negative cash flowTwo consecutive years of negative operating and free cash flow indicate that reported operations are not currently translating into internally generated liquidity. Persistent cash deficits can increase reliance on financing, constrain investment choices, and create greater liquidity pressure if the negative trend continues.

Tycoons Group Enterprise Co., Ltd. (2022) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.13B
Dividend Yield: ―
Average Volume (3M): 290.64K
Price to Earnings (P/E): -38.3
Beta (1Y): 0.42
Revenue Growth: 37.18%
EPS Growth: 71.66%
Country: TW
Employees: 1,427
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Tycoons Group Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Tycoons Group Enterprise Co.,Ltd., established in 1980 and headquartered in Kaohsiung City, Taiwan, operates as a global producer and supplier of diverse steel products. The company's comprehensive portfolio encompasses billets, steel wire rods, and...

Tycoons Group Enterprise Co., Ltd. Financial Statement Overview

Summary

Weakest pillar. Revenue rebounded ~17% to NT$9.34bn and operating profit swung back positive (NT$93.8m vs a NT$171.6m loss), but the company still posted a net loss of NT$6.1m and has been unprofitable in four of the past six years with thin, volatile gross margins (10.0%). The balance sheet is deteriorating: debt rose ~40% to NT$2.66bn, lifting debt-to-equity to 0.78 from 0.35 two years ago, while equity stayed flat and ROE remains negative. Most critically, operating cash flow was negative for a second straight year (-NT$388.7m) and free cash flow fell to -NT$875.1m, meaning the revenue recovery is being funded by borrowings rather than internally generated cash.

Income Statement

36Negative

Balance Sheet

46Neutral

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.32B	9.34B	8.00B	8.42B	9.62B	10.70B
Gross Profit	851.25M	934.85M	662.84M	1.19B	617.07M	1.41B
EBITDA	394.39M	413.28M	-78.69M	762.41M	443.46M	970.45M
Net Income	-55.91M	-6.12M	-165.30M	80.88M	-64.30M	425.91M
Balance Sheet
Total Assets	11.29B	10.46B	9.21B	8.91B	8.52B	8.73B
Cash, Cash Equivalents and Short-Term Investments	1.07B	802.49M	913.79M	1.16B	1.21B	1.15B
Total Debt	3.21B	2.66B	1.89B	1.26B	1.44B	1.83B
Total Liabilities	4.50B	3.48B	2.54B	2.01B	2.03B	2.42B
Stockholders Equity	3.34B	3.43B	3.38B	3.62B	3.47B	3.46B
Cash Flow
Free Cash Flow	-1.25B	-875.14M	-892.79M	912.79M	661.97M	604.76M
Operating Cash Flow	-776.22M	-388.68M	-391.51M	1.30B	859.93M	735.71M
Investing Cash Flow	-533.64M	-480.07M	-625.77M	-818.60M	-440.96M	-339.96M
Financing Cash Flow	1.34B	575.34M	827.75M	-414.87M	-544.37M	701.19M

Tycoons Group Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2022 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2032	57Neutral	TWD 2.11B	11.10	―	5.40%	0.82%	190.55%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2065	53Neutral	TWD 2.15B	9.26	―	4.42%	8.17%	259.31%
TW:2066	49Neutral	TWD 2.08B	13.04	―	4.51%	-2.41%	82.10%
TW:2038	39Underperform	TWD 2.14B	-14.47	―	―	-18.59%	-845.11%
TW:2022	37Underperform	TWD 2.16B	-38.32	―	―	37.18%	71.66%
TW:2025	31Underperform	TWD 2.20B	8.35	―	―	46.75%	―

* General Sector Average

Performance Comparison

TW:2022 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2022	Tycoons Group Enterprise Co., Ltd.	6.40	-1.51	-19.09%
TW:2025	Chien Shing Stainless Steel Co., Ltd.	10.85	2.09	23.82%
TW:2032	Sinkang Industries Co., Ltd.	16.20	2.56	18.80%
TW:2038	Hai Kwang Enterprise Corporation	11.00	-3.10	-21.99%
TW:2065	Sheh Fung Screws Co., Ltd.	33.90	6.13	22.07%
TW:2066	Sumeeko Industries Co., Ltd.	47.65	-0.88	-1.82%

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

Tycoons Group Enterprise Co., Ltd. AI Stock Analysis